Eden Westwood: Socio-Economic Benefits

Eden Westwood: Socio-Economic Benefits 1. Introduction August 2016 1.1. This summary note has been prepared by GL Hearn on behalf of Friend s Life Ltd (FLL) to outline the socio-economic benefits of the emerging Eden Westwood scheme at Junction 27 of the M5 Motorway, Devon. 1.2. The Eden Westwood proposals and vision have developed in partnership with the Eden Project and comprise an exemplary leisure and tourism destination located at J27 of the M5 Motorway - the gateway to Devon and Cornwall. The opportunity is informed by a rationale driven by the unique locational factors; the notable environmental assets; the economic strengths and profile of the region; and the demands of the visitor economy and emerging recreational opportunities. 1.3. The development comprises four key elements as summarised below, anchored by a visionary and unique visitor attraction created and operated by the Eden Westwood team and founded upon the principles of sustainability that are realised and demonstrated at The Eden Project. The individual elements should not be seen in isolation. Each element is intrinsically linked providing a collaboration of uses creating a nationally significant leisure and tourism destination. A summary of each element can be found below. Eden Ark will be an agronomy centre a visitor attraction enabling people to understand issues relating to food production and promoting sustainable food production. It will be contained in a landmark building. It will contain a regional visitor hub, festival food hall, ticketed visitor attraction called Eden Gallery, food- and drink-related business/enterprise units, and a 100 room themed hotel. Outdoor Adventures will be based on a surf lagoon. It will use newly developed technology to provide perfect surfing waves in an inland location. It would be the focal point for a variety of supporting outdoor activities such as beachside play, aerial high ropes and adrenaline activities. Designer Outlet Centre will provide a retail offer that is different from that offered in town and city centres in the south west, offering the opportunity for retailers, many of whom are not found on the high street, to sell end-of-range and surplus stock direct to consumers. Travel Hub will provide services for travellers, including fuel, an electric car hub, and a hotel associated with the services. 2. National Planning Policy Framework 2.1. The National Planning Policy Framework (NPPF) (March 2012) sets out the Government s overarching planning policies for England. At the heart of the NPPF is a presumption in favour of sustainable development which should be seen as the golden thread running through both planmaking and decision-taking. The NPPF set outs the three dimensions of sustainable development: an economic role, a social role, and an environmental role. Final.docx Page 1 of 10

an economic role contributing to building a strong, responsive and competitive economy, by ensuring that sufficient land of the right type is available in the right places and at the right time to support growth and innovation; and by identifying and coordinating development requirements, including the provision of infrastructure; a social role supporting strong, vibrant and healthy communities, by providing the supply of housing required to meet the needs of present and future generations; and by creating a high quality built environment, with accessible local services that reflect the community s needs and support its health, social and cultural well-being; an environmental role contributing to protecting and enhancing our natural, built and historic environment; and, as part of this, helping to improve biodiversity, use natural resources prudently, minimise waste and pollution, and mitigate and adapt to climate change including moving to a low carbon economy. 2.2. This summary note focusses on the benefits of the Eden Westwood proposals with specific reference to the economic and social dimensions of sustainable development. 3. Mid Devon Corporate Plan 2016 to 2020 3.1. The Mid Devon Corporate Plan 2016 to 2020 sets out the vision and priorities for Mid Devon. The Vision: Making the most of Mid Devon, is followed by four key priorities: economy; homes; community and environment as summarised below. 3.2. Economic aims include: Attract new Businesses to the District; Focus on business retention and growth of existing businesses. Improve and regenerate Mid Devon s town centres with the aim of increasing footfall, dwell-time and spend in town centres; Grow the tourism sector. Work in partnership with the Heart of the South West Local Enterprise Partnership, Devon County Council and Exeter, East Devon and Teignbridge on projects that will support and grow the local economy Be proactive in bringing in funding to the District to support economy projects Be more entrepreneurial and commercial as a Council 3.3. Community aims include: Work with communities to encourage them to support themselves; Work with town and parish councils; Increase activity and promote health and wellbeing. Final.docx Page 2 of 10

3.4. Environmental aims include: Increase recycling and reduce the amount of waste going to landfill; Reduce Mid Devon s carbon footprint; Protect the natural environment 4. Socio-Economic Benefits 4.1. The following sections provide a summary of key socio-economic benefits arising from the Eden Westwood proposals. Business Rates 4.2. The Business Rates Retention Scheme (BRRS) was introduced in April 2013 as part of the Government s reform agenda, which sought to prioritise economic growth and localism. As part of the scheme, Councils can retain up to half of the business rates revenue arising from new businesses setting up, or existing businesses expanding in their area. In Mid Devon 50% of the Business Rates collected is paid to Central Government, 9% is distributed to Devon County Council and 1% is paid to the Devon and Somerset Fire Authority. The remaining 40% is distributed to Mid Devon. 4.3. As part of the Cities and Local Government Devolution Bill and as per the Queen s speech on the 27th May 2015, the Government has announced its commitment to the 100% retention of business rates by local government. Progress towards 100% retention of business rates forms part of a wider reform package and includes options for local authorities to agree multi-year financial settlements and the abolition of the levy on revenue growth in the current business rates system. 4.4. At the time of writing, a twelve week consultation on the 100% BRRS is underway lasting between 5 th July 2016 and 26 th September 2016. The timetable indicates that legislation will be introduced in the Parliamentary session in early 2017, with piloting on selected authority areas (Greater Manchester and Liverpool City) in April 2017. Implementation of the 100% BRRS is anticipated by the end of this Parliament (May 2020). 4.5. Initial calculations have been undertaken and indicate that the Eden Westwood proposals could generate in the region of circa 2 million business rates receipt per annum. From May 2020 Mid Devon District Council would be eligible to retain 100% of these business rate receipts representing a significant local economic benefit. Employment 4.6. Applying the Homes and Communities Agency (HCA) Employment Density Guide (November 2015) it is estimated that the Eden Westwood proposals would generate around 1,186 new FTE jobs within the site. A summary breakdown against each development zone is summarised as below. Final.docx Page 3 of 10

Estimated Employment Generation from Eden Westwood (FTE Jobs) Zone Number of FTE jobs Eden Ark 334 Outdoor Adventure 12 Designer Outlet Centre 746 Travel Hub 94 Total 1,186 4.7. The 1,186 FTE jobs generated by the Eden Westwood proposals will span a broad range of occupations and skill levels significantly enhancing the choice of jobs on offer to local residents thus reducing levels of out-commuting. The scheme will also make a significant contribution towards non-b class jobs (including leisure, retail, tourism, etc) diversifying the District s economy. The scheme will inevitably draw on a wide labour catchment area and will also provide valuable employment opportunities for those in neighbouring districts currently struggling to find work. Eden Westwood would lead to further catalytic effects in employment including, for example, landscape gardeners, security, IT provision and engineers. 4.8. It is anticipated that a large number of the new job opportunities will be taken by young people, particularly those in the 18-24 age group. For example, research by Skills Active 1 lists the key benefits of the outdoor leisure sector, and includes, amongst other benefits rural regeneration and jobs for young people in rural areas (p.5). 4.9. As evidenced by the Economic and Employment Land Evidence report produced by CBRE and appended to the Eden Westwood Local Plan representation (April 2015), the Eden Westwood proposals at Junction 27 will not unduly inhibit or prejudice the delivery of other employment sites in the District. The proposals will, instead, provide for a type of employment opportunity which is currently limited in the area. The proposals will drive investment and economic development significantly benefiting the District and the region. Construction Employment 4.10. The development proposals will generate additional employment for construction workers in the area. It is likely that many of the construction companies would be located within Mid Devon or the wider Devon region thus leading to continued employment for subcontractors in Mid Devon and the surrounding districts. 4.11. It is estimated that the construction phases will last approximately 1.5 years including site preparation and infrastructure provision. The number of people likely to be employed during the construction phase can be calculated on the basis of capital cost estimates. For indicative purposes it has been estimated that the overall project capital expenditure of the proposed development would be 90mn allowing for infrastructure and the abnormal costs likely to be involved in developing the site. 4.12. For the purpose of this exercise it is assumed that approximately 75,000 of capital construction expenditure supports one person/year of construction employment. When the 90mn cost is divided by the capital construction expenditure per employee, it gives an estimate 1200 1 Skills Active (Sector Skills Council) The UK Outdoor Sector: A Guide 2011 Final.docx Page 4 of 10

person/years. These jobs are short term in that they will last some or all of the construction period of the project. This makes it difficult to describe the jobs likely to be created or supported by the development in terms of Full Time Equivalent jobs. The total likely job creation also comprises on-site and local area employment, as well as more remote employment, comprising professional advisors, pre-fabrication and building project manufacturing jobs and other building/construction service providers. 4.13. Employment studies typically consider, however, that one full-time equivalent (FTE) construction job comprises 10 construction job years. This therefore translates into 180 FTE gross additional construction jobs over an estimated 1.5 year build period. 4.14. As these jobs are short term/ temporary there are considered to be no implications for the housing requirement in Mid Devon arising from the construction jobs. Indirect and Induced Construction Employment 4.15. Direct construction employment will support further employment in the local economy, through indirect or supplier effects and induced or income multiplier effects. This includes expenditure in the local economy including, for example, temporary accommodation, food, drink and other requirements. This will arise primarily during weekdays for temporary construction workers. 4.16. The table below forecasts the projected extent of indirect and induced temporary construction employment generated within the local economy. This is based upon proportions of the direct construction jobs created. Predicted Indirect and Induced Construction Employment (Person/Years) Direct Jobs (person/years) Indirect Jobs (Direct x 0.05) Induced Jobs (20% Direct + 40% Indirect x 0.1) Total Direct, Indirect and Induced (Person/Yrs) 1200 60 246 1506 4.17. This therefore translates to around 46 FTE gross additional indirect and induced jobs over an estimated 1.5 year period. 4.18. As these jobs are short term/ temporary there are considered to be no implications for the housing requirement in Mid Devon arising from the indirect and induced construction jobs. Visitor Numbers 4.19. Projected visitor numbers to Eden Westwood have been calculated by Colliers International and CBRE within the Leisure Impact Assessment (August 2016), the Town Centre Uses Statement (August 2016) and the Forecasting Likely Scheme Footfall Statement (June 2016) supporting the Eden Westwood proposals. 4.20. In summary, Eden Westwood is a unique proposal with no direct comparison. It is therefore difficult to compare the scheme to existing ones in the UK. However, by using a range of schemes the likely performance of Eden Westwood has been predicted in the context of wider market performance. CBRE project that the level of annual footfall would be around 4.3 million visitors. This results in a total of 3,234,511 visitors to Eden Westwood, when allowing for cross visits between the various attractions located at the development. Final.docx Page 5 of 10

4.21. The visitor numbers will inevitably lead to increased expenditure not only within Eden Westwood itself but also within the area. Likely catalytic effects from the visitor numbers are summarised below. Catalytic Effects 4.22. Visitor numbers and expenditure will not be confined to the Eden Westwood site. The significance of the Eden Westwood proposals as an exemplary leisure and tourism destination will lead to increased investment and expenditure in the surrounding area. Eden Westwood will stimulate wider growth in the Mid Devon visitor economy, taking advantage of its key strategic location at the gateway to Devon, on the main tourist transport route to Cornwall and North Devon. 4.23. Eden Westwood will intercept visitor traffic ensuring that tourists stop in, and not just pass through, Mid Devon. In doing so, Eden Westwood will attract and trade on a higher value offer stimulating other operators to invest. This will in turn strengthen the ability of Mid Devon to draw in yet more visitors, increasing visitor length and spend per head. As explained within the Colliers Leisure Impact Assessment (August 2016) Eden Westwood would attract visitors to make trips that would not otherwise have been made, which will in turn stimulate trips to other attractions. 4.24. The Designer Outlet Centre (DOC) component will provide a key leisure and tourism attraction in itself 2. DOCs are about more than a functional shopping trip. Many visitors consider themselves to be on a day out rather than responding to everyday shopping needs to which Town Centres are aligned to. Notably, most, and probably all, shoppers will continue to visit town centre stores as well as the DOC, in order that they can access a full range of products including, for example, the latest fashions available in high street stores and the end of line products found at the DOC. There is, therefore, considered to be very little prospect of shoppers visiting a DOC but not visiting town centres of, for example, Tiverton, Cullompton and Crediton. Footfall and spend in town centres will as a result remain high and the impact on the town centre would be insignificant 3. It is highly likely that catalytic effects would have a positive effect on local businesses and town centres. 4.25. As visitor numbers increase it is expected that investment in the town centres and nearby settlements will follow. The development therefore presents a key opportunity for significant economic benefits for the Town Centre, including through enhanced town centre initiatives and joined up thinking. The regional tourist information centre, for example, will encourage linked trip benefits. Friends Life Ltd and the Eden Project are committed to collaborative discussions with local business groups and Mid Devon District Council in respect of exploring and encouraging town centre links and benefits. 4.26. To summarise, expected catalytic effects would include (but are not limited to): Investment in new and upgraded visitor accommodation; Local food and retail investment; Investment in other leisure and outdoor activity pursuits; 2 The nature and function of DOCs has been summarised in the Designer Outlet Centre Non-Technical Summary prepared by GL Hearn. 3 The impact of the Designer Outlet Centre on Town Centre Uses has been assessed within the Town Centre Uses Statement dated 3 rd August 2016 prepared by CBRE. Final.docx Page 6 of 10

Investment in the town centres; Supporting Local Businesses and Education 4.27. Key findings from Exeter University s Centre for Rural Policy Research 4 conveys quite clearly that there is a strong rationale behind bringing together food producers in a way that can lead to collaboration, joint marketing and promotion and in a manner that creates a showcase for regional produce and agri-industry. 4.28. The disparate and small-scale characteristics of many regional producers militate against strong representation in both national and international markets (which are identified as offering strong growth opportunities). Eden Westwood could create a centre that promotes collective marketing and exposure to these markets, in part via an educational visitor attraction, which could act as springboard to promote the Devon food economy and Brand-Devon. 4.29. The vision behind the Eden Ark is to create a curated exhibition space focusing on the Devon farmscape and food. The Eden Ark will include an Eden Gallery dedicated to explaining the role of food production and preparation, and the importance of small scale producers to the Devon economy covering artisan producers of dairy produce; meat products; butchery; curing; salting; smoking; brewing; juices and spring waters; bakery and preserves. The Eden Ark will include an area of regulated retail space the Festival Food Hall - where food outlets for established and emerging Devon food producers and craftspeople could be established to provide a shop window for Devon food and Brand-Devon. The proposals therefore offer a unique opportunity for local small scale businesses to showcase their businesses taking full advantage of the significant number of projected visitor numbers. 4.30. The Eden Ark will contain a substantial scientific and research dimension the Research and Education Hub - and will act as a shop window for the latest research in food and farming. In partnership with local universities, including Exeter University, the Eden Ark will create a hub to explore the food challenges of the 21 st century. Offices, studios and classrooms will provide accommodation for partner businesses and organisations, creating a food related business cluster. 4.31. The Eden Ark will contain a regional visitor hub, which will be the only of its kind in Mid Devon. The Visitor Hub will be a celebration of the region s special places and experiences, acting as a key source of information broadcasting local business and enterprise, encouraging visitors to explore Mid Devon and the Devon region. Increased Participation in Sports and Leisure 4.32. The NHS endorses regular physical activity as having many health related benefits, including stress management, quality of life, mental health, and improved wellbeing. According to the UK Chief Medical Officers Guidelines (2011) people who are physically active have up to around a 40% reduced risk of developing type II diabetes, 35% reduced risk of cardiovascular disease, and a 30% reduced risk of falls, depression and dementia. 4 Exeter University - The Centre for Rural Policy Research: A Review of Devon s Food Economy (Research paper 34 June 2012). Final.docx Page 7 of 10

4.33. The importance of promoting a planned approach to the provision of facilities and opportunities to participate in sport is further recognised and endorsed by Sport England. Sustainable development goals, as outlined by Sport England 5, include: Recognising and taking full advantage of the unique role of sport and active recreation in contributing to a wide array of policy and community aspirations, including leisure, health and education Using sport and recreation as a fundamental part of the planning and delivery of sustainable communities. The development of partnership working using sport and active recreation as a common interest. 4.34. Eden Westwood would make a positive contribute towards increasing participation in sports and leisure activities in the region and beyond. This includes through the following key benefits: Provision of a national visitor attraction providing a facility for residents and visitors to explore new leisure pursuits. Facilitating a range of activity based occupations. Promoting Mid Devon as a hub for activity based tourism. Promotion of healthy and active lifestyles through tourism and education. 5. Conclusions 5.1. This summary note provides an overview of the social and economic benefits arising from the Eden Westwood proposals. 5.2. The socio-economic benefits summarised within this statement demonstrate that Eden Westwood would make a substantial boost to the economy of Mid Devon and Devon. Eden Westwood would make a signification contribution towards the principle of building a strong, responsive and competitive economy, supporting growth and innovation reflecting the economic role of sustainable development 5.3. The socio-economic benefits summarised within this statement demonstrate that the Eden Westwood proposals would make a substantial boost towards health, social and cultural wellbeing. The proposals would create strong, vibrant and healthy communities reflecting the social role of sustainable development. 5.4. Furthermore, Eden Westwood would make a significant contribution towards the aims and priorities of Mid Devon District Council as set out in the Mid Devon Corporate Plan 2016 2020. The table below provides a summary of the key benefits of Eden Westwood against the aims and priorities contained within the Mid Devon Corporate Plan. 5 Sport England Planning for sports aims and objectives guide (July 2014) Final.docx Page 8 of 10

MDDC PRIORITY/ AIM EDEN WESTWOOD Economy Attract new Businesses to the District; Focus on business retention and growth of existing businesses. Introduction of a nationally significant and exemplary leisure and tourism destination pioneered in partnership with the Eden Project. Improve and regenerate our town centres with the aim of increasing footfall, dwelltime and spend in town centres; Grow the tourism sector; Work in partnership with the Heart of the South West Local Enterprise Partnership, Devon County Council and Exeter, East Devon and Teignbridge on projects that will support and grow the local economy; Increased investment and expenditure in Mid Devon and the region including: investment in new and upgraded visitor accommodation; local food and retail investment; investment in other leisure and outdoor activity pursuits; investment in the town centres. Opportunities for linked trip benefits increasing footfall and spend in the town centres. Be proactive in bringing in funding to the District to support economy projects; 1,186 FTE jobs including high value and skilled jobs, and jobs for young people; Be more entrepreneurial and commercial as a Council. 180 FTE construction jobs, and 46 FTE induced and indirect construction jobs over the construction period. Reduction in out-commuting and outspending; Halo spending effect of over 3m visits per year; Community Work with communities to encourage them to support themselves; Work with town and parish councils; Increase activity and promote health and wellbeing. Business rate receipts of circa 2 million per annum. An education and enterprise-led hub pioneered by the Eden Project principles. Support for local producers and retailers encouraging them to support themselves; A new cultural hub for Mid Devon; Provision for residents and visitors to explore new leisure pursuits. Facilitating a range of activity based occupations. Promoting Mid Devon as a hub for activity based tourism. Final.docx Page 9 of 10

Promoting healthy and active lifestyles through tourism and education. Environment Increase recycling and reduce the amount of waste going to landfill; Reduce our carbon footprint; Protect the natural environment A pioneer for sustainability and recycling led by the Eden Project ethos; Educating sustainability principles; Electric car hub promoting sustainable travel; New and improved green infrastructure; Final.docx Page 10 of 10