Issue - meetings

To consider a report on occupancy levels in the Council’s Business Centres.

(Report attached)

The Committee considered a report on the subject of vacant units in the Council’s  Business Centres.  This report had been requested by Members at a meeting of the Committee on 11th December 2012 following consideration of the Quarter 2 Finance Monitoring Report which had recorded a lower than expected income for this service.

Members were advised that the Council managed three Business Centres: the Greenlands Business Centre; the Rubicon Business Centre; and the Hemming Road Enterprise Centre.  The Council offered attractive license fees and terms which were regularly advertised, though a large proportion of business was generated through personal recommendations. 

The financial costs involved in managing the centres had been influenced by two principal factors.  Firstly, many of the business centres were approximately 20 years old and required continuous repair and maintenance work which was delivered at a financial cost to the Council.  Secondly, Members were advised that the threshold on which vacant commercial properties were exempt from paying business rates had been lowered in April 2011 from £18,000 to £2,600 rateable value. The Council was therefore paying business rates for some vacant units that would have been exempt in previous years.

Members noted that the Rubicon Business Centre was leased from a private landlord.  The centre had been leased as premises which had been converted into separate units.  The Council would be required to convert the property back to the state in which it had originally been leased if this arrangement was not renewed.  Officers had estimated in 2010 that it would cost approximately £100,000 to convert the property.

There were a number of competitor business centres in Redditch and the surrounding area.  A number of these competitors managed modern buildings.  However, whilst the Council run business Centres were not based in modern premises there were a number of customers who remained satisfied and had leased units over a series of years.  The units also provided useful bases in which local entrepreneurs could launch new businesses.

Members welcomed reports that occupancy rates at all of the centres had increased between 2009/10 and 2012/13.  In particular, Members were pleased to learn that occupancy levels at the Greenlands Business Centre had increased from 41.11 per cent to 80.51 per cent during this period. 

RESOLVED that

the report be noted.