Joint Committee on the Draft Gambling Bill Minutes of Evidence


5.  Memorandum from Manchester City Council (GMB 7)

INTRODUCTION

  1.  Manchester City Council broadly welcomes the Government's response to the Joint Committee's recommendations concerning the definition, location and economic and other implications of the largest casinos, and indeed welcomes the introduction of the category of Regional casinos.

  2.  The evidence presented by Manchester City Council focuses on developing clear policies to maximise the potential public benefits which could flow from investment in regional casino developments, drawing on the experience the City Council has gained through the development of proposals for a regional entertainment and leisure development to the east of Manchester City Centre.

DELIVERING REGENERATION THROUGH REGIONAL CASINOS

  3.  Manchester City Council welcomes the Government and Joint Scrutiny Committees' recognition that the development of regional casinos in the United Kingdom should afford an opportunity for the delivery of significant economic and other regenerative benefits to regions and localities. The delivery of public benefit from the development of regional casinos should mean ensuring that:

    —  Employment opportunities flowing from such developments are directly linked to those in most need.

    —  Schemes are fully accessible to local communities, provide new facilities and services for those communities and deliver genuine, tangible and lasting benefits to those communities.

    —  The investment generated drives forward strategies for economic and social renewal.

    —  People should have direct and immediate access to facilities through public transport.

  4.  In order to achieve these core objectives, we believe that proposals must be brought forward as an integral part of a sustainable regeneration framework for an area, which meets established local and regional economic and regeneration priorities.

  5.  Sustainable regeneration also requires positive private sector investment and participation. The private sector will be required to invest very significant funding to make regional casinos a reality, and therefore must be satisfied that the location of such facilities is appropriate to their product. We therefore believe that the aspirations of the private sector must be respected in the way strategies for regional casinos are developed within the broader regeneration and public benefit context described above.

THE ROLE OF REGIONAL PLANNING BODIES

  6.  Regional Planning Bodies are expected to play a key role in defining locational policies in relation to regional casinos. They should seek to ensure that any such policies focus on ensuring that the development of regional casinos support established regional economic development and regeneration policies and priorities, as set out in existing planning policy documents and in Regional Economic Strategies.

  7.  We believe that Regional Planning Bodies should be encouraged, in the first instance, to assess the robustness of their existing planning policies to determine whether they are sufficiently responsive to accommodate these proposed new leisure developments, before creating entirely new planning frameworks. In the North West, for example, we already benefit from a strong and responsive planning and economic development framework. The North West Development Agency have developed, through the Regional Economic Strategy, clear and accepted regional priorities for economic development and regeneration. The current Regional Planning Guidance for the North West places great emphasis on the achievement of sustainable economic development. Together these provide a strong basis against which to assess any proposal for the development of regional scale casino and leisure developments.

  8.  Within the overall regional framework, it should be the responsibility of individual local authorities to bring forward detailed proposals, demonstrating how these relate to regional economic priorities and sustainable regeneration plans for their areas and how they will deliver a range of public benefits. Such proposals must also be underpinned by a robust and demonstrable market interest in the form of a development partner who, with the exception of planning, licensing and the reform the regulatory framework, has entered into an unconditional commitment to delivery. The above would represent a true test not only of the public benefits but also of the deliverability and sustainability of proposals for regional casinos.

LESSONS FROM SPORTCITY, EAST MANCHESTER

  9.  The approach that Manchester City Council is taking at Sportcity in East Manchester is wholly consistent with this regional policy framework, and is underpinned by clear evidence of market demand. Manchester City Council, in partnership with New East Manchester (NEM), the Urban Regeneration Company charged with securing the physical, social and economic renaissance of East Manchester, are currently seeking to appoint a partner for the development of what would be termed a regional casino to the east of the city centre. The proposals focus on the Sportcity site, the home of the City of Manchester Stadium.

  10.  Sportcity is already one of the largest and most significant new developments in the region and has been as a catalyst for the regeneration of East Manchester, itself a regional regeneration priority given the incidence in the area of some of the most deprived communities in the country. The development of Sportcity as a high quality leisure and entertainment destination is at the heart of the regeneration framework for East Manchester. NEM has sought to capitalise on the impetus provided by the 2002 Commonwealth Games and the associated sporting infrastructure, through the provision of community, leisure and residential proposals which consolidate Sportcity's destination role.

  11.  The provision of a large scale leisure and entertainment complex at Sportcity would help deliver these established regeneration objectives in a number of ways, including providing local residents and visitors alike with new leisure and community facilities, as well as bringing in large numbers of sustainable employment opportunities to East Manchester. In recognition of this the City Council's Executive has endorsed the Sportcity site as the most appropriate location for such a facility within the Manchester conurbation. This position is consistent with the New East Manchester Regeneration Framework and the current planning policies for the site, as set out in Manchester's Unitary Development Plan.

  12.  During the latter half of 2003 Manchester City Council and NEM received various unsolicited proposals from large international gamming operators who clearly saw the potential of Manchester to accommodate a major new entertainment and leisure destination. It was quickly determined by the City Council and NEM that the most appropriate way to structure a response to this interest and secure the maximum possible regeneration outputs from it was to approach the market in a structured manner.

  13.  Manchester City Council and NEM issued a Stage 1 Development Prospectus for the Sportcity site earlier this year. This Prospectus outlined the opportunities presented by Sportcity to accommodate a significant new mixed use development, anchored by a major leisure and entertainment operator and which contributed towards the regeneration objectives set out for East Manchester. The Prospectus was clearly aimed at testing the market for introducing an entirely new leisure concept to the Manchester, thus driving the destination offer of the City forward, and bringing forward development proposals which will form a key component in the wider regeneration framework for East Manchester.

  14.  The City Council and NEM received site specific proposals from a wide range of appropriately qualified operators, who clearly saw the Sportcity development becoming a major leisure destination, anchored by an international quality and scale casino operation, which would complement existing facilities both on the wider site and within Manchester city centre.

  15.  A shortlist of five international operators was selected from these initial submissions, and they were issued with a more detailed Stage 2 Prospectus. This set out in considerable detail the information requirements expected of each operator, including the core requirement for operators to develop clear and robust proposals to drive forward the regeneration objectives for East Manchester.

  16.  This process has succeeded in producing five high quality proposals for Sportcity from major international operators, all of whom have expressed serious intent and commitment to developing a regional casino facility in East Manchester, as part of a wider mixed use leisure environment. These proposals are currently being evaluated against a robust framework designed to test them in terms of best value, delivery of public benefits and level of contribution towards achieving NEM's wider regeneration objectives.

  17.  It is clear from the ongoing evaluation that very significant opportunities exist to harness substantial regeneration outputs and benefits through the delivery of robust proposals such as those emerging at Sportcity, which would make a significant contribution to the achievement of local and regional economic development and regeneration objectives. As well as significant employment generation these benefits include the provision of new training and enterprise facilities/opportunities, high quality social, educational and community facilities, and state of the art sporting and recreational facilities.

CONCLUSION

  18.  Regional casinos ought to be considered as major contributors to sustainable regeneration with significant public benefits being generated and captured by local communities. The involvement of the private sector in this process is crucial, as they need to have the confidence that the location of such facilities is appropriate to the product they are promoting, and that a strategic regeneration framework is in place to underpin and maximise the benefits flowing from their investment.

  19.  Manchester, and East Manchester in particular, clearly fulfils these requirements. Transforming East Manchester's social and economic fortunes is an established regional priority, with robust regional and local planning and regeneration frameworks already in place, which are designed to respond effectively to some of the most deprived communities in the country.

  20.  The City Council invites the Joint Committee to recognise and support this perspective.

June 2004





 
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