New offices could help plug black hole
THE city council is planning to build its way out of budget difficulties.
Plans are well advanced to create new offices and factories on council-owned industrial estates, Cllr Mark Lowry, Plymouth's Cabinet member for finance, has told The Herald.
City-owned industrial estates already bring in about £6million a year in rents, Cllr Lowry said.
But the council needs to cut £17million from this year's budget and an additional £15million in real terms next year.
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"I am looking at raising revenue in a more proactive way," Cllr Lowry said. He said there was a demand for larger offices and factories in the city.
"That will encourage businesses to relocate to Plymouth, creating jobs and generating rent for the council."
Cllr Lowry said he was looking at land owned by the council, and with infrastructure already in place.
David Parlby, chief executive of Plymouth Chamber of Commerce, welcomed the news.
He said: "There is a fair amount of commercial space available for let but much of it is old and dated and not suitable for modern purposes.
"I could see that there is some logic in this.
"You have to make it as easy as possible for inward investors. Anything which makes it a 'slam-dunk' for investors is a good thing."
Cllr Lowry said that with interest rates as low as 2per cent it made sense to the council to borrow to invest in projects which would generate income.
The council is having to cut £17million from its budget this year and faces having to cut an additional £15million in real terms next year.
The city's 2013/13 budget will come under scrutiny at a series of meetings this week and next.
"The cuts are the result of the coalition Government so the Tories in Plymouth will find it hard to have a go at us," Cllr Lowry said.
"It's a challenge. I have never done anything quite as difficult.
"Behind those cold, hard figures there are going to be real people whose lives will be affected.
"At the same time we have to make sure we grow and develop the city."
Comments
by mcspredder
Wednesday, January 09 2013, 8:09PM
“"Cllr Lowry said. He said there was a demand for larger offices and factories in the city.
"That will encourage businesses to relocate to Plymouth, creating jobs and generating rent for the council."
Umm, if there is demand, why would businesses need encouraging? If there is demand, why are so many offices and industrial premises empty?
In the past (and maybe still) speculative build was financed by grants to build offices and create demand, but are grants still available? A part of the office complex at Sowton in Exeter was, I believe, owned by the Abbey National pension fund. What's their pension fund looking like these days, I wonder?”
by BOREDOFPLYM1
Wednesday, January 09 2013, 4:29PM
“What a load of rubbish by PCC You build to fulfill demand not build and hop ethat the demand will appear
Intrest rates are low so many businesses have already got morgages and are buying their own premises rather than paying council silly money for rent - sisna park is a good example of this
Businesses also look for a sound inferstructure around where they set up offices plymouth is lacking in the department poor rail links poor road links and no air or sea trade links save for BF
PCC could not even organise basic road improvments like laira bridge and gydinia way - no chance of them sorting out local economy”
by Laid_Back
Wednesday, January 09 2013, 1:02PM
“If, as the article seems to be saying, this is about building new industrial units and offices for businesses not the council, then they should be offered to successful and expanding local firms first. These are the backbone of the economy and have greater "staying power" than firms arriving from elsewhere which often disappear after the rent/rates/grant breaks have expired.”
by timplymouth
Wednesday, January 09 2013, 12:46PM
“pogle, you'll be glad to hear Plymouth Community Homes are moving into that building already”
by Waltersmith
Wednesday, January 09 2013, 12:41PM
“I thought that Plymouth Community Homes had moved into it”
by pogle63a
Wednesday, January 09 2013, 9:01AM
“There is a blooming reat big empty perfectly good building at Crownhill the old Land Registry why not move into that and save the long suffering rates payers some money.
Council as per usual seem th think they need somewhere purpose built.”