Agenda item

Report for Decision

ORDERED that Executive:

 

1.    Approve the appointment of Capital and Centric as the Council’s development partner to lead the regeneration and development of Middlehaven.

2.    Approve the use of £3.6m from the Towns Fund grant allocation for Urban Living and Placemaking to develop designs up to RIBA Stage 4 to enable the procurement of a main contractor.

3.    Delegates authority to the Section 151 Officer (in consultation with the Director of Regeneration) to agree any variations to the proposals within the overall budget allocation.

The Executive Member for Development submitted a report for Executive’s consideration. The purpose of the report sought approval to appoint Capital and Centric as the Council’s development partner to lead the regeneration of Middlehaven and develop proposals for the area up to RIBA Stage 4.

 

Middlehaven was the key regeneration area in Middlesbrough, with the potential to transform the economic prospects of the town, and provide new communities for people to live in. Its proximity to, and influence on, the town centre made it vitally important that the development of Middlehaven was taken forward successfully.

 

The development of Middlehaven had been underway for some time and had seen a number of projects on site in recent years including:

 

·         Completion of Boho X, the 60,000 sq ft headquarters of Double 11

·         Outwood Riverside secondary school scheduled to be complete by Spring 2027

·         Completion of the TTE technical training facility in March 2025

 

The ongoing investment in Middlesbrough Railway Station and Exchange Square also provided a much improved gateway into the area. Middlehaven was, however, most notably home to the fastest growing tech cluster outside of London within the Boho Zone, with innovative companies providing hundreds of digital jobs, serving clients including Microsoft and Sony.

 

The growth of the digital sector had been rapid and expansive, but risks being limited by a lack of available urban living options for young professionals who were not seeking the traditional suburban product available in the rest of the town. Unless a housing offer developed at the same pace as the sector, highly trained and highly sought after young people will potentially seek accommodation elsewhere.

 

It was therefore critical to the future success of the town that Middlehaven was developed.

 

The Executive Member for Development stated that previous initiatives to develop Middlehaven had been piecemeal, but this now needed to have a joined up approach. However, there was also a need to exercise caution to ensure the development of Middlehaven was robust.

 

The Executive Member for Children’s Services agreed that while some caution should be exercised this was an exciting development for Middlesbrough and would be a be a significant boost to both the Middlehaven area and the town centre generally.

 

The Mayor stated he was confident about the development, and that it presented an opportunity to support Middlesbrough’s next industry. The Mayor also stated the decision had been reached using robust governance and financial procedures and he was excited to see how communities could be involved.

 

The Mayor stated that for initiatives such as this it was important that all key stakeholders, such as Teesside University, were involved in the process as much as possible.

 

OPTIONS

 

The Middlehaven site was identified in the Mayoral Development Corporation – Consultation report that was endorsed by Executive on the 22 February 2023.

 

The previous proposal to transfer a number of Council assets over to the MDC had been paused by the Secretary of State due to wider concerns over the governance of mayoral development corporations.

 

In the absence of a decision by the Secretary of State, the proposal from Capital and Centric presented an opportunity to progress the comprehensive development of the site.

 

The Council could elect not to proceed with the appointment of Capital and Centric and the £3.6m Towns Fund allocation could be re-purposed for urban living initiatives across the town, but the redevelopment of Middlehaven would not proceed unless significant investment could be secured.

 

ORDERED that Executive:

 

1.    Approve the appointment of Capital and Centric as the Council’s development partner to lead the regeneration and development of Middlehaven.

2.    Approve the use of £3.6m from the Towns Fund grant allocation for Urban Living and Placemaking to develop designs up to RIBA Stage 4 to enable the procurement of a main contractor.

3.    Delegates authority to the Section 151 Officer (in consultation with the Director of Regeneration) to agree any variations to the proposals within the overall budget allocation.

 

REASONS

 

The redevelopment of Middlehaven was needed to address several critical challenges faced by the town and its surrounding areas, which were common to many towns and cities across the north.

 

These included:

a)    A lack of high-quality urban housing that appeals to a broad demographic, particularly young professionals and families.

b)    Underused land with limited visual and economic contribution to the town.

c)    A population decline, and in particular, the out migration of economically active individuals, resulting in reduced discretionary spending and local investment.

d)    Highly trained or qualified young people leaving the town and not returning.

e)    The need for the Council to generate additional income streams, such as enhanced Council Tax receipts will be greatly enhanced by the development of Middlehaven.

 

Addressing these challenges required a bold, collaborative approach to urban regeneration. Middlehaven's development would capitalise on the area's proximity to major transport links, its rich history, and its potential as a cultural and economic hub.

 

Capital and Centric had a track record of delivering award-winning developments that demonstrated their ability to combine expertise in creating a masterplan vision, with a commitment to long term community creation and curation. Their appointment as development partner for Middlehaven could positively impact residents and visitors for generations to come.

 

Uniquely, Capital and Centric were both a Development Partner and End User who would be invested in the area to ensure the sustainability of the site in the long-term.

 

This contrasted with previous proposals, which were to act solely as the Council’s Development Partner.