John Betty Development & Major Projects Bath & North East Somerset Council

UK Property returns/values

Percentage of vacant retail and licensed units vacant B&NES Estate

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Nov-10 Dec-10 Jan-11 Feb-11 Mat 11

Months

Perc

ent B&NES Estate

NationalBath

Shopping centre new floor space 2008- 2013

Trends in quarterly housing starts and completions

Impact of cuts on construction industry

-2,000,000

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2006 2007 2008 2009 2010 2011 2012 2013

Threeways Fosseway St Keyna Writhlington Batheaston WASP Ralph Allen School Oldfield School

Schools Capital Projects plus forecast

B&NES: Meeting the financial challenge

• The comprehensive spending review sets out real terms reductions of 30% in local authority budgets over the next four years across the whole Country.

• B&NES further In Year savings in 10/11 =£1.8m of capital and £1.8m of revenue

• B&NES further lost In Year 11/12, £10.3m = 16% of budget in ONE year.

• B&NES will lose a further (8%) in 12/13Therefore…• The Council plans to achieve a £38m reduction in annual

spending by 2014/15• Revenue is the ability for Council to support Capital spend

iceberg

43 44 43

37

7774

66

51

59

-

10

20

30

40

50

60

70

80

90

2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2017

Financial Year

'£' m

illio

nB&NES Project Spend

Housing

-80

-60

-40

-20

0

20

40

60

80

100

Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11

net b

alan

ce in

stru

ctio

ns/ e

nqui

ries

-80

-60

-40

-20

0

20

40

60

80

100

Stoc

k pe

r sur

veyo

r offi

ce

Unsold stock New Enquiries

i

Buyer confidence

Lending to individuals % of disposable income

0

20

40

60

80

100

120

140

160

180

No

v-

87

No

v-

88

No

v-8

9

No

v-

90

No

v-

91

No

v-9

2

No

v-

93

No

v-

94

No

v-9

5

No

v-

96

No

v-9

7

No

v-9

8

No

v-

99

No

v-0

0

No

v-0

1

No

v-

02

No

v-0

3

No

v-0

4

No

v-

05

No

v-0

6

No

v-0

7

No

v-

08

No

v-0

9

Pe

rc

en

Household debt to income ratio

99170 210.6 235 271

352

480

620

764

887

1009

1,116

0

200

400

600

800

1,000

1,200

1,400

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Cumulative shortfall (000,s)

Shortfall (000,s)

Housing Completions (000,s)

Savills Household Projections (000,s)

… because fundamental

stock shortage persists

There is a huge development opportunity

Housing tools

Leadership: Vision to Delivery

Vision

Futures

Economic Strategy

Core Strategy Solid

Liquid

Gas

Gateways Current ProjectStatus

2005

2009

2010

2011

2007

Crystal

Treasure & TransformDelivery

We are

here

SustainableGrowth Strategy

Health & wellbeing

Environment

Economic Core

Transport

Waste

Education

Property Assets

•Leadership and a vision

•Clear Plan

•Infrastructure

•Advocacy and promotion of area

•Seeking public/private Co-operation

•Reducing red tape and cost

Our role

EVENT NAME BOXJohn Betty Strategic Director Development & Major Projects

PEOPLE

BUSINESS PLACE

PROSPERITY

•Bath in the future will be a City of Ideas where knowledge and creativity combine to create value and enhance quality of life.

•The Bath City Riverside area represents an exciting opportunity to create a cluster of sites that deliver 21st century workspaces and homes for the knowledge and creative sectors.

•Academia and business would be connected by new infrastructure and outstanding public realm.

Our City of Ideas…

A once in a lifetime opportunity

World class collaborative and interdisciplinary workspace:

Venue for University Continuing Professional Development in STEM subjects

Innovation centre hosting 100 high tech, high growth companies (resident and virtual)

HQ of innovation Company

Major high tech publishing industry business HQ

Knowledge Hub for ICT, microelectronics, smart grid sectors

Manufacturing skills academy

This is what it would look like

An exemplar public/private partnership creating new ideas, spin outs and high growth companies

21st century workspace

Vibrant / creative / valuable

Well connected

Connected to academia

High quality design

City Centre location

Shared facilities

Support mechanisms – mentoring, professional services, legal, financial, protection of Intellectual Property), access to venture capital

GREAT PLACES

Environment, Culture

Economy, community SkilledPeople/knowle

dge

Goodjobs

Demand for better

transport

Continuedinvestment

Successfuleconomy

Competitivebusiness

Attract

Generate

Enable

Generate

Generate

Support

BUILDING A CITY OF

IDEAS

EDUCATION

GREAT PLACES

Environment, Culture

Economy, community SkilledPeople/knowle

dge

Goodjobs

Demand for better

transport

Continuedinvestment

Successfuleconomy

Competitivebusiness

Attract

Generate

Enable

Generate

Generate

Support

BUILDING A CITY OF

IDEAS

EDUCATION

Where we will live, work and play

Public/private delivery

Saw Close, Bath

Public/private opportunity

Market Towns

Keynsham Regeneration

Temple Street Regeneration, Keynsham

Property Asset Delivery Vehicle

• The Council owns a substantial commercial estate that generates about £14M of annual rental income and has a book? value in the accounts over £200M.

• The estate represents about two thirds of the retail property in the centre of Bath. In addition there are a number of potential development sites in Bath and elsewhere which are owned by the Council and which also have a significant development value.

• The generation of Capital Receipts is expected to come from to the Commercial Estate.

The Private sector will need to:

• Have well thought through proposals and innovative ways of funding them

• Rely less on the public sector

• Distinguish between authorities that have a clear plan from those that don’t

• Protect downside of investment rather than maximising upside

• Going to have to think of better ways of making use of each others capacities and think of cleverer ways of asking us what is helpful

• Accept we cannot deliver as we did in the past due to Government spending reductions

The Public sector will need to:

• Have a clear corporate plan

• Be prepared to be an investor

• Utilise its property holdings

• Utilise its covenant

• Have a design for growth

• Remove barriers

• Fight for infrastructure investment

•Be actively engaged in the West of England

Working together