Memorandum by New East Manchester (LR
90)
METROLINK: THE IMPACT ON REGENERATION
OF EAST MANCHESTER
1. INTRODUCTION
1.1 East Manchester is one of the largest
and most significant regeneration projects in the UK. It covers
a very large segment of the city (over 200 hectares) with a resident
population of 53,000, which is set to double over the next 10-15
years. New East Manchester, established by Government as a partnership
between English Partnerships, North West Development Agency and
Manchester City Council, is one of the first urban development
companies set up by Government (in early 2000).
1.2 It is an area of particularly acute
social and urban deprivation (all its wards are within the 5%
most deprived in England and Wales) and the area has been given
national priority in the Government's Sustainable Communities
Plan.
1.3 Two of the three proposed Metrolink
lines directly benefit the East Manchester area[30]:
— The Ashton-under-Lyne route runs
directly through the centre of the area, linking Piccadilly Station,
Ancoats and the Ashton Canal Corridor, Sportcity and Clayton Brook
development areas.
— The Oldham/Rochdale line, for most
of its length through Manchester, runs slightly to the north of
the New East Manchester area, but it traverses Central Park, the
major new business district under development in East Manchester,
at which there will be a dedicated station.
1.4 The Metrolink expansion has always,
consequently, been fundamental to the Regeneration Framework for
East Manchester and has been central to the progress we have made
in attracting investment in new business floorspace, new jobs
and new housing to the area. Significant progress has been made,
but the market can still only be described as fragile in this
area.
1.5 It is important also to emphasise that
the Regeneration Framework is comprehensive in nature, linking
physical renewal and development with improvements in the social
conditions and economic prospects of residents in one of the most
deprived areas in the UK. Metrolink is significant not just in
reconnecting East Manchester with the wider conurbation, but in
creating access for residents to job opportunities both within
and outside the area (notably in Manchester City Centre). It has
been a significant factor in attracting investors into the area.
1.6 Section 4 of this evidence highlights
the final impact of Metrolink and its impact upon investment in
the area. Metrolink influences £740,128,000 of investment
on projects currently in development.
2. KEY INITIATIVES
AT RISK
2.1 Central Park
2.1.1 Central Park is critical to the task
of reconstructing and modernising the economic base of an area
whose problems can be tracked back to the collapse of older manufacturing
industries in 1970s and 1980s. It is a very large area—over
450 acres—and is a long-term project but it will, when completed,
be the largest area of new employment growth in the Greater Manchester
conurbation.
2.1.2 Phase 1 of the development (around
92 acres) is now on site, and this comprises the construction
of new regional HQ offices for Fujitsu UK (180,000 sqft, due for
completion next month) and of One Central Park, an innovative
facility which is bringing together the four universities in Manchester
to provide on site post graduate research and teaching, a vocational
training centre, new technology institute and business incubation
space.
2.1.3 Metrolink has been crucial in persuading
these occupiers to commit to Central Park. East Manchester is
not a traditional base for hi-tech offices, and the fast, efficient
and reliable public transport connections which Metrolink offers
is very important to these organisations for whom recruitment
and retention of a skilled workforce is a key consideration and
cost. The construction of a dedicated Metrolink station serving
Central Park was a determining factor in securing Fujitsu as an
anchor tenant.
2.1.4 We were able to persuade them to commit
to Central Park on the strength of the advanced works already
completed or in progress—a clear indication of the public
sector's commitment to the system—and in our direct commitment
to the construction of an integrated transport interchange (access
road, Metrolink station, new bus facilities, with potential for
future linkage to an existing heavy rail line) to serve Phase
1 of the Park. Department of Transport approved this £36
million scheme last year (£20 million LTP, £11 million
Metrolink advanced works via GMPTE, £5M ERDF) and it is currently
contractually committed and on site.
2.1.5 If Metrolink were not constructed,
it would not jeopardise occupation by Fujitsu—this is already
contractually committed—but it would:
— put at risk occupation by Fujitsu
beyond 2011, the backstop date on legal agreements;
— risk the universities in particular
pulling out of One Central Park, as there is no binding agreement
in place at this stage; and
— most importantly, seriously undermine
our ability to attract further occupiers onto the Park and maintain
the positive momentum that has been established.
2.2 Housing Development Programme
2.2.1 The area has suffered from declining
property values and an over-provision of older, smaller terraced
housing, and is one of the Market Renewal Pathfinder areas designated
by Government. We have ambitious targets to build 12,500 new homes,
predominantly for sale, to improve the range and choice of housing
in East Manchester. The first wave of new housing, on three sites
and ultimately yielding 3,000 new homes, is currently on site,
and it is significant that two of these developments are situated
very close to stations on the Ashton line, and Metrolink has been
part of the marketing of these developments.
2.2.2 It is impossible to be precise about
the impact of Metrolink on future development of new housing.
Public transport connections are a very important consideration
for many people in selecting a new home, but not the only consideration.
It is also true to say that not all new development sites in East
Manchester will be served very directly by a Metrolink line or
station. Nevertheless, very serious concerns have been expressed
to us by housing development partners about the position over
the last fortnight and it is very clear that, in the absence of
a positive commitment to Metrolink, it will be very much harder
to build and sell houses and attract potential residents to East
Manchester. A number of residents of the early phases of new houses
have expressed their concern at the uncertainty surrounding Metrolink
as it had been a key factor in them moving to the area.
2.3 Ashton Canal Corridor
2.3.1 We invested heavily in improving the
environment along the Ashton Canal Corridor prior to the 2002
Commonwealth Games. This is in effect the route that the Metrolink
line to Ashton will follow and our aim was to facilitate the subsequent
installation of the tram by completing most of the heavy engineering
challenges as advanced works (notably tunnels under an existing
road and railway viaduct and bridge across the River Medlock)
with Government's consent and support.
2.3.2 We also aimed to open up the development
potential of buildings and sites along the canal by improving
the environment, and since the summer of 2002 we have seen major
private-sector led development projects get underway in the area
(Albion Works, Ancoats Hospital, Victoria Works, Islington Wharf,
Advent Garage) in anticipation of the greatly improved transport
connections that Metrolink will bring.
2.4 Sportcity
2.4.1 Sportcity is the centrepiece and catalyst
for the regeneration of the wider East Manchester area. It housed
the major facilities for the Commonwealth Games (City of Manchester
Stadium, English Institute of Sport, regional Tennis Centre, National
Cycling Centre) and well as the largest new purpose-built Asda-Walmart
store in Europe.
2.4.2 Since the Games we have further strengthened
Sportcity's role as a tourist destination by constructing a 6,000
seat Regional Arena for athletics, a new visitor centre, a 650
unit residential scheme and, latterly, by bringing forward proposals
for a major new entertainment and leisure complex which is scheduled
to start on site next year. Sportcity currently attracts around
4.5million visits per annum, and this will rise to over 9m when
current proposals are completed. The site will be served by the
Ashton Metrolink line which dissects it, and by two stations.
2.4.3 In marketing one of the key development
sites adjacent to the stadium for a major leisure and entertainment
facility last Spring, developers have expressed the importance
of Metrolink in both attracting visitors and staff. Sportcity
is already a major national destination, but this is set to increase
significantly with the development of the remaining parts of the
site over the next year. Metrolink will be a significant factor
in our ability to attract major international development partners
to invest in the site.
3. METROLINK—RELATED
INVESTMENT TO
DATE
3.1 In East Manchester, the following are
the main components of public expenditure which have been spent
or committed, and which are directly related to the construction
of Metro Link:
|
| £ 000
|
|
Ashton Canal Corridor
(Includes River Medlock Bridge, Ardwick Viaduct tunnel, Alan Turing Way tunnel)
| 11,242 |
| Central Park Transport Gateway | 36,244
|
| EP | 185 |
| Total | 47,671
|
|
3.2 Sources of the funding are as follows:
|
| £000
|
|
| Greater Manchester PTE | 15,107
|
| Department of Transport (local Transport plan)
| 20,246 |
| North West Development Agency | 3,295
|
| ERDF | 8,838
|
| EP | 185 |
| Total | 47,671
|
|
3.3 It is difficult to be precise as to private investment
which can be said to be directly related to Metrolink, as this
will be a very important but not unique consideration for investors.
Nevertheless, it can be said that all of the following have been
strongly influenced by the anticipated construction of Metrolink.
|
| | £000
| |
|
| Private
| Public | Total
|
| Fujitsu HQ Offices | 30,000
| - | 30,000
|
| One Central Park | 5,000
| 13,300 | 18,300
|
| Sportcity Housing (Phase 1) | 15,000
| — | 15,000
|
| New Islington Millennium Community | 180,000
| 40,000 | 220,000
|
| Albion Works (Phase A/B) | 6,149
| — | 6,149
|
| Advent Garage (Phase 1) | 18,816
| — | 18,816
|
| Total | 254,965
| 53,300 | 308,265
|
|
4. FUTURE PLANNED
METROLINK INVESTMENT
4.1 The regeneration programme in East Manchester is
anticipated to run for 10 years (2000 to 2010) and to involve
total investment of £2 billion (£720 million public,
£1.3 billion private). How much of this would be jeopardised
or lost if Metrolink did not proceed is inevitably a question
of judgement but, as a minimum, the following could be said to
be either wholly or very largely dependent on Metrolink:
|
| £000
|
|
| 4.1.1 Direct investment in construction of Metrolink
| 105,100 |
| 4.1.2 Indirect investment in related developments:
| |
| Sportcity—entertainment and leisure centre
| 265,000 |
| —residential (Phase 2) | 15,000
|
| Central Park—Completion of Phase 1 |
50,000 |
| Victoria Works | 50,000
|
| Advent Garage (Phase 2/3) | 32,327
|
| Clayton Brook (Eccleshall Street residential)
| 37,057 |
| Albion Works (Phases C/D/E) | 25,644
|
| Islington Wharf | 60,000
|
| Ancoats Urban Village | 100,000
|
| Total | 740, 128
|
|
| February 2005 | |
30
For details see http://www.metrolink.co.uk/pdf/metrolink-brochure-p
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