Private developments supporting independent retail

Keep Chorlton Interesting would like to hear about any examples of private developments that support independent retail.  What follows is some work our group did last year. Please send us details of other examples with web links if possible.

Research and recommendations

A great deal of policy and recommendations in planning suggests that developments ought to support and encourage independent retail - and recognises this might require subsidsed rents and rates and putting contraints on developments.
New Economics Foundation 'Clone Town Britain' and 'Ghost Town Britain' reports indicate that there is a decline in independent stores.
Boris Johnson as Mayor of London suggested the revision of the London Plan to legally bind developers to provide for independent businesses.
Head of Retail Planning at CB Richard Ellis says that it is important to provide small shops, market stall premises and other v small units that will enable independent retailers to start small and build up.
A report for Joseph Rowntree Foundation by Michael Carley et al, Retailing, Sustainability and Neighbourhood Regeneration (2001) says there needs to shop units of appropriate sizes - from stalls to large shops. A range is needed.
A report by Centre for Economic Strategies (CLES) on shopping areas in Greater Manchester says that reducing rental levels is very helpful for poorer areas. This report was for Manchester City Council.

How can this support be brought about?

The main way of helping independent retailers in via Section 106 Agreements. These are agreements which often commit the developer to providing community benefit. For example, a new school, public spaces, community centres. The Bankside development in South London, for example, committed the developer of flats and housing to also provide a community centre and play area.
Boris Johnson and CLES suggest this as a way of helping independent retailers, but there is no real precenedent of Section 106s being used to compel developers to lowering rates and helping indepedent retail.

Another alternative is varying business rates for small independents. Rates are controlled by local authorities. Indepedents get small business rate releif anyway. There is also discretionary relief by LAs given to charities and not for profits. Maybe this could also be used for social enterprises too.

Examples

Igloo Regeneration Ltd note: need to check that Igloo still trading/operating given current financial siuation.
This is a private development business that gets large amounts of private investment from corporations such as Barclays and uses that to finance new developments. However, Igloo has strict sustainability criteria and a group, Chaired by Jonathon Porritt of FoE. As well as ecological criteria they judge if developments encourage and support independent businesses and social enterprises.
Igloo is the developer behind Holbeck Urban Village in Leeds. This included a massive range of office sizes for different sized businesses as well as managed workspace for business development. It was a partnership between Igloo, Leeds City Council, Yorkshire Water and others.

Igloo is also the developer behind Bold Lane in Derby, which is the redevelopment of the centre. Includes 17,000sq ft of retail spaces, all of different sizes, 45sq ft of office spaces. It is sustainable and will provide support and encouragement to a range of small businesses. Due to be completed 2009 (credit crunch allowing).

Urban Splash has varied sized retail units in Northern Quarter Arcade Manchester.

Work for Change is a co-operative that provides affordable workspace to social enteprises, co-operatives and ethical and independent businesses, but still makes a profit.

Significance

1. These examples (Igloo, Work for Change, Urban Spalsh) illustrate that ecological and sustainble developements that encourage and support independent businesses and retailers are profitable for developers and investors - not just co-operatives, but also mainstream businesses such as those which invest in Igloo.
In fact, Igloo shows that large, cutting edge flagship developments can encourage independent retail and be ecologically sound. If it works for Igloo, there's no reason why it couldn't work for Chorlton precinct.
2. The examples, however, do not make use of Section 106 agreements as a way of reducing rents and helping encourage independent business and retailers. In fact, there is no obvious precedent of Section 106 agreements being used in this way, despite the number of reports suggesting it as a useful too. Instead, the best examples tend to come from private developers recognising the profitability of developments that support and help develop indepedent retailers and businesses.

Further issues

Need to determine whether Section 106 agreements can be ongoing (like reduced rents) or whether they are one-offs (new community centre, new sechool, etc).
Need to look into the community infrastrucutre levy - replacing Section 106 agreements.