More MASSIVE speculative industrial development at Clyst Honiton with benefits to LEP

Owl says: watch the claims of “new” jobs – most companies are relocating from premises just outside the “Growth Point” to take advantage of subsidies such as business rate holidays and are NOT creating “new”jobs at all.

“It appears major development at Clyst Honiton on the edge of Exeter will not cease any time soon, with outline plans in for an 110,000sqm industrial park next to the Lidl depot. The massive development would create between 1,530 and 1,817 new jobs and contribute an extra £90 to £105m to the regional economy. [Owl says: pinch of salt needed here – Skypark made similar claims but has attracted few NEW jobs – mostly only locally relocated ones, see above].

It’s second phase of development at land at Hayes Farm on behalf of Church Commissioners For England. The huge chunk of land is earmarked for more storage and distribution warehouses, offices and business space as part of the Exeter and East Devon Growth Point.

It would also need associated parking, servicing, yard areas, landscaping and engineering works including demolition of existing building within the site. The development also sits near the Skypark, a similar development of a similar size [Owl:which is currently still mostly empty after several years of marketing and an abortive attempt to relocate the EDDC HQ from Sidmouth].

At the moment the future occupiers are unknown, but it’s possible a major company could take the entire site. Options for the land include space for 540 car parking spaces on a two unit scheme, and 530 for a multi-unit scheme. [Translation: speculative building].

Alongside news of the latest planning application, buildings at the nearby Skypark development are already taking shape. Built over 20 years, the 110-acre Skypark site will provide 1.4 million sq ft of warehouse, industrial and office space and deliver up to 6,500 new jobs.

When it completes this autumn, this new office building will create 17,142 sq ft of employment space.

The new offices will join the Ambulance Special Operations Centre (ASOC West) and DPD UK’s new 60,000 sq ft distribution centre on site [relocated from nearby Sowton]. They will benefit from the £3.5 million worth of investment in road and services infrastructure at Skypark and the five-acre public realm area, complete with trim trail exercise stations.

Ian Guy, Senior Development Manager for St. Modwen and Devon County Council’s development partner for the £210m Skypark development, said: “These speculative [Owl’s BOLD] offices are going up alongside the new headquarters for Devon and Cornwall Housing [relocating from central Exeter], which is also under construction on site. They represent the first major office development in Exeter for many years and are a strong sign of the improving occupier market in the local area.”

How can you say the market is improving when buildings are speculative, they have no confirmed interest and those which ARE occupied are taken by locally relocated businesses taking advantage of incentives such as no business rates for 5 years to move. And, of course, the Local Enterprise Partnership benefits!

“The current iteration of Enterprise Zones was established by the Government in 2012, as part of their long-term economic plan. They are geographically defined areas, which aim to support growth by encouraging businesses to locate within them, providing a number of incentives including:

Up to 100% business rate discount worth up to £275,000 over 5 years
Simplified local authority planning
Roll out of super-fast Broadband where necessary
For zones in Assisted Areas, 100% enhanced capital allowances (tax relief) to businesses making large investments in plant and machinery.

Any business rates growth generated by the Enterprise Zone (over the next 25 years) is retained by the Local Enterprise Partnership (LEP) to reinvest in local economic growth.”

Click to access CS1622%20Enterprise%20Zones.pdf