Gedling Borough Council has approved proposals to turn the upstairs of their £4m AMP in Arnold into a new business centre.
The plan for an Enterprise Centre was approved by Cabinet members during a meeting on November 9
The AMP will now provide a number of lettable spaces ‘to support start up and small and medium-sized enterprises (SME) businesses’ following the approval.
The first floor of the AMP has been vacant since it was handed over to Gedling Borough Council following completion in October 2022.
The proposal
The Cabinet resolved to approve the revision to the original Arnold Market Place (AMP) Business Case Appendix 1 that included:
- The proposal for an Enterprise Centre on the first floor of the AMP compromising of a number of lettable spaces to support start up and SME businesses
- The proposal to consult on the permanent location of the Arnold Market
- The revision of the financial assumptions related to market provision; and
To approve the establishment of an AMP Enterprise Centre budget from the UKSPF Town Centre Improvement budget in the Capital Programme, as detailed in the Exempt Financial Position Appendix 2 to the report.
The Head of Regeneration and Welfare introduced the eleven page report, which had been circulated in advance of the meeting, updating members on the plans for the fit out and letting of the first floor of the Arnold Town Centre (AMP) development including a refresh of the 2020 Business Case which included included an external appraisal by Cushman & Wakefield that a basic building shell (“first fit”) would be more attractive to commercial occupiers than fitted out/serviced offices. Their advice was to market the building for a period of up to 18 months before sub dividing the space into 2 or 3 offices or services offices.
As such, during the course of the construction programme the design specification was reengineered to reduce costs with the result that the 3,500 sq. ft of first floor space was handed over as a shell and core. The flooring, WCs, cleaner’s store and meeting/conference room having all been removed from the cost plan.
The report advises however that due to a challenging market the shell and core finish which requires a prospective tenant to commit to a considerable investment in a challenging market alongside the significant size of the first-floor space has limited the number of enquires.
The report further advises that over the course of the last 12 months, the agent has reported interest from several businesses enquiring for units of not more than 1,000 sqft.
The Council sought independent commercial advice from both the current agent, New West and HEB as part of a commercial letting appraisal where the agents considered a number of options for the vacant first floor space that included continued marketing of the first floor (single let), provision of serviced office accommodation and the creation of smaller commercial suites.
The report advises that following review of the available options the agents’ recommendation in view of enquiries received, location and costs are that the Council creates smaller commercial suites with shared WC and kitchenette.
Further details in the report advised that the 2020 business case included seven small retail outlets designed to be attractive to small local independent businesses with a first-floor area earmarked for flexible commercial space/office accommodation and that the lettings of the ground floor retail units have exceeded expectations as the (2020) business case assumed that these units would not be fully let until 21 months of operation.
The full report to Cabinet which set out a revised Business Case for Arnold Market Place (the AMP), the purpose of which was to demonstrate the need to develop and fit out the
First Floor of the AMP to make the top floor of the building a more lettable proposition is available HERE.
