New Forest District Council backs ploughing £10.8m into Ringwood site to boost post pandemic business

MORE than £10.8m is set to be ploughed by New Forest District Council into a Ringwood site to help stimulate the local economy as it emerges from the pandemic.

NFDC claims 150-200 jobs could be created by boosting the business offering at the site off Crow Lane in what is one of its biggest investments in the past decade.

The funding, which will come from its reserves, includes the purchase of the freehold interest of the land, the construction of five single-storey industrial units and a pair of two-storey office blocks that fledgling companies can rent out, as well as external units and parking areas.

The move was unanimously backed by the ruling cabinet on the Conservative-controlled council at its latest meeting on Wednesday and hailed by Cllr Michael Harris, who holds the business portfolio.

“This is very exciting. I’ve been on this council for 10 years and it is certainly the biggest investment we have made in that time,” Cllr Harris said.

The project has been in the works for two years and was projected to provide a 5% return on the council’s investment, he said.

“We will be building premises for our local businesses,” Cllr Harris went on. “This will protect the economy and provide an economic benefit for the area.”

A report to the cabinet revealed the council has so far spent £2.169m to purchase the land, and a further £8.4m will complete the project.

It was expected to generate an annual rental income of £551,643 when fully let.

Advice from a commercial letting agent estimated 20-25% of the scheme would be let within the first year after its completion, with the remainder occupied within one or two years.

It added NFDC will make the office buildings suitable for letting and available for storage and distribution and commercial, business and service use.

The project will be monitored by the council’s own property investment panel and it has already undertaken a tender process for developing the site and selected a preferred bidder – which NFDC has not yet publicly revealed.

“It is estimated that this development could sustain 150-200 new jobs once fully let as well as supporting more during the 12-month construction period,” the cabinet report suggested.

The proposed development is part of the council’s asset investment strategy, which seeks to aid the economic development of the district and provide the authority with assets that can generate income.

The aim is to help mitigate falls in the amount of money it is granted by the government.

The report added the purchase of such sites could make a “meaningful contribution towards ensuring continued delivery of the council’s key services”.

The project team had set “realistic parameters” in terms of potential changes to budget and time, should the construction phase be subject to unforeseen risks, the report assured.

It acknowledged Covid-19 did place a “degree of uncertainty” on the demand for rented units.

It said the target was to have the site completed by the end of October 2022 and buildings would be environmentally friendly, with PV panels and electric vehicle charging stations.

Cllr Jeremy Heron, the council’s cabinet member for finance, was “delighted” and pointed out it would boost Ringwood, where hundreds of homes are set to be built in the coming years under the district council’s Local Plan.

“This is going to deliver in terms of employment where we are putting the houses, which surely meets with our green agenda,” he said.

“This will ensure there will be fewer commuting; one of the biggest polluters we have.”

NFDC leader Cllr Edward Heron said it was “an incredibly exciting project”, while there was cross-party praise for the scheme from Liberal Democrat leader Cllr Malcolm Wade.

“I think it’s a really good idea as well. Long may you continue to think in the 21st century,” Cllr Wade told the cabinet. “It’s about time you did.”