Sunderland Urban Regeneration Company

1. Sunderland Urban Regeneration Company Presentation by Tom Macartney Chief Executive, Sunderland ARC Welcome & Introduction Outline brief background for new members ~ transition from the ARC to the URC. Welcome & Introduction Outline brief background for new members ~ transition from the ARC to the URC.

2. ARC Introduction Commissioned by Stephen Byers 6/99 Response to major job losses South bank of river Wear Serious social deprivation 17th most deprived borough Unemployment Poverty Health Dr. John Bridge commissioned by Stephen Byers MP on 15th July �99 to form a Task Group and develop a new regeneration strategic vision for the area by July 2000 which was strongly supported by Stephen Byers in Oct �00 and Hilary Armstrong in Jan �01to secure Private Sector investment using a URC. It was established in response to major traditional job losses totalling c.30k since early 80�s and in particular to the Vaux Brewery (430) in Nov �98 and Grove (670) in June �99. The area runs along the South Bank of the Wear from A19 to Port of Sunderland. It is the 17th most deprived borough in England based on yr.2000 indicators having only a �0.25b expenditure by public benefits. Unemployment in the ARC area was 9.4% which 3 time the national average of 3.4.% The Hendon area has 85% poverty, long term sickness is at 22% and in the Thorney Close area, 57% of people have no qualifications.Dr. John Bridge commissioned by Stephen Byers MP on 15th July �99 to form a Task Group and develop a new regeneration strategic vision for the area by July 2000 which was strongly supported by Stephen Byers in Oct �00 and Hilary Armstrong in Jan �01to secure Private Sector investment using a URC. It was established in response to major traditional job losses totalling c.30k since early 80�s and in particular to the Vaux Brewery (430) in Nov �98 and Grove (670) in June �99. The area runs along the South Bank of the Wear from A19 to Port of Sunderland. It is the 17th most deprived borough in England based on yr.2000 indicators having only a �0.25b expenditure by public benefits. Unemployment in the ARC area was 9.4% which 3 time the national average of 3.4.% The Hendon area has 85% poverty, long term sickness is at 22% and in the Thorney Close area, 57% of people have no qualifications.

3. ARC Profile 1700 ha (17sqkm / 6.5 sq m) Population 65,000 - 28,000 households (1/4 TL) 2,000 businesses - 35,000 employees Brownfield sites - 200ha/ 500 acres Initiatives - NDC (�55m),SRB 1-6 (�70M), PFI & H/EAZ (�15m), NRF (�14.3m), ERDF Obj2 (�2.73m), The ARC area is a huge area comprising 10 main communities and the former Industrial Heartland. A quarter of Sunderland�s total population live within the area It holds the core of the City�s businesses. It has a major riverside corridor of Brownfield sites e,g, Port 110ha; Vaux 10ha and Grove 90ha Current initiatives in the area include: NRF in 5 out the 11 wards in the ARC Healthy Living Centre pilots in Pennywell and Sure Start pilot in Thorney Close Sandhill View PFI Community School The ARC area is a huge area comprising 10 main communities and the former Industrial Heartland. A quarter of Sunderland�s total population live within the area It holds the core of the City�s businesses. It has a major riverside corridor of Brownfield sites e,g, Port 110ha; Vaux 10ha and Grove 90ha Current initiatives in the area include: NRF in 5 out the 11 wards in the ARC Healthy Living Centre pilots in Pennywell and Sure Start pilot in Thorney Close Sandhill View PFI Community School

4. ARC Vision 15 year strategic vision - 4 themes Building sustainable Neighbourhoods Raising aspirations ICT Development & investment frameworks Funding - �238m public & �500m private Outcomes 10,000 jobs & 300,000sqm new business space 1,000 new houses 100ha development land The ARC area represents the Historical Heart of Sunderland that needs to rejuvenated to overcome serious Physical, Social and Economic barriers. It needs appropriate delivery vehicles ~ URC physical and LSP social. The URC aims to develop a new integrated long term strategic partnership with joined up programmes and services. It will simultaneously rebuild private sector confidence by providing new development opportunities and promote social inclusion and �equipping� the ARC population with the necessary life and work skills. It is estimated the delivery costs would be c.�700m lasting over a 15 yr period.The ARC area represents the Historical Heart of Sunderland that needs to rejuvenated to overcome serious Physical, Social and Economic barriers. It needs appropriate delivery vehicles ~ URC physical and LSP social. The URC aims to develop a new integrated long term strategic partnership with joined up programmes and services. It will simultaneously rebuild private sector confidence by providing new development opportunities and promote social inclusion and �equipping� the ARC population with the necessary life and work skills. It is estimated the delivery costs would be c.�700m lasting over a 15 yr period.

5. URC - Background Lord Rogers UTF (1999) & UWP (Nov 2000) 3 Pilots & rolling programme Benefits Exert influence Responsive to needs of key partners Galvanise urban strategies Coordinated approach One NorthEast priority Lord Rogers� report entitled �Towards an Urban Renaissance� setting out recommendations re: development and regeneration of urban areas with the key recommendation being the creation of URC�s to co-ordinate such activities and work with Private and Public partners. 3 pilot URC�s were created Liverpool, Manchester and Sheffiled with a further 4 announced in Corby, Leicester and Tees Valley based on a rolling programme of 12 in 3 years. The key benefits are highlighted. The URC is a ONE priority reflected in the RES, RAP and SRP delivery plans with an initial �9m allocated for 3 years.Lord Rogers� report entitled �Towards an Urban Renaissance� setting out recommendations re: development and regeneration of urban areas with the key recommendation being the creation of URC�s to co-ordinate such activities and work with Private and Public partners. 3 pilot URC�s were created Liverpool, Manchester and Sheffiled with a further 4 announced in Corby, Leicester and Tees Valley based on a rolling programme of 12 in 3 years. The key benefits are highlighted. The URC is a ONE priority reflected in the RES, RAP and SRP delivery plans with an initial �9m allocated for 3 years.

6. URC Criteria Key elements Role Area Strategic approach Co-ordination Commitment Resources Independence Involvement Flexibility Role is to realise development and ecomonic opportunities and raise private sector confidence to the point that physical regeneration becomes self sustaining Area must be large enough to offer opportunities that will have regional importance and impact. Approach is based on an agreed strategy which sets out a comprehensive framework for the area focusing on physical development. Co-ordination, Commitment and Resources must be strong, central with a regional and local commitment . Requires significant resources with an initial �9m in place from ONE and �1.5m commitment from COS for operational. Independence has an independent position from any partner Involvement Must have effective stakeholder participation and ownership Flexibility can be tailored to local circumstancesRole is to realise development and ecomonic opportunities and raise private sector confidence to the point that physical regeneration becomes self sustaining Area must be large enough to offer opportunities that will have regional importance and impact. Approach is based on an agreed strategy which sets out a comprehensive framework for the area focusing on physical development. Co-ordination, Commitment and Resources must be strong, central with a regional and local commitment . Requires significant resources with an initial �9m in place from ONE and �1.5m commitment from COS for operational. Independence has an independent position from any partner Involvement Must have effective stakeholder participation and ownership Flexibility can be tailored to local circumstances

7. Why an URC? SURC submission 23 March 2001 Ltd Co. - One NorthEast, COS & Private partners Physical lead Attract private investment Prioritise funding Cement partnerships Secure objectives Manage expectations Distinctive focus The key reasons are to address the problems presented to DETR in Jan �01 The ARC Strategy was aspirational and highlighted the need for an appropriate delivery mechanism An URC was suggested but at the time of the report there was limited guidance on the matter URC submission was presented to Hilary Armstrong MP via DETR and status was achieved on 23rd March 2001 URC is now well into the formation process of creating a company ltd by guarantee and has recently appointed a Chief Executive.The key reasons are to address the problems presented to DETR in Jan �01 The ARC Strategy was aspirational and highlighted the need for an appropriate delivery mechanism An URC was suggested but at the time of the report there was limited guidance on the matter URC submission was presented to Hilary Armstrong MP via DETR and status was achieved on 23rd March 2001 URC is now well into the formation process of creating a company ltd by guarantee and has recently appointed a Chief Executive.

8. SURC Role Lead Physical Exec.Body Co-ordinating funding strategies & bids One Stop Shop Support key infrastructure Influence area wide strategies Area promotion & marketing Prepare master plans & dev�t. briefs Co-ordinate site assembly The URC�s primary roles are as outlined and is to act as the lead executive body for all regeneration initiatives in the URC area and provide advisory linkage to broader socio economic programmes to ensure they tie up and deliver synergistic benefits.The URC�s primary roles are as outlined and is to act as the lead executive body for all regeneration initiatives in the URC area and provide advisory linkage to broader socio economic programmes to ensure they tie up and deliver synergistic benefits.

9. Opportunity Sites Port of Sunderland Hendon Industrial Area Old Sunderland & Sunniside Former Vaux Brewery City Centre Bonnersfield & St Peters Stadium Park & Sheepfolds Deptford Industrial Area Former Groves Cranes & Pallion The main sites in the URC area being as listed.The main sites in the URC area being as listed.

10. Funding & Delivery 3yr draft business plan Annual operating budget - �800,000pa One NorthEast initial budget - �9m 15yr site action plans - min �100m Potential future funding: SRP English cities ERDF PIP 2 Annual URC budget would be shared between ONE and COS with both parties making an allocation for initial funding. The redevelopment of all of the sites is estimated to be �100m with half of that being earmarked for the Port area. Would also require substantial additional funding through such initiatives as: SRP Single Pot with �81m identified for the Tyne & Wear area English Cities Fund subject to satisfying criteria ERDF which focuses on employment creation PIP2 which is currently under formationAnnual URC budget would be shared between ONE and COS with both parties making an allocation for initial funding. The redevelopment of all of the sites is estimated to be �100m with half of that being earmarked for the Port area. Would also require substantial additional funding through such initiatives as: SRP Single Pot with �81m identified for the Tyne & Wear area English Cities Fund subject to satisfying criteria ERDF which focuses on employment creation PIP2 which is currently under formation

11. SARC Formation Currently forming new company � April 2002 Operational funding Board establishment Chief executive and delivery team Premises Business plan UDP planning guidance Marketing / PR The URC is currently in a formation stage with operation funding identified. The Board has been formed which incorporates a predominantly private sector basis. A Chief Executive has been identified and 2 director are currently being identified. The URC will be launched following these appointments. A draft 3 year business plan has been completed and is to be finalised following input from Chief Executive The URC is currently in a formation stage with operation funding identified. The Board has been formed which incorporates a predominantly private sector basis. A Chief Executive has been identified and 2 director are currently being identified. The URC will be launched following these appointments. A draft 3 year business plan has been completed and is to be finalised following input from Chief Executive

12. Best Practice Issues Funding streams & timing Board membership Memorandum & Articles Chief Exec & delivery team Employer & Accountable Body Planning & strategic acquisitions Tax Prioritising projects Stakeholder involvement Funding would primarily be used to �pump prime� areas for Private Sector investment. The Board�s role would be mostly ambassadorial to the ARC area and will work in a true Partnership The Memorandum and Articles of Association are currently in the final stages of completion to reflect best practice issues and the Boards commitment to the area.Funding would primarily be used to �pump prime� areas for Private Sector investment. The Board�s role would be mostly ambassadorial to the ARC area and will work in a true Partnership The Memorandum and Articles of Association are currently in the final stages of completion to reflect best practice issues and the Boards commitment to the area.

13. Learning the Lessons Government Perspective Pilot URCs Private Sector Tailored strong Partnerships Operate at arms length from LA�s Assembly & analysis of baseline data The URC can be a powerful tool enabling significant regeneration and has the potential to increase private sector confidence The URC must be seen to operate independently from other public sector organisationsThe URC can be a powerful tool enabling significant regeneration and has the potential to increase private sector confidence The URC must be seen to operate independently from other public sector organisations

14. Learning the Lessons Practitioners Viewpoint Restrict numbers Scale of resources Strong Partnerships Direct intervention & facilitation Added Value Community Linkage Monitoring & Evaluation The size must be restricted so not to dilute any funding attracted It will require significant resources as major projects are unlikely to be funded solely out of RDA�s budgets as originally envisaged. Must hold power both politically and industrially Results will depend greatly on site ownership and external agencies willing to co-operate Results will have added value if private sector support is gained early to develop greater benefits The outputs must be geared towards local labour markets and have a definite end use Monitoring and evaluation must aim towards balancing local and national outputs.The size must be restricted so not to dilute any funding attracted It will require significant resources as major projects are unlikely to be funded solely out of RDA�s budgets as originally envisaged. Must hold power both politically and industrially Results will depend greatly on site ownership and external agencies willing to co-operate Results will have added value if private sector support is gained early to develop greater benefits The outputs must be geared towards local labour markets and have a definite end use Monitoring and evaluation must aim towards balancing local and national outputs.