£2.3 million grants means plans for new business centre on difficult site are back on the planning agenda

By Neil Speight

31st Dec 2019 | Local News

IN a bid to boost the growth of small business in the borough, Thurrock Council is set to expand an existing business centre with 20 new units.

The scheme is not new, but challenging building conditions including clearing contaminated land from its previous use as rail sidings; and elevated methane gas levels, asbestos dusting and proximity to flood risk areas, meant the pject was put on hold.

But a grant of £2.36 million from the South East Local Enterprise Partnership means it is now viable and plans have been submitted for the expansion of the Riverside Business Centre in Tilbury.

The centre currently provides 2,663 square metres of lettable accommodation, comprising of 39 office, studio and workshop units alongside business facilities which include a boardroom, reception and breakout area.

The centre is well used with occupancy levels currently at 95%. Building on its success, Thurrock Council is looking to build a new freestanding 1,300 square metre expansion building comprising of 20 self-contained workshop units.

In a statement supporting its plans the council says: "Tilbury Riverside Business Centre is part of Thurrock Council's Enterprise Units Programme which seeks to support economic growth and create new job opportunities through the provision of good quality workspace targeted at start-up, small and medium businesses.

"There is however evidence of market failure in the supply of small business workspace in Thurrock.

"Whilst there is strong demand for small managed/serviced workspace in the area, private developers are deterred by poor returns. Generally higher capital investments are required for managed workspace.

"The proposed development is part of the Council's intervention to address the disparity between the supply viability and demand for small business workspace.

"In addition to providing the premises with specifications that meet the needs of small and medium sized businesses, the development also provides access to business facilities (such as a receptionist, conference rooms and equipment) and business support & advice (e.g. finance, marketing, management skills and technical support), so providing the best possible start for new and growing businesses.

"In Thurrock, the number of early business failure is above national average, therefore much attention is given to the quality of support offered to small businesses - to help them overcome the challenges of start-up and growth.

"Ultimately helping these businesses reach their true potential and ensure their continuing success.

"The Development Site location (close to the nearby heritage asset of Tilbury Fort); the challenging ground conditions (deep piles); the work required to clear the contaminated land from its previous use as rail sidings; and elevated methane gas levels, asbestos dusting and proximity to flood risk areas, all mean there are considerable remedial works required for consideration in the expansion of the Business Centre.

"This remedial work has contributed previously to its market failure as, although there is high demand for workspace in this location, the cost of such work prevented the Private Sector from investing in this development.

"The scheme could not be realised therefore without Public Sector intervention.

"Thurrock Council recognises the need for such intervention and has explored various solutions (including inviting the construction industry to offer cost innovation solutions to the design and construction), unfortunately without success.

"The high capital outlay, coupled with poor returns compounded by exceptionally challenging ground conditions, had previously rendered the scheme unviable without additional external grant funding. The scheme was therefore placed on hold for three years until a recent Award of £2.36 million 'Local Growth Fund' grant from the South East Local Enterprise Partnership was recently secured.

"This has rendered the Project that was granted Planning Permission on 5 July 2016 (Application Reference 16/00406/TBC) now financially achievable and is therefore submitted again for Planning consideration, unchanged from that submission but for the provision of a number of updated supporting reports."

     

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