Agenda Document Pack - Economic Development and Infrastructure Services Committee - 05/09/2023
Moray Council · 5 September 2023
Back to Economic Development and Infrastructure Services Committee — 5 September 2023 and its agenda
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Economic Development and Infrastructure Services Committee Tuesday, 05 September 2023 NOTICE IS HEREBY GIVEN that a Meeting of the Economic Development and Infrastructure Services Committee is to be held at Council Chambers, Council Office, High Street, Elgin, IV30 1BX on Tuesday, 05 September 2023 at 09:30. BUSINESS 1. Sederunt 2. Declaration of Group Decisions and Members Interests * 3. Resolution Consider, and if so decide, adopt the following resolution: "That under Section 50A (4) and (5) of the Local Government (Scotland) Act 1973, as amended, the public and media representatives be excluded from the meeting for Item 13 of business on the grounds that it involves the likely disclosure of exempt information of the class described in the relevant Paragraphs of Part 1 of Schedule 7A of the Act.” 4. Minute of Meeting dated 20 June 2023 7 - 14 5. Written Questions ** 6. Rosarie Level Crossing Closure Report by Depute Chief Executive (Economy, Environment and Finance) 15 - 30 Page 1
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7. Environmental and Commercial Services and Economic Growth and Development Services (Economic Development) Capital and Revenue Budget Monitoring to 30 June 2023 Report by Depute Chief Executive (Economy, Environment and Finance) 31 - 50 8. Elgin Parking Review Report by Depute Chief Executive (Economy, Environment and Finance) 51 - 68 9. Local Visitor Levy Report by Depute Chief Executive (Economy, Environment and Finance) 69 - 78 10 Use of Council Buildings and Structures for Abseiling etc Report by Depute Chief Executive (Economy, Environment and Finance) 79 - 82 11 Information Reports - if called in 12 Question Time *** Consider any oral question on matters delegated to the Committee in terms of the Council's Scheme of Administration. Item(s) which the Committee may wish to consider with the Press and Public excluded 13 Hydrogen Strategy Opportunities [Para 9] • 9. Information on terms proposed or to be proposed by or to the Authority; Summary of Economic Development and Infrastructure Services Committee functions: Roads Authority; Lighting Authority, Reservoirs Act 1975, Public Passenger Transport; Flood Prevention; Twinning; Piers and Harbours and Coast Protection; Industrial and Commercial Development; Environmental Protection; Burial Grounds; Assistance to Industry or Commerce; Public Conveniences; Council Transportation; Catering & Cleaning; Land Reform (Scotland) Act 2003; Countryside Amenities; Tourism, monitoring funding from European Programmes, youth training and employment creation scheme and provide Architectural, Quantity Surveying, Maintenance and Allied Property Services. Page 2
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Information Reports - Not for Discussion at this Meeting Any member wishing to call in a noting or information report from one meeting shall give notice to Committee Services at least 48 hours before the meeting for which the report is published. The Notice shall be countersigned by one other elected member and shall explain the reason for call in including any action sought. Information Report - Employment Land Audit 2023 Report by Depute Chief Executive (Economy, Environment and Finance) 83 - 124 Information Report - Moray Business Property Needs Study Report by Depute Chief Executive (Economy, Environment and Finance) 125 - 244 Information Report - List of Property Transactions Concluded Under Delegated Powers Report by Depute Chief Executive (Economy, Environment and Finance) 245 - 258 Page 3
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GUIDANCE NOTES * Declaration of Group Decisions and Members Interests - The Chair of the meeting shall seek declarations from any individual or political group at the beginning of a meeting whether any prior decision has been reached on how the individual or members of the group will vote on any item(s) of business on the Agenda, and if so on which item(s). A prior decision shall be one that the individual or the group deems to be mandatory on the individual or the group members such that the individual or the group members will be subject to sanctions should they not vote in accordance with the prior decision. Any such prior decisions will be recorded in the Minute of the meeting. ** Written Questions - Any Member can put one written question about any relevant and competent business within the specified remits not already on the agenda, to the Chair provided it is received by the Proper Officer or Committee Services by 12 noon two working days prior to the day of the meeting. A copy of any written answer provided by the Chair will be tabled at the start of the relevant section of the meeting. The Member who has put the question may, after the answer has been given, ask one supplementary question directly related to the subject matter, but no discussion will be allowed. No supplementary question can be put or answered more than 10 minutes after the Council has started on the relevant item of business, except with the consent of the Chair. If a Member does not have the opportunity to put a supplementary question because no time remains, then he or she can submit it in writing to the Proper Officer who will arrange for a written answer to be provided within 7 working days. *** Question Time - At each ordinary meeting of the Committee ten minutes will be allowed for Members questions when any Member of the Committee can put a question to the Chair on any business within the remit of that Section of the Committee. The Member who has put the question may, after the answer has been given, ask one supplementary question directly related to the subject matter, but no discussion will be allowed. No supplementary question can be put or answered more than ten minutes after the Committee has started on the relevant item of business, except with the consent of the Chair. If a Member does not have the opportunity to put a supplementary question because no time remains, then he/she can submit it in writing to the proper officer who will arrange for a written answer to be provided within seven working days. Page 4
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MORAY COUNCIL Economic Development and Infrastructure Services Committee SEDERUNT Councillor Marc Macrae (Chair) Councillor Amber Dunbar (Depute Chair) Councillor Peter Bloomfield (Member) Councillor John Cowe (Member) Councillor John Divers (Member) Councillor David Gordon (Member) Councillor Juli Harris (Member) Councillor Sandy Keith (Member) Councillor Graham Leadbitter (Member) Councillor Paul McBain (Member) Councillor Shona Morrison (Member) Councillor John Stuart (Member) Councillor Draeyk Van Der Horn (Member) Councillor Sonya Warren (Member) Clerk Name: Lissa Rowan Clerk Telephone: 07765 741754 Clerk Email: committee.services@moray.gov.uk Page 5
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MORAY COUNCIL Minute of Meeting of the Economic Development and Infrastructure Services Committee Tuesday, 20 June 2023 Council Chambers, Council Office, High Street, Elgin, IV30 1BX PRESENT Councillor Peter Bloomfield, Councillor John Cowe, Councillor John Divers, Councillor Amber Dunbar, Councillor David Gordon, Councillor Juli Harris, Councillor Sandy Keith, Councillor Graham Leadbitter, Councillor Marc Macrae, Councillor Paul McBain, Councillor Shona Morrison, Councillor John Stuart, Councillor Draeyk Van Der Horn, Councillor Sonya Warren IN ATTENDANCE Also in attendance at the above meeting were the Chief Executive, Depute Chief Executive (Economy, Environment and Finance), Head of Environmental and Commercial Services), Head of Economic Growth and Development, Head of Housing and Property Services, Legal Services Manager, Moray Access Manager, Senior Officer Economic Strategy and Development, Business Adviser/Community Wealth Building Officer, Senior Engineer (Transportation) and Democratic Services Manager. 1 Chair Councillor Macrae, being Chair of the Economic Development and Infrastructure Services Committee, chaired the meeting. 2 Declaration of Group Decisions and Members Interests In terms of Standing Orders 21 and 23 and the Councillors’ Code of Conduct, there were no declarations from Group Leaders or Spokespersons in regard to any prior decisions taken on how Members will vote on any item on the agenda or any declarations of Member’s interests in respect of any item on the agenda. 3 Minute of Meeting dated 2 May 2023 The minute of the meeting of the Economic Development and Infrastructure Services Committee dated 2 May 2023 was submitted and approved. 4 Written Questions In terms of Standing Orders 36 a written question was submitted in the following terms: Item 4. Page 7
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QUESTION SUBMITTED BY COUNCILLOR WARREN The new weighbridge that has been installed at Buckie Harbour is still not yet operational, with lorries having to find an alternative service provider, which is causing inconvenience and added time for drivers. There are also concerns regarding the ease and safety for larger lorries to be able to drive directly off once weighed, using the new bridge. Can you confirm how long lorries have been unable to use this facility, what the issues are that are causing the delay, the expected timeline for the opening of the weighbridge and that it will be suitable for all sizes of lorries to drive on/drive off in a safe manner? RESPONSE The final verification of the new weighbridge was programmed for w/c 12 June, however the Council was unable to complete the calibration, as the equipment required to undertake the necessary tests was not available. An alternative date for this work to be undertaken is currently being scheduled. Following the installation of the weighbridge a number of test runs were undertaken to assess safe use for HGVs. These tests were largely successful. Currently, plans are being drawn up to undertake additional test runs using HGV’s of various sizes, weight and type, to confirm that it is safe and operational for use for vehicles that will be using the weighbridge on a regular basis. Councillor Warren sought clarification on how long lorries have been unable to access the weighbridge at Buckie Harbour, the loss of income to the Council and would there be any compensation to the Harbour for the delays. In response the Head of Environmental and Commercial Services confirmed that the weighbridge replacement was completed earlier in the new year and there have been some issues along with resolving the issues with the testing have meant some delays, however an update would be provided to Committee in the future. She further added that even with the issues indicated, income for Harbours is up on previous years. 5 Core Paths Action Plan 2023-2026 Under reference to paragraph 8 of the Minute of this committee dated 21 January 2020, a report by the Depute Chief Executive (Economy, Environment and Finance) informed the Committee of the formulation of the Core Paths Action Plan 2023-2026, in partnership with the Moray Local Outdoor Access Forum (MLOAF), which includes the use of the funding to employ a Core Paths Ranger for a period of 27 months commencing October 2023. Following consideration, the Committee agreed to: (i) the proposals and outputs contained in the attached Moray Core Paths Action Plan 2023-2026 and associated appendices; and (ii) the employment of a Core Paths Ranger to implement the Plan for a period of 27 months commencing October 2023. Page 8
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6 A940 Grantown Road Forres Traffic Regulation Order for Extension and Amendment of Speed Limit A report by the Depute Chief Executive (Economy, Environment and Finance) asked the Committee to consider an objection to the proposed Traffic Regulation Order “Moray Council (A940 Grantown Road, Forres – Proposed 40 / 30mph Speed Limit) Order 2022”. Following consideration, the Committee agreed to: (i) over-rule the outstanding objection outlined in Appendix 3 and approve the Traffic Regulation Order; and (ii) authorise the Head of Environmental and Commercial Services and Legal Services Manager to make the undernoted order: “Moray Council (A940 Grantown Road, Forres – Proposed 40/30mph Speed Limit) Order 2022”. 7 Pavement Parking Proposed Exemption Order A report by the Depute Chief Executive (Economy, Environment and Finance) sought approval of the Committee to begin the consultation process for a proposed Exemption Order to introduce locations across Moray where there are to be exemptions from the enforcement of the new Pavement Parking legislation which is part of the Transport (Scotland) Act 2019 "Moray Council (Pavement Parking Exemptions) Order 2023. Following consideration the Committee agreed to: (i) approve the proposed Exemption Order at the locations shown in Appendix 2 to this report from Pavement Parking legislation and instruct the Head of Environmental and Commercial Services and Legal Services Manager to begin the statutory process; and (ii) instruct the Head of Environmental and Commercial Services and Legal Services Manager to make and implement the Order if, following the consultation period, there are no outstanding objections. 8 Electric Vehicle Infrastructure Fund Strategy and Expansion Plan - Pathfinder Project Update Under reference to paragraph 9 of the Minute of the meeting of this Committee dated 7 February 2023, a report by the Depute Chief Executive (Economy, Environment and Finance) sought approval of the Committee to join the Pathfinder Project for the provision and operation of publicly available electric vehicle charging infrastructure following the completion of market testing. Following consideration, the Committee agreed to join the Pathfinder Project for the provision and operation of publicly available electric vehicle charging infrastructure. Page 9
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9 Performance Report (Environmental and Commercial Services) Period to 31 March 2023 A report by the Depute Chief Executive (Economy, Environment and Finance) informed the Committee of the performance of the Service for the period to 31 March 2023. Following consideration, the Committee agreed to: (i) note performance in the areas of Service Planning, Service Performance and other related data to the end of March 2023; and (ii) note the actions being taken to improve performance where required. 10 Performance Report (Economic Growth and Development Services) Period to March 2023 A report by the Depute Chief Executive (Economy, Environment and Finance) informed the Committee of the performance of the Service for the period to 31 March 2023. Following consideration, the Committee agreed to: (i) note performance in the areas of Service Planning, Service Performance and other related data to the end of March 2023; and (ii) note the actions being taken to improve performance where required. 11 Moray Community Wealth Building Strategy and Action Plan Under reference to paragraph 12 of the Minute of the meeting of this Committee dated 19 October 2021, a report by the Depute Chief Executive (Economy, Environment and Finance) sought approval of the draft Moray Community Wealth Building Strategy (CWB) as set out in Appendix 1 of the report, ahead of public and stakeholder consultation with the final strategy and action plan being reported back to this Committee at its meeting on 5 September 2023, following the consultation. Following consideration, the Committee agreed: (i) to approve the draft Moray Community Wealth Building Strategy and Action Plan as set out in Appendix 1; and (ii) that the final strategy will be reported back to this Committee at the meeting on 5 September 2023, following the consideration of issues received via a 6 week public consultation. 12 External Grant Funding Updates A report by the Depute Chief Executive (Economy, Environment and Finance) informed the Council of external funding updates including the Crown Estate Page 10
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Coastal Community Fund, Business Loan Scotland and Heritage & Place Programme and the opening of the Regeneration Capital Grant Fund Round 11 with a deadline of 21 June 2023, for Stage 1 applications. Following consideration, the Committee agreed to: (i) approve the Crown Estate Coastal Community Fund 2023/24 allocation towards electrical upgrades at Buckie Harbour and Coast to Country project, as outlined in paragraph 3.1; (ii) give delegated authority to the Head of Economic Growth and Development Services to allocate funds returned from the Business Loan Scheme in 2023 to initiatives that encourage local spend and boost the local economy; (iii) note that the Heritage and Place Programme applications for the Development Phase to deliver Forres Town Centre Improvement Plan were successful; (iv) the opportunity to submit a multi-year project proposal for Elgin Town Hall (Growth Deal Cultural Quarter) to the Regeneration Capital Grant Fund 2024/25, in addition to the requests by Dufftown and District Community Association, Portgordon Community Trust, Tomintoul and Glenlivet Development Trust, The Cabrach Trust and Forres Area Community Trust to act as lead applicant, with no financial implications except the Cultural Quarter application; and (v) approve the submission of Stage I applications as set out in (iv) above, and if successful, submission of Stage II applications. 13 Depot and Store Review Under reference to paragraph 12 of the Minute of the meeting of this Committee dated 6 September 2022, a report by the Depute Chief Executive (Economy, Environment and Finance) provided the Committee with an update on progress of the depot and store review and sought approval for some initial actions in relation to early rationalisation. Following consideration, the Committee agreed to: (i) note the update; (ii) approve the progression of early rationalisation of the properties in line with the vacant and surplus procedure; and (iii) note that the outline business case will be reported before 31 December 2023. 14 Information Reports The Committee noted that no Information Reports had been called in. Page 11
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15 Question Time Councillor Keith expressed concern about the lack of progress on dualling the A9 trunk road. In response, Councillor Macrae, as Chair of the Committee agreed to write to the Scottish Transport Minister to seek an update. Councillor Gordon stated that residents in Aberlour are concerned that the current flood alleviation scheme is no longer adequate and requested the proposed works are brought forward and for costs to be obtained to carry out improvement works. In response, the Head of Environmental and Commercial Services confirmed that the flood scheme in Aberlour was built for a specific purpose and that it does work. The recent incident in Aberlour was as a result of surface water and that responsibility does not sit wholly with the Council. She further added that there had been a meeting with local representatives, Community Association and the Community Council and a public event is scheduled for later in August which will cover a whole range of topics including surface water and flooding. Following the meeting, it was confirmed that the meeting with local representatives, Community Associaton and the Community Council was scheduled for 22 June 2022. Councillor Divers sought an update on when the feedback from the meeting with Councillors and Community Councillors on illegal parking will be received as it had been promised before recess. In response, the Head of Environmental and Commercial Services confirmed the feedback will be circulated before recess. Councillor Van Der Horn asked if some investigation could be carried out into the plant die off at the woodland in Kinloss. There had been a sewage outflow into Findhorn Bay which was reported to Scottish Water and he would like confirmation if the 2 events are linked. In response, the Head of Environmental and Commercial Services asked that Councillor Van Der Horn speak to her following the meeting and provide some more information and she would arrange for it to be looked into. Councillor Warren sought an update on the CCTV roll out in town centres. In response the Depute Chief Executive (Economy, Environment and Finance) confirmed the following: Elgin is complete and excellent live camera feeds received within police operation room. Forres is complete and excellent live camera feeds received within police operation room. Lossie - camera and associated equipment is now installed, broadband at Lossie however is inadequate for upload speeds for quality live feeds, so although receiving pictures in the operation room they are not of the quality expected. An alternative means of transmitting the pictures has been identified and we will swap Page 12
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to mobile signal whilst the issue with the broadband is being investigated. Expect better quality live feed pictures by 23 June 2023 Keith – cameras installed, encryption equipment to be installed by 30 June 2023 and due to lack of broadband capacity within Keith, an alternative picture delivery model has been identified. With some suitable boosting a mobile solutions is possible. Expected live feeds by 30 June 2023 Buckie – at time of update (19/6/23) 50% of the necessary cameras, radio links and encryption has been installed. Expected live feeds over broadband by 30 June 2023. However due to the high quality of the live picture feeds now being and about to be completed the broadband capacity at the police station requires to be upgraded. Investigations are underway to determine what is in place and what needs to be upgraded is planned to be completed by week ending 23 June 2023 and instructions given to BT to undertake necessary. Page 13
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 SUBJECT: ROSARIE LEVEL CROSSING CLOSURE BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To seek approval of the Committee to begin a new consultation process for a proposed Stopping Up Order of the C54H Crooksmill to Muldearie Road at the Rosarie Level Crossing under Section 68(1) of the Roads (Scotland) Act 1984: “Moray Council (C54H Crooksmill to Muldearie Road (At Rosarie Level Crossing) – Stopping Up) Order 2023”. 1.2 This report is submitted to Committee in terms of Section III (F) (16) and (20) of the Council's Scheme of Administration relating to the duty of the Council as Roads Authority and its functions under the Roads (Scotland) Act 1984 and other relevant legislation and to make orders for the regulation of traffic. 2. RECOMMENDATION 2.1 It is recommended that Committee:- (i) approves the proposed Stopping Up Order at the location shown in Appendix 1 to this report and agrees to instruct the Head of Environmental and Commercial Services, the Head of Governance, Strategy and Performance and the Legal Services Manager to proceed with the statutory process; and (ii) instruct the Head of Environmental and Commercial Services and the Legal Services Manager to make and implement the Order if, following the consultation period, there are no outstanding objections. 3. BACKGROUND 3.1 Rosarie Level Crossing is located to the west of Keith on the main Aberdeen- Inverness rail line. A Location Plan is attached as APPENDIX 1 with a General Location Plan attached as APPENDIX 2. The road crossing the Item 6. Page 15
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railway line is the C54H Crooksmill to Muldearie road. A recent traffic survey undertaken during spring 2023 found that the average number of vehicle movements over the level crossing was only 25 per day. 3.2 The Rosarie Level Crossing is of the Automatic Open Crossing Remotely Monitored (AOCR) type, and is the last such crossing on the national rail network. All other AOCRs on the Network Rail have been removed or upgraded after a serious accident at the AOCR crossing at Lockington in 1986. The protective measures at AOCRs are road traffic signals and audible warnings activated by the approaching train, signs and carriageway markings. There are no crossing barriers, and once the crossing is activated, a train is unlikely to be able to stop before reaching it. 3.3 Over the years, there have been a number of incidents at Rosarie Level Crossing that highlight the risks of this type of crossing. The Office of Rail and Road (ORR) has required Network Rail to either upgrade the crossing or remove the crossing as stated in the letter attached as APPENDIX 3. 3.4 Network Rail has explored upgrading options for the Rosarie Level Crossing, however no safe upgrade has been identified, as indicated in the statement from Network Rail attached as APPENDIX 4. The ORR therefore supports Network Rail seeking the closure of the crossing as the only safe alternative. 3.5 Network Rail has been working with Moray Council towards the promotion of a Stopping Up Order to close the level crossing. This process was commenced in 2018. However, due to several factors, including the COVID- 19 pandemic, the process was not completed within the 2 year statutory period and therefore needs to begin again. 3.6 As part of the original proposed Stopping Up Order consultation undertaken in 2018, a number of objections were received from local residents, although the number of properties directly affected is only six. In the main, these objections related to the need to take an alternative route to join the A95/A96. There was some concern raised that the public road for the alternative route passes through Allanbuie Farm. Concerns were also raised about how, with the closure of the level crossing, larger vehicles would turn at the end of the stopped up road. 3.7 In response to the concerns, by way of mitigation, Network Rail commissioned design work for additional passing places on the public road and turning facilities where the road would be stopped up to ensure that the alternative route is suitable for all traffic. Copies of the relevant drawings showing Network Rail’s draft proposals are attached as APPENDIX 5. 3.8 The Stopping Up of the C54H Crooksmill to Muldearie Road is required for rail safety reasons. A copy of the Statement of Reasons and Schedule for the proposed Stopping Up Order is attached as APPENDIX 6. 4. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) Page 16
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The report encompasses the main aims of the Economic Development programmes by maintaining suitable transport facilities and infrastructure for their intended use. (b) Policy and Legal To close the relevant section of road, a Stopping Up Order is required. Section 68 of The Roads (Scotland) Act 1984 is the most relevant piece of legislation. (c) Financial implications There are no financial implications arising from this report as Network Rail has agreed to meet all costs in full relating to the processing of the Stopping Up Order and subsequent works to construct turning areas and passing places. (d) Risk Implications If the Stopping Up Order is not promoted there is a continual risk to rail and road users due to the existing design and operation of the Rosarie Level Crossing as highlighted to Network Rail by the Office of Rail and Road. (e) Staffing Implications There are no staffing implications as this process forms part of existing duties. (f) Property There are no property implications arising from this report. (g) Equalities/Socio Economic Impact An Equality Impact Assessment has been carried out. It has identified a minor impact in relation to the right to privacy and the right to property. It has been decided that these are justifiable as a proportionate means to a legitimate aim. (h) Climate Change and Biodiversity Impacts There will be Climate Change impacts from the creation of the turning areas and passing places but these would be minimal as a one off impact while improving the road infrastructure. Any biodiversity and flooding impacts of the alterations to the road should be highlighted and resolved as part of the planning application. The use of the alternative route will involve longer journeys for some residents which will have a climate change impact if the vehicles are using fossil fuels. (i) Consultations The Depute Chief Executive (Economy, Environment & Finance), Head of Environmental and Commercial Services, Legal Services Manager, Chief Finance Officer, Equalities Officer, Committee Services and Police Scotland have been consulted and any comments taken into consideration. Page 17
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All Elected Members for the Speyside and Glenlivet, and the Keith and Cullen Wards have been advised of the proposals and any comments they have may be tabled at the meeting. 5. CONCLUSION 5.1 That committee approve the Stopping Up Order of Rosarie Level Crossing as specified in the schedule at APPENDIX 6 and the plans at APPENDICES 1 and 2 and authorises relevant officers to proceed with the statutory process. Author of Report: Colin Matheson, Engineer (Traffic) Background Papers: Ref: SPMAN-524642768-959 Page 18
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003 ISO 9001: 2000 FS 33734 Item 6. Page 19
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003 ISO 9001: 2000 FS 33734 Item 6. Page 21
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APPENDIX 3 Page 1 of 1 1772246 Dear Linda, Rosarie Level Crossing Further to our discussion at our liaison meeting earlier this month, this letter sets out ORR’s position in relation to the control of level crossing risk at Rosarie crossing in Moray. Rosarie level crossing is of the Automatic Open Crossing Remotely Monitored (AOCR) type, and is the last such crossing on the national rail network. All others were removed or upgraded after a serious accident at the AOCR crossing at Lockington in 1986. The protective measures at AOCRs are road traffic signals and audible warnings activated by the approaching train, signs and carriageway markings. There are no crossing barriers, and once the crossing is activated a train is unlikely to be able to stop before reaching it. ORR considers the AOCR crossing type to be obsolete, and the road:rail interface at Rosarie to be in need of improvement to ensure that crossing users, be they on foot, in a road vehicle or on board a train, are not exposed to risks to their health and safety, so far as is reasonably practicable. ORR accepts that although an AOCR appears to the user to be the same as the Automatic Open Crossing Locally Monitored type (AOCL), there are railway operational differences which meant that the crossing could not be added to the project which has recently completed the provision of barriers at all Network Rail AOCLs in Scotland. Accordingly, ORR has challenged Network Rail to improve control of level crossing risk at Rosarie. Network Rail has kept ORR informed of its actions which have included engagement with Moray Council in their capacity as local traffic authority, risk assessment and design work. ORR considers that Network Rail is currently acting appropriately to secure the necessary improvement, and that at this stage formal enforcement using powers under the Health and Safety at Work etc. Act 1974 or the Level Crossings Act 1983 is not appropriate. This is without prejudice to future reconsideration. Health and safety legislation prioritises reduction and control of risk through elimination over other means. In level crossing risk management, ORR expects all level crossing operators to assess options for crossing closure and act on those found to be reasonably practicable. Whilst ORR’s role is to ensure appropriate levels of risk control whatever the format of the road:rail interface, ORR policy is to promote closure as a risk control option. ORR notes and supports Network Rail’s action to facilitate closure of Rosarie crossing. Furthermore ORR recognises that that the local characteristics which have led to the persistence of an AOCR at Rosarie (road and railway alignments, topography and watercourse) present substantial challenges to the provision of barriers and other upgrading actions. It is possible that a satisfactory design at Rosarie would require substantial and costly civil engineering work on the crossing approaches. ORR will continue to monitor Network Rail’s action to secure risk control improvements at Rosarie level crossing, and act as necessary to secure improvements and legal compliance. Yours faithfully, David Whitmarsh H.M. Inspector of Railways David Whitmarsh H.M. Inspector of Railways Railway Safety Directorate 22 April 2019 L. Bowers, Signalling Schemes Specialist Network Rail Infrastructure Limited By e-mail Tara House, 46 Bath Street Glasgow G2 1HG (020) 7282 3714 david.whitmarsh@orr.gsi.gov.uk Item 6. Page 23
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APPENDIX 4 OFFICIAL Rosarie is the last AOCR (Automatic Open Crossing, Remotely Monitored) in Scotland. The crossing has signage for the road user, but no other way to safely segregate drivers from oncoming trains for instance there are no barriers. Currently the train driver controls the speed of the train on the approach to the crossing to ensure that any vehicle or pedestrians are in a safe position prior to traversing. This type of crossing is no longer permitted for new works. An ORR instruction has required Network Rail to remove any existing crossings to reduce the risk to road and rail users. This also limits the speed of trains in the area and can impact journey time and timetable performance. Rosarie LX was first proposed as a closure scheme in April 2012. The project proposed to build a diversionary road. This was supported by Moray Council. Public consultation deemed both of the proposed diversionary routes unsuitable. At this time, Moray Council requested that Network Rail progress with the retention and upgrade of the level crossing. Network Rail then investigated the replacement with an Automatic Half Barrier (AHB), which was deemed most appropriate given low traffic volumes (36 vehicles per day average from 9-day census). The proposed AHB design was reviewed by Moray Council in late 2017. The design cannot adequately address the concerns regarding visibility of the crossing for road vehicles due to the road configuration on approach. As such, the crossing remains unsafe for road and rail users. Moray Council therefore recommended the commencement of the statutory Stopping Up order in April 2018. This is the subject of this refreshed stopping up order along with design for improvements to the existing road alignment which will improve public road and rail safety in the long term. Item 6. Page 25
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Contains sensitive information 5159457-ATK-ROS-MD-0002 | 2.0 | December 2018 Atkins | rosarie level crossing feasibility report rev02 Page 18 of 19 Item 6. Page 27
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APPENDIX 6 THE MORAY COUNCIL (C54H CROOKSMILL TO MULDEARIE ROAD (AT ROSARIE LEVEL CROSSING) - STOPPING UP) ORDER 2018 Moray Council proposes to make the above Order under Section 68(1) of the Roads (Scotland) Act 1984. The effect of the Order will be to “stop up” the C54H Crooksmill to Muldearie Road, Keith at Rosarie Level Crossing from a point 263 metres or thereby in a north westerly direction from its junction with the A95 Mulben to Keith Road for a distance of 8 metres or thereby in a northerly direction all as specified in the Schedule and shown on the plan annexed to the Order. . STATEMENT OF REASONS The “Stopping Up” Order is being promoted at the request of Network Rail. Rosarie level crossing is of the Automatic Open Crossing Remotely Monitored (AOCR) type, and is the last such crossing on the national rail network. All others were removed or upgraded after a serious accident at the AOCR crossing at Lockington in 1986. The protective measures at AOCRs are road traffic signals and audible warnings activated by the approaching train, signs and carriageway markings. There are no crossing barriers, and once the crossing is activated, a train is unlikely to be able to stop before reaching it. The Office of Rail and Road has instructed Network Rail to either improve the crossing or remove it. Due to the existing layout of the crossing and connecting road network, any improvements are not deemed to be reasonably practicable as an alternative route already exists. Over the years, there have been a number of incidents at Rosarie level crossing that have only served to highlight the risks of this type of crossing. Historically, the creation of two optional alternative routes have been explored by Moray Council but neither was suitable. Due to the layout of Rosarie level crossing, some ScotRail drivers, following intervention of the rail unions, are reducing the speed of the trains in its vicinity to reduce the likelihood of conflicts with motor vehicles and this is having a direct effect on the reliability of the Inverness to Aberdeen train service. Item 6. Page 29
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APPENDIX 6 MORAY COUNCIL ROADS (SCOTLAND) ACT 1984 THE MORAY COUNCIL (C54H CROOKSMILL TO MULDEARIE ROAD (AT ROSARIE LEVEL CROSSING) - STOPPING UP) ORDER 2023 SCHEDULE ROAD TO BE STOPPED UP ROAD C54H Crooksmill to Muldearie Road, Keith At Rosarie Level Crossing from a point 260 metres or thereby in a north westerly direction from its junction with the A95 Mulben to Keith Road for a distance of 16 metres or thereby in a northerly direction. Page 30
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 SUBJECT: ENVIRONMENTAL AND COMMERCIAL SERVICES AND ECONOMIC GROWTH AND DEVELOPMENT SERVICES (ECONOMIC DEVELOPMENT) CAPITAL AND REVENUE BUDGET MONITORING TO 30 JUNE 2023 BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To inform the Committee of the current position regarding Environmental and Commercial Services and Economic Growth and Development Services (Economic Development) Capital and Revenue Budgets. 1.2 This report is submitted to Committee in terms of Section III (A) (2) of the Council’s Scheme of Administration relating to the consideration of Capital and Revenue Budgets and long term financial plans. 2. RECOMMENDATION 2.1 It is recommended that Committee considers and notes the budget monitoring report for the period to 30 June 2023 (QTR 1). 3. BACKGROUND 3.1 The Performance Management Framework 2020 (page 27) requires that progress against Capital and Revenue Expenditure and the Capital Plan is reported to the relevant Service Committee every Committee cycle. Expenditure is reported in the first instance to Corporate Committee (formerly Policy and Resources) quarterly. 3.2 The Capital Plan for 2023/24 was approved by a meeting of Moray Council on 1 March 2023 (paragraph 4 of the minute refers). The approved 2023/24 Capital Plan for Environmental and Commercial services is £30,005,000 with a projected expenditure of £24,295,000. Although budget managers have expressed confidence that a high proportion of the projects will spend to current budget there has been a low spend to date. Continued volatile conditions in the construction industry and in supply chains of materials are causing contractors to decline to tender for works or tender for prices significantly above estimates, resulting in reduced scope of works being retendered. This figure should be treated as the maximum approved spend in Item 7. Page 31
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the year. An estimated spend figure will be developed and reported as part of the quarter 2 capital monitoring report 3.3 As some sizeable projects span more than one year this report includes a separate APPENDIX 4 giving details of expenditure on projects which span more than one financial year. 3.4 The indicative 10 year capital plan will be reviewed in conjunction as part of the financial planning process to reflect the impact of continued construction inflation and further increased interest rates on the affordability of the plan. As a short term savings measure, capital budget managers have also been asked to review planned expenditure for 2023/24 with a view to delaying projects or otherwise reducing expenditure in 2023/24. 4. ENVIRONMENTAL AND COMMERCIAL SERVICES REVENUE BUDGET 4.1 The revenue budget for 2023/24 was approved by Moray Council on 1 March 2023 (paragraph 5 of the minute refers) APPENDIX 1 details the Environmental and Commercial Services Revenue Budget position to 30 June 2023. 4.2 REVENUE BUDGET POSITION 30 JUNE 2023 4.3 Environmental and Commercial Services actual and committed budget has an overall Underspend to budget, of £747,000 for the period to 30 June 2023. The position is shown in APPENDIX 1. 4.4 The key variances to budget date are as follows: Fleet Services £98,000 under budget with variances in income offsetting overspends in transport and plant costs, energy and materials. Consultancy - Engineering Design is under spent by £178,000 in total which is partially due to a £200,000 grant received in Emergency Planning from the Scottish and Southern Electricity Networks (SSEN) Resilient Communities Fund, which is aimed at helping communities become more resilient in the face of storms, severe weather and prolonged power loss. The grant is expected to be spent in full. The underlying overspend within the quarter is related to timing of spend against budget phasing. Roads Management £314,000 underspend, Waste Management £58,000 underspend on Leachate and recycling. Building Cleaning & Catering £79,000 underspend on food costs, although income is currently on target. A saving has been agreed relating to underspend but will not be reported until Quarter 2. Food costs are no longer as closely linked to income as they were following the extension of universal Free School Meals from Nursery to Primary 5. Uptake may gradually rise as time goes on. This is the same trend as last year which had a significant underspend on food costs. Some food prices didn’t increase as much as anticipated last year but there is expected to be an increase in wheat products as the situation in Ukraine is Annual Budget Budget Year to Date Actual &Committed Year to Date Variance Year to Date £000s £000s £000s £000s 28,977 7,004 6,257 747 underspend Page 32
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affecting supplies. All variances will be monitored closely and reported by Finance to Corporate Committee as the year progresses. 4.5 Revenue budget monitoring for Quarter 1 is expected to be reported in the first instance to Corporate Committee on 29 August 2023. 5. ECONOMIC GROWTH AND DEVELOPMENT SERVICES (ECONOMIC DEVELOPMENT) REVENUE BUDGET 5.1 REVENUE BUDGET POSITION 30 JUNE 2023 Annual Budget 2023/24 Budget Year to Date Actual & Committed Year to Date Variance Year to Date £000s £000s £000s £000s 735 -273 -322 49 5.2 Development Services - Economic Development, the variance to projection is an underspend of £49,000 due to £45,000 returned from East of Scotland loans fund. 6. ENVIRONMENTAL AND COMMERCIAL SERVICES CAPITAL BUDGET TO 30 JUNE 2023. 6.1 APPENDIX 2 details the Environmental and Commercial Services Capital Budget position to 30 June 2023 (QTR1). The total Capital Plan budget of £30.005 million has an actual spend at the end of June 2023 of £2.105 million and a projected spend at end of March 2024 of £24.295 million. Details of the projected variances from the approved Capital Plan are set out in para 7.9. 6.2 APPENDIX 3 shows the projects within the Capital Budget with a summary of the ratings estimated by budget managers. 6.3 Expenditure on Land and Building to 30 June 2023 totals £48,000. The main items of expenditure were Cemetery Infrastructure and Waste Management Moycroft, 6.4 Expenditure on Infrastructure assets to 30 June totals £796,000. The main items of expenditure were £119,000 spend on A941 New Craigellachie Bridge, £123,000 on replacement of street lighting columns and lights, and also various road safety and harbour works. 6.5 Expenditure on Vehicles, Plant and Equipment to 30 June 2023 totals £1,262,000. £78,000 was spent on electric vehicle charging points. The main item of expenditure was £1,111,000 on the Vehicle & Plant Replacement Programme, this was delayed from 2022/23 due to the current lead time for the delivery of vehicles. 7. PROJECTED OUTTURN AND PROJECT DEFERRALS 7.1 Budget managers have been recommended to update projected estimates of expenditure on capital projects in 2023/24. Projects are graded for confidence of achieving projected expenditure with high confidence rated as green, medium confidence as amber and low confidence as red. A summary Page 33
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of the ratings is given in the table below. The spend projections provided by budget managers are based on the best information available at this time. Risk Status RAG No of Projects Projected Expenditure 2023/24 £000 High confidence of spend to estimate G 42 14,846 Medium confidence of spend to estimate A 5 9,434 Low confidence of spend to estimate R 4 15 51 24,295 7.2 A red risk status in the table above highlights areas where there a low level of confidence in estimated expenditure. The following have been identified by budget managers as having a red status: Project Capital Plan 2023/24 £000s Projected Expenditure 2023/24 £000s Land and Buildings Replacement Household Waste Recycling Centre (HWRC) 800 0 Infrastructure Bridges (2 projects) 405 15 Timber Traffic 840 0 TOTAL 2,045 15 7.3 Capital spend was for land acquisition for a replacement household waste recycling centre (HWRC) subject to award of grant finding to develop a new site. Project is no longer going ahead and the budget will not be utilised. 7.4 Two bridge projects are currently predicting a status of red Blackwater Bridge Lower Cabrach and new Bishopmill Bridge. Included in the capital plan was £15,000 for works at Blackwater Bridge – this expenditure is no longer required and no spend will therefore be incurred. The capital plan approved when the budget was set included £390,000 for works to Bishopmill Bridge. However, urgent works have been identified at Viewmill Bridge the plans for Bishopmill Bridge will be deferred to allow for this to take place. However, the works at Viewmill could be delayed due to environmental constraints. 7.5 An amber rating of confidence to spend budget highlights areas where there are issues impacting on the ability to project spend – generally indicating factors outwith the budget manager’s control. The following have been identified by budget managers as having an amber status: Project Capital Plan 2023/24 £000s Projected Expenditure 2023/24 £000s Land & Buildings NESS Energy for Waste Plant 5,304 5,304 Infrastructure Bridges (2 projects) 1,538 218 Page 34
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Vehicles, Plant & Equipment Vehicle & Plant Replacement Programme 5,798 2,120 Children’s Play Area Equipment 234 234 TOTAL 12,874 11,355 7.6 Spend on the Council’s share of the costs of the construction phase of the NESS Energy for Waste Plant is dependent on contractors achieving agreed milestones which trigger payments and may be subject to change. This is the last year of construction with the plan anticipated to be live in the current financial year. An element on contingency was built into the budget and it is not anticipated that this will be required. However, under the terms of the agreement the primary supplier is permitted to claim for exceptional costs associated with a delay out with their control. The Project Board, representing the Local Authorities’ interests, is in commercial negotiations as to the value of this claim. Until these negotiations progress to a later stage it is not possible to quantify any liability. 7.7 Expenditure on the planned project at Lea Bridge in Forres is dependent on the findings of inspections. 7.8 The lead time for vehicle replacements is very long due to issues with the supply of small components to complete vehicles and there is therefore a high degree of uncertainty as to when vehicles will be delivered. There is a similar situation with regards to Play Area Equipment. 7.9 Details of the projected variances as at June 2023 from the current approved capital programme, summarised in APPENDIX 1, is set out below: Description Ref Underspend/ (Overspend) £000s Land and Buildings Replacement HWRC 7.10 800 Infrastructure Bridges 7.11 2,001 Timber Traffic 7.12 840 Vehicles, Plant & Equipment Vehicle Replacement Programme 7.13 3,378 Gull Proof Bins 7.14 (7) Orchard Road Signals 7.15 (44) TOTAL 6,968 7.10 Lands and Buildings - Replacement HWRC - This budget was for the land acquisition in relation to the construction of a Replacement HWRC, which was subject to the award of a funding application to Zero Waste Scotland. This was unsuccessful and the project is therefore not proceeding. 7.11 Infrastructure – Bridges – A941 New Craigellachie Bridge – Work is currently ongoing on this project with the next phase due to start in quarter 2. At this stage it is projected that there will be an underspend of £274,000 in this financial year. Page 35
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A941/100 Blackwater Bridge – No further work is required on this project so it is expected after approval by Corporate Committee on 29 August 2023 that the full budget of £15,000 will be removed from the capital plan. A941/340 New Bishopmill Bridge - The capital plan includes £390,000 for works to Bishopmill Bridge. However, urgent works have been identified at Viewmill Bridge the plans for Bishopmill Bridge will be deferred to allow for this to take place subject to approval by Corporate Committee on 29 August 2023. Aldunie Bridge Cabrach/Dykeside Bridge – Unbudgeted expenditure of £2,000 has been incurred in the current financial year relating to minor works carried over from this project which was carried out in 2022/23 The project had a budget of £485,000,out turned £425,000 in 2022/23 and will still be under budget after taking this expenditure into account. Remote Footbridges – This heading is currently forecasting an underspend of £19,000. Subject to approval by Corporate Committee on 29 August 2023, it is expected that this amount will be carried forward in full to allow for work at the Sanquhar Loch Footbridge to be carried out. 7.12 Timber Traffic – The Council has been unable to secure funding through the Strategic Timber Transport Scheme (STTS) in the current financial year. Subject to approval by Corporate Committee on 29 August 2023 it is expected that the full budget of £840,000 will be removed from the capital plan. 7.13 Vehicle & Plant Replacement – At the moment the projection for this project is to spend £3,378,000 (based on vehicles ordered to date) which is an underspend of £2,120,000 against the budget of £5,798,000. However global factors such as the war in Ukraine, the pandemic and Brexit have caused major manufacturer factory shutdowns making it difficult to predict delivery times of vehicles, and therefore the levels of expenditure. It is expected that the budget will be reduced by the amount of the anticipated underspend £2,120,000 in quarter 2. 7.14 Gull Proof Bins – This budget is currently projecting a small overspend of £7,000 which is due to an increase in the price of bins per unit since the budget was approved. Committee approval was previously given to purchase a specific number of bins, action will be taken to decrease the current projected overspend in QTR 2. 7.15 Orchard Road Signals – Late invoices totalling £44,000 were sent by the signals provider after year end which were not taken into account in previous reporting. Orchard Road is a developer obligation funded scheme where we have sought an infrastructure first approach, whereby the council agreed to provide up-front capital funding for the infrastructure, with existing and future developer obligations providing the long term funding. The signals equipment are an integral part of the project and the exclusion of this cost from the previous financial reporting was an error on Transportation’s part. The overall rise in project costs has been down to the increase in construction costs experienced between 2020 (when the Project Mandate was completed) and 2023 (when the project was completed). Additional work was also required to provide new electronically controlled gates for a property whose access lies within the junction. Page 36
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8. AMENDMENTS TO CAPITAL PLAN 8.1 The following amendments to the capital plan are expected, subject to approval in the first instance by Corporate Committee on 29 August 2023. Amendments Para 2023/24 £000s 2024/25 £000s Land & Buildings Replacement HWRC 5.13 (800) - Infrastructure Bridges 5.14/ 6.3 (124) 409 Timber Traffic 5.16 (840) - TOTAL (3,064) 409 8.2 Viewmill Bridge – Viewmill Bridge carries the C26E over a drainage ditch between Miltonduff and the A96. The Network Criticality of the bridge is categorised as “Important” because it is on a Priority 1 gritting route. This bridge was struck by a vehicle on 19 April 2023, causing significant damage to the western parapet and one on the main supporting beams. The eastern parapet was damaged when struck by a vehicle in 2018 and this has not yet been repaired. The resulting damage means the bridge is no longer safe for use by vehicular traffic and has been closed in the interest of public safety. Subject to approval by Corporate Committee on 29 August 2023 it is expected to be recommended that £300,000 is added to the capital plan to replace the bridge. Replacing the bridge will extend its serviceable life and widening the bridge will reduce the risk of accidental damage in the future and the associated repair costs. 9. RISK AND EMERGING ISSUES 9.1 Budget managers have been requested to identify any specific areas of risk for the projects in the Capital Plan for which they are responsible. 9.2 A risk to the capital plan in recent years has been an increase in the cost of materials and scarcity of many materials which are key for the construction industry. This is partly a world-wide reaction to the pandemic, and partly due to Brexit, but the war in Ukraine is also having an impact. This is still seen as a risk but the impact and likelihood is reducing. 9.3 There is a risk that contract inflation might increase the eventual cost of projects in future years of the capital plan and a risk that any deferment of projects relating to asset condition might result in element failure, potentially incurring unbudgeted costs. The figures in the 10 year plan are based on current costs and are likely to increase by the time the project is undertaken. This consideration will form part of the review of the 10 year plan. 9.4 The cost to the Council of borrowing is based on interest rates at the time. However, continued relatively high levels on inflation are expected to mean that the current pattern of interest rate rises is likely to continue and this will have an impact on the cost to the Council and will this will underpin the review Page 37
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of the 10 year plan as part of the financial planning process for 2024/25 and beyond. 9.5 The main risk for the vehicle replacement programme is manufacturers failing to deliver to agreed timescales and this risk is heightened at this time due to the world-wide shortage of semi-conductors. 9.6 Lack of staff resources and staff turnover can impact on project timescales and other emerging work priorities can impact in scheduled works and this is reflected in delays where work planned to be out-sourced is being brought inhouse as a result of poor response to tender requests. 9.7 There is a risk that time-limited funding is not spent within time-frame and that the Council therefore loses the opportunity to improve or create assets at no or reduced cost to the Council. 9.8 The Council has a target by which it aims to become Net Zero. The cost of achieving this is unknown but is likely to be considerable and will have significant implications for future capital expenditure 9.9 Projects can be subject to risks which are out with the direct control of the Council, such as poor weather conditions and some assets such as harbours are particularly vulnerable to bad weather events. 9.10 No other project risks have been specifically identified by budget managers. 10. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan, (Local Outcomes Improvement Plan (LOIP)) Effective budget management is an essential component of delivery of Council priorities on a sustainable basis. The capital plan is one of the vehicles through which the Council’s priorities can be delivered. The approved capital plan for 2023/24 and the outline ten year plan incorporates measures designed to address the LOIP priorities of building a better future for our children and young people, empowering and connecting communities and developing a diverse, inclusive and sustainable economy. (b) Policy and Legal There are no policy or legal implications arising directly from this report (c) Financial implications The financial implications are highlighted within the report and detailed in APPENDICES 1 – 4. Environmental and Commercial Services revenue spend to 30 June 2023 is £6.257 million against a budget to end June of £7.004 million giving an underspend of £747,000. The annual revenue budget for 2023/2024 is currently £28.471 million. Page 38
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Economic Growth and Development Services – (Economic Development) Revenue spend to 30 June 2023 is £-322,000 against a budget year to date of £-273,000 giving an underspend variance of £49,000. Environmental and Commercial Services - Capital spend is £2,105 million to 30 June 2023. (d) Risk Implications Budget managers are aware of their responsibilities for managing budget allocations and approval for variance will be sought from Committee in line with the Financial Regulations. (e) Staffing Implications There are no staffing implications arising from this report. (f) Property There are no Property implications arising from this report. (g) Equalities/Socio Economic Impact There are no equalities implications arising from this report because the report informs the Committee on budget monitoring. (h) Climate Change and Biodiversity Impacts There are no climate change or Biodiversity impacts arising from this report. Achieving net zero will have significant implications for future planned capital expenditure (i) Consultations This report has been prepared in consultation with Depute Chief Executive (Economy, Environment & Finance), Head of Environmental and Commercial Services, Head of Economic Growth and Development Services, Chief Financial Officer, Legal Services Manager, Committee Services Officer and Environmental and Commercial Services Management Team and Budget Managers. Any comments have been taken into consideration. 11. CONCLUSION 11.1 This report sets out the budget monitoring position and comments on variances for the Environmental and Commercial Services and Economic Growth and Development Services (Economic Development) Capital and Revenue Budgets for the period to 30 June 2023. Author of Report: Nichola Urquhart, Quality Management Systems Officer Background Papers: Ref: SPMAN-524642768-874 Page 39
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APPENDIX 1 ENVIRONMENTAL AND COMMERCIAL SERVICES - REVENUE BUDGET PROGRESS PERIOD TO 30 JUNE 2023 (QTR 1) Service Annual Budget Budget to date Actual & Committed YTD Variance to date £000s £000s £000s £000s Fleet Services -1,817 -457 -555 98 Engineering Design 1,097 257 79 178 Roads Management 4,953 2,548 2,234 314 Traffic & Transportation Mgmt 6,218 1,046 1,003 43 Waste Management 8,778 1,200 1,142 58 Building Cleaning & Catering 7,620 1,877 1,798 79 Parks & Open Spaces 1,646 369 386 -17 Env& Com Services Admin / Suppt Svs /H&S 482 114 114 0 Env & Com Services Covid 19 0 0 10 -10 Efficiency Savings -702 0 0 0 Direct Services Directorate 196 50 46 4 Total Env & Com Services 28,471 7,004 6,257 747 UNDERSPEND Item 7. Page 41
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APPENDIX 2 APPENDIX II ENVIRONMENTAL AND COMMERCIAL SERVICES - CAPITAL BUDGET PROGRESS – PERIOD TO 30 JUNE 2023 QTR 1 Service Description Total Number of Projects Current Capital Plan Budget 2023 - 2024 Actual & Committed to 30 JUNE 2023 Total Projected Expenditure 31 MARCH 2024 £000s £000s £000s Vehicle Plant and Equipment 11 6,541 1,262 4,472 Lands and Buildings 10 9,813 48 9,013 Infrastructure 30 13,651 796 10,810 Total 51 30,005 2,105 24,295 Item 7. Page 43
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APPENDIX 3 CAPITAL PROJECTS 2023 / 2024 As at 30 June 2023 Current Capital Plan 2023/24 Actual to 30 June 2023 (QTR 1) Total Projected Expenditure 2023/24 Projected Variance RAG Service £000 £000 £000 LANDS AND BUILDINGS Cemetery, Cremation & Mortuary Services Contribution to the cost of a new mortuary 160 0 160 0 G Environmental Protection Cemetery infrastructure (paths, walls, railings, signage) 99 20 99 0 G Environmental Protection Cemetery Provision – new Cemetery for Elgin 2,181 0 2,181 0 G Environmental Protection Parks & Open Spaces Paths & Open Spaces infrastructure 154 0 154 0 A Environmental Protection Waste Management Dallachy Landfill site 468 0 468 0 G Environmental Protection Upgrade Recycling Centres 255 0 255 0 G Environmental Protection Replacement HWRC 800 0 0 800 R Environmental Protection NESS energy from waste 5,304 0 5,304 0 A Environmental Protection Moycroft 0 28 0 0 Environmental Protection Transportation Car Parks - replace waterproof and expansion joints at multi-story car parks 392 0 392 0 G Transportation / Consultancy TOTAL - LANDS AND BUILDINGS 9,813 48 9,013 800 Item 7. Page 45
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CAPITAL PROJECTS 2023 / 2024 (Continued) As at 30 June 2023 Current Capital Plan 2023/24 Actual to 30 June 2023 (QTR 1) Total Projected Expenditure 2023/24 Projected Variance RAG Service £000 £000 £000 INFRASTRUCTURE Bridges Principal Bridge Inspections 466 0 466 0 G Consultancy A941/ New Craigellachie Bridge 400 119 126 274 G Consultancy A941/100 Blackwater bridge, lower Cabrach 15 0 15 0 R Consultancy A941/340 New Bishopmill Bridge 390 0 0 390 R Consultancy B9103/100 Boat O Brig Bridge, Orton 32 0 32 0 G Consultancy U173E/10 Lea Bridge Forres 38 0 38 0 A Consultancy U117H/10 Bridge of Slateford / Tomnavoulin 235 0 235 0 G Consultancy U170E/20 Kirkhill Drive, Lhanbryde 200 0 200 0 G Consultancy Dykeside Bridges 0 2 2 -2 G Consultancy Cloddach Bridges 1,500 0 180 1,320 A Consultancy Remote Footbridges 67 0 48 19 G Consultancy Flood Risk Management and Coastal Protection Elgin Flood Alleviation Scheme 437 2 437 0 G Consultancy Forres (Findhorn and Pilmuir) 163 3 163 0 G Consultancy Coastal Protection 79 2 79 0 G Consultancy Page 46
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CAPITAL PROJECTS 2023 / 2024 (Continued) As at 30 June 2023 Current Capital Plan 2023/24 Actual to 30 June 2023 (QTR 1) Total Projected Expenditure 2023/24 Projected Variance RAG Service £000 £000 £000 INFRASTRUCTURE Harbours Capital Dredging 255 31 255 0 G Transportation Power Upgrade – Buckie Harbour 427 71 427 0 G Transportation Replacement of life expired elements and upgrade 451 67 451 0 G Consultancy Economic Development – Buckie harbour weighbridge 56 56 56 0 G Transportation/ Consultancy Road Improvements A95 Landslip River Isla 1,196 43 1,196 0 G Consultancy Carriageway resurfacing / reconstruction/ surface dressing 3,812 20 3,812 0 G Roads Maintenance Drainage and other works 556 14 556 0 G Roads Maintenance Footways 409 9 409 0 G Roads Maintenance Kerb Edge Replacement 75 0 75 0 G Roads Maintenance Slippage allowance (400) 0 -400 0 G Roads Maintenance Timber Traffic 840 0 0 840 G Roads Maintenance Street Lighting Replacement Columns and Lights 800 123 800 0 G Roads Maintenance Road Safety Disability Adaptions 75 6 75 0 G Transportation New Road Signs and Markings 73 17 73 0 G Transportation Road Safety Barrier Provision 200 25 200 0 G Consultancy Road Safety Provision 188 130 188 0 G Transportation CWSR 616 55 616 0 G Transportation TOTAL - INFRASTRUCTURE 13,651 796 10,810 2,841 Page 47
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CAPITAL PROJECTS 2023 / 2024 (Continued) As at 30 June 2023 Current Capital Plan 2023/24 Actual to 30 June 2023 (QTR 1) Total Projected Expenditure 2023/24 Projected Variance RAG Service £000 £000 £000 VEHICLES PLANT & EQUIPMENT ENVIRONMENTAL Facilities Management Equipment 15 0 15 0 G Environmental Protection Vehicle & plant replacement Programme 5,798 1,111 3,678 2,120 A Roads Maintenance Climate Change - Fleet 250 0 250 0 G Roads Maintenance Children’s Play Areas (Parkland) 234 16 234 0 A Environmental Protection EV Charging points 78 78 78 0 G Transportation Waste Management Domestic & Trade Waste Bins 97 2 97 0 G Environmental Protection Upgrade of containers at recycling centres 28 6 28 0 G Environmental Protection Gull Proof Bins 18 0 25 -7 G Environmental Protection Traffic Orchard Road Signals 0 44 44 -44 G Transportation Traffic Data Collection Equipment 7 5 7 0 G Transportation Traffic Signal replacement 16 0 16 0 G Transportation TOTAL - VEHICLES PLANT & EQUIPMENT 6,541 1,262 4,472 2,069 Page 48
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APPENDIX 4 Major Capital Projects spanning more than 1 financial year (as at 30 June 2023) Description Approved Budget Total Expenditure in previous financial years Current 2022-23 Budget Actual spend to 2023-24 Remaining Budget 2023-24 Project Life Spend to 31/03/24 Projected Future Years Budget Required Estimated Final Cost Projected Budget Variance £000s £000s £000s £000s £000s £000s £000s £000s £000s NESS Energy from waste 27,224 22,092 5,304 0 5,304 21,920 0 27,224 0 Total 27,224 22,092 5,304 0 5,304 21,920 0 27,224 0 Item 7. Page 49
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 SUBJECT: ELGIN PARKING REVIEW BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To set out recommendations following feedback from stakeholder engagement held on 12 April 2023 and a subsequent review of Elgin parking charges. 1.2 This report is submitted to Committee in terms of Section III (F) (17) of the Council's Scheme of Administration relating to traffic management functions. 2. RECOMMENDATION 2.1 It is recommended that Committee: (i) notes the summary of feedback from the Stakeholder meeting held on 12 April 2023 and the proposed measures set out in the subsequent parking review; (ii) approves the approach set out in paragraph 4; (ii) approves the revised parking charges as set out in Section 6 of this report, and given the budgetary impact, refers determination of the charges to the next meeting of Moray Council for a final decision with a recommendation from this committee based on its view on the charges. Item 8. Page 51
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3. BACKGROUND 3.1 A Parking Strategy for Elgin was adopted by Members in October 2017. This provided a considered approach to the future of parking provision in Elgin to best meet the varied and competing needs of different users. This strategy covered a range of parking issues, and included a review of the charges at the council’s pay and display car parks in Elgin (Para 7 of the minute refers). Car park charges have not been changed since that time, as frequent changes are challenging for both users and the technology in terms of small denomination coinage, and the principle is of periodic rather than annual review. 3.2 In January 2023 it was proposed to increase the car park charges as part of the charges report. Following debate at Corporate Committee it was agreed to freeze parking charges to enable further discussions on parking issues within Elgin to take place between the Council and partner organisations (Para 8 of the minute refers). 3.3 A workshop was held with stakeholders and partner organisations on 12 April 2023. This report considers the feedback from the Elgin Parking Stakeholder meeting and makes recommendations as a result of the feedback from the meeting and information from parking surveys undertaken by officers. 4. ELGIN PARKING STAKEHOLDER MEETING 4.1 An Elgin Parking Stakeholder meeting was held on Wednesday 12 April 2023. A full summary of the outputs from the workshop is attached in Appendix A to this report. 4.2 Stakeholders included representatives from Elgin BID, Visit Moray Speyside, Police Scotland, Fire Scotland, UHI, Federation of Small Businesses, Moray Chamber of Commerce, Moray Transport Forum and Elgin Community Council. Local Elected Members were also invited along with colleagues from Development Services and Car Park Attendants. 4.3 Attendees at the workshop were split into three groups and each group was facilitated by a member of Transportation staff, following an initial short overview. Each group discussed relevant problems, opportunities and constraints followed by potential solutions. 4.4 Appendix A provides a detailed list of the wide ranging issues highlighted and potential opportunities or solutions identified by stakeholders. The issues raised included parking problems relating to specific streets including Batchen Lane and North Street, St Giles and Batchen Lane multi-storey car parks, disabled parking spaces, enforcement, potential to vary charges and the size of modern vehicles. Page 52
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4.5 The Stakeholder meeting identified the following as key priorities: • Disabled parking • Improved signing for car parking on all key routes into Elgin • On-street parking enforcement and policy The following points were also prevalent in the issues raised and are addressed in the report: • Review of car parking charging structure • Coach Parking / pick up / drop off 4.6 Disabled Parking – A detailed report on disabled parking will be brought to a future meeting of this Committee. The work to be done is partly underway, but is quite wide-ranging and time consuming needing further resourcing from the transportation team, which is in the workplan for this year. This review will also consider opportunities identified in the Stakeholder workshop which included the size of parking spaces and increasing disabled parking provision at specific locations. 4.7 Improved signing for car parking on all key approach routes – It is recognised that current signage for off street car parking in Elgin could be improved. Some existing signage is outdated while there are opportunities to install additional signage to help direct visitors to the most appropriate off street car park for their destination. Improving advance signage of the off street car parks will help reduce unnecessary circulating of traffic, extending visitors time within the centre of Elgin and improve the utilisation of car parks. A review of existing signage will be undertaken this year and where possible funding within the car park budget identified to deliver the improvements. 4.8 On-street parking enforcement and policy – A number of stakeholders identified issues relating to the enforcement of on-street parking and wider parking policy. 4.9 Moray Council’s adopted parking strategy established the following key objectives: • Increase satisfaction in parking provision from users and businesses • Maximise use of all off-street parking (car parks) • Increase the use of multi-storey car parks 4.10 The Scottish Government’s National Transport Strategy and Climate Change Plan places an increasing emphasis on the need to reduce unnecessary car use. Transport Scotland have subsequently published a draft document ‘Reducing car use for a healthier, fairer and greener Scotland’ which sets out a route map to achieve a 20 per cent reduction in car kilometres by 2030. Page 53
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4.11 The Scottish Government and COSLA have co-developed the route map in recognition of the need for joint ambition and action at both a national and local level. The draft route map recognises the challenges for journeys undertaken by disabled people or in rural areas where sustainable travel options may not always be available or practical. However, it is seeking to encourage all of us to reduce our overreliance on cars wherever possible and the route map sets out the interventions that the Scottish Government are proposing to support this 20% reduction target. 4.12 The proposed charging structure set out in Section 6 of this report aims to provide a balance between some of these competing policy objectives that parking policy is developed around. 4.13 The enforcement of on-street parking is the responsibility of Police Scotland. Council Officers meet regularly with colleagues in Police Scotland to discuss priorities and issues relating to enforcement. Decriminalised Parking Enforcement (DPE) is where a local authority takes on the responsibility of administering its own parking penalties – so stationary traffic offences cease to be criminal offences enforced by the police and become civil penalties enforced by the local authority. 4.14 The legislative process that enables this is provided through the 1991 Road Traffic Act. Considering DPE is both a policy and a financial matter, however following previous consideration it was decided that Moray Council would not pursue this in common with a number of rural and island local authorities where establishing the business case on the basis that expected ongoing income from parking charges and penalty charge notices is unlikely to cover the increased resourcing to enforce and maintain including additional back office costs. It is recognised that the business case for this needs to be regularly reviewed. It is estimated that the investigation of the business case for DPE is likely to cost in the region of £50-80,000. It is also a requirement to review all road traffic regulation orders relating to parking restrictions, and it is estimated that this would cost in the region of £200–300,000. When previously considered by this Committee it was agreed that detailed consideration of DPE would only be undertaken following specific Committee request, and potentially in tandem with any proposals for on-street parking charges (meeting of this Committee 31 October 2017, paragraph 7 of the minute refers). Approximately one third of Scottish local authorities have not taken on parking enforcement powers, these are principally rural authorities, where – like Moray – a positive sustainable financial case has not been identified. 4.15 In the stakeholder consultation it was clearly acknowledged by all parties that the pedestrianised areas of the Plainstones and Batchen Street are being misused for access and parking by drivers on an increasing basis. The ability to put in any specific controls is limited by the current closure of North Street for the rebuilding of Poundland which necessitates the use of Batchen Street for through traffic. Whilst some innovative ideas were discussed at the stakeholder meeting, it is recommended that this aspect is considered again further when the Poundland work is complete (anticipated around March Page 54
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2024). There is also potential for some infrastructure improvements, such as traffic control bollards, should the council apply and be successful in the third round of the Levelling Up Fund which would consider the town centre as a whole. 4.16 On Street parking charges - Further on-street parking restrictions or the introduction of charges have been considered. Representations were made at the Stakeholder workshop to address illegal parking or overstaying at some specific locations such as High Street, Batchen Lane and South Street. The introduction of short stay on-street charging measures could incentivise the use of off-street car parks and transfer on-street demand to underutilised spaces in off-street car parks, helping to reduce circulation of town centre streets where motorists currently circulate looking for spaces. If progressed, the rights of enforcement would remain with Police Scotland in the first instance. It would also require significant resource to develop and promote the necessary Traffic Regulation Orders and then implement on-street. Before any measure is pursued a full assessment would need to be undertaken and a report taken to a future Committee. It should be noted that without rigorous enforcement the parking management and income generation effects of any on-street parking charges would be diminished. At present, whilst there is evidence that some drivers do not comply with the short stay on-street parking restrictions, the arrangements do provide a measure of uncharged short stay parking – for example at the west of the High Street near Marks & Spencers. 4.17 Review of off street car parking charging structure - as detailed in paragraph 3.2 above on 31 January 2023 Corporate Committee agreed to freeze parking charges pending further engagement on parking issues within Elgin to take place between the Council and partner organisations (para 8 of the minute refers). At the Stakeholder workshop a number of proposals were made. Section 6 of this report considers these proposals and outlines proposed changes to off-street car parking charges within Elgin. 4.18 Coach Parking - The Cultural Quarter project which is part of the Moray Growth Deal is considering how the space at Lossie Green and Cooper Park is best utilised. This project offers an opportunity to review parking arrangements within the area and also how access may be improved between the area and the High Street. Options for improving coach parking and pick-up and drop-off facilities are being considered as part of the initial feasibility work being undertaken. 4.19 Signposting to alternative parking - The Council’s website provides detailed information of the charging structure for each car park within Elgin and all car parks maintained by the Council within Moray www.moray.gov.uk/moray_standard/page_58746.html Any regular commuter or visitor to Elgin can use the information on this page to help decide on the best value option depending on their journey purpose and destination. It would not be practical to provide physical signposting to all alternative car parks within Elgin. Page 55
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4.20 Increase size of parking bays - Some users have indicated they find it difficult to safely fit their vehicle and easily get in and out of parking spaces due to the increased size of modern vehicles. In order to help address this issue, the dimensions of all disabled parking spaces are greater than for general parking spaces. In addition, the number of parent and child spaces has been increased in some car parks. Officers will continue to review provision and look to increase the number of these spaces whenever they are re-lining car parks as appropriate. Similarly, should national guidance on the requirements for standard off street parking spaces be amended, revising the layout of car parks will be considered when re-lining. 4.21 Free After 3 for Christmas Shopping – Since 2015 Committee has approved a ‘free after 3’ scheme whereby parking in St Giles multi-storey car park was uncharged after 3pm for around 5 weeks over the festive period from the date when the Christmas lights are switched on through to the first Saturday in January. Following some representations at the Stakeholder meeting consideration has been given to extending the period where the St Giles car park is ‘Free after 3’ or to implement it year round. However, given the evidence of footfall impacts from this scheme in previous years, officers consider that any wider economic benefits are limited while any extension would be difficult to support in terms of wider Council and national policy to reduce unnecessary car travel and the financial impact from lost revenue. This position remains in line with the authority delegated to officers in relation to Free After 3. 4.22 Officers will continue to explore a number of other opportunities raised at the Stakeholder meeting and pursue these subject to the business case and/ or the availability of external funding including Coach parking, wider measures to help reduce car use and demand for parking including Park and Ride and continuing to improve walking and cycling routes as set out the Moray Council Active Travel Strategy which was adopted by members of this Committee in November 2022 (para 5 of the minute refers). 5. ELGIN CAR PARK SURVEY 5.1 Across central Elgin there are just over 3,000 public parking places on street, and just under 1400 car park spaces – a total capacity for more than 4,300 cars. 5.2 Surveys show that the total quantum of available spaces exceeds the daily use. A summary of the results from the most recent occupancy survey (Monday 15 – Saturday 27 May 2023) of Elgin’s off street car parks that have a charging structure in place is contained in Appendix B to this report. Page 56
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5.3 Car Park attendants undertake regular morning (circa1100h) and afternoon (circa1500h) occupancy surveys of all off-street car parks in Elgin. Surveys are undertaken on a daily basis for two weeks (Monday-Saturday) over the same four periods of the year in February, May, August and November. 5.4 The survey undertaken in May 2023 highlights that overall occupancy in the morning was 53%. The results of the afternoon survey shows overall occupancy levels were under 50% of available capacity. 5.5 This represents a slight increase from the survey undertaken during the same period in May last year – AM (48% occupancy) and PM (45% occupancy). This reflects wider data that illustrates an increase in vehicular traffic following the impacts of Covid. 5.6 It is recognised that the occupancy for specific car parks will vary from day to day. The occupancy survey highlights the variation between different car parks with Greyfriars Street (88%) and the HQ annexe (75%) having the highest average occupancy levels when surveyed in the morning while the car park at Hall Place was never more than at one third of capacity. 5.7 The car parks with the highest average occupancy levels when surveyed in the afternoon were Cooper Park and Moray Street. The lowest overall occupancy levels observed were at St Giles Car Park which averaged only at 22% of its capacity. 6. REVIEW OF ELGIN CAR PARK CHARGES 6.1 Officers have undertaken a review of parking charges in Elgin Car Parks including a benchmarking exercise against parking charges in other local authorities. 6.2 As outlined in Section 4, the setting of car parking charges involves a balance between competing policy objectives. Following opportunities identified at the Stakeholder meeting in April, officers have considered a number of changes to the off-street car park structure, recognising the financial challenges facing the local authority and the saving hierarchy where income generation has been agreed as preferable to any reduction in service provision Page 57
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Table A below sets out the current charging structure which has been in place since 2018. TABLE A: CURRENT CHARGES - 2022/23 Period Charge Medium & High Turnover 0-30 mins £0.50* 31-60 mins £1.50 61-120 mins £2.00 2-3 hours £2.50 3-4 hours £3.00 4 - 10 hours £5.00 Low Turnover Car Parks Daily £1.00 Weekly £5.00 Railway Station Daily £2.00 Railway Station Weekly £10.00 *except Cooper Park which is free for the first 30 minutes 6.3 Feedback from stakeholders particularly related to the cost of short stay parking – and whilst the 50p parking for 30 minutes was broadly considered a positive introduction from the last revision of charges, it was believed that a charge for the first hour would be preferable. There was some desire to see this first hour be uncharged, but generally an overall acceptance of the position that this would be financially unviable for the council. While all users are encouraged to book via the parking app, feedback has indicated that users who pay with cash dislike charges that require small change. It is proposed that the existing charges for up to 30min (£0.50p) and up to 1hour (£1.50) is replaced with a single standardised charge of £1.00 for the first hour of parking. 6.4 It is not proposed to change the charge for parking up to 2 hours, 2-3 hours or 4-10 hours respectively. 6.5 It is proposed that those car parks which offer a daily parking ticket be increased from the current £1.00 to £2.00 per day with corresponding increases for weekly and monthly tickets. 6.6 It is proposed that the daily charge for parking at the Railway Station car park will remain the same (£2.00 per day), bringing it into line with other car parks offering a daily rate. While recent surveys indicate that there has been some growth in the use of this car park around a third of the existing capacity is used on an average day. By retaining the daily charge at its current level it is hoped that more people may be encouraged to use it as a park and ride option for undertaking onward journeys. Page 58
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6.7 Any increase in charges carries the risk that vehicle users will seek to park elsewhere or travel by other means, and this has been experienced previously in Elgin with changes to car park charges. There is no comprehensive model to inform the impact of changes to charges (both increases and decreases) – the studies that do exist state the range of variable factors (location, local customs, availability of free parking, quantum of spaces v number of vehicles, destination types, perceived quality etc.) mean that independent modelling the anticipated impact of any changes in parking charges on the occupancy and income within individual car parks or even overall is difficult. Therefore the proposals are based on officer experience. 6.8 It is proposed that the revised charges are introduced following approvals in 2023/24 financial year. It is not proposed to consider a further increase in 2024/25, as experience indicates that it is more beneficial to have periodic reviews of charges rather than smaller annual increases which can create the need for small loose change in relation to cash payments (5p etc.) and a tariff range which is not as simple to navigate with confusing differentials. 6.9 It is estimated that the proposed changes if approved will lead to an overall increase in net income of £414,000. However, the impact of the changes will be closely monitored by officers through the quarterly parking occupancy surveys and monthly monitoring of the tickets issued for each car park. 6.10 An allowance will need to be made for the cost of updating signage within each of the car parks impacted by the proposed changes or the cost of updating the software supporting the charging infrastructure. 6.11 Benchmarking indicates that the proposed charges are both consistent with parking charging structures in comparable authorities and local economic and administrative centres similar to Elgin. 6.12 Table B shows the proposed charging structure recommended following the review by officers. TABLE B: PROPOSED CHARGES - 2023/24 Period Charge High & Medium Turnover 0-60 mins £1.00* 61-120 mins £2.00 2-3 hours £2.50 3-4 hours £3.00 4 - 10 hours £5.00 Low Turnover Car Parks inc. Railway Station Daily £2.00 Weekly £10.00 *Cooper Park would remain free for the first 30 minutes Page 59
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6.13 While these charges would normally, if approved, be referred onto the Corporate Committee for endorsement, given the scale and thus financial impact of the charges in the context of the wider budget process being progressed through Full Council, it is recommended that the position of the Economic Development and Infrastructure Services Committee is referred onto Full Council for a final decision as this committee has an overview of and authority in respect of the wider budgetary position of the Council. 7. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) The proposals in this report contribute to Priority 1 of Moray 2026 in delivering a growing and diverse economy through the provision of appropriate parking infrastructure for businesses, shoppers, workers, leisure users and residents. The proposals also deliver the Corporate Plan priority of Sustainable Economic Development by promoting and developing infrastructure. (b) Policy and Legal The proposals do not require the revocation of existing traffic regulation orders or the implementation of new orders. (c) Financial implications The proposals outlined in the report generate additional revenue income for the council in line with the council’s savings hierarchy, income generation is considered a priority over service reductions and other savings when considering the overall financial position of the council. This Committee has the authority in terms of the Scheme of Administration to determine traffic orders and traffic management schemes, which includes the off-street car park orders. However, as the matter also relates to the setting of charges, the potential annual income generated is significant for the council and in light of the budget gap, Committee is invited to approve the charges then refer the matter on to Full Council with a recommendation as to its position. This also allows time for officers to cost any amendments proposed and for the implications of those changes to be considered in the context of the current budget gap. (d) Risk Implications Whilst there has been Member and stakeholder consultation through internal and external meetings, and there are some reductions in charges / low cost parking, any rise in car park charges carries the risk of adverse public reaction, and potential reduction in car park use. (e) Staffing Implications There are no current staffing implications from the report. Page 60
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(f) Property There are no property implications arising from the report. (g) Equalities/Socio Economic Impact A wide range of key stakeholders were consulted. The parking review and proposed new charging structure aims to strike a balance between the, sometimes conflicting, needs of various groups including those of people with a disability, the elderly and families with young children. There will be a review of disabled persons parking as outlined in 4.6. The effectiveness of the measures will be monitored and evaluated. (h) Climate Change and Biodiversity Impacts The Scottish Government’s National Transport Strategy and Climate Change Plan place an increasing emphasis on the need to reduce unnecessary car use. Transport Scotland have subsequently published a draft document ‘Reducing car use for a healthier, fairer and greener Scotland’ which sets out a route map to achieve a 20 per cent reduction in car kilometres by 2030. The route map which has been co-developed by the Scottish Government and COSLA in recognition of the need for joint ambition and action at both a national and local level. Measures proposed in this report seek to reduce unnecessary car mileage through the proposed charging structure and by improving signage. Complimentary measures and actions identified in the Councils Active Travel Strategy will encourage all of us to reduce our overreliance on cars wherever possible especially for those shorter journeys that can be made by walking or cycling. (i) Consultations The Depute Chief Executive (Economy, Environment & Finance), Head of Environmental and Commercial Services, Chief Financial Officer, Legal Services Manager, Equal Opportunities Officer and Committee Services Officer have been consulted and any comments have been incorporated into the report. 8. CONCLUSION 8.1 This report sets out recommendations relating to parking in Elgin following feedback from stakeholder engagement held on 12 April 2023 and a subsequent review of Elgin parking occupancy levels and charging structure. These include additional actions relative to: o A Disabled Persons Parking Review o Improving signing for off-street car parking on key approach routes to Elgin o Revised off-street parking charging structure Author of Report: Neil MacRae, Transportation Manager Page 61
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Background Papers: Ref: SPMAN-524642768-961 Page 62
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APPENDIX A ELGIN PARKING STAKEHOLDER CONSULTATION Summary On Tuesday 31 January 2023 Moray Council’s Corporate Committee agreed to freeze parking charges to enable further discussions on parking issues within Elgin to take place between the council and partner organisations. An initial internal meeting was convened by Nicola Moss, Head of Environmental & Commercial Services, on Wednesday 15 March 2023. In attendance were Elected Members from Elgin North and Elgin South wards and from Administration Group Kathleen Robertson, Bridget Mustard and Marc Macrae, along with Officers from Transportation, initially to discuss parking matters and to identify who should be invited to a stakeholders meeting. The Elgin Parking Stakeholder meeting subsequently took place on Wednesday 12 April 2023. Stakeholders included representatives from Elgin BID, Visit Moray Speyside, Police Scotland, Fire Scotland, UHI, Federation of Small Businesses, Moray Chamber of Commerce, Moray Transport Forum. Elgin Community Council. The elected members who had attended the initial meeting were invited along with colleagues from Development Services and Car Park Attendant. The format of the meeting saw attendees split into three groups each group facilitated by a member of Transportation staff, following an initial short overview. Each group discussed relevant problems, opportunities and constraints followed by potential solutions. A summary of the feedback recorded at the meeting is on following pages. Next Steps Officers are currently reviewing the feedback received at each meeting. A report and recommendations will then be taken to the next meeting of the Economic Development and Service Committee on 5th September 2023. Item 8. Page 63
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Elgin Parking Stakeholder Meeting 12th April 2023 Problems Size of vehicles (modern) v size of parking bays / Family Spaces Disabled parking – flat access to St Giles Centre from St Giles Multi Storey St Giles Multi Storey partially closed Safety issue with multi storey car parks Lack of free spaces with knock on effect to on-street parking Limited town centre Behaviour of drivers who don’t want to pay → time constraints → is ½ hour long enough → lower costs Cost/Difference in parking charges → if all car parks were £1.00 more drivers would use the car parks Long stay where we are looking for workers to park v short stay for visitors/shoppers Sharing of car park tickets as there is no vehicle registration on car park tickets Ticket not transferrable Confusion over use of App v Coins at machine/card at machine Loss of revenue with free 1 hour parking Long term closure of North Street – Building condition → Road Closure Illegal parking and no enforcement → High Street, Batchen Street, South Street, overstaying Illegal use of Commerce Street, High Street Police Scotland issuing of PCNs infrequently Misuse of loading bays and Plainstones Speed of vehicle on Batchen Street, High Street Deliveries to High Street - are these deliveries before 10am/after 4pm Batchen Street barriers → signage at Batchen Street is not clear Letter issued to businesses on Batchen Street has been misinterpreted On-street parking → residential parking Damage to pavements through pavement parking Seagulls Free parking at Leisure Centre → not everyone parking is using the Centre Taxi Rank Coach parking → passengers alighting Charges v Maintenance Railway Station car park is too expensive → need for multi day parking at the Railway Station It would be good to know the utilisation of car parks Free parking also has it’s issues Page 64
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Opportunities Signposting to cheaper parking Signposting to car parks from 4 arteries into town Improve signage → replace faded or missing signage Inner ring/outer ring → with cheaper parking available on outer ring Make the bays bigger to fit modern day vehicles → introduce more parent & child bays Education on pedestrianised area → emergency services access Review 50p charge to 1 hour Free 1 hour parking at St Giles High usage car parks – 1 hour free at lunchtime to encourage use – may stay longer Reduce parking charges at Railway Station to £1.00 per day Free After 3 – all year round Review car parking charges → increase income Allow staff parking transfer to same priced car parks Monthly Permit for staff car park Install CCTV in car parks Improve parking meters → issue with card usage Park Mark (Markings) to improve quality/safety in car parks Introduce park and ride Install additional street furniture to discourage on-street parking Reintroduce traffic wardens (3 for Moray) → improve enforcement Difference in cost of off-street ECN to on-street PCN – it pays motorists to pay PCN Different approach to decriminalised parking Periodically a week of enforcement by Police Scotland to improve illegal parking Council pay exclusive use of police officer for enforcement on-street Share DPE costs with other Councils Large scale decriminalisation – Parking Orders Marketing campaign Make the Plainstones a car park → could be disabled parking only Make part of South Street into a car park? Parking behind Batchen Lane on-street – could this be included in either Batchen Lane or Northfield Terrace? Identify areas to change to car parks Advertise that not all car park income goes to Moray Council, some goes to Trust/Common Good Improve public transport and/or active travel routes → encourage staff to use alternative to car Investigate more government funding Statutory consultations/timescales Cost of signage/TRO – budget Business Case not stacking up Page 65
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Potential Solutions Could Elgin BID fund an enforcement officer Restructure the parking charges Introduce lower charges from 4pm onwards Improve cycle access → safer routes Introduce permits for lower paid staff Summary Following a discussion for the summing up the following were identified as the main points of the session: Illegal parking on-street → need for improved parking enforcement Disabled parking Signing → to car parks when entering the 4 arteries into town/improvement/replace missing or faced signage Need for policy regarding on-street parking in central Elgin Page 66
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Appendix B: Elgin Car Park Surveys Monday 15 - Saturday 27 May 2023 AM PM Total Vacant Spaces Total Occupied Spaces Total % Occupancy Row Labels Vacant Spaces Occupied Spaces % Occupancy Vacant Spaces Occupied Spaces % Occupancy Batchen Lane 1106 1426 56% 1246 1286 51% 2352 2712 54% Hall Place 255 93 27% 270 78 22% 525 171 25% Ladyhill 170 310 65% 253 227 47% 423 537 56% Lossie Green 2301 2031 47% 2696 1636 38% 4997 3667 42% Lossie Wynd 418 542 56% 525 435 45% 943 977 51% Moray Street 400 812 67% 512 700 58% 912 1512 62% Northfield Terrace 418 446 52% 437 427 49% 855 873 51% South Street 106 122 54% 108 120 53% 214 242 53% St Giles 722 394 35% 866 250 22% 1588 644 29% Greyfriars Street (Sat Only) 78 582 88% 93 567 86% 171 1149 87% HQ Annexe (Sat Only) 370 1094 75% 472 992 68% 842 2086 71% North Port 327 777 70% 437 667 60% 764 1444 65% Railway Station 438 198 31% 436 200 31% 874 398 31% North College Street West 106 86 45% 134 58 30% 240 144 38% Cooper Park 1003 293 23% 515 781 60% 1518 1074 41% Grand Total 8218 9206 53% 9000 8424 48% 17218 17630 51% Item 8. Page 67
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 SUBJECT: LOCAL VISITOR LEVY BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To inform the Committee of the introduction of the Visitor Levy (Scotland) Bill in the Scottish Parliament and seek approval for the recommendations. 1.2 This report is submitted to Committee in terms of Section III A (2) of the Council's Scheme of Administration relating to long-term financial plans 2. RECOMMENDATION 2.1 It is recommended that Committee: (i) note the details of the Visitor Levy (Scotland) Bill and the proposed timetable through Parliament; (ii) note that an expert advisory group, facilitated by Visit Scotland will be formed to offer opportunities for consultation on the Bill; (iii) note the requirement to conduct consultation and assess impacts on the area before a final decision to implement a visitor levy can be made; (iv) note that the Highlands and Islands Regional Economic Partnership has agreed to look at a consistent approach to consultation and implementation of a visitor levy across the region; and; (v) consider support in principle for the concept of raising funds through a Local Visitor Levy and, given the potential financial implications for the Council, to refer this report on to Full Council for a decision with a recommendation from this committee as to its view on support in principle. Item 9. Page 69
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3. BACKGROUND 3.1 Tourism is a key sector which makes a significant contribution to Scotland’s economy, identified in Scotland’s Economic Strategy which confirms Scotland’s National Tourism Strategy, Scotland Outlook 2030, as the vehicle to further this. 3.2 Over a number of years, discussions have been held about a Local Visitor Levy (LVL), also known as a tourist tax, which led to desktop research, public consultation and surveys by City of Edinburgh, Aberdeen and Highland Council’s. 3.3 Transient Visitor Levies (TVLs) are commonplace across many high volume tourist destinations, including much of Europe (two-thirds of EU member states impose some form of visitor levy). 3.4 As several Local Authorities along with the Convention of Scottish Local Authorities (CoSLA) have called for the Scottish Government to grant the powers to allow them to levy a LVL in their areas, should local circumstances be supportive; the Scottish Government engaged with CoSLA and the Scottish Tourism Alliance in the design of the national discussion. Between November 2018 and January 2019, the Scottish Government held six roundtable discussions with representatives from national and regional stakeholder organisations, Local Authorities and individual businesses. In addition stakeholders were also invited to provide written submissions. 3.5 These discussions emphasised that this subject is a complex one, and that there was both support and opposition across Scotland to the idea of a LVL. The evidence and views provided helped to inform the formal consultation undertaken from September to December 2019. In particular, the consultation sought views to ensure: • that the legislation provides the powers that are needed for Local Authorities to respond to local pressures; • the continuing success of the tourism industry in Scotland can be supported; • the LVL can operate in a way that minimises the administrative and compliance burdens for those affected. 3.6 An analysis of the public consultation responses was published on 27 March 2020. A total of 1,701 responses were received. There were 499 substantive responses, which were the focus of the consultation analysis, with 224 from groups or organisations and 275 were from individuals. The two largest groups of organisation respondents were accommodation provider, with 49 responses from hotels and 67 responses from other accommodation providers (including B&B’s, guesthouses, caravan parks and campsites). 1,202 responses were based on a Living Rent related campaign, and while not directly responding to the questions in the consultation paper, raised some pertinent points. Page 70
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3.7 The key findings from the consultation analysis were: • 42% of respondents supported a visitor levy that was set out mostly at a local level with some overarching national principles. The majority of local authority respondents supported this approach. Accommodation providers tended to favour a wholly national framework. • 35% of respondents supported a visitor levy being based on a percentage of the accommodation charge. 32% supported a flat rate per person per night, and 24% support a flat rate per room per night. • A majority of respondents thought there should be a national framework within which a visitor levy rate could be set by a local authority. A general theme was that any decision on a visitor levy should be based on robust evidence, including an economic impact assessment. • A large majority (ranging from 82% to 96%) supported a local authority needing to consult and conduct relevant impact assessments before introducing a visitor levy. • A majority of respondents thought revenues from a visitor levy should be allocated to priorities articulated in local tourism strategies, where they exist. These views shaped the proposals in the Bill. 3.8 The Visitor Levy (Scotland) Bill (SP Bill 28) was introduced in the Scottish Parliament on 24 May 2023. If passed by the Scottish Parliament and following Royal Assent, the Visitor Levy (Scotland) Bill will give local authorities the power to apply a levy on stays in overnight accommodation based on a percentage of the accommodation cost, with the percentage rate to be set locally. A percentage based levy means that the level of visitor levy paid is proportionate to the cost of the accommodation and will reflect the amount of money the visitor is prepared to spend on their accommodation. 3.9 The 3-stage process for Government bills is now set in motion. These stages include: Stage 1– the Bill was given to a lead committee, Scottish Parliament’s Local Government, Housing and Planning Committee, who is responsible for examining the Bill, hearing from other committees, experts, organisations and members of the public about what the Bill would do. The committee then write a report and Parliament will vote on the general principles of the Bill. This stage can take a few months. Stage 2 – any suggested amendments are considered at committee level and only committee members can vote on amendments at this stage. Stage 3 – further amendments to the Bill can be proposed by any MSP and all MSPs debate and vote on the Bill. 3.10 If the Bill is passed, there is a four week period when it may be challenged by the Advocate General, the Lord Advocate, and the Attorney General or by The Secretary of State for Scotland. After the four week period, The Bill is then sent for Royal Assent. Page 71
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3.11 There is no set timeline for the Bill to move through Parliament however given the requirement for an 18 month notification period for accommodation providers, it is assumed that the earliest a visitor levy could be applied in Scotland would be 2026. 3.12 The overall policy objective of the Bill is to give discretionary power to local authorities to introduce a levy on stays in overnight accommodation in all, or part, of their area if they choose to do so. Giving local authorities this power will strengthen local democracy by giving a discretionary new fiscal power. Funding raised from a visitor levy will be required to be spent on the visitor economy, such as facilities or services substantially for or used by visitors, providing a local authority with new resources it can use for these purposes. This may be particularly relevant in areas where public services are under additional pressure due to the number of visitors to an area. 1 The policy intention is that funds raised by the levy will be additional to other sources of funding, and are not intended to act as a substitute for other sources of funding for local government or the annual budget process through which the local government settlement is determined. 1 3.13 The policy intention behind all of these provisions is to create an effective, proportionate and robust framework within which a local authority can establish a visitor levy. The purpose of these provisions is to ensure that appropriate consultation, impact assessment, transparency and accountability is in place for any visitor levy schemes established by local authorities. Alongside the creation of that power the Bill introduces a number of requirements that a local authority must meet when introducing such a levy and a process that will need to be followed including consultation. It also specifies the purposes for which funding raised by a levy can be used, and relevant reporting and transparency requirements relating to that. Lastly the Bill creates relevant powers and duties, giving a local authority powers to allow it to effectively enforce a levy. 3.14 The Bill sets a requirement for local authorities to conduct a consultation with representatives of communities and businesses engaged in tourism, and tourist organisations, in its area, along with any other people or bodies who will be affected by the proposal, clearly setting out the how the proposed scheme will operate, and on the objectives it has for a scheme. Local authorities will be required to prepare and publicise a report which summarises the consultation responses received, its response to the consultation, and its reasons for continuing, modifying, or abandoning a visitor levy proposal. In addition there will be a requirement to assess impacts on the area before a decision to implement a visitor levy is made. The full detail of requirements will be set out in the Bill and only finalised at the end of Stage 3. Industry participation will be vital to the success of the consultation. 3.15 During 2019, Highland Council, undertook pre-consultation on a LVL, holding six round-table meetings with representatives from the tourism industry. The sessions were not designed for testing a formal policy proposition, but were to gather information to help ensure that their next steps were informed by the views raised by the industry, and that their methodology for considering a Highland LVL was robust and fair. The workshops highlighted how many of the oft-cited impacts on a visitor levy are more complex than at first glance Page 72
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and the need to understand the nuances of these. The critical need to capture and articulate the unique Highland perspective on any visitor levy was a key message and that Highland Council must therefore gather regional evidence both for its own research/decision making and to inform Scottish Government’s. All participants agreed that any consultation cannot be a yes or no referendum, but must give respondents the opportunity to voice opinions on the range of potential visitor levy impacts and designs. 3.16 In advance of implementation, an expert advisory group, facilitated by Visit Scotland, will be formed to bring together tourism industry bodies and local government to discuss how best any visitor levy can be implemented and to develop national guidance for local authorities. 3.17 As the Bill moves through the process as noted in section 3.7, members of Highland and Islands Regional Economic Partnership (H&I REP) have the opportunity to develop a unified approach, one that will take account of the needs and ambitions of each local authority who wish to apply a levy. This will allow for a stronger voice for the local authorities and the industry with the relevant Scottish Government Department(s). The proposed consultation will enable councils to select a preferred regional approach that; • takes into account all of our diverse geographic and community strengths and weaknesses; • takes forward an approach that has the broadest range of support from the public and industry; • will highlight the similarities and at the same time the uniqueness of each part of the region; • carefully considers any alterations or additional charges which might impact the competitiveness of the sector; • explores the benefits of having as even a playing field regionally as possible to avoid visitor confusion. Full engagement by representatives of the H&I REP in the expert advisory group to be initiated by Visit Scotland will establish a cohesive approach. 3.18 The types of overnight, commercially let accommodation which would be liable for LVL are: hotels; hostels; guest houses; bed and breakfast accommodation; self-catering accommodation; camping sites; caravan parks; boat moorings or berthing’s; accommodation in a vehicle or on board a vessel, which is permanently or predominantly situated in one place, and any other place at which a room or area is offered by the occupier for residential purposes otherwise than as a visitor’s only or usual place of residence. 3.19 At present Moray has 638 accommodation establishments, consisting of 58 Hotels, 54 Guest Houses / B&B and 526 Self- Catering facilities. In addition there are 4 camping sites, 21 caravan sites and 5 Hostels, excluding at this point Air/B&B’s. (Source: Moray Council, Taxation Team, May 2023). It should be noted that legislation governing Self-Catering Units is currently under review, so their numbers may decrease. 3.20 Tourism is a major part of Moray’s economy, accounting for 10% of jobs and providing an economic impact of over £96m. According to the Scottish Tourism Economic Activity Monitor (STEAM) in 2021, 326,380 visits were made by visitors staying in Moray as part of a holiday or short break. On Page 73
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average, visitors staying in Moray stay 3.7 nights and spend £19.03 million on local accommodation. Between 2010 and 2019 (2020 and 2021 numbers are not included as tourism was badly hit by the pandemic) staying visitor numbers increased by 29.7% and total day visitors increased by 33.8%. The average length of stay for all visitors staying in serviced accommodation is 1.9 days and for non-serviced accommodation this rises to 7 days, indicating a higher proportion of weekly rentals. It should also be noted that overnight visitors typically have a greater economic impact than day visitors, making a greater proportion of employment opportunities for the sector. 3.21 It is estimated that tourism numbers will return to pre-pandemic numbers by 2025 but with a different type of visitor including staycationers, and caravanners/motorhomers. While this increase is welcome and the Council led Coast to Country partnership project has enhanced facilities across rural parts of Moray, these increasing numbers of visitors will also place additional pressure on public infrastructure owned and managed by the local authority. For the council, currently there is no additional income from these visitors. 3.22 Cities operating existing occupancy taxes charged on the basis of a percentage of the accommodation price have been found to charge rates of between 1% and 7%. Based on the STEAM 2021 figures, it is estimated that a Moray LVL based on overnight stays could generate an annual revenue of between £190,300 and £1,332,100 if charging 1% and 7% respectively. 3.23 If Moray participated in the LVL scheme the revenue raised could be used for marketing and promotion of Moray as a destination through Visit Moray Speyside as well as being used directly to provide the infrastructure and facilities essential to tourism such as car parks, core paths, and public toilets and enable town centre flower beds, open spaces and parks and amenities to become more attractive. Providing a more attractive visitor experience would increase the likelihood of a growth in visitor numbers and consequently provide more income that will allow for further investment, improvements and maintenance. With a £20m funding gap, there is an ability to redirect some of this existing infrastructure spend (to be covered by funding from TVL) so making revenue savings whilst also enhancing our tourism offer. 3.24 Through previous Culture and Heritage Strategies, Moray Great Places and the Culture Radar report there has long been identified a need for a Cultural and Heritage Trust in Moray to provide support for the sector and help develop the event calendar to extend the tourist season in Moray. This is being taken forward as an option within the Moray Growth Deal Cultural Quarter project and the LVL could provide the funding to facilitate such a Trust and development of the sector in Moray to increase tourism and benefit the businesses collecting the Levy. 3.25 COSLA has campaigned for more local tax raising powers with a LVL being one such opportunity. 3.26 As the TVL will have a material bearing on potential future savings for the Council which go beyond the fiscal remit of this Committee, Committee is invited to take a position in principle on TVL, and refer the matter onto Full Council for determination in light of this committee’s recommendation. Full Council may then choose to call this matter in until TVL issues are determined. Page 74
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4. NEXT STAGE 4.1 If Full Council supports the concept of raising funds through a Local visitor Levy following a referral by this committee, a further report would then be presented to the relevant Committee (this Committee or Full Council if Full Council chooses to call this matter in) to seek approval for funding the procurement of suitable companies or research institutes to carry out the consultations of independent engagement with the business community and wider public and provide visitor surveys as this process needs to be resourced. 4.2 A Moray wide consultation, estimated to cost £10,000 - £40,000, for businesses, organisations, residents and visitor surveys is estimated to be approximately 5- 6 months and would include the following: • pre-consultation stakeholder discussions, to gather feedback on proposed questions that will inform the consultation process • workshops and drop-in sessions • on line survey with the option for written submissions • a visitor survey 4.3 The consultation and surveys would seek to establish the following: • support or opposition of a Moray LVL • the operation of a Moray LVL i.e. who should pay, when and how much • priorities of investments for any levy generated • support or opposition of a Moray LVL 5. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) A potential Moray LVL will contribute to achieve the corporate plan priority to promote economic development and growth, also the LOIP priority of a growing and sustainable economy. Page 75
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(b) Policy and Legal The Council considers support for economic development issues on their merits, against the objective to facilitate sustainable economic growth and the desired outcomes of the Ten Year Plan and Corporate Plan. (c) Financial implications If the Scottish Parliament passes the Visitor Levy (Scotland) Bill and following Royal Assent, should local circumstances be supportive, it could potentially generate an annual revenue to invest in local tourism related infrastructure, marketing and cultural and heritage services expanding the event schedule in Moray, helping to attract more visitors to Moray. Depending on the percentage of levy applied, revenues raised could range from £190,300 to £1,332,100. There would be cost implications for administering a Moray LVL, including: • conducting initial consultation and conducting and publishing an impact assessment • initial set-up costs for procuring an IT system, or upgrading an existing one • recruitment and training of staff for administering the scheme in addition to an awareness raising campaign • ongoing administration costs, including costs associated with monitoring and enforcement and communications • reviewing the visitor levy scheme every 3 years Initial consultation and set-up costs could range from £110,000 to £460,000, and ongoing administration costs could range from £145,000 to £240,000. The Scottish Government will not provide funding to local authorities to meet any costs associated with designing, implementing or applying any visitor levy scheme. In addition to costs which will borne by the council following the introduction of a LVL, businesses too will be impacted with additional operational overheads for administering. Members should consider how this sector and associated infrastructure will be funded in future years given the ongoing financial constraints facing the Council if the LVL was not supported. Estimated spend which could be recovered on tourism essential infrastructure and facilities is £300,000 to £475,000. (d) Risk Implications The Scottish Government published the Bill on 24 May 2023. The Bill has to be passed by Parliament and requires Royal Assent. At this time, it is forecast that the earliest a visitor levy could be applied in Scotland would be 2026. Risks identified, include: Page 76
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• a considerable delay in the process of passing the Bill • businesses may include administration and remittance costs within the overall charge which will raise market costs • visitors may choose areas which have not introduced a levy Given the scale of the annual income potentially generated by TVL and the scale of the budget gap and associated risk, it is recommended that this committee considers its position in principle on TVL then refers this matter to Full Council which has an overview of the budget process across all service areas for a final decision, with a recommendation from this committee based on its views. (e) Staffing Implications There are no staffing implications at this stage, with any support for the processes accommodated within existing staffing resources. The extent of any administrative and staffing burden originating from the introduction of LVL is unknown at this time due to the uncertainty about the manner in which any LVL scheme would operate, however it is unlikely that it could be absorbed within existing staffing and budgetary structures. Indicative staffing numbers, as highlighted in the Visitor Levy (Scotland) Bill – financial memorandum, is a requirement for 3-5 full-time equivalent members of administrative staff, but the ability to work across the H and I Rep would also be a factor. It will therefore be necessary to carefully consider and assess this at the appropriate time. (f) Property None arising from this report, however if a Moray LVL is established it would allow investment in tourism related facilities and infrastructure. (g) Equalities/Socio Economic Impact An impact assessment is not required. (h) Climate Change and Biodiversity Impacts Tourism can cause carbon emissions through transport, accommodation etc. The impacts of climate change as well as the impacts of higher tourist numbers can place stress on vulnerable areas of nature and the environment. The environment of Moray is a main factor behind the decision of many to visit the area and to experience the beauty of our coasts, forests and mountains. Revenue from a visitor levy could include a focus on mitigating carbon emissions by providing resources to invest in Moray’s footpaths, coasts, forests, rivers and biodiversity as well as the promotion of sustainable tourism. In addition, supporting tourism businesses to reduce their carbon footprint will assist in preventing some of the impacts of tourism on the climate. (i) Consultations Consultation has taken place with the Depute Chief Executive (Economy, Environment and Finance), the Head of Economic Growth and Development, the Legal Services Manager, the Equal Opportunities Officer, the Head of Financial Services, Taxation Manager and Lindsey Page 77
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Robinson, Committee Services Officer have been consulted and comments received have been incorporated into the report. 5. CONCLUSION 5.1 Introduction of the Visitor Levy (Scotland) Bill presents Local Authorities with an opportunity to implement a local visitor levy scheme, if the Bill is passed by Parliament and Royal Assent is granted. The requirements set out in the Bill must be met, including consultation and assessment of impacts before a decision to implement a visitor levy is made. 5.2 As the Bill moves through the Parliamentary process, it is considered that developing a regional approach to consultation and implementation via H&I REP would create consistency and strength of voice, with local consultation carried out to inform variances when more detail is known. 5.3 The revenues from LVL could provide much needed investment for tourism related facilities and services in Moray, transforming how these are funded. Providing a more attractive visitor experience will increase the likelihood of growth in visitor numbers. In addition, funding could help to partially offset existing infrastructure costs met by the Council and so contribute to bridging the Council’s budget gap. Author of Report: June Burnett, Development Officer, Economic Growth & Regeneration Background Papers: Held on file within Economic Growth & Regeneration Ref: SPMAN-813460984-409 Page 78
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 SUBJECT: USE OF COUNCIL BUILDINGS AND STRUCTURES FOR ABSEILING ETC. BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 The Committee is asked to approve an exception to the existing policy on the use of Council buildings and structures for abseiling or similar activities. 1.2 This report is submitted to Committee in terms of Section III F (28) of the Council's Scheme of Administration relating to the promotion of tourism development in Moray. 2. RECOMMENDATION 2.1 It is recommended that the Committee approves an exception to the current policy on the use of Council buildings and structures for abseiling or similar activities, for Film and Television purposes only, due to the economic benefit screen tourism brings, as set out in para 3.5 of the report. 3. BACKGROUND 3.1 On 2 March 2010, Policy and Resources Committee (paragraph 7 of the minute refers) agreed a new policy whereby the Council does not permit the use of its buildings for abseiling, aerial runways or similar events organised by external organisations. 3.2 From time to time, the Council receives requests, through its Film Liaison Service, from film and television production companies seeking permission to use its buildings and structures for filming which involves abseiling or aerial runways or similar events. The existing policy prevents permission for these requests and as such the policy may be adversely impacting the potential economic benefits that screen tourism can bring to Moray. 3.3 Tourism is a key sector which makes a significant contribution to Scotland’s economy and is a major part of Moray’s economy, accounting for 10% of jobs and providing an economic impact of over £96m annually. Item 10 Page 79
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3.4 Television programmes and films which are set in Scotland or have links to Scotland, play a role in inspiring visitors to come to Scotland. They act as a prompt to visit, in particular for European and long-haul markets. When here, visitors may take part in specific TV and film related activities which form part of their visitor experience. Screen tourism provides a tangible connection with the location. Visitor expenditure for Scottish businesses as a result of screen tourism activities is £64.9million annually. (Source: Screen Scotland) 3.5 Proposal – it is proposed that the Council amends the existing policy to allow an exception so that permission can be granted to corporate entities involved in film and television production only, where use of one of its buildings or structures for abseiling, aerial runways or similar events will bring economic benefit to the area, subject to the following conditions: (a) The corporate entity instructs an appropriate independent survey of the building or structure which can be relied upon by the Council indicating that the property is structurally safe for the activity and would not be damaged by the proposed activity. The survey report would be submitted to the Council for review. (b) The corporate entity would pay a non-refundable fixed fee to the Council, which would cover the administrative costs of undertaking appropriate checks and reviewing the independent survey report and other relevant paperwork. (The Council would establish a fixed charge for the issue of such permits, which would be reviewed on an annual basis with all other charges.) These charges would be applied over and above those charged by the Open Spaces Team for commercial filming in Council owned open spaces. (c) Sufficient notice is received for all conditions to be met prior to the commencement of filming. (As a guide, the corporate entity should submit an application to the Council 2 months prior to filming). (d) The corporate entity is required to provide to the Council proof of certification of fitness for purpose of all equipment to be used for the event. (This may include for example ropes, wires, harnesses, cranes and scaffolds). (e) The corporate entity is required to provide the Council with a statement of the risk assessment and risk mitigation measures in respect of the filming. (f) The corporate entity is required to provide the Council with details of insurance certificates which must cover their own risk, public liability and indemnity insurances and any other appropriate documentation in respect of qualifications, licences or certificates required to undertake. Page 80
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(g) The corporate entity undertakes to make good any damage caused. 4. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) An amendment to the existing policy will contribute to achieving the corporate plan priority to promote economic development and growth, also the LOIP priority of a growing and sustainable economy. (b) Policy and Legal This report seeks the amendment of an existing policy. The Council considers support for economic development issues on their merits, against the objective to facilitate sustainable economic growth and the desired outcomes of the Ten Year Plan and Corporate Plan. It is important that the Council complies with its duties under the Health and Safety at Work etc. Act 1974 and ensures that the television and film productions are properly regulated. (c) Financial implications A fixed fee to the Council, which would cover fully the costs of undertaking all appropriate checks including reviewing the independent survey report and other relevant paperwork (d) Risk Implications Risks identified include: • Ensuring full compliance with health and safety regulations • Television and film production companies selecting other local authority areas for their filming locations • Adverse impact on the potential economic benefits that screen tourism can bring to Moray if no change to existing policy (e) Staffing Implications There will be a requirement for documentation checking and arranging any necessary surveys (e.g. structural), which will be accommodated within existing staffing resources with assistance from departments if needed e.g. Legal, Estates etc. (f) Property There will be no specific property impacts on the basis that all requests are progressed in line with the procedure and all necessary investigations are completed prior to any access being granted. Page 81
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(g) Equalities/Socio Economic Impact An impact assessment is not required. (h) Climate Change and Biodiversity Impacts The potential increase in tourism to Moray could result in an impact due to tourism causing carbon emissions through transport, accommodation etc. The promotion of sustainable tourism in addition to supporting tourism businesses to reduce their carbon footprint will assist in preventing some of the impacts of tourism on the climate (i) Consultations The following officers have been consulted on the contents of this report: Depute Chief Executive (Economy, Environment and Finance), Head of Economic Growth and Development, Head of Environmental and Commercial Services, Head of Housing and Property, Legal Services Manager, Committee Services Officer and their comments have been included in the report. 5. CONCLUSION 5.1 This report provides the Council with the opportunity to permit use of council buildings and structures for abseiling etc., solely for the purpose of film and television production, and to levy an appropriate charge for associated costs. 5.2 An amendment to the existing policy has the prospect of bringing additional economic benefits from screen tourism to the Moray area. Author of Report: June Burnett, Development Officer, Economic Growth and Regeneration Background Papers: Ref: SPMAN-813460984-413 Page 82
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 SUBJECT: INFORMATION REPORT: EMPLOYMENT LAND AUDIT 2023 BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To inform the Committee of the employment land supply in Moray. 1.2 This report is submitted to Committee in terms of Section III (F) (3) of the Council's Scheme of Administration relating to matters relating to industrial and commercial development. 2. BACKGROUND 2.1 NPF4 was adopted on 13 February 2023 and now forms part of local development plans. NPF4 requires LDP’s to allocate sufficient land for business and industry to ensure that there is a suitable range of sites that meet current market demand, location, size, and quality in terms of accessibility and services and that it is reviewed regularly to ensure that there is a sufficient supply to meet national and regional targets. The levels of effective/marketable employment land and take-up of land are National Headline Indicators returned annually in the Planning Performance Framework (PPF) to the Scottish Government. 2.2 The Moray LDP 2020 Main Issues Report, published in January 2018, identified 9 main land use issues to be addressed by the new LDP, including “providing a generous employment land supply”. This has been a long- standing issue and the MLDP 2020 provides a long term, strategic approach to the provision of employment land to meet demand ranging from small start- up units to much larger sites for inward investment. 2.3 The Moray Employment Land Audit has three key functions:- • demonstrate the availability of a range and choice of marketable employment sites; • provide an overview of the supply and availability of employment land across the Local Development Plan area; and • provide an evidence base for the monitoring and review of policies and proposals within the LDP. Page 83
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2.4 The audit includes four categories of land supply:- Established – This includes all undeveloped land allocated for industrial/business/employment use in the adopted LDP or land that has a valid planning approval for these uses. Marketable/Effective – Land that as well as meeting business requirements, has a secure planning status, can be serviced within 5 years and is accessible by walking, cycling and public transport as defined in SPP. Constrained – Land that is not considered developable within 5 years due to issues such as planning difficulties, ownership issues, infrastructure provision and physical constraints. Immediately Available – Land that has planning permission, is serviced and has no major constraints to immediate development. 2.5 The Employment Land Audit 2023 was submitted to the Planning and Regulatory Services Committee on 15 August 2023 who noted the employment land supply and approved the finalised Moray Employment Land Audit 2023 (item 9 of the meeting refers). 3. CONSULTATION 3.1 The draft audit was made available for consultation on the Council’s website and sent to internal and external consultees, with comments invited by 19 June 2023. 3.2 Comments were received from Springfield Real Estate Management noting the limited availability of plots at I7 Barmuckity/Elgin Business Park with many of these now let or under offer and it was noted there continued to be demand including for larger sites. Sites that are let or under offer remain shown in the supply until construction commences. However, the level of interest and take up at I7 Barmuckity/ Elgin Business Park is reflected within Employment Land Audit text with the need to bring forward and service sites to maintain supply identified. 4. AUDIT FINDINGS 4.1 The 2023 Audit is provided in full as APPENDIX 1 to the report. The audit identifies that there is 297.92 hectares (ha) of Gross Established Employment Land Supply. This is a decrease of 0.63ha compared to 2022 due to development at I7 Barmuckity/Elgin Business Park. The main supply of employment land continues to be within the Elgin, Forres and Buckie Market Areas, with a more limited supply in Keith and a very limited supply in Speyside. A summary for each Market Area can be found on page 5 of the Audit. Page 84
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4.2 99.87 ha (net) of land, across 21 sites, is classed as Marketable/Effective. This is a decrease of 0.5 ha compared to 2022. The decrease is due to construction activity at I7 Barmuckity/Elgin Business Park. The distribution of Marketable/Effective sites reflects the settlement hierarchy within the MLDP, however there continues to be a shortage of Effective sites within Speyside. 4.3 The Marketable/Effective supply is split with 63.28ha suitable for general industrial and 36.59 ha suitable for proposals that require a higher amenity setting usually within the class 4 Business category. The Elgin and Buckie market areas have relatively healthy supplies of general industrial land providing at least the equivalent of 15 years supply. In Keith the general industrial supply is more limited however there is a LONG allocation that could be drawn down if there is shortage. There has historically been a significant shortage of general industrial land in Speyside. This means there is a reliance on windfall proposals to accommodate demand. In Forres there is a significant shortage of general industrial land with only 2.75ha of land available at BP1 Forres Enterprise Park. This shortage of general industrial land requires to be urgently addressed. The ability of the Council to fund future development of industrial land in areas where there is a shortage is a matter for consideration in the review of the 10 year Capital Plan, that being one of the measures being taken to bridge the budget gap. 4.4 The amount of land Immediately Available is 33.63 ha (net), across 6 sites. This is a decrease of 0.22 ha since 2022. The decrease is due to construction activity at I7 Barmuckity/Elgin Business Park. Take up at I7 Elgin Business Park/Barmuckity has been very good as reflected in previous audits. There is now limited availability with many of these plots now developed, sold or under offer. It is therefore it is anticipated that the level of immediately available land in the Elgin Market Area will reduce significantly over the next few years. 4.5 There continues to be a restricted choice of sites in the Immediately Available Land Supply. This is a particular issue in Forres and Speyside. The availability of Immediately Available land is a Key Measure in the Moray Economic Strategy. To maintain a supply of serviced sites it is necessary to work towards bringing other sites forward. A draft Masterplan for Mosstodloch has been prepared by consultants appointed by Crown Estate Scotland. The draft Masterplan was approved on 30 May 2023 at a meeting of this Committee for a 12 week public consultation period (para.9 of the Minute refers). The masterplan will cover the current designations for employment and consider business requirements. A masterplan is also being prepared for Blackhillock Keith which has seen considerable development interest associated with renewable energy infrastructure. 4.6 78.03ha (net) across 15 sites is classed as constrained. This means approximately a third of the Established Supply has some form of constraint that is likely to prevent the land being developed in the next five years. 48.06ha of land across 6 sites is classed as a LONG designation and would be capable of being brought forward should the need arise as set out within Policy DP3 Long Term Land Reserves within the MLDP 2020. 4.7 In the last year, 1.24 ha of land was developed - this includes completion or occupation of sites at I7 Barmuckity, OPP4 Ashgrove in Elgin, and an energy management facility at I3 in Keith. Page 85
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4.8 3.65 ha of land is under construction which is an increase in construction activity compared to 2021 of 3ha and 2.22ha compared to 2020. These figures do not represent all building activity only that on designated sites or windfall sites that are not restricted to a single user. 5. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) The Employment Land Audit is a key part of monitoring the implementation and effectiveness of the LDP, which delivers Corporate and Community Planning objectives. Ensuring sufficient provision of effective employment land supports a growing and diverse economy which will provide a stable, sustainable employment base. (b) Policy and Legal The preparation of the annual Employment Land Audit is a requirement of NPF4 to monitor the effectiveness of the LDP and ensure an effective supply of employment land is maintained. (c) Financial implications None identified at present. (d) Risk Implications Risk that insufficient provision of effective employment land limits inward investment and expansion opportunities and risks an unplanned approach being taken to development. (e) Staffing Implications Preparation of the annual Employment Land Audit is part of the workload of the Strategic Planning and Development section. (f) Property The Employment Land Audit includes industrial estates and sites owned by the Council. The Council’s Estates section were consulted on the draft audit. (g) Equalities/Socio Economic Impact There are no equalities issues arising from this report as it is to inform the Committee on monitoring of land supply. (h) Climate Change and Biodiversity Impacts Moray Local Development Plan policies seek to ensure that biodiversity is enhanced and all new buildings reduce carbon emissions. Development proposals are required to maximise connections and routes for pedestrians/cyclists including connections to active travel routes thereby reducing carbon emissions associated with vehicles, create green and blue infrastructure and incorporate and enhance biodiversity through planting and other mechanisms. Page 86
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National Planning Framework 4 (NPF4) has introduced new national policies to bring significant changes to the planning system including reducing carbon emissions in new development, enhancing biodiversity and a much greater focus on brownfield redevelopment. (i) Consultations Depute Chief Executive (Economy, Environment and Finance), the Head of Economic Growth and Development, the Legal Services Manager, the Asset Manager (Commercial Buildings), the Equal Opportunities Officer, the Chief Financial Officer and XXXXXXXX Committee Services Officer have been consulted and are in agreement with the contents of the report/comments received have been incorporated into the report. 6. CONCLUSION 6.1 NPF4 requires LDP’s to allocate sufficient land for business and industry and that it is reviewed regularly to ensure that there is a sufficient supply to meet national and regional targets. The levels of effective/marketable employment land and take-up of land are National Headline Indicators returned annually in the Planning Performance Framework (PPF) to the Scottish Government. 6.2 The Employment Land Audit 2023 identifies that there is 99.87ha (net) of Marketable/Effective Employment Land, of which 33.63 ha (net) is Immediately Available. Issues are identified with the restricted choice of sites across all settlements, a shortage of land in the Speyside market area, a shortage of general industrial land at Forres, and the likely impacts of high take up at Elgin Business Park/Barmuckity (I7) on future supplies of Immediately Available Land. Author of Report: Keith Henderson Planning Officer, Strategic Planning and Development Background Papers: Ref: Page 87
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Moray Employment Land Audit JULY 2023 Page 89
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For further information, please contact: keith.henderson@moray.gov.uk Page 90
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Employment Land Audit 2023 1 1. Introduction 1.1 Purpose of Audit The Moray Employment Land Audit provides an overview of the supply and availability of employment land across the Moray Local Development Plan area. The audit is an annual document and includes figures for take up and sites under construction. The audit provides an evidence base for the monitoring and review of policies and proposals included within the Local Development Plan. In addition it can help to identify areas where further analysis and investigation is required. The baseline against which information is analysed is 1st January 2023. The information contained in the Employment Land Audit will also be of use to businesses, developers, and other organisations with an interest in employment land in Moray. 1.2 Methodology The audit is prepared from information gathered by Council planning officers through monitoring of the development plan, planning approvals and individual inspections. All employment sites in the existing local development plan have been recorded in a data base, unless the site has been built out in its entirety. In addition to sites allocated in the Moray Local Development Plan 2020 any windfall sites with planning consent for employment uses have been added to the database unless these are constrained to a single user (e.g. a distillery). It is noted that land with buildings that are vacant are not included in the audit nor are redeveloped sites. Once sites have been identified officers undertake a review of planning applications and collect information such as ownership, proposed use etc. for each site. Officers also undertake site visits to monitor development activity. This information is then updated in the data base. The data is then analysed to produce the audit report. Page 91
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2 Employment Land Audit 2023 2. Background 2.1 National Planning Framework 4 (NPF4) NPF4 was adopted on 13 February 2023 and replaces NPF3 and Scottish Planning Policy. It now forms part of Local Development Plans and sets out the Scottish Government's policies in relation to supporting economic development in Scotland. NPF4 requires LDP’s to allocate sufficient land for business and industry, taking into account business and industry land audits, to ensure that there is a suitable range of sites that meet current market demand, location, size, and quality in terms of accessibility and services. This allocation should take account of local economic strategies and broader objectives of delivering a low carbon and net zero economic recovery, and a fairer and more inclusive economy. The ELA is undertaken annually to monitor the location, size, planning status, existing use, neighbouring land uses and any significant land use issues of sites within the existing business land supply which is fed into the review of the LDP. 2.2 Moray Local Development Plan NPF4 and the Moray Local Development Plan 2020 now form the statutory Development Plan for Moray. LDP’s already adopted will continue to be part of the development plan and existing LDP land allocations will be maintained. The Moray Local Development Plan 2020 was adopted on 27 July 2020 and designates land for employment uses within towns. Sites from the 2020 plan were first included in the 2020 audit. The Moray Local Development Plan 2020 already sets out the employment land policies for the Planning Authority (excluding the Cairngorms National Park area) related to economic development. These seek to safeguard employment land and support development of employment uses on designated sites. The policies also look at the types of uses that will be supported on designated sites. A more flexible approach to rural business proposals is provided for, with policy criteria used to ensure the most appropriate locations are supported in rural areas. 2.3 Moray Economic Strategy and Moray Economic Partnership (MEP)'s Economic Recovery Plan. The Moray Economic Strategy 2022 was published in November 2022. The strategy takes account of changes in the economic landscape since 2012. It also reflects the work undertaken for the emerging Moray Growth Deal. The strategy is for the period 2022-2032 and maintains the overall objective to grow and diversify the economy and focuses on achieving four outcomes, one of which is supporting the economy through the provision of employment land for businesses of all sizes to locate. Page 92
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Employment Land Audit 2023 3 2.4 Moray 10 Year Plan - Local Outcome Improvement Plan (LOIP) One of four priorities within the Moray Community Planning Partnership Local Outcomes Improvement Plan is “Developing a diverse, inclusive and sustainable economy.” Whilst employment land supply is not a performance indicator within the Local Outcomes Improvements Plan land supply is important for achieving outcomes. 2.5 Demand for Employment Land Discussion with stakeholders as part of the Moray Business Property Needs Study (completed by Ryden LLP for Moray Council) found that demand in the area is generally focused on smaller units from small local businesses however there also needs to be larger sites available for inward investment and scale- up. From the business survey completed as part of the study, 73% of respondents had a requirement to expand/re-locate with the majority seeking industrial property. Cost was a key consideration in deciding on new premises as was digital connectivity, size and energy efficiency. A lack of suitable properties was raised as a constraint by those who have started to look for new/additional premises. Whisky distilling has seen considerable expansion over recent years, including bonded warehousing and this demand is likely to be continue and increase. It was also found the organisations such as Orbex and the Ministry of Defence were capitalising on growth within the aerospace sector creating demand within the sector, often with large space requirements. There is significant opportunity associated with the renewable energy sector with expected growth in on and off shore wind and hydrogen developments in the area. There was also considered to be demand for larger bespoke premises including from the transportation sector. It was noted that currently it was unfeasible because of construction costs for businesses to build their own large bespoke premises and that developers are not building these units in the area currently. As a result, some companies were reported to be experiencing restricted growth within unsuitable premises. Discussion also considered that there could be more support for SMEs to enable them to gradually expand and step up their space requirements. The co-work space at Greenbrae Steading near Hopeman was seen as an example where a stepping stone approach allowed businesses to gradually increase space requirements. It was noted that incubator space is part of the Moray Growth Deal this is targeted at specific sectors. Some businesses were considered to be “battening down the hatches” following impacts from the Covid 19 pandemic, Brexit and the continuing impacts of the energy crisis and inflation. This was seen to be particularly the case for retail and hospitality. Other issues that were raised included where demand will be met in Elgin was raised in discussion given that the majority of sites at Elgin Business Park/Barmuckity are developed, sold or under offer. Sufficient land and buildings require to be available in to facilitate wider economic development and to support the vision of the Moray Economic Strategy and support economic recovery. Page 93
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4 Employment Land Audit 2023 3. Employment Land Supply Several categories of land supply are identified in the audit. Definitions for these are provided in section 5. Detailed information on the established, constrained, effective and immediately available sites is provided in Appendix 2. 3.1 Established Employment Land Supply The established employment land supply for Moray is shown in figure 1. There has been a decrease in the gross established supply by 0.63 ha since 2021. This decrease is due to development at I7 Barmuckity/Elgin Business Park and I2 Chanonry Industrial Estate, and Ashgrove (Elgin). Figure 1 Established Employment Land Supply (2023) (Figures in hectares) Gross Established Net Established Number of Sites 297.92 225.98 36 Page 94
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Employment Land Audit 2023 5 The established employment land supply is broken down in figure 2 by market area. Figure 2 Established Employment Land Supply by town (2022) (Figures in hectares) Town Gross Established Net Established Number of Sites Elgin Market Area 185.63 142.51 18 Elgin 124.78 94.82 11 Lossiemouth 12.8 10.24 1 Mosstodloch 46.44 36.35 5 Troves 1.61 1.1 1 Forres 55.48 34.77 4 Buckie Market Area 43.96 37.46 6 Buckie 43.15 36.81 5 Cullen 0.81 0.65 1 Keith 11.1 9.64 6 Speyside Market Area 1.75 1.6 2 Aberlour 1 1 1 Rothes 0.75 0.6 1 ELGIN MARKET AREA - There has been a small decrease in the established supply within the Elgin Market area compared to 2022 (0.63ha to the gross supply and 0.5ha to the net supply). This is as a result of development at I7 Barmuckity/Elgin Business Park and at Ashgrove. FORRES MARKET AREA - There has been no change to the established supply in the Forres Market Areas compared to 2022. BUCKIE MARKET AREA - There has been no change to the established supply in the Buckie Market Areas compared to 2022. KEITH MARKET AREA - There has been no change to the established supply in the Keith Market Areas compared to 2022. SPEYSIDE MARKET AREA - There has been no change to the established supply in the Speyside Market Areas compared to 2022. Page 95
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6 Employment Land Audit 2023 The established employment land supply has also been broken down by size of site to provide an indication of the range of size of sites available. Figure 3: Established Employment Land Supply by site size (2023) (Figures in hectares) Site area Net Established Number of Sites 0 - 1ha 4.75 7 1 - 5 ha 27.43 14 >5 ha 193.8 15 The land supply is broken down by the type of employment uses that are considered suitable on the site. The greatest proportion of land is suitable for Class 5 General Industrial uses (and also Class 4 Business and Class 6 Storage and Distribution. On some designations the whole area may be capable of accommodating higher amenity or a greater mix of uses but on some designations distinct areas within a site are identified. These tend to be uses within Class 4 that require a higher amenity setting or due to the location close to residential development general industrial uses would not be suitable. On some larger sites a greater mix of uses ( for example Class 1 Shops where ancillary to main use, Class 4 Business, Class 5 General Industrial, Class 6 Storage or Distribution, Class 7 Hotel and Hostels and Use Class 11 Assembly and Leisure) are identified on part of the site to help support delivery of the site as a whole. A breakdown of the type of sites is shown in figures 4 and 5 below. It is noted that some sites will be counted in both the General Industrial and High Amenity figures as on larger sites part of the site may be identified for a greater mix of uses. Figure 4: Net supply by type (2023). Figures in hectares Net Area Number of Sites General Industrial 161.37 28 High Amenity 53.59 12 Page 96
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Employment Land Audit 2023 7 Figure 5: Net supply by Market Area and type (2023). Figures in hectares Market Area General Industrial Number of Sites High Amenity Number of Sites Elgin 102.7 16 32.71 6 Elgin 60.13 9 27.59 5 Lossiemouth 5.12 1 5.12 1 Mosstodloch 36.35 5 Troves 1.1 1 Forres 22.3 4 10.27 1 Buckie 30.44 4 7.02 2 Buckie 30.44 4 6.37 1 Cullen 0.65 1 Keith 6.05 4 3.59 2 Speyside 0.6 1 1 1 Aberlour 1 1 Rothes 0.6 1 3.2 Marketable/Effective Employment Land Supply The marketable and effective employment land supply in 2023 is shown in figure 6. Overall the marketable/effective area has decreased by 0.5 hectares compared to 2022. The number of effective sites has remained the same. The decrease is due to construction activity at I7 Barmuckity/Elgin Business Park. Figure 6: Marketable/Effective Employment Land Supply (2023) Marketable/Effective (Net figure in hectares) Number of Sites 99.87 21 Page 97
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8 Employment Land Audit 2023 The marketable/effective employment land supply has been broken down by market area in figure 7. Annual requirements established through historic demand studies, build out rates recorded in previous audits, and from discussions with HIE and Moray Council Estates have been used to provide the estimated number of years supply available. It is noted that previously it was desirable to have a five year effective land supply at all times and therefore previous Local Development Plans sought to designate a minimum of 10 year land supply. However, to ensure a generous supply, increase choice and the prospect of a 10 year replacement period for future Local Development Plans, the Moray Local Development Plan 2020 sought to designate a minimum of 15 years supply. Figure 7 Marketable/Effective Employment Land Supply by market area (2023) Market Area Marketable/ Number Estimated Available Supply Effective (Net of Sites Annual in years figure in hectares) Requirements Elgin 57.61 10 2.8 20 years Forres 13.02 1 0.8 16 years Buckie 22.34 4 0.8 28 years Keith 5.3 4 0.4 13 years Speyside 1.6 2 0.4 4 years The level of effective supply in Elgin, and Buckie is currently good. However, the choice of sites is limited across all market areas. It is noted that within in Elgin there are only small areas now available within I6 Linkwood East and I2 Chanonry. The level of interest and recent planning applications at I7 Barmuckity also suggests availability will be limited in the future as these applications build out. In Forres whilst there is a good supply of land this is all at BP1 Forres Enterprise Park. Whilst Keith has less than 15 years supply there is a LONG allocation that could be brought forward, however there is a limited choice of sites in Keith with these primarily being in the Westerton Road area. There is a shortage of sites in Speyside and finding suitable sites has been an ongoing issue. Removal of a site in the Examination of the 2020 Local Development Plan means there will be a reliance on windfall proposals within this area. The effective land supply is broken down by the type of employment uses that are considered suitable on the site. The greatest proportion of land is suitable for Class 5 General Industrial uses (and also Class 4 Business and Class 6 Storage or Distribution). As set out above some sites are wholly or have areas that would be capable of accommodating higher amenity uses or a greater mix of uses. These tend to be uses within Class 4 that require a higher amenity setting or due to the location of the site close to residential development general industrial uses would not be suitable. On some larger sites areas that could accommodate a greater mix of uses ( for example Class 1 Shops where ancillary to main use, Class 4 Business, Class 5 General Industrial, Class 6 Storage or Distribution, Class 7 Hotel and Hostels Page 98
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Employment Land Audit 2023 9 and Use Class 11 Assembly and Leisure) are identified to help support delivery of the site as a whole. A breakdown of the type of sites is shown in figures 8 and 9 below. It is noted that some sites will be counted in both the General Industrial and High Amenity figures as on larger sites part of the site may be identified for a greater mix of uses. Figure 8: Effective area by type (2023) Figures in hectares. Effective Area Number of Sites General Industrial 63.28 16 High Amenity 36.59 8 Figure 9: Effective area by Market Area and type (2023). Figures in hectares. Market Area General Industrial Number of Sites High Amenity Number of Sites Elgin 41.06 9 16.55 3 Elgin 27.16 7 16.55 3 Mosstodloch 12.8 1 Troves 1.1 1 Forres 2.75 1 10.27 1 Buckie 15.32 2 7.02 2 Buckie 15.32 2 6.37 1 Cullen 0.65 1 Keith 3.55 3 1.75 1 Speyside 0.6 1 1 1 Aberlour 1 1 Rothes 0.6 1 The Elgin and Buckie market areas have relatively healthy supplies of general industrial land providing the equivalent of around 15 years supply. In Forres there is a significant shortage of general industrial land and this requires to be urgently addressed. Only a small portion of the BP1 Forres Enterprise Park is able to accommodate general industrial uses. In Keith the general industrial supply is more limited however there is a LONG allocation that could be drawn down if there is shortage. There is, and has historically been, a significant shortage of general industrial land in Speyside. This means there is a reliance on windfall proposals to accommodate demand. Page 99
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10 Employment Land Audit 2023 3.3 Immediately Available The immediately available employment land supply in 2023 is shown in figure 10. The immediately available supply decreased by 0.22 ha compared to 2022. The decrease is due to construction activity at I7 Barmuckity/Elgin Business Park. As noted above take up at I7 Barmuckity/Elgin Business Park has been very good and therefore it is anticipated that the level of immediately available land in the Elgin Market Area will reduce significantly over the next few years. Bringing forward and servicing new sites will be critical to maintaining supplies. Figure 10: Immediately available Employment Land Supply (2023) Immediately Available (Net figure in hectares) Number of Sites 33.63 6 3.4 LONG The Moray Local Development Plan 2020 included LONG employment sites for the first time. The LONG supply is set out in figure 11 below. These sites set out the direction of growth and assist in forward planning. LONG sites are designated at LONG3 Burnside of Birnie Elgin, LONG MU1 South of the A96, LONG 2 West of Mosstodloch, LONG 2 Westerton Road Keith and LONG2 March Road. Figure 11: LONG sites 2023 LONG (Net figure in hectares) Number of Sites 48.06 5 3.5 Constrained The established land supply that is subject to constraints is shown in figure 12 and has not changed from 2022. Page 100
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Employment Land Audit 2023 11 Figure 12: Constrained Employment Land Supply (2023) Constrained Supply (Net figure in hectares) Number of Sites 78.03 15 The constrained supply can be broken down into the type of constraints identified. Figure 13: Constrained Employment Land Supply by constraint (2023) (Net figures in hectares) Note some land may fall under more than one constraint. Constraint Type Constrained Supply Number of Sites Infrastructure 45.75 8 Ownership 14.15 4 Physical 44.23 11 3.6 Take up and Construction The number and area of proposals completed in the year to 1st January 2023 is shown in figure 14 below. This includes completion or occupation of sites at I7 Barmuckity, and OPP4 Ashgrove in Elgin. This is a drop in construction from previous year (4.68 in 2021 and 4.74ha in 2022). While this may be the case a number of planning applications have been approved over the audit year and it is anticipated that take up of these will form part of the next audit. Figure 14 Employment land completed/taken up in year to 1st January 2023 Take up area (Gross figure in hectares) Number of Sites 1.24 3 The number and area of proposals under construction on the base date of 1st January 2023 is shown in figure 15 below. This is decrease in construction activity compared to 2022 (4.7ha) and is similar to the level recorded in audits completed in 2015-2019 which ranged from 2.31ha to 5.25ha. The sites now marked as being under construction include four at I7 Barmuckity/Elgin Business Park Page 101
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12 Employment Land Audit 2023 Figure 15: Employment land under construction at 1st January 2023 Under Construction (Gross figure in hectares) Number of Sites 3.65 2 It is noted that this does not represent all building activity, and only that on designated sites or windfall sites that are not restricted to a single user. Other notable areas of activity primarily relate to expansion proposals of existing businesses, sites in the countryside and expansion of distilleries. 4. Conclusion The Employment Land Audit has been carried out in this format for several years allowing comparison to be made to previous audits. It is clear that the emphasis on employment land continues to be within the main settlements of Elgin, Forres, Buckie and Keith. However, Mosstodloch is also the focus of a large proportion of the supply in the Elgin Market Area. The shortage of general industrial land in the Forres Market Area is a significant issue that requires to be addressed. There is a significant shortage of land and sites within the Speyside Market Areas which means there is a reliance on windfall sites to accommodate demand. Around 34% (78.03ha) of the Established Supply has some form of constraint that is likely to prevent the land being brought forward in the next five years and has not changed from the 2022 audit. There continues to be a limited choice of serviced sites/immediately available sites across all settlements with only 6 sites being classed in this category. A number of consents were approved on identified sites in 2022 along with a number of sites which are now deemed to be under construction. It is anticipated that several of these will be implemented and brought forward in 2023 which will be reflected in next years ELA. The availability of Immediately Available employment land is a Key Measure in the Moray Economic Strategy and will be a focus for the next Moray Local Development Plan. In figure 16 below is a summary by market area. Page 102
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Employment Land Audit 2023 13 Elgin (including Lossiemouth and Mosstodloch) Forres Development at Barmuckity/Elgin Business Park (I7) is progressing with several plots now completed and others under construction. There continues to be significant interest in the remaining plots, including some of the larger plots. The high levels of take up at Elgin Business Park/Barmuckity (I7) suggest the level of Immediately Available land will reduce significantly over the next few years and therefore bringing new sites forward and servicing these is critical to maintaining a supply of serviced sites. At Chanonry (I2) and Linkwood East (I6) there continues to small areas of immediately available land but this has reduced to only a couple of small plots on each site available. At Chanonry there is a private development of 18 starter units that have been built with several now occupied. At OPP4 Ashgrove three general industrial and storage and distribution buildings (including ancillary trade counters) have been built and occupied. Bringing forward other sites within Elgin will be critical to maintaining a choice of immediately available sites. To the north of Elgin Newfield (I8) is being actively marketed increasing choice of sites across Elgin. Land has been identified at Burnside of Birnie (I16/LONG3) to meet future demand. Choice of sites is severely restricted in Lossiemouth, only Sunbank OPP1 or windfall opportunities are available. The topography and ground conditions at Sunbank OPP1 are considered to constrain the site. In Mosstodloch additional land is identified at I3 West of Mosstodloch and there are discussions ongoing with the landowner regarding the site. There are issues with delivery of higher quality business land. Strong demand continues for industrial buildings. Very small choice of marketable/effective sites given settlement size and population, but reasonable areas available at the BP1 Enterprise Park. I4 Easter Newforres is understood to have high infrastructure costs that will likely require public sector funding support to make this site effective. There is continued demand for small offices at Horizon Scotland at BP1 Enterprise Park. Consent has also been granted for two small business units in the north west of BP1. The road extension has opened up an area for development to the south east of BP1. Figure 16 Market Area Summary Page 103
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14 Employment Land Audit 2023 The remaining land at Waterford (I2) is now constrained due to restricted access. Strong demand, particularly for smaller units and need for serviced employment land to allow businesses to develop and relocate from smaller units. The Economic Recovery Plan includes an action to progress the development of employment land or industrial units in Forres. Small choice of marketable sites but reasonable areas available. Significant area immediately available at I3 Rathven Industrial Estate. Redevelopment opportunities at harbour. Small site available at Cullen. The Moray Local Development Plan identifies a reserve of industrial land at March Road (LONG2) that could be brought forward if need arose. Very small choice of marketable sites focussed around the Westerton Road area. Issues with providing readily accessible employment sites. Demand for smaller units but greatest demand is currently for battery storage and development linked to Blackhillock where a masterplan for this area is currently being progressed. An energy management facility that was previously noted as being under construction on the I3 Westerton Road East designation is now complete. Opportunities for higher amenity employment uses promoted within a mixed use site to the south of Banff Road (MU). Severely limited choice of designated sites. There is a need for sites for small local businesses in Speyside. The Moray Local Development Plan 2020 identifies a site at Speyview (R2) where 1ha of the housing site is identified for employment uses. The removal of a site during the Examination of the Moray Local Development Plan 2020 means there is a reliance on windfall proposals supported through policy. The Economic Recovery Plan includes an action to progress the development of employment land or industrial units in Speyside. Forres Buckie Keith Speyside Page 104
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Employment Land Audit 2023 15 5. Glossary Constrained Employment Land Supply This includes land for example, that has planning difficulties, land subject to ownership difficulties (e.g. multiple ownership/unwilling sellers), land with insufficient infrastructure provision, etc. This category therefore includes much of the land in the Established Employment Land Supply that is not Marketable (see below). Employment Land This includes land for general industrial and business/office use, storage and distribution uses, business parks and specialist technology parks including research and development uses. This comprises Classes 4 (Business), 5 (General Industrial) and 6 (Storage or Distribution) of the 1997 Town and Country Planning (Use Classes) (Scotland) Order, but is not exclusive to these uses. Established Employment Land Supply This includes all undeveloped land that is allocated for industrial/business/ employment use in the adopted Local Plan or has a valid planning approval for these uses. Gross This refers to the total area in (hectares) within the boundary of the site. Immediately Available Land Supply This is marketable/effective land that currently has planning permission, is serviced and has no other major constraints to immediate development. This definition is useful in the assessment of whether demand for land is being adequately met. Marketable/Effective Land Supply This is land that as well as meeting business requirements, has a secure planning status, can be serviced within 5 years, is accessible by walking, cycling and public transport as defined by SPP. Land that is subject to user restrictions or that is held as ‘option land’ for existing companies’ own expansion cannot be considered to be marketable. Such land is not constrained. Net The total area of land excluding roads, landscaping etc. As the physical attributes of a site and surrounding land uses will determine the area suitable for development and the level of landscaping required the net area will vary. For sites that are partially complete, the net area given is the area that is actually available to be developed. For sites that are undeveloped the net area is estimated. This estimate is based on an assumption that on average, 20% of available land will be taken up with roads, landscaping etc. If relevant site information is available, this is taken into account in the estimate. Take-Up The take up figure includes all proposals where development has been completed within the particular year. Under Construction This is the area of land under construction at the base date. These sites are not yet complete. The area under construction area is not included within the land supply or built totals. Page 105
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The Moray Council Employment Land Audit2023 Reference: M/AB/E/005 Location: Speyview Grid Ref: 325631 841602 Supply Type: Effective Constrained Owner Infrastructure Physical Town: ABERLOUR Effective Supply (Ha): Effective: 1 Immediately Available: 0 LPR: 20/R2 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 1 Net Established: 1 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 1 Reference: M/BC/E/001 Location: High Street (W) Grid Ref: 342942 864437 Supply Type: Effective Constrained Owner Infrastructure Physical Town: BUCKIE Effective Supply (Ha): Effective: 6.37 Immediately Available: 0 LPR: 20/MU LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 6.37 Net Established: 6.37 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 6.37 Page 106
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The Moray Council Employment Land Audit2023 Reference: M/BC/E/004 Location: March Road (SE) Grid Ref: 343984 865510 Supply Type: Effective Constrained Owner Infrastructure Physical Town: BUCKIE Effective Supply (Ha): Effective: 14.55 Immediately Available: 7.95 LPR: 20/I3 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 17.69 Net Established: 14.55 Development (Ha): Built: 3.14 Under Construction: 0 LONG: 0 General Industrial: 14.55 High Amenity: 0 Reference: M/BC/E/005 Location: Maltings Grid Ref: 343676 865357 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: BUCKIE Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/I4 LONG Supply (Ha): Constrained Total (Ha): 8.5 Established Supply (Ha): Gross Established: 10.3 Net Established: 8.5 Development (Ha): Built: 5.96 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0 Page 107
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The Moray Council Employment Land Audit2023 Reference: M/BC/E/006 Location: The Harbour Area Grid Ref: 343086 865957 Supply Type: Part Constrained Constrained Owner Infrastructure Physical Town: BUCKIE Effective Supply (Ha): Effective: 0.77 Immediately Available: 0 LPR: 20/I5 LONG Supply (Ha): Constrained Total (Ha): 1 Established Supply (Ha): Gross Established: 1.77 Net Established: 1.77 Development (Ha): Built: 20.97 Under Construction: 0 LONG: 0 General Industrial: 0.77 High Amenity: 0 Reference: M/BC/E/007 Location: March Road (LONG) Grid Ref: 344222 865018 Supply Type: Effective 5years+ Constrained Owner Infrastructure Physical Town: BUCKIE Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/LNG2 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 7.02 Net Established: 5.62 Development (Ha): Built: 0 Under Construction: 0 LONG: 5.62 General Industrial: 0 High Amenity: 0 Page 108
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The Moray Council Employment Land Audit2023 Reference: M/CL/E/002 Location: South of Cemetery Grid Ref: 351482 866184 Supply Type: Effective Constrained Owner Infrastructure Physical Town: CULLEN Effective Supply (Ha): Effective: 0.65 Immediately Available: 0 LPR: 20/I1 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 0.81 Net Established: 0.65 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0.65 Reference: M/EL/E/001 Location: Elgin Business Park, Barmuckity Grid Ref: 324719 861725 Supply Type: Part Constrained Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 16.26 Immediately Available: 10.07 LPR: 20/I7 LONG Supply (Ha): Constrained Total (Ha): 5.86 Established Supply (Ha): Gross Established: 33.6 Net Established: 22.12 Development (Ha): Built: 2.9 Under Construction: 2.35 LONG: 0 General Industrial: 10.31 High Amenity: 5.95 Page 109
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The Moray Council Employment Land Audit2023 Reference: M/EL/E/002 Location: Riverview Grid Ref: 319633 862782 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/MU1 LONG Supply (Ha): Constrained Total (Ha): 3.3 Established Supply (Ha): Gross Established: 4.12 Net Established: 3.3 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0 Reference: M/EL/E/004 Location: Glen Moray Distillery Grid Ref: 319932 862424 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/I12 LONG Supply (Ha): Constrained Total (Ha): 1.3 Established Supply (Ha): Gross Established: 1.3 Net Established: 1.3 Development (Ha): Built: 6.5 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0 Page 110
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The Moray Council Employment Land Audit2023 Reference: M/EL/E/008 Location: Chanonry Industrial Estate Grid Ref: 323161 862960 Supply Type: Part Constrained Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 0.67 Immediately Available: 0.67 LPR: 20/I2 LONG Supply (Ha): Constrained Total (Ha): 1.22 Established Supply (Ha): Gross Established: 3.17 Net Established: 1.89 Development (Ha): Built: 10.36 Under Construction: 0 LONG: 0 General Industrial: 0.67 High Amenity: 0 Reference: M/EL/E/011 Location: Pinefield Industrial Estate Grid Ref: 322991 862330 Supply Type: Effective Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 0.18 Immediately Available: 0 LPR: 20/I5 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 0.18 Net Established: 0.18 Development (Ha): Built: 12.23 Under Construction: 0 LONG: 0 General Industrial: 0.18 High Amenity: 0 Page 111
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The Moray Council Employment Land Audit2023 Reference: M/EL/E/012 Location: Linkwood East Grid Ref: 323707 862498 Supply Type: Effective Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 1.4 Immediately Available: 1.4 LPR: 20/I6 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 1.71 Net Established: 1.4 Development (Ha): Built: 2.01 Under Construction: 0 LONG: 0 General Industrial: 1.4 High Amenity: 0 Reference: M/EL/E/016 Location: Newfield Grid Ref: 321907 864903 Supply Type: Effective Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 9.6 Immediately Available: 0 LPR: 20/I8 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 12 Net Established: 9.6 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 9.6 High Amenity: 0 Page 112
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The Moray Council Employment Land Audit2023 Reference: M/EL/E/017 Location: Burnside of Birnie Grid Ref: 322206 859613 Supply Type: Part Constrained Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 9 Immediately Available: 0 LPR: 20/I16 LONG Supply (Ha): Constrained Total (Ha): 8.87 Established Supply (Ha): Gross Established: 22.3 Net Established: 17.87 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 4 High Amenity: 5 Reference: M/EL/E/018 Location: Burnside of Birnie (LONG) Grid Ref: 322279 859158 Supply Type: Part Constrained Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/LNG3 LONG Supply (Ha): Constrained Total (Ha): 9.8 Established Supply (Ha): Gross Established: 38.2 Net Established: 30.56 Development (Ha): Built: 0 Under Construction: 0 LONG: 20.74 General Industrial: 0 High Amenity: 0 Page 113
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The Moray Council Employment Land Audit2023 Reference: M/EL/E/019 Location: Lossiemouth Road (NE) Grid Ref: 321871 865361 Supply Type: Effective Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 5.6 Immediately Available: 0 LPR: 20/MU2 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 7 Net Established: 5.6 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 5.6 Reference: M/EL/E/020 Location: Ashgrove Road (Yard) Grid Ref: 322589 862554 Supply Type: Effective Constrained Owner Infrastructure Physical Town: ELGIN Effective Supply (Ha): Effective: 1 Immediately Available: 0 LPR: 20/OPP4 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 1.2 Net Established: 1 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 1 High Amenity: 0 Page 114
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The Moray Council Employment Land Audit2023 Reference: M/FR/E/001 Location: Forres Enterprise Park Grid Ref: 306378 859307 Supply Type: Effective Constrained Owner Infrastructure Physical Town: FORRES Effective Supply (Ha): Effective: 13.02 Immediately Available: 13.02 LPR: 20/BP1 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 22.88 Net Established: 13.02 Development (Ha): Built: 17.92 Under Construction: 0 LONG: 0 General Industrial: 2.75 High Amenity: 10.27 Reference: M/FR/E/006 Location: Benromach Distillery Grid Ref: 303187 859423 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: FORRES Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/I3 LONG Supply (Ha): Constrained Total (Ha): 3.2 Established Supply (Ha): Gross Established: 4 Net Established: 3.2 Development (Ha): Built: 4 Under Construction: 1.3 LONG: 0 General Industrial: 0 High Amenity: 0 Page 115
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The Moray Council Employment Land Audit2023 Reference: M/FR/E/013 Location: Waterford Grid Ref: 303151 859195 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: FORRES Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/I2 LONG Supply (Ha): Constrained Total (Ha): 0.8 Established Supply (Ha): Gross Established: 1 Net Established: 0.8 Development (Ha): Built: 6.2 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0 Reference: M/FR/E/014 Location: Easter Newforres Grid Ref: 306670 859033 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: FORRES Effective Supply (Ha): Effective: Immediately Available: 0 LPR: 20/I4 LONG Supply (Ha): Constrained Total (Ha): 17.75 Established Supply (Ha): Gross Established: 27.6 Net Established: 17.75 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0 Page 116
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The Moray Council Employment Land Audit2023 Reference: M/KH/E/004 Location: Bridge Street Grid Ref: 343609 850228 Supply Type: Effective Constrained Owner Infrastructure Physical Town: KEITH Effective Supply (Ha): Effective: 1.64 Immediately Available: 0 LPR: 20/I4 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 2.05 Net Established: 1.64 Development (Ha): Built: 1.72 Under Construction: 0 LONG: 0 General Industrial: 1.64 High Amenity: 0 Reference: M/KH/E/005 Location: Isla Bank Mills Grid Ref: 342764 851453 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: KEITH Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/I7 LONG Supply (Ha): Constrained Total (Ha): 1.84 Established Supply (Ha): Gross Established: 1.84 Net Established: 1.84 Development (Ha): Built: 4.03 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0 Page 117
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The Moray Council Employment Land Audit2023 Reference: M/KH/E/010 Location: Westerton Road South Grid Ref: 343584 850372 Supply Type: Effective Constrained Owner Infrastructure Physical Town: KEITH Effective Supply (Ha): Effective: 0.52 Immediately Available: 0.52 LPR: 20/I2 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 0.52 Net Established: 0.52 Development (Ha): Built: 1.45 Under Construction: 0 LONG: 0 General Industrial: 0.52 High Amenity: 0 Reference: M/KH/E/011 Location: Westerton Road East Expansion Grid Ref: 343761 850329 Supply Type: Effective Constrained Owner Infrastructure Physical Town: KEITH Effective Supply (Ha): Effective: 1.39 Immediately Available: 0 LPR: 20/I11 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 1.74 Net Established: 1.39 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 1.39 High Amenity: 0 Page 118
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The Moray Council Employment Land Audit2023 Reference: M/KH/E/012 Location: Westerton Road (LONG) Grid Ref: 343822 850218 Supply Type: Effective 5years+ Constrained Owner Infrastructure Physical Town: KEITH Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/LNG2 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 3.2 Net Established: 2.5 Development (Ha): Built: 0 Under Construction: 0 LONG: 2.5 General Industrial: 0 High Amenity: 0 Reference: M/KH/E/013 Location: Banff Road South Grid Ref: 343847 850958 Supply Type: Effective Constrained Owner Infrastructure Physical Town: KEITH Effective Supply (Ha): Effective: 1.75 Immediately Available: 0 LPR: 20/MU LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 1.75 Net Established: 1.75 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 1.75 Page 119
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The Moray Council Employment Land Audit2023 Reference: M/LS/E/007 Location: Sunbank Grid Ref: 323075 869644 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: LOSSIEMOUTH Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/OPP1 LONG Supply (Ha): Constrained Total (Ha): 10.24 Established Supply (Ha): Gross Established: 12.8 Net Established: 10.24 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0 Reference: M/MS/E/003 Location: Baxters Grid Ref: 333948 859705 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: MOSSTODLOCH Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/I5 LONG Supply (Ha): Constrained Total (Ha): 1.78 Established Supply (Ha): Gross Established: 2.22 Net Established: 1.78 Development (Ha): Built: 12.05 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0 Page 120
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The Moray Council Employment Land Audit2023 Reference: M/MS/E/005 Location: North of Baxter's Grid Ref: 333613 860016 Supply Type: Constrained Constrained Owner Infrastructure Physical Town: MOSSTODLOCH Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/I2 LONG Supply (Ha): Constrained Total (Ha): 2.57 Established Supply (Ha): Gross Established: 3.22 Net Established: 2.57 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0 High Amenity: 0 Reference: M/MS/E/006 Location: South of A96 Grid Ref: 333268 859627 Supply Type: Effective 5years+ Constrained Owner Infrastructure Physical Town: MOSSTODLOCH Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/MUL1 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 11 Net Established: 8 Development (Ha): Built: 0 Under Construction: 0 LONG: 8 General Industrial: 0 High Amenity: 0 Page 121
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The Moray Council Employment Land Audit2023 Reference: M/MS/E/007 Location: West of Mosstodloch Grid Ref: 331976 860333 Supply Type: Effective Constrained Owner Infrastructure Physical Town: MOSSTODLOCH Effective Supply (Ha): Effective: 12.8 Immediately Available: 0 LPR: 20/I3 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 16 Net Established: 12.8 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 12.8 High Amenity: 0 Reference: M/MS/E/008 Location: West of Mosstodloch (LONG) Grid Ref: 331976 860549 Supply Type: Effective 5years+ Constrained Owner Infrastructure Physical Town: MOSSTODLOCH Effective Supply (Ha): Effective: 0 Immediately Available: 0 LPR: 20/LNG2 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 14 Net Established: 11.2 Development (Ha): Built: 0 Under Construction: 0 LONG: 11.2 General Industrial: 0 High Amenity: 0 Page 122
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The Moray Council Employment Land Audit2023 Reference: M/RS/E/001 Location: Back Burn Grid Ref: 327876 849746 Supply Type: Effective Constrained Owner Infrastructure Physical Town: ROTHES Effective Supply (Ha): Effective: 0.6 Immediately Available: 0 LPR: 20/I1 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 0.75 Net Established: 0.6 Development (Ha): Built: 0 Under Construction: 0 LONG: 0 General Industrial: 0.6 High Amenity: 0 Reference: M/TV/E/001 Location: Troves Industrial Estate Grid Ref: 324974 324974 Supply Type: Effective Constrained Owner Infrastructure Physical Town: TROVES Effective Supply (Ha): Effective: 1.1 Immediately Available: 0 LPR: 20/I1 LONG Supply (Ha): Constrained Total (Ha): 0 Established Supply (Ha): Gross Established: 1.61 Net Established: 1.1 Development (Ha): Built: 0 Under Construction: LONG: 0 General Industrial: 1.1 High Amenity: 0 Page 123
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16 DRAFT Employment Land Audit 2023 Elgin I7 Page 124
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE 5 SEPTEMBER 2023 SUBJECT: INFORMATION REPORT: MORAY BUSINESS PROPERTY NEEDS STUDY BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT AND FINANCE) 1. REASON FOR REPORT 1.1 To inform the Committee of the Moray Business Property Needs Study and its findings. 1.2 This report is submitted to Committee in terms of Section III (F) (3) of the Council's Scheme of Administration relating to industrial and commercial development 2. BACKGROUND 2.1 As agreed by Planning and Regulatory Services Committee on 25 October 2022 (para 9 of the minute refers) external consultants were commissioned to undertake a Business Property Needs Study. Ryden LLP was commissioned to provide up to date information and analysis of the current and projected demand for commercial land and buildings to help inform the Evidence Report for the new Local Development Plan (LDP) and the Regional Spatial Strategy. 2.2 The Study includes • A review of the economic baseline and relevant economic policy. • A review of key sectors operating in Moray. • A property market review including the stock of employment floor space and a review of supply and take up of industrial and office premises. • A review of the Council’s industrial property portfolio. • A review of the annual employment land audit, including a review of the effectiveness of all sites against 8 scoring categories. • A summary of the results of the business survey and consultation undertaken as part of the study. This included an online survey of business property occupiers and stakeholder workshop with members of the Moray Business Resilience Group (including representatives from Highlands and Islands Enterprise, Moray Chamber of Commerce, Moray Business Women, Elgin BID, Visit Moray, Business Gateway, Federation Page 125
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of Small Business, Skills Development Scotland and Scottish Council for Development and Industry) and consultation with developers. • A review of funding opportunities. • Consideration and recommendations in respect of market needs to help inform the new Local Development Plan (LDP) and Regional Spatial Strategy. 2.3 The Business Property Needs Study was reported to the Planning and Regulatory Services Committee on 15 August 2023 where agreement was sought to use the study as a material consideration for development management purposes (para 8 of the draft minute refers. The study findings will also be incorporated into the Evidence Report for the next LDP that will be reported to Council in March 2024. The study will also be reported to the Moray Economic Partnership for their information. 3. KEY FINDINGS 3.1 The full Business Property Needs Study is set out in Appendix 1. Set out below is a short summary of the key findings and conclusions of the study. 3.2 The study found that regional strategies highlight Moray’s aim to create work opportunities in the region which will support well paid work and retain the workforce. Demand is anticipated from existing businesses looking to expand and relocate, and future demand within key growth sectors and from inward investors. The needs of these sectors is set out in the table below. SECTORS LAND AND PROPERTY REQUIREMENTS LOCATIONS Small to Medium Sized Enterprises SMEs (all general employment property sectors) Responsible for the majority of demand for employment land and property across Moray. Strategies aim to increase the number of start-ups and mid-range businesses and therefore there will be a need for small business units and also for those expanding and modernising. Primarily small to medium standard industrial units and serviced sites for bespoke requirements. Also small modern office premises in service centres. Across Moray, with Elgin as the regional centre accounting for c.60% of the market and a tiered focus on employment centres below that. Due to lack of development viability. Direct provision is expected to be required outside of Elgin and this will be explored with other partners on a case by case basis. Energy and Renewables Expected to grow substantially in the coming years. Sites ranging from battery storage to operations and maintenance hubs or production facilities which may include a requirement for laydown space and port access and infrastructure. Likely to be heavily concentrated around Buckie as an important location for operations and maintenance activity. Demand for battery storage around Keith which is in close proximity to the Page 126
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Blackhillock sub station Manufacture of food and beverages Largest sector of manufacturing in the area. Moray is home to over half of all the whisky distilleries in Scotland and a number in the area have recently undergone significant expansion with others exploring options for their sites. In addition, there is a significant development pipeline for whisky storage/bonded warehouses. Hazardous Substances Consent required and particular requirements around ventilation. Concentrated in Speyside which may require additional sites for storage or maturation in the near future however other locations may also be suitable Manufacture of wood products Above average and increasing job numbers and likely to be an increase in employment land. Land hungry and possibly site specific. Most significant in Elgin, Forres and Mosstodloch. Sustainable tourism Numbers of businesses now exceeding pre-pandemic levels and could perhaps lead to some demand for Class 4 space, but more likely demand for Class 7 and 11. Potentially around Elgin. Life sciences Has attracted recent investment but starting from a low base so may not generate significant demand in short term. Longer term growth could lead to increased demand. Growth Deal includes proposals for the Moray Rural Centre of Excellence for Digital Health and Care Innovation (now launched) as well as 5 ‘Living Lab’ testbeds. Demand is likely to be focused around Forres but ‘Living Lab’ testbeds will be across the region. Defence activities Employment has more than doubled in recent years with the addition of military personnel. Additional expected investment will increase direct and indirect employment and thus demand for employment land. Demand for general employment land as well as at RAF and Army bases. RAF Lossiemouth and Kinloss Barracks Aerospace Strengths in the defence sector is also likely to enable development of an aerospace sector in Moray alongside projects such as the Moray Aerospace, Advanced Technology and Innovation Campus (MATTIC). The Moray space cluster is currently developing. Requirements to include premises for manufacturing and Potentially around Forres and wider supply chain. Page 127
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engineering and testing facilities. Large sites required. 4.3 Moray’s office market is following the wider post-pandemic transition to greater hybrid working. In broad terms that involves contraction into smaller but higher quality premises on a more flexible basis. The study states that supporting adaptation of premises around flexible and possibly co-working will require to be considered. 4.4 The study notes that the existing industrial stock will require steady upgrade and replacement as building age, environmental requirements, and occupier modernisation drive change. 4.5 Industrial property development has been positive in Moray recently, particularly in Elgin. The study shows the recent development cycle in Moray is circa 115,000 sq.ft. (not including refurbishments). However, across the UK property market higher interest rates have reduced property values at the same time as costs have risen, suppressing developer activity. In projecting future demand it is assumed these pressures will alleviate and new development by the private sector is once again positive and viable again in Elgin before the LDP period in 2027. However, the study considers that intervention will still be required outwith Elgin in the secondary and tertiary growth areas identified in the Local Development Plan including Forres, Buckie, Lossiemouth, Keith, Fochabers, Mosstodloch and Aberlour. Intervention is also likely to be required for specialist properties and for the servicing of land unless cross funding from large scale residential development is available. Where intervention is required, the Council will work with other partners on a case by case basis to explore opportunities. 4.6 Moray’s employment land demand is demonstrated in enquiries, take-up and development. The study found Moray outperforms comparable regions including Perth and Kinross, East Lothian and South Ayrshire and employment land demand has increased recently, as occupier modernisation and growth take effect. The Study notes that Moray has a number of land- hungry extraction and production industries as well as growth prospects at the other end of the spectrum in technology-rich sectors which require more space per job than traditional industrial premises. These require a generous approach to employment land estimates and allocations. To accommodate these trends and based upon the research completed the study recommends the following projected land requirements over the next LDP period (2027- 2037). • 2027-2032 – 25-30 ha • 2033-2037 – 25-30 ha 4.7 This equates to approximately 5-6 ha per annum which is 20-25% higher than the 4-5ha used for the 2020 LDP. The study recommends that this requirement is split across market areas in the same way as the 2020 LDP with 54% of the requirement directed towards the Elgin market area, 15% to the Forres and Buckie market area and 8% to the Keith and Speyside market areas. The Employment Land Audit 2023 (ELA 2023), which is also subject of a report to this Committee, identifies an overall effective supply of just over 99 Page 128
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ha. The ELA also identifies there are shortages in supply in Speyside and for general industrial land in the Forres market area which will require to be addressed. Therefore, whilst overall there is a generous supply of land available which will contribute to meeting the projected annual requirements additional land will require to be identified to ensure there continues to be effective supply towards the end of the new 10 year plan period and to address the shortages currently identified. The findings of the study and the data from the ELA 2023 will be explored further in a topic paper that will form the basis of a future workshop with members in respect of the new LDP. 4.8 It is recommended that the Business Property Needs Study is agreed as a material consideration for development management purposes. The study findings will also be incorporated into the Evidence Report for the next LDP that will be reported to Council in March 2024. The study will also be reported to the Economic Development and Infrastructure Committee and Moray Economic Partnership for their information. 4. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) The study provides an up to date evidence base to base future planning decisions relating to employment land. Ensuring sufficient provision of effective employment land supports a growing and diverse economy which will provide a stable, sustainable employment base. (b) Policy and Legal Preparation of a LDP is a statutory requirement and the study recommendations will be used to develop policy and direct designation. A good evidence base to inform policy and designations is a statutory requirement. (c) Financial implications None. (d) Risk Implications Not using the findings of the Moray Business Property Needs Study as a material consideration would mean that planning decisions are not based on the most up to date information available and could potentially have implications for business investment and economic growth. (e) Staffing Implications None. The findings and recommendations will now be taken forward during the review of the LDP by existing staff resources. (f) Property No specific implications for property at this stage however Moray Council owns/manages land and property within its own port-folio. The Council’s Asset Manager (Commercial Buildings) engaged with the study authors and reviewed the study documents. Page 129
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(g) Equalities/Socio Economic Impact None at this stage. (h) Climate Change and Biodiversity Impacts Moray Local Development Plan policies seek to ensure that biodiversity is enhanced and all new buildings reduce carbon emissions. Development proposals are required to maximise connections and routes for pedestrians/cyclists including connections to active travel routes thereby reducing carbon emissions associated with vehicles, create green and blue infrastructure and incorporate and enhance biodiversity through planting and other mechanisms. (i) Consultations Consultation has taken place with the Depute Chief Executive (Economy, Environment and Finance), the Head of Economic Growth and Development, the Asset Manager (Commercial Buildings), the Legal Services Manager, the Principal Climate Change Officer, the Equal Opportunities Officer, the Development Management and Building Standards Manager and Chief Financial Officer and Democratic Services Manager and their comments incorporated into the report. 5. CONCLUSION 5.1 The Moray Business Property Needs Study provides information and analysis of the current and projected demand for commercial land and building to help inform the Evidence Report for the new Local Development Plan and the Regional Spatial Strategy. 5.2 The Business Property Needs Study was reported to the Planning and Regulatory Services Committee on 15 August 2023 where agreement was being sought to use the study as a material consideration for development management purposes. The study findings will also be incorporated into the Evidence report for the next LDP that will be reported to Council in March 2024. Author of Report: Rowena MacDougall, Senior Planning Officer Background Papers: Ref: Page 130
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Moray Business Property Needs Study MORAY COUNCIL BUSINESS PROPERTY NEEDS STUDY MAY 2023 Page 131
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Moray Business Property Needs Study Ryden, May 2023 2 INTRODUCTION ECONOMIC BASELINE ECONOMIC POLICY KEY SECTORS PLANNING POLICY PROPERTY MARKET REVIEW COUNCIL INVESTMENT PORTFOLIO EMPLOYMENT LAND BUSINESS SURVEY, CONSULTATION AND ENQUIRIES FUNDING SUMMARY AND MARKET NEEDS APPENDICES EMPLOYMENT LAND SITE ASSESSMENTS BUSINESS SURVEY LIST OF CONSULTEES 01 02 03 04 05 06 07 A B 08 09 10 11 C Page 132
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Moray Business Property Needs Study Ryden, May 2023 3 01 INTRODUCTION 1.1 In January 2023, Ryden was appointed by Moray Council (the Council) to undertake a Business Property Needs Study to provide up to date information and analysis of current and future demand for business property (buildings and land) in the area. The aim of the study is to ensure that the supply of employment sites within Moray reflects the needs of current and future businesses. The study will be used to inform strategy, policy and designations within the next Moray Local Development Plan (LDP). 1.2 Moray is located in the north east of Scotland, with a coastline on the Moray Firth, and borders the Council areas of Aberdeenshire and Highland. The large majority of Moray’s population live in the northern part of the district with Elgin being by far the largest town. In 2021, the population of Moray was 96,4101, accounting for 1.8% of the total population of Scotland. 1.3 Employment land is defined as being suitable for any use within, or ancillary to, those specified in Use Classes 4, 5 or 6 of the Town and Country Planning (Use Classes) (Scotland) Order 1997. These are defined as: • Use Class 4 – Office, business or light industrial • Use Class 5 - General Industry • Use Class 6 - Storage and Distribution 1.4 Retail, tourism and leisure uses are excluded from the definition of employment land. Having an adequate supply of employment land allows business to grow, invest and create jobs. 1.5 The adopted National Planning Framework 4 (NPF4) guides development and land use. It requires that LDPs allocate sufficient land for business and industry, taking into account business and industry land audits, in particular ensuring that there is a suitable range of sites that meet current market demand, location, size and quality in terms of accessibility and services. Allocations should take account of local economic strategies and support broader objectives of delivering a low carbon and net zero economic recovery, and a fairer and more inclusive wellbeing economy, in-keeping with the Scotland’s National Strategy for Economic Transformation. 1.6 The study objectives are to: • Understand and project demand for business property (land and buildings) in Moray for the Moray Local Development Plan 2027 plan period • Test demand against the available supply • Identify gaps in provision and highlight market failures • Highlight specific sectors with expansion and replacement needs, especially in relation to the growing renewables sector and opportunities available to Moray businesses through the Scottish Government’s Just Transition Fund 1.7 The remainder of the report is structured as follows; sections 2-4 were prepared by BiGGAR Economics to provide an economic context for the business property market study: 1 National Records of Scotland (2022), Mid-2021 population estimates Scotland. Page 133
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Moray Business Property Needs Study Ryden, May 2023 4 • Section 2 provides the economic baseline context • Section 3 details the economic policy context and key sectors, • Section 4 details the key sectors which are expected to be key drivers of growth in Moray over the next few years • Section 5 provides the planning policy context • Section 6 contains a property market review which considers trends and evidence, supply, rents and viability • Section 7 assesses the Council’s own investment portfolio • Section 8 provides a detailed assessment of allocated employment land • The findings of the business survey and consultation are reported in Section 9 • Section 10 updates and summarises the employment land and property public funding landscape • A report summary and market needs for Moray are provided in Section 11. 1.8 A copy of the full employment land site assessments is provided at Appendix A and a copy of the business survey is included at Appendix B. Page 134
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Moray Business Property Needs Study Ryden, May 2023 5 02 ECONOMIC BASELINE INTRODUCTION 2.1 The retention and expansion of Moray’s working age population will require consideration of the land needed to enable growth in sectors which will generate employment opportunities. This section provides the economic baseline within this context. This section has been prepared by BiGGAR Economics. POPULATION POPULATION ESTIMATES 2.2 In 2021, the population of Moray was 96,410, accounting for 1.8% of the total population of Scotland. The share of the population in Moray aged 16-64 years old was 61.1%, lower than the working age population for Scotland as a whole (63.8%). The proportion of residents aged 65 and over in Moray (22.3%) was higher than the national average (19.6%). TABLE 1: POPULATION ESTIMATES, 2021 MORAY SCOTLAND Total 96,410 5,479,900 0-15 16.5% 16.6% 16-64 61.1% 63.8% 65+ 22.3% 19.6% Source: National Records of Scotland (2022), Moray Council Area Profile & National Records of Scotland (2022), Mid-2021 population Estimates Scotland 2.3 Elgin City North (61.7%), Elgin City South (61.9%), and Heldon and Laich (64.3%) all have higher proportions of the population of working age compared to Moray as a whole (61.2%). 2.4 Keith and Cullen has the highest proportion of the population aged 64 and over (26.4%), with Fochabers Lhanbryde (22.9%), Forres (23.8%) and Speyside Glenlivet (25.2%) also having a higher proportion of the population aged over 64 compared to Moray as a whole (22.0%). 2.5 The availability of suitably skilled labour is an important consideration for any businesses. The distribution of Moray’s working age population will therefore be one important influence on the locational decisions of local businesses. Page 135
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Moray Business Property Needs Study Ryden, May 2023 6 FIGURE 1: MID-2021 POPULATION ESTIMATES, ELECTORAL WARDS IN MORAY Source: National Records of Scotland (2022), Mid-2021 Electoral Wards Population Estimates POPULATION PROJECTIONS 2.6 Population projections released by National Records of Scotland in 2018 suggest that Moray’s population will get smaller and older over the coming years. Between 2018 and 2043, the population of Moray is predicted to fall by 2.7%, while the population of Scotland is projected to increase by 2.5% over the same period. 2.7 Between 2018 and 2043, the working age population of Moray was also expected to fall. The projections estimated that by 2043, people of working age would account for just 55.2% of Moray’s workforce, lower than the expected share accounted for by this demographic nationally (60.3%). 2.8 This suggests that businesses in the region are likely to face an increasingly tight labour market which could create difficulties in filling roles over the coming years. However, these projections do not account for the ongoing expansion of RAF Lossiemouth and the Kinloss Barracks, which could have a considerable impact on Moray’s working age population. An increase in the military population can also bring with it an increase in civilian population with spouses able to provide labour for other important sectors in Moray. Whilst population contraction may still occur it may not contract as quickly as was initially projected in 2018. TABLE 1: POPULATION PROJECTIONS, 2018-2043 MORAY SCOTLAND 2018 2043 2018 2043 Total 95,520 92,966 5,438,100 5,574,819 0-15 16.9% 13.5% 16.9% 14.8% 16-64 61.7% 55.3% 64.2% 60.3% 65+ 21.4% 31.2% 18.9% 24.9% Source: National Records of Scotland (2022), Population Projections 2018-2043. Page 136
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Moray Business Property Needs Study Ryden, May 2023 7 ECONOMIC ACTIVITY 2.9 The economic activity rate in Moray is 78.8%, somewhat higher than Scotland as a whole (77.2%). This would be consistent with a relatively tight labour market. 2.10 The median annual gross wage of Moray residents was £29,666, lower than that of Scotland as a whole (£33,311). TABLE 3: LABOUR MARKET INDICATORS 2021/22, MORAY AND SCOTLAND MORAY SCOTLAND Economic Activity Rate 78.8% 77.2% Employment Rate 76.0% 74.4% Economic Inactivity 21.2% 22.8% Unemployment Rate 3.5% 3.5% Median Annual Gross Wage (residents) £29,666 £33,311 Source: ONS, (2022). Annual Population Survey. *Model-Based Estimates. **ONS, (2022). Annual Survey of Hours and Earnings. PRODUCTIVITY 2.11 In 2020, GVA per hour worked in Moray (a common measure of productivity) was £36.0, slightly lower than the Scottish rate of £36.9 GVA per hour worked. However, Moray has a relatively high proportion of employment in low productivity sectors (see Table 4), which suggests productivity in other sectors is higher than average. TABLE 4: PROPORTION OF EMPLOYMENT IN LOW PRODUCTIVITY SECTORS, 2021 SECTOR MORAY SCOTLAND Accommodation and food services 7.7% 7.5% Retail 11.5% 10.0% Public sector 30.2% 29.9% Total 49.4% 47.4% Source: ONS (2022). Business Register and Employment Survey 2021 EMPLOYMENT TRENDS AND DISTRIBUTION 2.12 The total number of jobs in Moray increased by 7.2% between 2019 and 2021. More than one in five (22.1%) of these jobs was in Elgin City South, although employment here fell by 10.2% between 2015 and 2021. This was the largest decline in employment anywhere in Moray except Forres (where employment fell by 1.1%). Employment increased in all other areas, with Keith and Cullen experiencing the largest increase. Page 137
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Moray Business Property Needs Study Ryden, May 2023 8 FIGURE 2: TOTAL EMPLOYMENT BY AREA IN MORAY, 2015 COMPARED TO 2021 QUALIFICATIONS 2.13 Overall, the level of qualification attainment in Moray is similar to Scotland as a whole. Moray has slightly higher than average shares of the working age population with qualifications at the NVQ1 - NVQ3 levels but is slightly below average in terms of attainment of NVQ4 qualifications. This labour market profile would tend to support expansion in elementary occupations and skilled trades rather than professional/managerial roles. This could have implications for the profile of demand for future employment space (i.e. favouring industrial rather than offices.) TABLE 5: QUALIFICATIONS, 2021 QUALIFICATION MORAY SCOTLAND % with NVQ4+ 48.2% 50.0% % with NVQ3+ 65.1% 64.8% % with NVQ2+ 80.9% 79.6% % with NVQ1+ 91.1% 86.4% % with other qualifications 3.7% 5.8% % with no qualifications 5.2% 7.8% Source: ONS, (2022). Annual Population Survey. IMPACT OF COVID-19 2.14 Prior to the Covid-19 pandemic, business numbers in Moray were growing, with the total number of businesses in the area increasing by 3.7% between 2015 and 2019. Since 2020, the number of businesses in Moray has fallen by 3.5%, with the total number of enterprises in 2022 equal to the total in 2015. This is a bigger decline than for Scotland as a whole, which experienced a fall of 2.3% over the same period. Page 138
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Moray Business Property Needs Study Ryden, May 2023 9 FIGURE 3: TOTAL NUMBER OF BUSINESSES IN MORAY, 2015-2022 Source: ONS, (2023). UK Business Counts. 2.15 In 2022, 88.5% of businesses in Moray were micro businesses, employing fewer than 10 people. This type of business has borne the brunt of the recent economic contraction, with 115 fewer micro businesses in the area in 2022 compared to 2020. 2.16 This could have implications for the size of business units likely to be required in the future to the extent that the contraction released business property onto the market. The Council did note that a number of its tenant’s did terminate their leases due to Covid however new tenants have since been secured for the majority of those properties. TABLE 6: COMPARISON OF BUSINESSES IN MORAY BY SIZE, 2020-2022 BUSINESS SIZE 2020 2022 DIFFERENCE Micro Businesses (employing 0-9) 2,875 2,760 -115 Small Businesses (employing 10-49) 325 325 0 Medium Businesses (employing 50-249) 40 40 0 Large Businesses (employing over 250) 10 10 0 Total 3,250 3,135 -115 Source: ONS, (2022). UK Business Counts. *Figures may not sum due to rounding BUSINESS BIRTH RATE 2.17 A total of 225 businesses started up in Moray in 2021, 13.5% fewer than in 2019. Business births decreased more sharply in Moray than across Scotland as a whole, where total business births fell by 8.6% between 2019 and 2021. The Covid-19 pandemic will have had an impact on these figures and this trend will not necessarily persist. Page 139
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Moray Business Property Needs Study Ryden, May 2023 10 TABLE 7: BUSINESS BIRTH RATE, MORAY AND SCOTLAND MORAY SCOTLAND Business Births 2019 260 20,680 Business Births 2020 210 16,850 Business Births 2021 225 18,910 Change in Business Birth Rate 2019-2021 -13.5% -8.6% Source: ONS, (2022). UK Business Demography. (These figures do not include unregistered enterprises). SUMMARY 2.18 The most recent projections suggest that the population of Moray is likely to fall in the coming years. Compared to Scotland as a whole, Moray also has a lower proportion of working aged people. While the total number of people in this demographic is likely to benefit from the expansion of the defence sector, the share it accounts for is still expected to fall overall at a faster rate than the national average in the coming years, particularly for the civilian population. 2.19 Access to an adequate supply of labour is an important consideration for any business so, other things being equal, these trends could dampen future demand for business space. However, new economic opportunities could stem or reverse these trends, making it particularly important they are considered within this assessment. 2.20 The current distribution of economic activity and working aged population in Moray is concentrated in and around Elgin. This could make this area relatively attractive to new/expanding businesses and influence future demand for business property. As a result, it is likely that development will be more viable in Elgin than some of the smaller towns. 2.21 The qualifications profile of the local workforce is skewed toward lower-level qualifications, which is likely to favour expansion of elementary occupations and skilled trades rather than professional and managerial roles. This could have implications for the type of business space required in the future, with industrial type space likely to be relatively more important than offices. 2.22 Most businesses in the region are micro-businesses, which will have implications for the size of units required in the future. However, micro-businesses bore the brunt of the recent economic contraction and the business birth rate has fallen significantly recently, which could imply reducing demand for this type of space, however it will be interesting to see if this trend persists post pandemic. 2.23 However, Moray’s future prosperity will depend on the health of its business base. Productivity levels are already slightly lower than elsewhere in Scotland and addressing this will require innovative businesses with the capacity to grow. Such businesses will not be attracted to ageing, sub-standard accommodation. Page 140
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Moray Business Property Needs Study Ryden, May 2023 11 03 ECONOMIC POLICY INTRODUCTION 3.1 Achieving greater regional equality and managing the transition to net-zero will be important economic drivers in the near term. This is expected to create significant opportunities for Moray in renewable energy, life sciences and aerospace in particular. This section on economic policy has been prepared by BiGGAR Economics. UK CONTEXT LEVELLING UP2 3.2 In early 2022, the UK Government published its Levelling Up strategy. The strategy acknowledged inequalities between parts of the UK and established a set of missions to address these. The objective was to allow everyone the same opportunities in regard to health, education, work, and life chances no matter which part of the UK they live in. A common theme across several of these missions is the need to create more jobs outside London. To achieve this the strategy recognises a need to attract business investment to other parts of the UK. 3.3 As part of the levelling up agenda, the UK Government is investing £4.8 billion in infrastructure through the Levelling Up Fund. The aims of this fund are to support the regeneration of town centres and high streets, upgrade local transport, and invest in cultural and heritage assets. By helping to make areas more attractive to businesses the Levelling Up Fund is intended to lead to the creation of new employment opportunities, which would require employment land. 3.4 When the prospectus for the second round of funding was published, it was expected the fund would continue until 2024/25. While no changes to the level of funding or timeline have yet been announced, changes in administration since then may affect the strategic aims of the UK Government. 3.5 In 2022, Moray Council submitted a bid to the second round of the Levelling Up Fund. This bid was focused on improving the attractiveness of Elgin, Moray’s principal settlement and administrative centre, as a place to live and invest. Although this bid was not successful Moray Council is now considering submitting a revised bid in 2023. If successful, this would help stimulate increased growth across the region. SCOTTISH CONTEXT NATIONAL PERFORMANCE FRAMEWORK 3.6 Scotland’s National Performance Framework (NPF) sets out the Scottish Government’s purpose of “creating a more successful country with opportunities for all of Scotland to flourish through increased wellbeing and inclusive and sustainable growth”. 3.7 The NPF is based around 11 national outcomes, which are statements of the kind of nation Scotland wants to be and progress is assessed using 81 indicators. It sits at the top of Scotland’s policy hierarchy, meaning all other policies and strategies should be contributing to the outcomes that it identifies. 3.8 In 2021, following recommendations from the Advisory Group on Economic Recovery, the four capitals of 2 HM Government (2022) Levelling Up the United Kingdom. Page 141
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Moray Business Property Needs Study Ryden, May 2023 12 the economy (human, natural, social and economic) were incorporated into the NPF as necessary elements for the wellbeing of current and future generations3. Economic capital relates to the production of physical assets, such as (for example) business premises. An adequate supply of employment land therefore directly underpins this element of the Framework. 3.9 Business space is also particularly relevant to the ‘economy’ and ‘fair work and business’ outcomes in the Framework, which seek to ensure businesses can thrive and the economy is sustainable. Business space can also contribute to the ‘reduction of poverty’ outcome by enhancing opportunities in deprived areas. SCOTLAND’S NATIONAL STRATEGY FOR ECONOMIC TRANSFORMATION 3.10 In March 2022, the Scottish Government published its National Strategy for Economic Transformation. The ten-year strategy sets out the Government’s priorities and actions for achieving a wellbeing economy, which is defined as one that delivers economic prosperity across social, economic, and environmental dimensions. To achieve this the Government has emphasised the need to capitalise on key economic opportunities such as the transition to a net zero economy and the importance of reducing socio-economic inequalities between parts of the country. 3.11 The ambition of the strategy is for ‘Scotland to be successful’ over the next decade. To achieve this the strategy aims to create an economy in which all people can have access to skilled, well-paid, jobs, and businesses and entrepreneurs have the conditions necessary to flourish. These conditions will necessarily include access to an adequate supply of accommodation appropriate to business needs. 3.12 One aspect of the strategy’s vision is for Scotland to be ‘the best place to start and grow a business’.4 However a key issue highlighted is that Scotland falls behind other countries in terms of productivity. It notes that there are too few businesses scaling up or starting and that limited access to infrastructure is a factor in this. 3.13 Each of the priorities and proposals identified in the strategy are national objectives and, as such, all have implications for Moray. With a key focus of the strategy being on inclusive growth across, an adequate supply of employment land will be important for enabling the business growth required to support inclusive growth. 3.14 In relation to the productivity challenge, the strategy also notes low national levels of research and development (R&D) activity. Data collected by the Scottish Government on Business Enterprise Research and Development (BERD) shows that in 2020, businesses in Moray spent approximately £3.7 million on R&D, accounting for 0.3% of the total spend in Scotland during the year. The data also shows that R&D investment by businesses in Moray has grown in recent years, with spending on R&D increasing by 95.0% between 2015 and 2020.5 This suggests that future demand for business space will, to some extent, be driven by R&D focused businesses. 3.15 The transition to becoming a net zero economy also offers new market opportunities for Scottish businesses, most notably in the renewable energy sector. With a variety of renewable energy projects (particularly on-shore) either in development or already operational in the area6, Moray is well placed to benefit from these opportunities. 3 Advisory Group on Economic Recovery, 2020, Towards a Robust, Resilient Wellbeing Economy for Scotland 4 Scottish Government (2022). Scotland’s National Strategy for Economic Transformation. 5 Business Enterprise Research and Development Scotland (2020). Expenditure on R&D performed within businesses in Scotland: Local Authority Level. 6 UK Government (2023), Renewable Energy Planning Database: quarterly extract Page 142
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Moray Business Property Needs Study Ryden, May 2023 13 REGIONAL CONTEXT HIGHLANDS AND ISLANDS ENTERPRISE MORAY SUMMARY REPORT7 3.16 In 2022, Highlands and Islands Enterprise published reports detailing the results of a large-scale survey aiming to understand the views and experiences of individuals living, working, and studying across eight regions of the Highland and Islands. 3.17 Amongst the report’s findings were that fewer people in Moray were self-employed compared to the Highlands and Islands as a whole but that 11% of respondents wanted to start a business. The survey also found that the top priorities for communities in Moray included the availability of more job opportunities, and local businesses and trades. Furthermore, 20% of respondents felt the area required jobs in the area that pay better. 3.18 Facilitating employment opportunities and supporting local businesses will require a supply of employment land which accounts for and enables growth in sectors with the potential to effectively expand and offer high-quality employment to local people. MORAY COUNCIL ECONOMIC RECOVERY PLAN 3.19 In 2020, Moray Council published its Economic Recovery Plan, aiming to outline the actions for Community Planning Partners to take to accelerate economic growth to support recovery from the impact of Covid-19 on the region’s economy. The plan was developed with six main principles: • Smart growth: business continuity and resilience will be at the heart of the recovery process; • Clean growth: transition to carbon free where opportunities arise including promotion of home-working to reduce commuting; • Inclusive growth: no geographic locations or sections of the community are left behind; • Fair work: employees are rewarded and benefit from economic recovery; • Targeting disadvantage: enabling early recovery particularly for those reliant on child care, public transport, access to broadband and those requiring to be reskilled; and • Smart procurement: public sector spend will be used to maximise local economic impact and opportunity. 3.20 If these principles are to be fulfilled, Moray will require employment land which enables businesses to grow effectively in the area, facilitating inclusive growth and fair work in Moray through improved access to well- paid jobs. 3.21 In aiming to understand the impact of Covid-19 on the major sectors in Moray to allow policy decisions to best support an effective economic recovery, the strategy highlights the unique importance of Moray’s manufacturing sector, to both the region and Scotland. The manufacturing sector in Moray contributed 0.48% of Scottish GVA while accounting for just 0.15% of businesses and 0.25% of employees. It also has a higher GVA per employee than the Scottish average. 3.22 Growing Moray’s high value manufacturing activity could therefore help to boost productivity in the region. Ensuring manufacturing businesses have access to an adequate supply of appropriate accommodation will be key to achieving this. MORAY GROWTH DEAL8 3.23 The Moray Growth Deal, published in 2021, is a collaborative project between Moray Council, the Scottish and UK governments, and stakeholders from across the private, public and third sector. It aims to deliver 7 Highlands and Islands Enterprise (2022), My Life in the Highlands and Islands Research: Moray Summary Report 8 Moray Council (2021), Moray Growth Deal Page 143
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Moray Business Property Needs Study Ryden, May 2023 14 transformational investment of over £100 million over ten years on eight strategic projects designed to improve the competitiveness of Moray’s economy. The projects were chosen with aim of delivering the Moray Growth Deal’s vision for the area that: “By the year 2030 Moray is a destination of choice, the area being known and recognised as an outward- facing and ambitious community with a thriving and well-connected commercial base, and an environment in which quality of life is valued and supported.” 3.24 The projects within the Growth Deal focus particularly on the development of sectors such as manufacturing, aerospace and life sciences. It was estimated that the investment delivered through the Moray Growth Deal will: • Directly and indirectly create over 3,500 jobs associated with the economic benefits accrued from growth deal projects; • Of these, 450 jobs will be directly created as part of growth deal project delivery; • Attract an additional 50,000 tourists; • Construct over 300 affordable new homes; • Support 450 businesses to scale up to increase the value of the Moray economy by £82 million; • Create new and improve existing facilities for businesses; • Create an enhanced culture and leisure offering for local people to make; and • Make Moray a more attractive place to live and work. 3.25 For these expectations to come to fruition, the sectors supported by the investment associated with the Moray Growth Deal will require suitable employment land to enable them to create jobs and scale up businesses activity. THE MORAY ECONOMIC STRATEGY 2019-20299 3.26 In 2018, the Moray Community Planning Partnership published a strategy outlining the aims for the economy for the period 2019-2029, maintaining the overall objective to grow and diversify the economy of Moray. Although the strategy was updated in 2022 to reflect important developments such as the Covid19 pandemic and Brexit (see section 3.31-3.35) it highlights important strategic priorities and opportunities that continue to be of relevance and bear repetition. 3.27 For example, the strategy highlighted four important strategic economic priorities for the region: • Qualification levels: an increase across all ages and genders in qualifications • Small business growth: more small and medium-sized businesses employing between 10 and 100 people; • Talent attraction, retention and return: more skilled, higher paid jobs that deliver net in-migration in the 16-29 age range; and • Business competitiveness: an increase in capital investment and focused workforce development to strengthen competitiveness. 3.28 The strategy also highlighted a number of sectors that are expected to generate significant future opportunities for growth, in particular: • The manufacture of food and drink - Moray is home to just under half of all the whisky distilleries in Scotland meaning this sector also plays an important role in supporting the local tourism sector. • Life sciences and technology – Moray has a growing reputation in digital health technologies. • Defence - Moray hosts RAF Lossiemouth, one of the largest and busiest Royal Air Force stations, as well as Kinloss Barracks. 3.29 The Moray Growth Deal aims to establish the region as a leader in these sectors. Two particularly important 9 Moray Community Planning Partnership (2018), The Moray Economic Strategy 2019-2029 Page 144
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Moray Business Property Needs Study Ryden, May 2023 15 projects include the Moray Aerospace, Advanced Technology and Innovation Campus (MAATIC) and the Digital Health Institute. MAATIC will provide training, innovation and research development to build on local strengths in the defence sector and support the development of the aerospace sector while the Digital Health Institute will provide innovation support to companies in the life science sector. 3.30 An adequate supply of employment land will be needed to achieve these aspirations. THE MORAY ECONOMIC STRATEGY 202210 3.31 The Moray Community Planning Partnership updated its strategic aims in 2022, considering the effects on Moray of the Covid-19 pandemic, Brexit and the cost of living crisis. The Moray Economic Strategy outlines the updated aims for the region over the coming decade, with the overall vision to see Moray as: “A distinctive and attractive place to live, work, operate a business or social enterprise, study and visit”. 3.32 The strategy highlights that, to achieve this vision, the unique challenges and opportunities faced by Moray must be acknowledged in forums and government at the regional and national level. In ensuring Moray’s distinctive needs are addressed, the strategy outlines five priority areas for action, including: • Moray Growth Deal projects; • A sufficient labour market; • Ensuring alignment between skills provision and the changing economy; • Integrated approach to delivering transition to net zero and community wealth building; and • Supporting productivity growth. 3.33 As part of the aim to support productivity growth, the strategy highlights the need to increase the number of start-ups in the area, as well as the number and speed of scale ups to help them become larger local employers. To enable growth in start-ups and scale-ups, Moray will require suitable employment land which supports the development of small and medium size businesses. 3.34 The aim to deliver the transition to net zero and community wealth building through an integrated approach highlights the opportunities for the area in the renewable energy sector, with expected growth in onshore wind, offshore wind and hydrogen developments in the area. As these sectors grow, they are likely to create the need for employment land if Moray aims to ensure that the benefits created by these projects are maximised by supporting the development of relevant sectors along the supply chain of renewables projects. 3.35 The strategy also outlines the motivations behind supporting the Moray Growth Deal and its associated projects. The Growth Deal will build on existing strengths of Moray’s culture, tourism and manufacturing sectors, as well as supporting the development of other sectors, facilitating the type of economic growth the strategy aims to create; sustainable, fair and inclusive. The updated economic strategy further emphasises the benefits associated with MAATIC, which is expected to support aerospace and other manufacturing enterprises in the area, as well as engineering and aviation. MORAY REGIONAL SKILLS ASSESSMENT 3.36 A Regional Skills Assessment for Moray published by Skills Development in Scotland in 202211 provided data on the industrial structure of the region to support strategic skills investment planning associated with the Moray Growth Deal. The assessment highlights various sectors with above average employment in Moray, including manufacturing, food and beverages and forestry and logging. 3.37 The assessment also includes projections of how employment could change in the region, in part as a result 10 Moray Economic Partnership (2022), The Moray Economic Strategy 2022 11 Skills Development Scotland, (2022). Regional Skills Assessment: Highlands and Islands Page 145
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Moray Business Property Needs Study Ryden, May 2023 16 of the Moray Growth Deal. Overall, it is expected that in the mid-term (2021-2024), employment in the region should grow by 800. However, it is expected that in the long term, the region will experience a contraction in employment, with projections suggesting that there will be 1,000 fewer people in employment in the Moray Growth Deal region in 2031 compared to 2024. 3.38 Mid-term projections suggest growth in sectors such as accommodation and food services, as well as arts, entertainment and recreation, both associated with the tourism sector. It is also expected there will be mid- term contractions in employment, particularly in the public administration, defence sector and manufacturing sectors, which projections suggest will experience a decrease of 100 in total employment between 2021 and 2024 as less labour intensive methods of manufacturing are adopted. The mid-term contraction in manufacturing is forecast to continue into the longer term, with projections suggesting there will be 800 fewer manufacturing jobs in the Moray Growth Deal region in 2031 compared to 2024. 3.39 To sustain the workforce as this major sector contracts will require a consideration of how to ensure workers in Moray have access to opportunities. This will be supported by enabling potential growth sectors in the area access to the type of employment land that will allow them to expand and create employment. SUMMARY 3.40 The UK Government is aiming to Level Up communities across the UK, seeking to address regional inequalities and support local projects which will generate opportunities to improve the health, education, work and life chances of the population regardless of where they live in the UK. As part of this plan, local authorities are gaining more power through city growth deals to address the key challenges and opportunities of individual areas. This is further supported through the available funding mechanisms to drive investment in local authority areas. 3.41 Scottish strategic priorities have begun to focus on going beyond traditional measures of economic success by transitioning to a wellbeing economy, evidenced by the publication of the National Performance Framework. This focus on generating economic prosperity for all people while ensuring a just transition to net zero will require regional consideration of current and potential demand for employment land which accounts for the opportunities this transition will create in sectors such as renewable energy. 3.42 Regional strategies highlight Moray’s strategic aim to create work opportunities in the region which will support well paid work and retain the workforce. The local authority area has existing strengths in a variety of sectors, for which potential growth should be considered to effectively understand requirements for employment land. The region is also in the process of establishing itself across sectors such as life sciences and aerospace, the growth of which will result in demand for employment land which allows effective growth and supports the region’s economy. Page 146
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Moray Business Property Needs Study Ryden, May 2023 17 04 KEY SECTORS INTRODUCTION 4.1 Building on Sections 2 and 3, this section considers the key sectors which will be important drivers of growth in the Moray economy over the next few years and could stimulate additional demand for business space. Aerospace and renewable energy are expected to be particularly key. As part of its property needs assessment Moray Council will need to consider potential demand for all types of employment land, including Planning Use Class 4, 5 and 6. 4.2 The key sectors identified in the previous section which should be considered as part of employment land decisions include: • Manufacturing • Energy and renewables • Manufacture of food and beverages • Manufacture of wood products • Sustainable tourism • Life sciences • Defence activities • Aerospace 4.3 This section considers recent trends and emerging opportunities relating to each of these sectors and their potential implications for demand for business space. It has been prepared by BiGGAR Economics. OVERALL INDUSTRIAL STRUCTURE 4.4 In 2021, total employment in Moray was 39,375. 4.5 Employment within the manufacturing sector (associated with class 5 land use accounted for 15.4% of employment, higher than across Scotland as a whole, where the sector accounted for 6.8% of employment). 4.6 Wholesale and transport and storage sectors (associated with class 6 land use) employed around 2,300 people, accounting for 5.9% of employment. These sectors were relatively under-represented compared to Scotland as a whole (6.6%). 4.7 Office-based sectors (associated with class 4 land use), including professional, scientific and technical, ICT, financial and insurance and business administration and support services, account for over 3,000 jobs in Moray, 7.9% of total employment. This is around half the level across Scotland as a whole (14.7%). 4.8 Moray also has relatively a large proportion of employment within health (15.4%), retail (11.5%), and construction (7.7%). Page 147
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Moray Business Property Needs Study Ryden, May 2023 18 TABLE 8: EMPLOYMENT IN MORAY AND SCOTLAND BY INDUSTRY, 2021 INDUSTRY MORAY SCOTLAND Manufacturing 15.4% 6.8% Health 15.4% 15.3% Retail 11.5% 10.0% Education 9.0% 8.3% Construction 7.7% 6.0% Accommodation & food services 7.7% 7.5% Agriculture, forestry & fishing 6.4% 3.4% Public administration & defence 5.8% 6.3% Arts, entertainment, recreation & other services 3.8% 4.2% Transport & storage 3.8% 4.1% Professional, scientific & technical 3.2% 6.4% Business administration & support services 3.2% 7.7% Motor trades 2.3% 1.7% Wholesale 2.1% 2.5% Mining, quarrying & utilities 1.3% 2.4% Information & communication 0.9% 3.0% Property 0.9% 1.5% Financial & insurance 0.6% 2.9% Total 39,375 2,617,000 Source: ONS (2022). Business Register and Employment Survey 2021 MANUFACTURING 4.9 In 2021, around 6,000 people were employed in manufacturing jobs in Moray, more than a third (34.8%) of total employment in the sector. After a period of growth between 2016 and 2021, the number of businesses operating in the manufacturing sector in Moray fell by 9.5% between 2021 and 2022 to around 190. 4.10 Between 2015 and 2021 employment in the sector across the region was broadly constant, despite some fluctuation between wards. By far the greatest concentration of employment in the sector is in the electoral ward of Speyside and Glenlivet. Page 148
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Moray Business Property Needs Study Ryden, May 2023 19 FIGURE 4: EMPLOYMENT IN MANUFACTURING BY AREA IN MORAY, 2015 & 2021 ONS, (2022). Business Register and Employment Survey. *Totals may not sum due to rounding. 4.11 In 2021, most of the manufacturing employment in Moray was in the manufacture of food and beverages, which accounted for 59.6% of all manufacturing jobs. Moray also has above average employment in the manufacture of wood products. This is consistent with the findings of Section 3. FIGURE 5: EMPLOYMENT IN MANUFACTURING SUB-SECTORS IN MORAY, 2021 ONS, (2022). Business Register and Employment Survey. MANUFACTURE OF FOOD AND BEVERAGES 4.12 In 2021, total employment in the manufacture of food and beverages was 3,250 in Moray. The sector accounted for 8.3% of all employment in the local authority area, compared to 1.9% of employment across Scotland as a whole. Almost half of the jobs in the sector (1,600) were located in Speyside Glenlivet, which Page 149
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Moray Business Property Needs Study Ryden, May 2023 20 hosts the Glenlivet, Glenfiddich and MacCallan distilleries which are the largest single-malt producers by volume globally, as well as the Walkers Shortbread factory. 4.13 Between 2015 and 2021, employment in the sector fell by 13.3% (500 jobs). The most significant fall in employment occurred in Fochabers Lhanbryde, where the number of jobs in the sector fell by 39.3%. It is noted that the Covid-19 pandemic has likely impacted these figures particularly seasonal visitor roles within the distilleries. In addition, we are aware that the food manufacturers Baxter’s, which are located in this area, permanently closed its visitor centre at the start of the pandemic with all of these jobs lost. 4.14 The number of businesses in the sector remained constant between 2017 and 2022 and now stands at 35. However, it is understood that a number of distilleries have recently undergone significant expansion and numerous others are also exploring options for increasing the energy efficiency of their production, including through the construction of biomass facilities and there this is likely to have an impact on employment land required in the future. FIGURE 6: EMPLOYMENT IN FOOD AND DRINK MANUFACTURING BY AREA, 2015 & 2021 ONS, (2022). Business Register and Employment Survey. MANUFACTURE OF WOOD PRODUCTS 4.15 The second largest component of the manufacturing sector in Moray was the manufacture of wood products. In 2021, total employment in this sub-sector was 450. This equates to 1.2% of total jobs in the region, higher than the share accounted for by the sector across Scotland (0.3%). Moray accounts for 5.0% of all Scottish employment in the manufacture of wood products. 4.16 In 2021, employment in the manufacture of wood products was most significant in Elgin City North, Fochabers Lhanbryde, and Forres, which all had total employment of 100 in the sector. This concentration of activity is likely linked to the presence of James Jones timber processing facilities in Forres and Mosstodloch. 4.17 Between 2015 and 2021, employment in the manufacture of wood products increased by 28.6%. This growth was experienced across the region with the most significant increase in Keith and Cullen. Recent announcements of planned expansion to James Jones facilities suggests this trend is likely to continue, Page 150
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Moray Business Property Needs Study Ryden, May 2023 21 which may result in increased demand for employment land. FIGURE 7: EMPLOYMENT IN THE MANUFACTURE OF WOOD AND WOOD PRODUCTS BY AREA IN MORAY, 2015 & 2021 ONS, (2022). Business Register and Employment Survey. 4.18 In 2022 there were estimated to be 35 businesses in Moray engaged in the manufacture of wood products, and increase of around 10 businesses since 2019. This this suggests that existing businesses in the area are in the process of expanding, which may in future create the requirement for suitable employment land. SUSTAINABLE TOURISM 4.19 Tourism encompasses parts of various different sub-sectors and as such is difficult to capture entirely using the standard industrial classification (SICs) codes used by government statisticians. To overcome this the Scottish Government has defined the sustainable tourism sector using SIC codes12 relating to several tourism-related sub-sectors including accommodation, food services, and attractions. 4.20 In 2021, total employment in sustainable tourism in Moray was 3,095, or 8.1% of all employment in the region. This is identical to the share of employment accounted for by the sector across Scotland as a whole. 4.21 Between 2015 and 2021, employment in sustainable tourism fell by 4.6%. This reduction can likely be attributed to the major effect that Covid-19 had on the tourism sector. Between 2015 and 2019, jobs in the sector had risen by 10.3%, with employment in the sustainable tourism sector in Moray then falling by almost a quarter (23.9%), between 2019 and 2020. While the sector had not yet recovered from the impacts of Covid-19, employment in the sector did increase by 13.6% between 2020 and 2021. 12 Defined by the Scottish Government as SIC codes:55.1, 55.2, 55.3, 56.1, 56.3, 79.12, 79.9 91.02, 91.03, 91.04, 93.11, 93.199, 93.21 and 93.29. Page 151
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Moray Business Property Needs Study Ryden, May 2023 22 FIGURE 8: SUSTAINABLE TOURISM EMPLOYMENT IN MORAY, 2015-2021 ONS, (2022). Business Register and Employment Survey. 4.22 Recent employment patterns within the sector are broadly reflected in business numbers. After a period of steady growth between 2015 and 2020, the number of sustainable tourism businesses fell by 6.7% between 2020 and 2021. This was likely because of the significant impact of Covid-19 and the resulting lockdown. However, the number of businesses in the sector then increased by 8.9% between 2021 and 2022, with a larger number of sustainable tourism businesses in Moray in 2022 compared to 2020. 4.23 The uplift in both employment and business numbers recorded since Covid suggests that the sector may be entering a renewed period of growth, which could result in possible demand for employment land. FIGURE 9: BUSINESSES IN SUSTAINABLE TOURISM IN MORAY, 2015-2022 ONS, (2023). UK Business Counts. Page 152
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Moray Business Property Needs Study Ryden, May 2023 23 4.24 In 2021, employment in sustainable tourism was most significant in Elgin City North, where 690 people were employed in the sector. Proposals to create a new cultural quarter in Elgin using investment secured through the Moray Growth Deal are likely to stimulate additional growth for the sector that could result in increased demand for employment land in this part of the region in the future. FIGURE 10: EMPLOYMENT IN SUSTAINABLE TOURISM BY AREA IN MORAY, 2015 & 2021 ONS, (2022). Business Register and Employment Survey. ENERGY AND RENEWABLES 4.25 Scotland’s renewable sector is expected to triple in size between 2022 and 2030 with much of this growth expected to be driven by expansion in off-shore wind. This is expected to generate significant economic opportunities for Scotland both during the initial construction phase and subsequent operations. 4.26 Moray does not contain any of the major construction ports being used by the sector, either for farms that have already been completed or those that are under construction. However, Buckie is expected to be an important location for ongoing operations and maintenance activity. 4.27 An analysis of port capabilities undertaken on behalf of Crown Estate Scotland13 suggested that Buckie is likely to be particularly well suited to servicing longer range Service Operation Vessel (SOVs), which provide in-field accommodation for workers and platform assistance for wind turbine servicing and maintenance. 4.28 When ashore such vessels will have an on-going requirement for engineering and fabrication services, which is likely to lead to increased demand in the locality for class 5 industrial space. These vessels will also require access to refuelling services and large-scale storage facilities, which is likely to lead to demand for class 6 space. This demand is expected to be realised in the Buckie area. LIFE SCIENCES 4.29 In 2021, total employment in scientific research and development in Moray was very low (c. 20 jobs). However, as discussed in section 3, life sciences has been identified as an area with significant future growth potential. 13 Crown Estate (2020), Ports for offshore wind Page 153
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Moray Business Property Needs Study Ryden, May 2023 24 4.30 In 2021 it was confirmed that £5 million would be invested in developing the Moray Rural Centre of Excellence for Digital Health and Care in Elgin. The project is expected to include the creation of a state-of- the-art demonstration and learning and simulation environment and five “living lab” test beds across Moray. 4.31 As the sector becomes established this could create demand for additional employment space. This is likely to take the form of high spec offices and labs, which would correspond to class 4 use, and to be focused around Forres to take advantage of co-location opportunities. Any such additional demand is likely to take time to emerge so any additional land requirement would be a long-term prospect. DEFENCE ACTIVITIES 4.32 RAF Lossiemouth has been the only operational RAF base in Scotland since the closure of RAF Leuchars in 2015 and is one of only two RAF Quick Reaction Alert stations which protect UK airspace. The base has undergone a significant development programme since 2015 and as a result by early 2022 was believed to support around 3,500 posts (including contractors), in the electoral ward of Heldon and Laich. In addition to this approximately 800 further posts, including both military personnel and civilian contractors, were based at the Kinloss Barracks in Forres. 4.33 Employment at the bases is expected to increase in the coming years because of increased government investment. While the expansion of military activity will have little direct impact on demand for employment land, it is likely to generate growth in parts of the supply chain, which could increase demand for employment land. 4.34 It is the expected that the skills developed by the current defence related workforce could provide a competitive advantage for the region in the aerospace sector. Moray is already home to a small concentration of activity in this sector thanks largely to the operations of Orbex, the Forres based commercial rocket developer. 4.35 In 2022, Orbex secured more than £40 million funding from the Scottish National Investment Bank to help it scale up operations. This has already resulted in an expansion of operations in the region and is likely to be a catalyst for further growth in the future. This growth will be supported by the planned investment in MAATIC (Moray’s planned aviation college) that was discussed in Section 3. 4.36 As the sector develops this is likely to result in additional demand for employment land, particularly of land use class 5. SUMMARY 4.37 The manufacturing sector employs more than one in ten of all employees in Moray. Most of this employment is in the manufacture of food and beverages which is a well-established sector with a number of large businesses with a long association with the region. In particular, a number of whisky distilleries have recently undergone significant expansion with numerous others exploring options for their sites which may have an impact on employment land required in the future. 4.38 In addition, it is likely there will be some manufacturing employment land demand associated with the manufacture of wood products. This sector has benefited from recent investment, which has helped to stimulate additional activity in this sector. In time this could result in additional demand for class 5 employment land. 4.39 Sustainable tourism was particularly impacted by the effects of Covid-19, resulting in an overall reduction in employment in the sector between 2015 and 2021. However, employment increased between 2020 and 2021 and the number of businesses now exceeds pre-pandemic levels, suggesting that the sector is in a period of growth. This could result in additional demand for employment land, particularly class 4. Page 154
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Moray Business Property Needs Study Ryden, May 2023 25 4.40 The renewable energy sector is expected to grow substantially in the coming years and Moray is one of the parts of Scotland expected to benefit from this. This activity is likely to be heavily concentrated around Buckie, which has been identified as an important location for operations and maintenance activity. This is likely to result in increased demand for both class 5 and class 6 employment land in the area. 4.41 The life sciences sector is another sector that has attracted investment recently and has the potential for future growth. Employment in this sector is currently low so the sector may not generate major demand for additional employment land in the short term, but longer-term growth could lead to increased demand for class 4 space. This demand is likely to be focused around Forres. 4.42 In 2021, 590 civilians were employed in defence activities in Moray, accounting for 6.7% of all Scottish employment in defence activities. Between 2015 and 2021, employment in the sector increased by 103%. With the addition of the military personnel at RAF Lossiemouth and the Kinloss Barracks, as well as expected investment, the contribution of the defence sector is likely to be significant in the coming years, to both direct employment in the sector and along the supply chain. Consequently, the sector is expected to create increasing demands on employment land, particularly for land uses classes 5 and 6. The region’s strength in defence activities is also likely to enable the development of an aerospace sector in Moray as transferrable skills are utilised along with investment in projects such as MAATIC. This sector may then require employment land of land use class 5. Page 155
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Moray Business Property Needs Study Ryden, May 2023 26 05 PLANNING POLICY INTRODUCTION 5.1 Planning in Scotland is currently going through a period of reform following the appointment of an independent panel in 2015 who conducted a review of Scotland’s planning system. The panel concluded that the main structure of the system was not broken, however, for the potential of planning to be realised, a strong commitment to change practices, culture, and to re-focus the profession’s improvement agenda would be required. The review identified 6 key outcomes to guide this planning reform: strong and flexible development plans; the delivery of more high quality homes; an infrastructure first approach to planning and development; efficient and transparent development management; stronger leadership, smarter resourcing and sharing of skills and; collaboration rather than conflict – inclusion and empowerment. 5.2 In June 2019, the Planning (Scotland) Act 2019 was passed which sets the future structure of the modernised planning system. Implementation of the Act runs alongside other planning reform workstreams, including: National Planning Framework 4 (NPF4); review of permitted development rights; digital transformation of planning and; the promotion of place. NPF4 is the national spatial strategy for Scotland and on 13 February 2023 it was adopted by Scottish Ministers. This replaces National Planning Framework 3 and Scottish Planning Policy. The statutory development plan for any given area of Scotland now consists of the National Planning Framework and the relevant local development plan(s). NATIONAL PLANNING FRAMEWORK 4 5.3 The now adopted NPF4 is the national spatial strategy for Scotland. It sets spatial principles, regional priorities, national developments and national planning policy and focuses on creating places that are sustainable, liveable and productive. Its 6 overarching spatial principles are: • Just transition • Conserving and recycling assets • Local living • Compact urban growth • Rebalanced development • Rural revitalisation 5.4 These principles play a key role in delivering on the United Nations Sustainable Development Goals and Scotland’s national outcomes as referenced earlier. 5.5 Eighteen national developments support the strategy, including single large scale projects and networks of several smaller scale proposals that are collectively nationally significant. These national developments will be a focus for delivery, as well as exemplars of the Place Principle, placemaking and a Community Wealth Building approach to economic development. Moray will be a key location for strategic renewable electricity generation and transmission infrastructure which supports renewable electricity generation, repowering, and expansion of the electricity group. As well as capturing significant renewable energy potential transmission connections can also deliver social and economic benefits. Further work is underway to create guidance for industry and communities for developing community benefit packages. 5.6 Moray will also be required to contribute to other Scotland-wide targets, including the National Walking, Cycling and Wheeling network, circular economy materials management facilities, the digital fibre network, and pumped hydro storage. 5.7 The National Spatial Strategy is shown in Figure 11 alongside the 18 national developments. As well as the Page 156
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Moray Business Property Needs Study Ryden, May 2023 27 transmission infrastructure between Moray and Shetland, the strategic connection between Aberdeen and Inverness, through Moray, is noted. The Scottish Government via Transport Scotland plans to dual the A96 between Inverness and Aberdeen which will involve the upgrade of 86 miles of single carriageway between the two cities. Plans are at a preparatory stage and an initial appraisal was published at the end of 2022. FIGURE 11: NPF4 NATIONAL SPATIAL STRATEGY Source: NPF4 (Revised draft) 5.8 The National Spatial Strategy has been broken down into 5 regional spatial strategies which will inform the preparation of regional spatial strategies and LDPs by planning authorities. 5.9 Moray sits within the North East region and it is noted this part of Scotland will play a crucial role in just transition to net zero. Aims for the area are to: • Plan infrastructure and investment to support the transition from oil and gas to net zero whilst protecting and enhancing blue and green infrastructure and decarbonising connectivity • Focus on continued regeneration through the principles of local living and 20 minute neighbourhoods to sustain the skilled workforce and improve local liveability • Support continued economic diversification and innovation 5.10 With regard to specific policies, the business and industry policy (policy 26) states that LDPs should allocate sufficient land for business and industry, taking into account business and industry land audits, in particular ensuring that there is a suitable range of sites that meet current market demand, location, size and quality Page 157
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Moray Business Property Needs Study Ryden, May 2023 28 in terms of accessibility and services. This allocation should take account of local economic strategies and support broader objectives of delivering a low carbon and net zero economic recovery, and a fairer and more inclusive wellbeing economy. The policy detail includes acknowledgement of home working, live-work units and micro-businesses which will be supported where it is demonstrated that the scale and nature of the proposed business and building will be compatible with the surrounding area. 5.11 Local living and 20 minute neighbourhoods are referred to in Policy 15 in order to encourage the application of the Place Principle and create connected and compact neighbourhoods where people can meet the majority of their daily needs within a reasonable walking distance of their homes, preferably by walking, wheeling or cycling or using sustainable transport options. Local access to employment is part of this concept. In addition, Policy 27 covering city, town, local and commercial centres could include provision of or conversion to offices in town centres. MORAY LOCAL DEVELOPMENT PLAN 2020 5.12 Formally adopted on 27 July 2020, the Moray Local Development Plan (MLDP) 2020 sets how the Council sees the MLDP area developing over the next 10 years and beyond and covers the administrative area of Moray Council, minus the southern part which falls within the Cairngorm National Park which prepares its own LDP (see Figure 12). The Plan provides guidance to residents, developers and investors as to how much and where growth is proposed for land uses, such as housing and employment, and sets out a wide range of policies which are used to determine planning applications. FIGURE 12: MORAY LOCAL DEVELOPMENT PLAN AREA/MARKET AREAS Source: Moray Local Development Plan 2020 5.13 The current Growth Strategy for Moray is shown in Figure 13 and focuses new development in the primary growth centre of Elgin with growth to the north through the Findrassie Masterplan, to the south through the Elgin South Masterplan and to the south west through the Bilbohall Masterplan. The masterplans which include provision for employment land or include commercial uses are detailed later in this section. Page 158
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Moray Business Property Needs Study Ryden, May 2023 29 FIGURE 13: MORAY GROWTH STRATEGY Source: Moray Local Development Plan 2020 5.14 New growth has been identified in the Secondary growth areas at Lochyhill, Forres and south west Buckie, reflecting their role as key centres for their housing market areas. In the tertiary growth areas, the focus will largely be upon delivering existing designated sites which are either in the development process or have stalled in coming forward for development. The smaller towns and villages are expected to grow in proportion to their current size, and land designations have been made at a lower level and in accordance with existing supply. Some towns and villages have been proposed for no, or limited growth due to capacity, character or other environmental issues. Rural Groupings include development opportunities in rural areas and help to reduce demand for housing in the open countryside. 5.15 The formation of a new town as an option for accommodating growth is not supported in the MLDP however a longer term action to undertake preliminary investigations into suitable locations for a new town is included in the Action/Delivery Programme. 5.16 The preferred option for the dualling of the A96 will impact upon a number of designated sites, potentially bringing both opportunities and constraints. Additional land reserves have been identified as a contingency for the loss of any sites to this nationally important infrastructure project. 5.17 The MLDP spatial strategy is provided at Figure 14. Page 159
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Moray Business Property Needs Study Ryden, May 2023 30 FIGURE 14: MORAY SPATIAL STRATEGY Source: Moray Local Development Plan 2020 5.18 With regards to employment land, sufficient land and buildings for industrial and business uses is required. The MLDP states that demand for large sites from inward investors is small but large in terms of land take (40 hectares+). Demand is seen to come from a mix of small start-ups, renewables, digitally based businesses and decommissioning. MLDP states that demand is greatest within the Elgin area, followed by Forres and then Buckie, Keith and Speyside. 5.19 An annual requirement of 4-5 ha per year is identified in MLDP. The requirement has been split across Market Areas as follows: • Elgin – 23 ha • Forres – 12 ha • Buckie – none required • Keith – 3.5 ha • Speyside – 4.8 ha • TOTAL = 43.3 ha 5.20 Within MLDP, a long term approach is taken to employment land whereby the annual employment land audit, the triggers in Policy DP3 (Long Term Land Reserves) and the new Delivery Policies will be used to monitor employment land and ensure an effective supply is maintained. It is important that a range of sites is available across Moray to accommodate inward investment, including sites for large scale users. On that basis land is identified in excess of the minimum employment land requirements in the form of long sites with strategic inward investment sites capable of accommodating large scale users identified in Elgin at Burnside of Birnie, West of Mosstodloch and at March Road in Buckie. The identification of these sites and their potential for longer term expansion allows for more strategic infrastructure and planning co‐ordination between the relevant community planning partners and agencies. 5.21 DP5 is the policy associated with business and industry and a hierarchical approach is taken when assessing proposals for business and industrial uses: Page 160
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Moray Business Property Needs Study Ryden, May 2023 31 • Business parks – to be kept predominantly for ‘high-end’ businesses such as those related to life sciences and high technology uses. These are defined as Class 4 (business) of the Town and Country Planning (Use Classes) (Scotland) Order 1997. This applies to new proposals as well as redevelopment within established Business Parks. Proposals for the development of new business parks must adhere to key design principles. • Industrial Estates - to be primarily reserved for uses defined by Classes 4 (business), 5 (general) and 6 (storage and distribution) of the Town and Country Planning (Use Classes) (Scotland) Order 1997. This applies to new proposals as well as redevelopment within established Industrial Estates. Industrial Estates could be suitable sites for waste management facilities. • Existing Business Areas - Long established business uses will be protected from non-conforming uses (e.g. housing). The introduction or expansion of non-business uses (e.g. retail) will not be permitted, except where the total redevelopment of the site is proposed. • Other Uses - Class 2 (business and financial), 3 (food and drink), 11 (assembly and leisure) and activities which do not fall within a specific use class (sui generis), including waste management facilities will be considered in relation to their suitability to the business or industrial area concerned, their compatibility with neighbouring uses and the supply of serviced employment land. Retail uses will not be permitted unless they are considered ancillary to the principal use (e.g. manufacture, wholesale). For this purpose, ‘ancillary’ is taken as being linked directly to the existing use of the unit and comprising no more than 10% of the total floor area up to a total of 1,000 sq metres (gross) or where a sequential approach in accordance with town centre first principles has identified no other suitable sites and the proposal is in accordance with all other relevant policies and site requirements are met. • Areas of Mixed Use Proposals - for a mix of uses where site specific opportunities are identified within Industrial Estate designations, these will be considered favourably where evidence is provided to the authority’s satisfaction that the proposed mix will enable the servicing of employment land and will not compromise the supply of effective employment land. A Development Framework that shows the layout of the whole site, range of uses, landscaping, open space and site specific design requirements must be provided. The minimum levels of industrial use specified within designations must be achieved on the rest of the site. • Rural Businesses and Farm Diversification - Proposals for new business development and extensions to existing businesses in rural locations including tourism and distillery operations will be supported where there is a locational need for the site and the proposal is in accordance with all other relevant policies. A high standard of design appropriate to the rural environment will be required and proposals involving the rehabilitation of existing properties (e.g. farm steadings) to provide business premises will be encouraged. • Inward Investment Sites - The proposals map identifies a proposed inward investment site at Dallachy which is safeguarded for a single user business proposal seeking a large (up to 40ha), rural site. Additional inward investment sites may be identified during the lifetime of the Plan. 5.22 Moray has a number of Special Landscape Areas which have been designated for areas of special character and quality. This is particularly the case for the Speyside area which is a popular location for whisky distilleries. Policy EP3 does allow development directly related to distilling where there is a locational need and no alternative location however design standard and visual/landscape impacts are a particular focus when applications are considered. BUCKIE HARBOUR MASTERPLAN 5.23 In 2015, a masterplan was developed for Buckie Harbour. Buckie Harbour was built over 100 years ago to serve the fishing industry, growing over the years to include a significant cargo industry as well. The decline Page 161
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Moray Business Property Needs Study Ryden, May 2023 32 of the fishing industry over the last 20 years in the UK has had an impact on the port, like many others. Offshore wind has been identified as a major opportunity that could act as a catalyst to the wider revitalisation of the harbour and surrounding area. The masterplan’s objectives are to: • Enable existing business to grow and develop, and property/landowners to fulfil their aspirations • Make provision for inward investment, especially for operations and maintenance linked to planned offshore windfarms in the Moray Firth • Inform future investment in port infrastructure 5.24 The masterplan demonstrates that investment by existing businesses and potential operations and maintenance can both be accommodated within the harbour. The Buckie Harbour Masterplan is currently being updated by the Council. FINDRASSIE MASTERPLAN SUPPLEMENTARY GUIDANCE 5.25 Findrassie is a major land release in the north of Elgin which is allocated in the MLDP for housing and employment uses. The total land area is 112 hectares which comprises 100 hectares of housing land with an indicative capacity of 1,500 houses and 12 hectares of employment land for business uses. The site extends from Lossiemouth Road in the east to Duffus Road in the west and creates three new gateways into Elgin from the north. Findrassie has a 20-25 year timeframe for development. ELGIN SOUTH MASTERPLAN 5.26 The Elgin South Masterplan has been updated and was approved at Committee in August 2021 following an online public consultation. Elgin South is a major land release to the south of Elgin which is allocated in the MLDP. The Masterplan provides a strategic framework for a large new neighbourhood planned as three connected villages including a mix of uses, a network of green and blue spaces, and connections to adjacent employment land opportunities. BARMUCKITY BUSINESS PARK STRATEGIC FRAMEWORK 5.27 Now referred to as Elgin Business Park, this strategic framework provides landscape and land use terms which set the context for all future planning applications related to the site. Following grant funding from Highlands and Islands Enterprise infrastructure works were completed and Phase 1 is being developed via Springfield (Saltire Business Parks Ltd). 5.28 The industrial estate’s primary function in for Class 4, 5 and 6 with a minimum of 14.69 ha reserved for these uses. A greater mix of uses is supported across 7.41 ha of the site adjacent to the A96. Within these areas use classes 4, 5, 6, 7 (hotel/hostel) and 11 (assembly and leisure) are permitted. Retailing is acceptable where it is ancillary to a main use. SOUTH AND EAST OF KEITH MASTERPLAN 5.29 The Council is keen to understand the extent of any opportunities for energy related developments around the Blackhillock sub station near Keith. In recent years, the Council has received planning applications for large areas of designated and undesignated employment land for this purpose and there is concern that this pressure is reducing available land for job producing other users. The Council has recently commissioned a masterplan for the area to the south and east of Keith to help better understand this demand and how and where it can be accommodated. The masterplan will consider battery storage, data centre, solar and hydrogen. MORAY LDP REVIEW AND CALL FOR IDEAS 5.30 As noted, Moray Council is preparing its Regional Spatial Strategy (RSS) and a new LDP which will set out Page 162
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Moray Business Property Needs Study Ryden, May 2023 33 the long term vision for Moray. It is anticipated that the new LDP will be adopted in 2027. The first step in this work is to invite people to share their ideas, thoughts and views about how Moray should develop over the next 10 years and beyond. 5.31 The Council has issued a Call for Ideas via an online response form with ideas to be submitted by the end of June 2023. As part of this, ideas are sought on encouraging and facilitating employment, business and industry and what land should be developed over the next 10-20 years. The Call is open to individuals, businesses, landowners, developers/builders and community bodies and groups. SUMMARY 5.32 The over-arching aim of NPF4 is to manage development and land use in the long term public interest and to ensure Scotland meets its goal of achieving net zero emissions. Moray has a key role to play in this ambition and will be a key location for infrastructure supporting renewable electricity generation. 5.33 NPF4 also notes the strategic connection between Aberdeen and Inverness, through Moray. The Scottish Government has made a commitment to dual the A96 by 2030 however the project has been faced with delays and a final decision on the project has yet to be reached. The proposed route will have an impact on the designation of employment land sites. 5.34 Moray Council is preparing its Regional Spatial Strategy and a new LDP which will set out the long-term vision for the area. In the meantime, the 2020 Moray LDP prevails which adopts a hierarchical approach to growth with the primary growth area noted to be Elgin. The secondary growth areas are Forres and Buckie with tertiary growth areas noted to be Lossiemouth, Keith, Fochabers, Aberlour and Mosstodloch. 5.35 Sufficient land and buildings are required for industrial and business uses with demand seen to come from a mix of start-ups, renewables, digitally-based businesses and decommissioning. Demand from inward investors is small but can be large in terms of land take (40 ha+). At the time of the last LDP employment demand was greatest in Elgin, followed by Forres and then Buckie, Keith and Speyside. This will be tested as part of this report. 5.36 The Moray LDP identifies an annual requirement of 4-5 ha per year, split across the market areas. 5.37 Moray has a number of Special Landscape Areas which have been designated for areas of special character and quality, particularly in Speyside. There are restrictions for development proposals within these areas which are particularly popular with those in the whisky industry. 5.38 Several masterplans are in place in order to guide the development of specific areas with employment allocations. These include Buckie Harbour, Findrassie, Elgin South and Elgin Business Park (Barmuckity). Page 163
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Moray Business Property Needs Study Ryden, May 2023 34 06 PROPERTY MARKET REVIEW MARKET CONTEXT 6.1 This section provides a comprehensive business property market review for Moray. It considers the stock of employment property floorspace across the region (both occupied and vacant) and provides a fully detailed review of the supply and take up (sales and lettings) of industrial and office premises, including new development and proposals. Demand for premises ultimately drives demand for employment land. 6.2 Scotland’s industrial property market fundamentals remain strong. The demand profile is wide and includes different types of business requirement due to ongoing structural changes in the economy, for example online shopping requiring more storage and logistics buildings. However, very limited supply due to insufficient new development and current economic uncertainty are suppressing some demand, leading to short term lease renewals. Meanwhile, the looming issue of obsolescence and better building performance, particularly energy, will have to be addressed in the near future. 6.3 The flight to smaller, better quality offices to meet ESG requirements and hybrid and home working requirements post-pandemic is now fully evident across the market in occupier requirements and deals being struck. MORAY’S EMPLOYMENT PROPERTY STOCK 6.4 Moray’s industrial property stock comprising Use Classes 5 and 6 totals 2.04 million sq.ft. This includes both occupied and vacant properties. The figure excludes bonded warehousing and distilleries of which there are many throughout the region. 6.5 The age of industrial property can provide a broad indication of its market potential, in terms of physical and functional obsolescence and reinvestment/refurbishment requirements. Figure 15 groups Moray’s 2.04 million sq.ft. of industrial floorspace into the decades in which it was built. FIGURE 15: INDUSTRIAL STOCK BY DECADE BUILT Source: Ryden/CoStar Page 164
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Moray Business Property Needs Study Ryden, May 2023 35 6.6 Around half (41%) of the region’s industrial floorspace was built in the 1970s and in particular the 1980s, so is typically 33-53 years old. Many industrial estates across Scotland from this era were built by the public sector. Moray’ stock also includes speculative development by Moray Badenoch & Strathspey Enterprise from the 1990s. Although around 30% of stock was built during the 1960s, on closer inspection the majority of this is at the Baxters food processing facility in Fochabers. 6.7 Around 0.41 million sq.ft. of office stock is recorded in Moray. The office stock is comparatively old with 36% built pre-war. During the 1970s and 1980s, 12% of the regions office stock was built, while over the past 20 years 28% of the office stock has been constructed. 6.8 For the purposes of this market analysis, Moray is presented as a single region and as five market areas (Figure 12 in Section 5 above). • Elgin Market Area, including Elgin, Lossiemouth, Mosstodloch and Troves • Forres Market Area • Buckie Market Area, including Buckie and Cullen • Keith Market Area • Speyside Market Area, which includes Aberlour and Rothes 6.9 In the industrial market over half of the floorspace stock is in Elgin (57%), followed by Forres with 18%. Other market areas have between 7 and 9% of the region’s stock. (Figure 16) FIGURE 16 6.10 The Scottish Assessors valuation roll notes 606 properties on the roll classified as industrial uses 14. A similar spread of industrial units is noted throughout the region, although this time by number. Elgin has 49%, Forres has 18%, Buckie has 14%, Keith 12% and Speyside with 7% of units. 6.11 In the office market a similar pattern in the spread of office floorspace stock in seen, with over half in Elgin (58%), followed by 19% in Forres, and a larger 18% in Buckie. (Figure 17) FIGURE 17 6.12 The Scottish Assessors valuation roll notes 435 properties on the roll classified as office(s). A similar spread of office properties is noted throughout the region, although this time by number. Elgin has 60%, Forres has 20%, Buckie has 8%, Keith 9% and Speyside with 4% of offices. 14 fields selected are depot, factory, studios(s), warehouse(s), and workshop Page 165
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Moray Business Property Needs Study Ryden, May 2023 36 MORAY INDUSTRIAL MARKET 6.13 The principal employment estates in Moray are mapped on Figure 18. Although there is a spread throughout the region there is a cluster in and around Elgin which aligns with the floorspace and units analysis summarised above. FIGURE 18: PRINCIPAL EMPLOYMENT LOCATIONS Source: Ryden / Google maps INDUSTRIAL SUPPLY 6.14 In terms of supply there is currently 73,803 sq.ft. of industrial floorspace space in 28 units currently being actively marketed in Moray, these are in Table 9 across the following two pages15. This is a low floorspace vacancy rate of only 3.6%. 6.15 The majority of industrial properties on the market are older units, although there are modern units at Chanonry Court and Elgin Business Park in Elgin available. 6.16 Asking rents range from £2.60 per sq.ft. up to £8.50 per sq.ft. for new build units. 6.17 In addition, a further 11 units totalling 14,966 sq.ft. are currently under offer. 15 While Ryden has endeavoured to include all marketed properties, in a large, dispersed market area with many settlements and a rural hinterland, other properties may come on and off the market less formally and not be recorded. Page 166
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Moray Business Property Needs Study Ryden, May 2023 37 6.18 The analysis covers marketed vacancies only, which were identified through a trawl of all known national and local sources. There may be individual units vacant and available locally which are not being formally advertised (e.g. with simply a telephone number on a sign on the building). TABLE 9: CURRENT INDUSTRIAL SUPPLY ADDRESS SIZE (SQ.FT.) DETAILS ELGIN MARKET AREA Chanonry Court, Chanonry Road South, Chanonry Industrial Estate Elgin 8,732 6 modern terraced units for lease at c. £8.30 per sq.ft. 1 x 3,788 sq.ft., and 5 x 987 sq.ft. Due to the nature of the construction of the units do not require an EPC due to them being of low energy demand. Built 2021 by Excel Scotland. 12 Chanonry Road South, Chanonry Industrial Estate, Elgin 13,707 Modern detached trade counter unit. For assignation of sublease to July 2036 at £8.30 per sq.ft. Suitable for a builder’s merchant or Use Classes 4, 5 and 6. Built 2011. 4 Wards Road, Elgin 5,491 Single storey industrial / trade counter / office. For lease £4.20 per sq.ft. Built 1970s. Tower Place, Elgin Business Park, Elgin 5,275 5 new-build starter units, all 1,055 sq.ft. Rents £8.50 per sq.ft. Built 2021. Built by Saltire/Springfield. Store 2, Burghead Harbour, Burghead 856 Single storey workshop of brick construction on a 783 sq.ft. yard. For lease at £2.60 per sq.ft. Pinefield Business Centre, Pinefield Industrial Estate 3,207 646 Unit D Single storey end-terrace workshop/storage unit. For lease at £6 per sq.ft. Unit G Single storey mid-terrace industrial workshop/storage unit. For lease at £7 per sq.ft. from 1-month upwards. Unit 8 Chanonry Spur, Chanonry Spur Industrial Estate, Elgin 925 Single storey industrial/warehouse unit in the middle of a terrace of 3 units. For lease at £7.60 per sq.ft. from 1-year upwards. Unit 14 Pinefield Parade, Elgin 1,027 Single storey unit with workshop and office space. For lease £12,000 pa. Edgar Road, Elgin 5,917 Detached unit with warehouse space. Use Classes 5 & 6. For lease at £5.75 per sq.ft. Linkwood Place, Elgin 1,465 Five offices available together on upper floor within Alan Milne Motors premises. For lease £30,000 pa. FORRES MARKET AREA 3 Bogton Place, Forres 11,876 Former car sales garage, the buildings have been converted to provide a series of business units suitable for a variety of uses from office, to sales/storage and workshop use. For lease. Built 1990. Waterford Circle, Waterford Industrial Estate, Forres 2,368 753 Unit 1 Single storey detached factory unit on a 6,835 sq.ft. yard. For lease on a month by month basis at £7.40 per sq.ft. Unit 5 Single storey mid terraced workshop/storage unit, for lease from 1 month to 5 years at £8.30 per sq.ft. Page 167
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Moray Business Property Needs Study Ryden, May 2023 38 4 Greshop Industrial Estate, Forres 1,313 Single storey semi-detached workshop/ storage unit on a 3,013 sq.ft. fenced yard. For lease from 1 month to 5 years at £8 per sq.ft. 4 Waterford Way, Forres 3,452 Industrial yard and workshops on an irregular site. For sale o/o £90,000, may be an option for re-development BUCKIE MARKET AREA 17 March Road East, Buckie 753 Single storey mid terraced workshop/storage unit. Use classes 5 & 6. For lease £6.80 per sq.ft. on a 1-month to 5 years term. KEITH MARKET AREA Unit B, Balloch Road, Keith 2,647 Single storey industrial workshop unit with offices and stores on a 0.07 acre yard. For lease from 1 month upwards. Unit B, Isla Bank Mills, Keith 3,146 Substantial brick/block built workshop with secured yard of 2,659 sq.ft. For lease from month to month upwards ar £2.70 per sq.ft. SPEYSIDE MARKET AREA Aberlour Filling Station, High Street, Aberlour 1,000 Filling station with warehouse, shop and cottage, for auction. Possible redevelopment opportunity. Source: Ryden / CoStar/ Zoopla/ Property agents 6.19 By sizeband the majority of available units are smaller, with 12% smaller than 1,000 sq.ft., and 37% between 1,000 – 5,000 sq.ft. There are no units available larger than 20,000 sq.ft. (Figure 19 and Table 10). The Elgin Market Area has the majority of market share for number of units on the market with 68%, due to the fact Elgin has attracted new development recently, followed by Forres with 18%. FIGURE 19: INDUSTRIAL SUPPLY BY SIZEBAND AND MARKET AREA Page 168
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Moray Business Property Needs Study Ryden, May 2023 39 TABLE 10: CURRENT INDUSTRIAL SUPPLY BY SIZEBAND FLOORSPACE SQ.FT. / (NUMBER) SIZEBAND ELGIN FORRES BUCKIE KEITH SPEYSIDE TOTAL 0 – 999 7,362 (8) 753 (1) 753 (1) - - 8,868 (10) 1,000 – 4,999 13,297 (8) 7,133 (3) - 5,793 (2) 1,000 (1) 27,223 (14) 5,000 – 9,999 11,408 (2) - - - - 11,408 (2) 10,000 – 19,999 13,707 (1) 11,876 (1) - - - 25,583 (2) 20,000 and above - - - - - - Total 45,774 (19) 19,762 (5) 753 (1) 5,793 1,000 73,082 Source: Ryden / CoStar/ Zoopla/ Property agents 6.20 Energy performance is an increasingly important feature of industrial buildings, both in terms of carbon emissions and the revenue costs of operation. Energy Performance Certificates (EPCs) are a statutory requirement for marketing of properties and provide a further guide to the modernity of industrial premises. The rating is based on the buildings characteristics (the fabric) and its services (e.g. heating, ventilation, lighting); A is best, G is worst. • 12 of the available industrial units have a registered EPC rating (43%) 16 • 5 buildings achieve A ratings. These buildings are very energy efficient. A B rating also indicated this. • 5 buildings have mid-range EPC ratings of C, D or E. • 1 building has a poor EPC rating of F, and 1 has G, which is the worst. These building could be termed ‘environmentally obsolete’ without appropriate improvements. • 10 properties could not be identified on the EPC register. For 4 of them marketing particulars state ‘The premises are unheated and therefore an Energy Performance Certificate will not be provided’. • 6 do not require an EPC rating as the units are new build and of low energy demand 6.21 In addition to industrial units currently on the market, three trading businesses in industrial premises are for sale across the region (Table 11). Two are car/motorcycle garages both in Elgin, and one is a funeral director business in Buckie. TABLE 11: CURRENT INDUSTRIAL BUSINESSES FOR SALE ADDRESS DETAILS JR Motors, The Wards, Elgin Car garage and MOT centre business located in a purpose-built garage facility 1,000 sq.ft., available on a leasehold basis at £149,995 (Hilton Smyth) Willie Young Motorcycles, 4 Parade Spur South, Elgin Sale and repair of motorcycles and motorcycle clothing and equipment, business for sale o/o £325,000 (CCL Property) Joe Dawson Funeral Directors, 25 East Cathcart Street, Buckie Funeral directors business for sale, c. 3,580 sq.ft. (Stewart & Watson) Source: Ryden / Zoopla / Rightmove 16 While these may have a rating, it is not recorded in either the marketing details or identifiable on the Scottish EPC Database https://www.scottishepcregister.org.uk/ Page 169
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Moray Business Property Needs Study Ryden, May 2023 40 6.22 Industrial units are also being marketed as redevelopment opportunities as per Table 12. Two have or had residential planning permission and one appears to be a residential-style building so it is probable that these be developed for residential rather than industrial uses. In addition, 4 Waterford Way, Forres and Aberlour Filling Station, High Street, Aberlour are marketed properties from Table 12 which are alternatively described as potential redevelopment opportunities. TABLE 12: CURRENT INDUSTRIAL REDEVELOPMENT OPPORTUNITIES ADDRESS DETAILS Former Laundrette, 3-5 Gordon Street, Forres Former laundrette in a commercial building and site which has had planning permission granted to demolish and build 6 luxury flats and 2 townhouses. (McEwan Fraser Legal) Upper Hempriggs Farm, Kinloss Former agricultural buildings on a 6.16 acre site. For sale £400,000. Has expired outline planning consent for residential development (J & E Shepherd) Nicholson Building, St Catherines Road, Forres Originally used as a coachbuilders and more recently a tractors dealer. Development opportunity. For auction, guide price £59,000 (Auction House Scotland) Source: Ryden / Rightmove/ Zoopla INDUSTRIAL TAKE-UP 6.23 A total of 197,173 sq.ft. of industrial floorspace in 51 transactions has been recorded as taken-up (sales and lettings) in Moray from January 2018 to February 2023 (Figure 20). This is an annual average of 38,040 sq.ft. in 10 units per annum. This is less than 1 deal per month however it is recognised that this could be due to a lack of supply and we are aware that the Council in particular has good demand for its vacant industrial properties and closing dates are often required due to multiple interests. The majority of transactions were lettings. The spikes in 2019 and 2021 were due to larger transactions rather than an increased number of transactions. Over the past five years, 2022 had the most transactions. FIGURE 20: INDUSTRIAL TAKE-UP Source: Ryden / CoStar 6.24 While Ryden has endeavoured to include all marketed properties and transactions, in a dispersed market area with many settlements and a rural hinterland, other properties may come on and off the market less formally and not be recorded. 6.25 Examples of recent industrial transactions in Moray are provided in Table 13 on the next page. Transactions tend to be on industrial estates, with lease lengths of between 2 to 20 years. Achieved rents range from a low of £4 per sq.ft. up to £8.50 per sq.ft. New-build units in Moray achieve £8.30 - £8.50 per sq.ft. Active sectors are motor trades, logistics, food and drink and trades suppliers. Page 170
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Moray Business Property Needs Study Ryden, May 2023 41 TABLE 13: RECENT INDUSTRIAL TRANSACTIONS ADDRESS SIZE (SQ.FT.) DETAILS ELGIN MARKET AREA Edgar Road, Springfield Industrial Estate, Elgin 5,917 Let in February 2023 to Lima Auto Body Shop on a 20-year lease at £5.75 per sq.ft. Tower Place, Elgin Business Park, Elgin 1,055 1,055 1,585 New-build speculative units at rents of £8.50 per sq.ft. Unit 12 Let in January 2023 Unit 3 let in August 2022 to Moray Coast Couriers Unit 15 let in July 2022 Unit 10 let in January 2022 Chanonry Court, Chanonry Road South, Elgin 3788 987 986 986 986 986 987 3,081 New-build speculative units, at rents of £8.30 per sq.ft. Let in December 2022 Let in June 2022 to Dream Events by Sarah Let in June 2022 to Magical Events Company on a 3-year lease Let in May 2022 to SM Electricals on a 3-year lease Let in May 2022 to Whisky Mad Ltd on a 2-year lease Let in May 2022 to McGregor Memorials on a 5-year lease Let in May 2022 to M & H Carriers on a 4-year lease Let in April 2022 to Megga Deals Moray Chanonry Court, Chanonry Road South, Elgin 8,463 Let in November 2022 to M & H Carriers Unit 8 Chanonry Road, Chanonry Road South Industrial Estate 3,788 Council property previously occupied as a Council store. Heads of Terms have recently been agreed for a letting to a local private company. 6 Chanonry Street, Elgin 2,093 Let in July 2022, standalone industrial workshop with offices on 1f. Unit 1 Edgar Road, Elgin 5,761 Let in October 2021 on a 20-year lease at £7 per sq.ft. Trade counter / showroom, now Edgar Road Garage. FORRES MARKET AREA 6 Greshop Road, Greshop Industrial Estate, Forres 2,082 Let in June 2022 at £4 per sq.ft. to D & M Winchester for a bonded warehouse 11 Forres Enterprise Park, Forres 12,600 Let in August 2021 to Orbex Ltd KEITH MARKET AREA 5 Westerton Road, Keith 12,455 Sold in May 2021. Modern unit with yard Source: Ryden / CoStar Page 171
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Moray Business Property Needs Study Ryden, May 2023 42 6.26 A breakdown of this take-up by sizeband and area is shown in Table 14. The majority of take-up has been for units smaller than 5,000 sq.ft., with 78% of units by number. (Figure 21 and Table 14). Industrial units in the sizeband 1,000 – 5,000 sq.ft. had the majority of take-up at 59% of all take-up by number. This matches supply noted above. The majority of take-up (57%) was in the Elgin market area, which also matches the distribution of industrial stock across Moray. FIGURE 21: INDUSTRIAL TAKE-UP BY SIZEBAND AND MARKET AREA Source: Ryden / CoStar TABLE 14: INDUSTRIAL TAKE-UP FLOORSPACE SQ.FT. / (NUMBER) SIZEBAND ELGIN FORRES BUCKIE KEITH SPEYSIDE TOTAL 0 – 999 6,795 (8) 1,829 (2) - - - 8,624 (10) 1,000 – 4,999 40,758 (16) 7,420 (3) 10,667 (4) 17,949 (7) - 76,794 (30) 5,000 – 9,999 32,781 (5) - - - - 32,781 (5) 10,000 – 19,999 - 27,186 (2) 39,333 (3) 12,455 (1) - 78,974 (2) 20,000and above - - - - - - Total 80,334 (29) 36,435 (7) 50,000 (7) 30,404 (8) - 197,173 (51) Source: Ryden / CoStar INDUSTRIAL INVESTMENT PROPERTY MARKET 6.27 Industrial investment transactions, i.e. purchased by investors for income by investors rather than by occupiers, in Moray are shown in Table 15 on the next page. Both are new-built trade counter units. 6.28 In addition to these transactions an investment opportunity at Chanonry Court on Chanonry Road South in Elgin is currently for sale and is understood to be under offer. Page 172
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Moray Business Property Needs Study Ryden, May 2023 43 TABLE 15: INDUSTRIAL INVESTMENT TRANSACTIONS ADDRESS SIZE (SQ.FT.) DETAILS Units 2 & 3 Ashgrove Road, Elgin Trade Park 6,106 Sold in October 2022 to The Hartley Trust Corporate Trustee Ltd for £1.35 million (5.10%) Units 1 Ashgrove Road, Elgin Trade Park 10,149 Sold in November 2021 to Jilona Ltd for £1.4 million (5.66%). Pre-let to Howdens Joinery Source: Ryden / CoStar INDUSTRIAL DEVELOPMENT ACTIVITY 6.29 There has been a number of recent new build industrial developments and proposals in Moray (Table 16A across the following two pages). New development is concentrated around Elgin. The activity comprises mainly private sector development built for, or to be built, for companies, totalling more than 111,500 sq.ft. across 26 developments. There are four speculative private sector developments – i.e. built at the developers’ risk without occupiers in place - which total around 55,000 sq.ft. Page 173
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Moray Business Property Needs Study Ryden, May 2023 44 TABLE 16A: RECENTLY COMPLETED AND PIPELINE DEVELOPMENT DEVELOPMENT DETAILS ELGIN MARKET AREA Chanonry Court, Chanonry Industrial Estate, Elgin Terrace of 18 new-build speculative industrial units totalling 22,022 sq.ft. in units from 987 sq.ft. ESL Developments. The site totals 1.84 acres and is held on a 99-year ground lease from Moray Council at £18,695 pa. Chanonry Road South, Elgin Warehouse built at No 2 in 2015 totals 8,500 sq.ft. Owned / built by ESL Investments. Chanonry Road North, Chanonry Industrial Estate, Elgin Industrial/Warehousing development sites Site 1 : 0.24 ha (0.592 acres) and Site 3 : 0.24 ha (0.593 acres) are available. Suitable for general purposes and industrial operations. Moray Council will consider offers to lease the sites on a long (99 years to 125 year) development lease basis. 21/00219/APP - Proposed container storage yard at 7 Chanonry Road North by MonStore Self Storage, permitted in May 2021. 1 Chanonry Spur, Elgin 22/00370/APP Erect extension for hammer head shed and store at Northern Fabricators Ltd for own use Elgin Trade Park, Ashgrove Road, Elgin Development of trade counter units on a 4 acre site adjacent to the A96 trunk road. Units totalling c. 16,000 sq.ft. were developed by Seamount Ltd for Howdens, City Plumbing and Crown Paints in 2020 and the balance of the site was sold to Macphersons of Aberlour. Upon completion the pre-let trade counter units were sold to investors. Elgin Business Park Development plots have been sold here. Tower Place by Saltire Business Parks has been developed. Two terraces of 14 new-build industrial starter units totalling c. 15,820 sq.ft. in units from 1,055 sq.ft. Use Class 5 General Industrial, and Class 6 Storage or Distribution. Site 12a. 18/01000/APP Recent developments and applications are : Site 1: 22/00607/APP - Construction of 7 attached storage units for Morlich Homes. Approved Site 2: 21/01587/APP - Formation of storage yard and erection of fencing/gateways for Seivwright Brothers Ltd. Approved Site 3: 21/00448/APP - New office and workshop of c. 21,000 sq.ft. for Morlich Homes. Approved and built Site 4: Sold but no planning application yet Site 5: Sold but no planning application yet Site 6: 22/00983/APP Proposed new workshop and display premises of c. 12,000 sq.ft. for Mr G Russell. Approved Site 7: 19/01195/APP Formation of storage yard including roadways, laydown areas and erection of fencing/gateways for Speyside Scaffolding Site 9: 20/00012/APP Construct warehouse for distribution use containing a small office with a collections point of c. 10,000 sq.ft. for Menzies Distribution, Approved and built Site 10: 19/01218/APP - Erection of a warehouse and distribution unit of c. 20,000 sq.ft. for RH Claydon. Permitted Site 11: 21/01588/APP - Formation of storage yard and erection of fencing/gateways for Seivwright Brothers Ltd. Approved Site 12: 22/00239/APP - Pot ale processing plant and associated reception office for Horizon Proteins approved September 2022 Site 13: 21/00207/APP Siting of temporary storage containers for S & D Harper Site 14: 22/01084/APP - Erect industrial unit of c 5,000 sq.ft. with yard for Moray Distillery Ltd. Approved March 2023 Site 14A: 22/01278/APP - Erect single storey office accommodation of c 9,000 sq.ft. for Johnston Carmichael, approved February 2023 Site 17: 22/00410/APP - Erect showroom warehouse and workshop building for MacGregor Industrial Supplies (MIS) of c 35,000 sq.ft. Page 174
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Moray Business Property Needs Study Ryden, May 2023 45 Approved Site 8, 13a, 14b, 15 and 16 remain available for sale In addition, a Travelodge, Starbucks and petrol filling station are located on the site. Former Hopeman Service Station, Forsyth Street, Hopeman Planning application by Saltire Business Parks (22/00842/APP) permitted in February 2023, for the demolition of existing service station and garage and erect 3 buildings consisting of 5 starter units for class 4, 5 & 6 uses with associated parking totalling c 9,000 sq.ft. Unit 2B Linkwood Lane Linkwood Industrial Estate Elgin A planning application (21/00860/APP) by MG Motors to erect a single storey double garage/workshop for own use Adjoins 31 Grampian Road Adjoins 33 Grampian Road, Elgin 22/00457/APP - Proposed commercial storage facility including 3 steel containers by Laing & Sim, approved June 2022 22/00458/APP - Proposed industrial / commercial storage facility including 1 steel container by Laing & Sim, approved June 2022 FORRES MARKET AREA 4 Waterford Circle, Forres 22/00110/APP Change of use of Class 1 retail element for sale of whisky to workshop for Speyside Whisky Auctions. Berry Burn Wind Farm, Dunphail, Forres 22/00527/APP - Erect workshop for Statkraft at its wind farm here. BUCKIE MARKET AREA 28B Commercial Road, Buckie 22/01368/APP - New operations and maintenance base for Moray Offshore Windfarm (West) Limited to be constructed comprising office and warehouse building yard area. Approved February 2023 March Road Industrial Estate, Buckie 21/01629/APP - Erect a storage building for Boormalt at its facility at The Maltings, 20 March Road East 22/00781/APP - Site modular storage building on site for Lossie Seafoods 22/01257/APP - Develop 3 yards for class 4,5 and 6 uses and erect galvanised palisade security fencing with gated access by Moray Council KEITH MARKET AREA ERDF Funded Business Development Sites, Westerton Road South, Keith Sites 7 & 8 are currently under offer. Site 7 is 0.225 ha (0.55 acres) and site 8 is 0.575 ha (1.4 acres). A recent planning application (23/00314/APP) for these sites and including plots above them by Isla Cooperage to erect a cooperage including office staff facilities storage yard and associated works is awaiting a decision. SPEYSIDE MARKET AREA Spey Bay Auto-Salvage, Nether Dallachy, Spey Bay, Fochabers 22/01587/APP - Erect 2(no) storage buildings at Spey Bay Auto-Salvage. Awaiting a decision Source: Ryden / Moray Council Planning/ websites Page 175
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Moray Business Property Needs Study Ryden, May 2023 46 6.30 In addition, there have been planning applications from the food & drink industry, particularly the whisky sector and mainly for storage. Table 16B below shows a summary of the most relevant applications. TABLE 16B: RECENTLY COMPLETED AND PIPELINE DEVELOPMENT – FOOD & DRINK ADDRESS PLANNING REFERENCE DESCRIPTION STATUS Wester Greens, Dunphail, Forres 21/00045/APP Renovate existing farm sheds and convert to small craft Scotch whisky distillery with associated visitors centre erect new cask storage building Permitted Spey Valley Brewery, Mulben, Keith 21/00352/APP Proposed storage extension Permitted Glenfarclas Distillery, Ballindalloch 21/00420/APP Proposed bonded warehouses Permitted Glenburgie Distillery, Forres 21/01363/APP Proposed new bunded spirit tanks with stair access and pipebridge to connect them to adjacent process building Permitted Macallan Distillery, Craigellachie, Aberlour 21/01435/APP 22/00091/APP Erect timber cabin pump house Extension of amenities building extension of car park new access road and engineering workshop Permitted Permitted Coleburn Distillery, Longmorn, Elgin 21/00166/APP 21/01646/APP Erect two storey extension to existing bonded warehouse Proposed removal of existing fuel tanks and erection of storage building Permitted Permitted Viewfield Farm, Craigellachie, Aberlour 21/02008/APP Demolish 2 no agricultural sheds and erect 2 no whisky storage warehouses Permitted 6 Greshop Road, Forres 22/00784/APP Proposed change of use from vegetable processing business with ancillary cold storage facilities to bonded warehouse. D & M Winchester Permitted Allt A Bhainne Distillery, Glenrinnes 22/00867/APP Demolish existing bunded tanks chemical store garage associated canopy and substation within the rear service yard erect a new bunded tank farm dedicated loading bays and construction of a HGV turning circle Permitted Tomintoul Distillery Kirkmichael Ballindalloch 22/01152/APP Construction of a new whisky storage warehouse Permitted William Grant, Land to the South of Crisp Maltings, Port Gordon, Buckie 22/01269/APP Erect storage warehouses and ancillary development Permitted Cabrach Distillery, Lower Cabrach, Huntly 22/01430/APP Installation of malt silos to support the operation Permitted Glenrothes Distillery, Burnside Street, Rothes 22/01673/EIA Erection of whisky maturation warehouses and associated works Awaiting a decision Tamdhu Distillery, Knockando, Aberlour 22/01804/APP Demolish existing building and erect new office building Permitted Glenmoray Distillery Bruceland Road Elgin 22/01938/APP Extend existing fermentation tank farm to provide up to 9 additional vessels Permitted Malcolmburn Bond, Mulben, Keith 22/00290/APP Erect single storey shed to house forklift trucks Permitted Baxters Food Group Fochabers 22/00809/APP Change of use from visitors centre restaurant and shop to e-commerce and storage Permitted Land at Greens of Rothes 21/01901/EIA Proposed 100,000 tonnes per annum malt producing facility Permitted Source: Ryden / Moray Council Planning Page 176
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Moray Business Property Needs Study Ryden, May 2023 47 OFFICE MARKET 6.31 Moray’s office property market is largely concentrated in and around the main towns of Elgin and Forres where modern purpose built office pavilions have been constructed, along with offices in traditional buildings in and around the town centres. For other areas office stock is mainly in older buildings, on upper floors within town centres and townhouses on the fringes. 6.32 As noted above the total stock of offices in Moray, including both occupied and vacant properties, is around 410,000 sq.ft. 6.33 By market area over half is in Elgin (58%), followed by 19% in Forres and 18% in Buckie. Only 5% of the office stock is located in Keith, with minimal office stock in Speyside (although there are likely to be office components within major distillery complexes). 6.34 Table 22 later in this section notes modern office development at Southfield Drive in Elgin, at Elgin Business Park and Enterprise Park Forres with a number of business centres in Elgin and Fochabers operated by Gairland Business Centres. There has also been a recent conversion of Greenbrae Steading between Hopeman and Burghead, Elgin to co-working space. OFFICE SUPPLY 6.35 There is currently 64,590 sq.ft. of office space actively being marketed in Moray, within 27 offices, as shown in Table 17 over the following two pages. This equates to a comparatively high floorspace vacancy rate of 16%. Scotland’s office vacancy rate is 10.3%17. In Moray, available offices tend to be in traditional buildings or business centres. It is interesting to note the number of offices on the market is similar to in the industrial market but in a much smaller sector with lower demand levels (see below). 6.36 The analysis covers marketed vacancies only, which were identified through a trawl of all known national and local sources. There may be individual units vacant and available locally which are not being formally advertised (e.g. with simply a telephone number on a sign on the building). 17 CoStar Group, 4 April 2023 Page 177
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Moray Business Property Needs Study Ryden, May 2023 48 TABLE 17: CURRENT OFFICE SUPPLY ADDRESS SIZE (SQ.FT.) DETAILS ELGIN MARKET AREA 5 Commerce Street , Elgin 1,094 Self-contained ground floor office suite, on a corner position within a traditional semi-detached stone building. Class 2 planning use. Available summer 2023. For lease. 66/68 High Street, Elgin 2,620 Office suites on first and second floors of traditional building. For lease at £3.80 per sq.ft. Available as a whole but may sub- divide. Class 4 business consent. Prospect Lodge, 7 Mayne Road, Elgin 808 1,090 Three offices on first floor of Grade B listed building. For lease together or separately. Office 1 : 280 sq.ft. at £490 pcm; Office 2 : 248 sq.ft. at £400 pcm, Office 3 : 280 sq.ft. at £495 pcm., c £20 per sq.ft. Southfield Drive, Elgin 1,690 Ground floor office in modern two storey office pavilion. For lease £16 per sq.ft. Built 2019. 149 High Street, Elgin 2,268 Offices on first, second and third floors in traditional B listed building, above retail unit. For lease, may sell. Park House Business Centre, South Street, Elgin 95 160 Office 1A Serviced office on first floor of restored Georgian manor. For lease on an all-inclusive rent at £6,000 pa. Office 2B Serviced office on second floor. For lease on an all- inclusive rent at £530 pcm. The Gairland Building, 14 Chanonry Road South, Elgin 278 197 Executive office on second floor in modern office building. For lease on an all-inclusive rent at £1,100 pcm. Office 2 For lease on an all-inclusive rent at £800 pcm. Caledonian House Business Centre, High Street, Elgin 14 desks 104 96 192 Office 3 First floor office with space for 14 desks, £1,700 pcm Office 2 First floor office, space for 1 desk, £450 pcm Office 4 First floor office + store, soace for 4 desks, £650 pcm Office 5 Second floor office, space for 3 desks, £600 pcm All rents are all inclusive 250 – 258 High Street, Elgin 1,985 Seven cellular offices on the first floor in part of the Royal Main sorting office building. For lease as a whole of may be sub- divided into rooms from 89 – 279 sq.ft. at £5 per sq.ft. 25a High Street, Elgin 1,506 Second and third floors in mid-terrace Grade B listed building. Cellular rooms. For sale £100,000. Page 178
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Moray Business Property Needs Study Ryden, May 2023 49 Commerce House, South Street, Elgin 16,602 Detached, three storey office over two blocks. For sale / may let. Possible development opportunity. FORRES MARKET AREA Venture House, 1 Enterprise Court, Forres Enterprise Park, Forres 4,854 Suite on first floor of modern two story pavilion office on business park. Built in 2013. For lease £10 per sq.ft. Strathcona House, Forres Enterprise Park, Forres 22,041 Modern single story detached office pavilion. Can be sub- divided into two offices. For lease on a minimum of 5-years. Also available to purchase. Unit 8, Horizon Scotland, 2 Innovation Way, Forres Enterprise Park, Forres 215 Small office for 3-4 people in managed business centre for lease at £19.50 per sq.ft. The Elms, 29 St Leonards Road, Forres 1,695 Detached office building for lease at £13 per sq.ft. 108 High Street, Forres 353 Offices on first floor of traditional building. For lease £12.75 per sq.ft. on a minimum 3-year lease. BUCKIE MARKET AREA 19 East Church Street, Buckie 1,243 First floor office in traditional building. Provides 7 cellular offices. For lease £5.50 per sq.ft. Source: Ryden / CoStar/ Zoopla/ Rightmove/ Property agents 6.37 By sizeband the majority of available units are small. A total of 48% are smaller than 1,000 sq.ft., and 44% between 1,000 – 5,000 sq.ft. There are no offices available between 5,000 – 10,000 sq.ft., or larger than 30,000 sq.ft. (Figure 22 below and Table 18 on the next page). The Elgin Market Area has the majority of market share for number of offices on the market with 53%, followed by Forres with 45%. FIGURE 22: OFFICE SUPPLY BY SIZEBAND AND MARKET AREA Page 179
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Moray Business Property Needs Study Ryden, May 2023 50 TABLE 18: CURRENT OFFICE SUPPLY FLOORSPACE SQ.FT. / (NUMBER) SIZEBAND ELGIN FORRES BUCKIE KEITH SPEYSIDE TOTAL 0 – 999 2,818 (11) 568 (2) - - - 3,386 (13) 1,000 – 4,999 14,769 (9) 6,549 (2) 1,243 (1) - - 22,561 (12) 5,000 – 9,999 - - - - - - 10,000 – 19,999 16,602 (1) - - - - 16,602 (1) 20,000 and above - 22,041 (1) - - - 22,041 (1) Total 34,189 (21) 29,158 (5) 1,243 (1) 0 0 64,590 (27) Source: Ryden / CoStar / Property agents 6.38 While energy performance is becoming important in the industrial sector as noted earlier, carbon emissions and energy costs are also relevant to offices. Of the current supply listed above: • 14 of the available offices have a registered EPC rating (52%) 18 • 3 offices achieve A or B ratings. These buildings are very energy efficient. • 9 buildings have mid-range EPC ratings of C, D or E. • No buildings have a poor EPC rating of F. and 2 have G, which is the worst. This building could be termed ‘environmentally obsolete’ without appropriate improvements. • 5 properties could not be identified on the EPC register • 8 have ratings which do not reflect more recent refurbishments OFFICE TAKE-UP 6.39 A total of 38,745 sq.ft. of office floorspace in 26 offices has been recorded as taken-up (sales and lettings) in Moray since January 2018 (Figure 23). This is an annual average of 7,649 sq.ft. in 5 offices. All transactions were lettings. The years 2018 and 2019 had most take-up by both floorspace and number. 6.40 While Ryden has endeavoured to include all marketed properties, in a large, dispersed market area with many settlements and a rural hinterland, other properties may come on and off the market less formally and not be recorded. FIGURE 23: OFFICE TAKE-UP Source: Ryden / CoStar 18 While these may have a rating, it is not recorded in either the marketing details or identifiable on the Scottish EPC Database https://www.scottishepcregister.org.uk/ Page 180
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Moray Business Property Needs Study Ryden, May 2023 51 6.41 Examples of recent office transactions in Moray are in Table 19. Transactions tend to be, with lease lengths of between 5 to 10 years at rents ranging from £5 to £16 per sq.ft. These rents are below the levels where developers could viably build new office space. Rents of £20-25 per sq.ft. would be required to support new-build office development. This would be on a serviced site in a business park/pavilion format rather than in a constrained town centre. Higher construction costs, building regulations and occupier requirements for ESG have pushed the required rent to these levels. Value engineering could minimise the cost, but not to the level where the current market could support new development, unless perhaps it was a pre-let or pre-sale to an occupier willing to pay the required rent. TABLE 19: RECENT OFFICE TRANSACTIONS ADDRESS SIZE (SQ.FT.) DETAILS ELGIN MARKET AREA 35 Moray Street, Elgin 500 370 425 Let in March 2023 Let in December 2021 Let in July 2021 Moycroft House, Moycroft Road, Elgin 742 Let in November 2022 on a 5-year lease at £13 per sq.ft. To be used as a dog grooming business Southfield Drive, Elgin 1,690 1,690 Let in November 2022 to Fairhurst and Partners LLP on a 10-year lease at £15.40 per sq.ft. Let in December 2020 to NFU on a 10-year lease at £16 per sq.ft. The Park House, South Street, Elgin 95 Let in May 2022 KEITH MARKET AREA Gatehouse, Station Road 2,069 Let in October 2019 at £4.70 per sq.ft. Source: Ryden / CoStar 6.42 A breakdown of this take-up by sizeband and area is shown in Table 20. The vast majority are for offices smaller than 5,000 sq.ft., the smallest sizeband 0 – 999 sq.ft. has 50% of take-up, with 1,000 – 4,999 sq.ft. having 48%. (Figure 24 and Table 20). The majority have been in the Elgin market area with 92% of transactions by number. Both office stock and supply are dispersed but the active market for demand is Elgin. FIGURE 24: OFFICE TAKE-UP BY SIZEBAND AND MARKET AREA Source: Ryden / CoStar Page 181
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Moray Business Property Needs Study Ryden, May 2023 52 TABLE 20: OFFICE TAKE-UP FLOORSPACE SQ.FT. / (NUMBER) SIZEBAND ELGIN FORRES BUCKIE KEITH SPEYSIDE TOTAL 0 – 999 6,455 (12) - - - 706 (1) 7,161 (13) 1,000 – 4,999 18,705 (11) - - 3,012 (1) - 21,717 (12) 5,000 – 9,999 - 9,867 (1) - - - 9,867 1) 10,000 and above - - - - - - Total 25,160 (23) 9,867 (1) - 3,012 (1) 706 (1) 38,745 (26) Source: Ryden / CoStar OFFICE INVESTMENT PROPERTY MARKET 6.43 Office investment transactions in Moray are shown in Table 21. Three are traditional buildings while one is a modern pavilion. In terms of office investment currently being offered to the market, Phoenix House at 1 Wards Road in Elgin is available for investment sale at £550,000 (8.5%), the modern 2-storey office is let to SCRA, Mears Care (Scotland) Ltd and Allied Health Services Ltd. TABLE 21: OFFICE INVESTMENT TRANSACTIONS ADDRESS SIZE (SQ.FT.) DETAILS 7 Commerce Street, Elgin 2,920 Sold in September 2022 for £135,000 (14.55%). At the time of sale let to Cornerstone Community Care on a lease expiring 1 April 2025 at £20,000 pa Elgin Business Centre, Maisondieu Road, Elgin 8,423 Multi-let business centre with 19 offices sold at auction in May 2022. Asking price £430,000. Annual rent £79,440. 103 High Street, Forres 1,487 Sold in November 2018 for £80,000 (10.44%). Top 3 floors with cellular offices in traditional building at the time of sale let to Ritsons Accountants at £8,500 pa Mansfield House, Land Street, Keith 5,648 Sold in September 2018, asking price £300,000. Modern, purpose built, two storey, detached office building. At the time of sale, ground floor let to National Farmers Union Mutual Insurance Society at £26,400 pa and first floor vacant Source: Ryden / CoStar OFFICE DEVELOPMENT ACTIVITY 6.44 There have been some recent planning applications and new build developments and conversions in the office sector (Table 22). The completed and pipeline developments comprise a mix of modern pavilions and business centres. Page 182
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Moray Business Property Needs Study Ryden, May 2023 53 TABLE 22: RECENTLY COMPLETED AND PIPELINE DEVELOPMENT DEVELOPMENT DETAILS ELGIN MARKET AREA Southfield Drive, Elgin A modern office development in Elgin South built between 2010 and 2020. Office buildings are No 8, Alexander Fleming House (occupiers include Springfield, Scotgrain and the Scottish Government); No 9, c. 8,000 sq.ft. (occupiers include NHS and Marsh Commercial); and No 10, c. 7,000 sq.ft. (occupiers include Fairhurst and NFU). Alongside 3 office pavilions are retail, nursery and NHS uses. Elgin Business Park Site 14A: 22/01278/APP - Erect single storey office accommodation of c 9,000 sq.ft. for Johnston Carmichael, approved February 2023 Caledonian House Business Centre, High Street, Elgin Conversion of former bank premises into a modern premium serviced business centre by Gairland LLP. The business centre opened in 2017 and comprises 10 offices. Rents are all inclusive. Gairland Building, 14 Chanonry Road South, Elgin New build office building. The Gairland LLP HQ, also offers serviced office space for lease. Greenbrae Steading, between Hopeman and Burghead Steading converted to co-working space, opened in 2021. Also incorporates community space 21/01787/APP - Change of use of former steading building from office and showroom to an office meeting/training room and event space 1 Pinefield Parade, Elgin 22/00292/APP Proposed office extension for Pinefield Glass at its factory premises FORRES MARKET AREA Forres Enterprise Park 100 acre business park developed by HIE –Horizon Scotland is a business and innovation centre based on the park, comprises flexible business space, with individual units suitable for office, research and development, and clean manufacturing. Orbex, Gael Force, Maker Technologies, Phoenix Instinct, Life & Sole 20/01714/APP – A phased erection of eight office pods associated car parking and landscaping at Horizon Scotland, by Highlands and Islands Enterprise (understood to now be on hold) 20/00814/APP - Construction of flexible small business units with potential use classes 4/5/6, by HIE. To comprise 2 sustainable units of 1,600 sq.ft. each. Source: Ryden / Moray Council Planning / websites Page 183
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Moray Business Property Needs Study Ryden, May 2023 54 SUMMARY 6.45 The industrial property market in Scotland has strong underlying demand however supply is tightening and economic uncertainty is supressing some of this demand. Meanwhile the office market has experienced a seismic shift following the Covid-19 pandemic and the flight to smaller, better quality offices is now evident across the market. 6.46 Within Moray, industrial stock totals 2.04m sq.ft and office stock totals 410,000 sq.ft. making industrial by far the largest sector of employment property in the area. The largest proportion of industrial and office property was built 30-50 years ago which means there could be an issue of looming obsolesce associated with some stock in the area, indeed a number of poor quality units are noted to be on the market currently. The majority of industrial and office floorspace is located in Elgin. 6.47 In the industrial sector there is a low floorspace vacancy rate of 3.6% and although as noted the majority are older units there have been some modern private developments undertaken at Elgin Business Park and Chanonry Court, Elgin. As a result, rents range widely from £2.60 - £8.50 per sq.ft. for poorer quality up to brand new industrial units. Average market rents for modern second hand stock are between £7-8 per sq.ft. The majority of available units are smaller than 5,000 sqft and there are no units available over 20,000 sq.ft. This could present a barrier to businesses which are looking to scale up. 6.48 In terms of industrial unit energy performance, it is a ‘mixed bag’ with new modern premises and other energy efficient premises on the market as well as a number which could be considered environmentally obsolete. 6.49 For the industrial market, the take-up rate is an average of 38,040 sq.ft. in 10 units per annum. This is just under 1 deal per month. Active sectors based upon recent transactions include motor trades, logistics, food and drink and trades suppliers. There are a number of recently completed industrial developments and an active future development pipeline of new industrial units, workshops and units for storage, predominantly for owner occupiers. The amount of planning applications for food and drink storage is particularly high. The provision for facilities of this nature is important for these businesses but they have comparatively low employment densities (jobs per unit of floorspace). There could be an opportunity to re-purpose larger, older, lower-quality industrial units which are lacking in energy efficiency to meet the needs of bonded warehousing although urban areas are unlikely to be appropriate given the flammable nature of whisky. 6.50 Moray’s office property market is largely concentrated in and around the main towns of Elgin and Forres where modern purpose built office pavilions have been constructed, along with offices in traditional buildings in and around the town centres. For other areas office stock is mainly in older buildings, on upper floors within town centres and townhouses on the fringes. There has been modern development and a number of new business centres and co-working spaces created. 6.51 The office floorspace vacancy rate is high at 16% and those on the market lean towards traditional supply. The majority of available units are small and there is very limited supply above 5,000 sq.ft. Energy performance is less of an issue in the general office sector (although it can be to major corporate occupiers) and majority of available offices have mid-range EPC ratings. 6.52 For the office sector, there is an annual average take-up of 7,649 sq.ft in 5 offices suggesting a narrow market. There does appear to be ample supply for the levels of demand. Recent transactions show rents between £5-16 per sq.ft which is below the level at which private developers could viably build new space however there has been some facilities converted to offices and office extensions undertaken recently or in the pipeline. The active demand for offices is largely seen in Elgin. Page 184
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Moray Business Property Needs Study Ryden, May 2023 55 07 COUNCIL INVESTMENT PORTFOLIO INTRODUCTION 7.1 Moray Council owns and manages an industrial property portfolio comprising a range of industrial land and buildings throughout Moray including all of the principal settlements. The Council’s operational portfolio of offices, depots and other facilities from which it provides local services are held separately. 7.2 The portfolio generates rental income for the Council and delivers economic benefits for the area. It is managed by the Council’s Estates team. 7.3 Further analysis of the portfolio is provided within this section. STOCK AND MIX OF PREMISES 7.4 At 31 March 2022, the Council’s industrial portfolio comprised 175 industrial buildings with a total floor area of 327,858 sq.ft. making the Council a major landlord and provider of units to the market. In terms of land the Council owns 130 development and ground leases with a total site area of 20.70 ha and a stock of serviced and un-serviced land for future development totalling 21.12 ha. A summary of the portfolio is provided in the Table below. The development and ground leases are plots provided on a ground lease to businesses to either build their own premises or use as yards for storage. TABLE 23: MORAY COUNCIL ANALYSIS OF PORTFOLIO AS AT 31 MARCH 2022 SETTLEMENT INDUSTRIAL PREMISES INDUSTRIAL SITES FUTURE INDUSTRIAL DEVELOPMENT LAND No. Floor Area (Sq.ft) No. Total Area (Ha) Serviced (Ha) Un-serviced (Ha) Elgin 66 114,108 72 9.99 0.87 0.94 Forres 24 32,378 15 3.61 0.00 0.00 Buckie 20 31,172 9 2.18 8.97 7.96 Keith 38 120,071 11 1.41 0.54 1.84 Lossiemouth 13 15,005 9 0.97 0.00 0.00 Other 14 15,123 14 2.54 0.00 0.00 TOTAL 175 327,857 130 20.70 10.38 10.74 Source: Moray Council, Industrial Portfolio Annual Report 2021/22 7.5 Key industrial estates which the Council holds industrial premises or sites include the following which can be identified on the previous map provided within Section 6 at Figure 19 via the reference numbers provided: • Pinefield Industrial Estate, Elgin (11) • Chanonry Industrial Estate, Elgin (9) • Tyock Industrial Estate, Elgin (8) • Linkwood Industrial Estate, Elgin (10) • Waterford, Forres (2) • Greshop Industrial Estate, Forres (1) • March Road Industrial Estate, Buckie (18) • Rathven Industrial Estate, Buckie (17) • Isla Bank Mills, Keith (22) • Westerton Road, Keith (24) • Newmill Industrial Estate, Keith (23) Page 185
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Moray Business Property Needs Study Ryden, May 2023 56 • Coulardbank Industrial Estate, Lossiemouth (4) • Mosstodloch Industrial Estate, Mosstodloch (16) • Lhanbryde Industrial Estate, Lhanbryde (15) • Rothes Industrial Estate, Rothes (19) • Dufftown Industrial Estate, Dufftown (21) 7.6 The Council has significant ownership at over half of Moray’s industrial estates. 7.7 The largest number of industrial units (37.7%) are located within Elgin, followed by Keith (21.7%). The Council’s portfolio is less concentrated in Elgin and more dispersed across Moray than the market stock; this is consistent with its economic development role with the private sector being more active in Elgin as the main market centre. 7.8 In floorspace terms 36.6% of the Council’s industrial holding is in Keith. This is skewed by the Council’s largest industrial premises which is a former woollen mill complex at Isla Bank which totals 34,423 sq.ft. In terms of industrial sites, the majority are again in Elgin. Having regard to the Moray market areas presented earlier at Figure 2 there are notably less Council industrial sites and premises in the Speyside area. There is no future industrial development land in Forres, Lossiemouth or Speyside. 7.9 Industrial premises range in size from the 34,423 sq.ft Isla Bank former woollen mill complex to 270 sq.ft. offices within business centres. It is worth noting that although the portfolio is referred to as industrial is does also contain premises for sole or ancillary office use. This includes offices in the Council’s 3 business centres at Chanonry (Elgin), Westerton Road (Keith) and Coulardbank (Lossiemouth). Chanonry Business Centre comprises 5 studio/office units each of 270 sq.ft and Westerton Road business centre comprises four 270 sq.ft studio/office units and two 538 sq.ft units. Coulardbank Business Centre comprises 4 studio/office units each of 270 sq.ft. and 2 workshop units of 538 sq.ft. This size of centre and number of units (and levels of rent presumably) would be uneconomic for the private sector therefore the Council is providing offices in areas of market failure. 7.10 The average unit size across the portfolio is 1,830 sq.ft. which tends to pertain to small and medium sized businesses and is in keeping on a portfolio which focuses on economic development. An industrial unit of this size would accommodate on average 5 employees using typical employment densities. 7.11 The Council describes the majority of its tenants as trades and they include motor repairs/garages, carpenters, joiners, shop-fitters, metal fabricators, builders, light haulage, electricians and plant hire etc. It is understood that units for the motor sector including repairs, de-tailing etc. is a growing sector. As well as these small to medium sized businesses, Council units/land are also home to a number of larger tenants including a cooperage. 7.12 In addition, a small number of units within the portfolio are occupied by Council services, which is contrary to the economic development objectives of the portfolio. However, it is understood that the majority of these properties are within the scope of a review of Council depots and stores. This may provide an opportunity to re-locate Council services to free up the industrial portfolio for letting to businesses. This would mean it may be possible to offer additional unit supply in local markets through portfolio management without incurring the costs and risks of new development. 7.13 In recent years, the Council has invested in general upgrading works to the industrial portfolio to ensure properties remain responsive to future business needs. During 2021/22, the Council invested £80,000 of revenue and £62,500 of capital in the Industrial Portfolio and in supporting industrial development across Moray through a range of projects including roof repairs, electrical repairs/upgrades, new heating systems, surface and foul water repairs/upgrades, estate road repairs and design work for new projects to create serviced sites. Further monies have been allocated in 2022/23 to carry out condition surveys and for the refurbishment of the portfolio. Condition surveys were delayed as a result of the Covid-19 pandemic. 7.14 Refurbishment works ensure properties continue to meet business needs and safeguard future rental income. The Council notes that officers continue to work with tenants on the most appropriate ways to Page 186
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Moray Business Property Needs Study Ryden, May 2023 57 deliver improvements to properties, including agreeing where appropriate for tenants to do works in return for commensurate temporary reductions in rental, or capital payments. 7.15 Since 2018 in England and Wales there has been a prohibition on letting properties with Energy Performance Certificates (EPCs) worse than E ratings. In April 2023 the prohibition is due to have been extended to existing leases in England as well as new leases. In 2018 the Scottish Government consulted on draft proposals to make non-domestic properties more energy efficient and further consultations were delayed due to the coronavirus. It is likely that Scottish legislation will be brought in and this should be kept under review. In particular, this will affect Council industrial premises with heating systems. OCCUPANCY AND INCOME 7.16 The occupancy levels of Council industrial buildings in recent years are set out below. TABLE 24: OCCUPANCY LEVELS OF COUNCIL INDUSTRIAL BUILDINGS YEAR % OF FLOORSPACE OCCUPIED % OF BUILDINGS OCCUPIED 2016/17 96.1% 95.4% 2017/18 94.4% 92.7% 2018/19 83.57% 93.18% 2019/20 93.54% 95.48% 2020/21 88.84% 93.71% 2021/22 92.45% 92.57% Source: Moray Council, Industrial Portfolio Annual Report 2021/22 * The floor area occupancy figures for 2018/19 were skewed as a result of the former sawmill at Waterford Circle in Forres (which was by far the largest in the portfolio) becoming vacant. 7.17 At 31 March 2022 the occupancy rate in terms of buildings occupied was 92.57% compared to the Council target of 80%. The figures for 2022/23 have yet to be prepared however it is understood from discussions with the Council that there is only 1 vacant unit within the portfolio currently and therefore the portfolio is maintaining very high occupancy. This is consistent with the wider very low industrial vacancy rate of 3%. It is also interesting that the office occupancy rate may be high too which suggests that the Council’s small affordable office premises are performing well despite a wider 16% vacancy rate. 7.18 Although around 10 tenants’ leases terminated due to Covid, new tenants have since been secured for the majority of those properties. 7.19 The total gross rental income for the past 6 years is set out in Table 25 below. TABLE 25: COUNCIL GROSS RENTAL INCOME YEAR GROSS RENTAL INCOME 2016/17 £1,753,000 2017/18 £1,756,000 2018/19 £1,930,000 2019/20 £1,954,000 2020/21 £1,940,000 2021/22 £2,066,000 Source: Moray Council, Industrial Portfolio Annual Report 2021/22 7.20 The Council reports that rental income was impacted by the Covid lockdown in 2020/21 and there was considerable uncertainty at that time over the medium/long term impact on the portfolio. However, as can be seen the total rental income increased by £126,000 in 2021/22, exceeding the budget target of £1,890,000. Part of this was due to the implementation of rent reviews which were deferred during Covid lockdown. The portfolio’s annual income has increased by £787,000 over the last 10 years. 7.21 It is difficult to compare the rental of the industrial portfolio objectively over a number of years as its Page 187
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Moray Business Property Needs Study Ryden, May 2023 58 composition changes due to the sale of properties, addition of new properties and the refurbishment and repair of existing properties. However, increases in rental achieved at rent review for industrial premises (3 yearly rent reviews) and for industrial sites (5 yearly rent reviews) have continued to outstrip the Consumer Prices Index over the corresponding periods, but to a lesser extent than previous years. There have been particular issues with rising inflation in 2022/23 and it may be that for the first time inflation will outstrip rental growth for the period. 7.22 Typical rents across the portfolio are between £6-8 per sq.ft. for industrial premises. However, rents can be as low as £2-4 per sq.ft at Isla Bank Mills due to the size and poorer quality of stock. This is in comparison with average market rents of £7-8 per sq.ft for second hand stock and £8.50 per sq.ft for new build. 7.23 The Council has commented that it often has to set closing dates for its industrial premises for lease as multiple offers can be received. FUTURE DEVELOPMENT 7.24 The Council continually reviews its portfolio in terms of its effectiveness, disposing of properties where appropriate and taking steps to increase supply where demand dictates. The Council has concerns about a shortage of industrial development land and units in various locations. 7.25 The following actions are aimed at addressing supply issues: • A major extension of March Road Industrial Estate in Buckie has provided a supply of industrial development land in East Moray • The Council acquired 36 Commercial Road, Buckie to facilitate its strategic plans for the Harbour to support the town’s role in offshore wind developments • Officers continue to work with private developers to facilitate the provision of new business units • Existing properties will be repaired and refurbished as required • Continue to consider opportunities for the re-development of Vacant and Derelict Land and Buildings for business use • Officers continue to investigate the potential to secure external funding for industrial development, e.g. UK Shared Prosperity Fund, Place Based Investment Fund and the Just Transition Fund; this is considered further in Section 10 • The Council had an allocation in its capital plan for the expansion of the portfolio in Forres and Speyside however the monies have been put back into the plan as the proposed projects encountered difficulties 7.26 In discussions with the Council it has been noted that the two main issues which prevent new developments are finding sites and construction costs. The prevalence of Special Landscape Areas in Moray can also restrict development in specific areas. SUMMARY 7.27 At 31 March 2022, the Council’s industrial portfolio comprised 175 industrial buildings with a total floor area of 327,858 sq.ft.; 130 development and ground leases with a total site area of 20.70 ha and a stock of serviced and un-serviced land for future development totalling 21.12 ha. The Council has a particular concentration of industrial premises and sites in Elgin however it is noted it has significant ownership in more than half of Moray’s industrial estates. The scale of the Council’s portfolio also means it is a significant landlord in the area. 7.28 As well as industrial premises and sites the Council’s portfolio also includes office space within its three business centres at Chanonry (Elgin), Westerton Road (Keith) and Coulardbank (Lossiemouth). 7.29 It is understood that a small number of units within the portfolio are occupied by Council services however these properties are within the scope of a review of Council depots and stores. This may provide an Page 188
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Moray Business Property Needs Study Ryden, May 2023 59 opportunity to re-locate Council services to free up the industrial portfolio for letting to businesses. If possible, re-use of these units would provide additional stock to the local market without incurring the costs and risks of new development. 7.30 The Council continues to invest in general upgrading and refurbishment works. Anticipated future changes to EPC legislation in Scotland may have an impact on the lettability of some Council units. 7.31 The Council portfolio benefits from very high occupancy (92.57%) and closing dates often have to be set where multiple offers are anticipated for popular units. This is consistent with the wider very low industrial vacancy rate of 3%. It is also interesting that the office occupancy rate may be high too which suggests that the Council’s small affordable office premises are performing well despite a wider 16% vacancy rate. 7.32 Typical rents across the portfolio are between £6-8 per sq.ft. for industrial premises which is in comparison with average market rents of £7-8 per sq.ft for second hand stock and £8.50 per sq.ft for new build. 7.33 The Council has concerns about a shortage of industrial development land and units in various locations. In order to tackle this the Council is working in partnership with HIE and private developers to facilitate new provision. It has also undertaken strategic acquisitions to support key sectors such as offshore wind in Buckie. 7.34 Construction costs are currently very high and this is an issue for the Council in terms of creating new supply. It has also struggled to acquire appropriate sites for development. The prevalence of Special Landscape Areas in Moray can also restrict development in specific areas. Page 189
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Moray Business Property Needs Study Ryden, May 2023 60 08 EMPLOYMENT LAND INTRODUCTION 8.1 In accordance with NPF4, Councils should allocate sufficient land for business and industry, taking into account business and industry land audits, in particular ensuring that there is a suitable range of sites that meet current market demand, location, size and quality in terms of accessibility and services. This section assesses employment land supply and take-up in Moray. A comprehensive market assessment of employment land sites is also undertaken. EMPLOYMENT LAND AUDIT 8.2 The Moray Employment Land Audit is undertaken annually by the Council in order to provide up to date and accurate information on the supply and availability of employment land for business and industrial use within the Council area. 8.3 The most recent audit was conducted in April 2022 and has been prepared from information gathered by Council planning officers through monitoring of the LDP, planning approvals and individual inspections. 8.4 All employment sites in the existing LDP have been recorded by the Council in a database, unless the site has been built out in its entirety. In addition to sites allocated in the Moray LDP 2020 any windfall sites with planning consent for employment uses have been added to the database unless these are constrained to a single user (e.g. a distillery). It is noted that land with buildings that are vacant is not included in the audit nor are redeveloped sites. 8.5 Once sites have been identified officers undertake a review of planning applications and collect information such as ownership, proposed use etc. for each site. Officers also undertake site visits to monitor development activity. This information is then updated in the database. The data is then analysed to produce the audit report. DEMAND COMMENTARY 8.6 The latest Employment Land Audit for Moray provides a commentary on demand for employment land in the area, updated where relevant. The following key points are made: • Despite the Covid-19 pandemic and impacts of Brexit demand continues to hold up relatively well. However, there may be signs that the level of space for uses like call centres may be reduced with continued homeworking and demand is increasing for technology and advanced engineering uses. • There have also been notable developments of new private sector small business units recently in Elgin with 14 units developed by Saltire at I7 Barmuckity/ Elgin Business Park and 18 by Excel at I2 Chanonry Industrial Estate. • The Moray Council Industrial Portfolio Annual Report 2021-2022 showed continued high levels of occupancy within the Moray Council Industrial portfolio with strong demand for smaller units (this was reviewed in detail in Section 7) • The provision of further serviced sites and units is an issue and a number of projects are being considered with a focus on Speyside where there are shortages and limited private sector interest in providing units on speculative basis. • Moray Council has worked with HIE to investigate opportunities in Forres to address deficiencies in supply. However these have not come to fruition due to site constraints, construction costs and funding issues. Page 190
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Moray Business Property Needs Study Ryden, May 2023 61 • HIE has responded to demand at Forres Enterprise Park by obtaining consent for 8 office pods (now on hold) adjacent to the Horizon building and for two small business units. A road extension has been built to open up part of the site for development. HIE is also working to secure opportunities within the aerospace industry and around a North Highland and Moray space cluster. HIE also continue to support Elgin Business Park. • The demand for employment sites and buildings is still considered to be greatest for smaller buildings with fewer businesses looking for larger sites. Demand for smaller sites and buildings are generally from small local businesses including builders, plumbers and plant and machinery supply. Demand for medium sized sites is from smaller businesses looking to grow and the demand for larger sites is generally from inward investors. There needs to be land and sites available at all levels to meet demand. • The Moray Economic Strategy expects demand from existing businesses looking to expand and relocate. It also anticipates future demand within aerospace/space related businesses, life sciences, creative industries and digital, as well as the engineering sector. • A key industry for Moray is the food and drink industry. Whisky distilling has seen considerable expansion over recent years, including bonded warehousing. These businesses are long established and often in rural areas. The Local Development Plan currently looks to support such expansion through its policy on rural business which supports proposals where there is locational justification. • Sufficient land and buildings require to be available in to facilitate wider economic development and to support the vision of the Moray Economic Strategy and support economic recovery. SUPPLY 8.7 Several categories of employment land supply are identified within the audit: • Established employment land supply – this includes all un-developed land that is allocated for industrial/business/employment use in the adopted LDP or has a valid planning approval for these uses • Marketable/Effective employment land supply - This is land that as well as meeting business requirements, has a secure planning status, can be serviced within 5 years and is accessible by walking, cycling and public transport. Land that is subject to user restrictions or that is held as ‘option land’ for existing companies’ own expansion cannot be considered to be marketable. Such land is not constrained. • Immediately available land supply - This is marketable/effective land that currently has planning permission, is serviced and has no other major constraints to immediate development. This definition is useful in the assessment of whether demand for land is being adequately met. • Constrained employment land supply - This includes land for example, that has planning difficulties, land subject to ownership difficulties (e.g. multiple ownership/unwilling sellers), land with insufficient infrastructure provision, etc. This category therefore includes much of the land in the Established Employment Land Supply that is not Marketable (see above). • LONG sites - The Moray LDP 2020 included LONG employment sites for the first time. These sites set out the direction of growth and assist in forward planning. ESTABLISHED EMPLOYMENT SUPPLY 8.8 As at April 2022, Moray has a gross established employment land supply of 298.55 ha with a net established area of 226.48 ha across 36 sites19. There has been a decrease in the gross established supply by 1.22 ha since 2021. This decrease is due to development at Barmuckity/Elgin Business Park (I7), Chanonry Industrial Estate, Elgin (I2) and Greshop, Forres (I1). This is balanced against the addition of land at the former shipyard at Buckie Harbour (I5) which has now been cleared and land at Troves (I1) where 19 76% gross: net ratio Page 191
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Moray Business Property Needs Study Ryden, May 2023 62 construction has stalled. 8.9 The established employment land supply is broken down in the following table by market area. The majority of net established supply (63.1%) is located within the Elgin market area with 16.5% in the Buckie market area, 15.4% in Forres, 4.3% in Keith and 0.7% in the Speyside market area. The employment land supply appears consistent with the geographic distribution of the property market in the area. TABLE 26: ESTABLISHED EMPLOYMENT LAND SUPPLY BY TOWN (2022) TOWN GROSS ESTABLISHED (HA.) NET ESTABLISHED (HA.) NO. OF SITES ELGIN MARKET AREA 186.26 143.01 18 • Elgin 125.41 95.32 11 • Lossiemouth 12.8 10.24 1 • Mosstodloch 46.44 36.35 5 • Troves 1.61 1.1 1 FORRES 55.48 34.77 4 BUCKIE MARKET AREA 43.96 37.46 6 • Buckie 43.15 36.81 5 • Cullen 0.81 0.65 1 KEITH 11.1 9.64 6 SPEYSIDE MARKET AREA 1.75 1.6 2 • Aberlour 1 1 1 • Rothes 0.75 0.6 1 TOTAL 298.55 226.48 36 Source: Moray Council Employment Land Audit, April 2022 8.10 As shown in Table 27, the established employment land supply has been broken down by size of site to provide an indication of the range of site sizes available. TABLE 27: ESTABLISHED EMPLOYMENT LAND SUPPLY BY SITE SIZE (2022) SITE AREA NET ESTABLISHED NO. OF SITES 0-1 ha 3.75 6 1-5 ha 28.71 15 >5 ha 194.91 15 Source: Moray Council Employment Land Audit, April 2022 8.11 The greatest proportion (72%) of land is suitable for Class 4, 5 and 6. On some designations the whole area may be capable of accommodating higher amenity or a greater mix of uses but on some designations distinct areas within a site are identified. These tend to be uses within Class 4 that require a higher amenity setting or due to the location close to residential development general industrial uses would not be suitable. On some larger sites a greater mix of uses are identified on part of the site to help support delivery of the site as a whole. MARKETABLE/EFFECTIVE EMPLOYMENT LAND SUPPLY 8.12 As noted above Moray has a marketable/effective employment land supply of 100.37 ha across 21 sites. Overall the marketable/effective area has decreased by 1.31 ha compared to 2021. The number of marketable/effective sites has remained the same. The decrease is again due to construction activity outlined above. 8.13 The marketable/effective employment land supply has been broken down by market area in the table below. Page 192
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Moray Business Property Needs Study Ryden, May 2023 63 8.14 Annual requirements established through historic demand studies, build out rates recorded in previous audits, and from discussions with HIE and Moray Council Estates have been used to provide the estimated number of years supply available. It is noted that previously it was desirable to have a 5-year effective land supply at all times and therefore previous LDPs sought to designate a minimum of 10-year land supply. However, to ensure a generous supply, increase choice and a 10-year replacement period for future LDPs, the Moray LDP 2020 sought to designate a minimum of 15 years supply. The estimated annual requirements appear to be above the take-up actually achieved and noted at Section 8.38. TABLE 28: MARKETABLE/EFFECTIVE EMPLOYMENT LAND SUPPLY BY TOWN (2022) MARKET AREA MARKETABLE/ EFFECTIVE (NET FIGURE IN HA) NO. OF SITES ESTIMATED ANNUAL REQUIREMENTS AVAILABLE SUPPLY IN YEARS Elgin 58.11 10 2.8 20 years Forres 13.02 1 0.8 16 years Buckie 22.34 4 0.8 28 years Keith 5.3 4 0.4 13 years Speyside 1.6 2 0.4 4 years Source: Moray Council Employment Land Audit, April 2022 8.15 The Council notes that the level of effective supply in Elgin, and Buckie is currently good. However, the choice of sites is limited across all market areas. It is noted that within Elgin there are only small areas now available within I6 Linkwood East (I6) and Chanonry (I2). The level of interest and recent planning applications at Barmuckity/ Elgin Business Park (I7) also suggests availability will be limited in the future. In Forres whilst there is a good supply of land this is all at Forres Enterprise Park (BP1) only a small portion is able to accommodate general industrial uses. Whilst Keith has less than 15 years supply there is a LONG allocation that could be brought forward, however there is a limited choice of sites in Keith with these primarily being in the Westerton Road area. There is a shortage of sites in Speyside and finding suitable sites has been an ongoing issue. There will be a reliance on windfall proposals within this area. 8.16 The greatest proportion of land is suitable for Class 4, 5 and 6. As set out previously, some sites are wholly allocated for or have areas that would only be capable of accommodating higher amenity uses or a greater mix of uses, e.g. Forres Enterprise Park. IMMEDIATELY AVAILABLE 8.17 There is currently (2022) 33.85 ha (net) of immediately available employment land supply across 6 sites. This has decreased by 1.49 ha since 2021 again due to construction at Barmuckity/Elgin Business Park (I7) and Chanonry (I2). As previously noted, take-up at Elgin Business Park has been very good and therefore the Council anticipates that the level of immediately available land in the Elgin market area will reduce significantly over the next few years. Bringing forward and servicing new sites will be critical to maintaining supplies. LONG 8.18 As noted the Moray LDP 2020 included LONG sites for the first time. In 2022, the long supply was 48.06 ha (net) across 5 sites. These sites set out the direction of growth and assist in forward planning. LONG sites are designated at: • LONG 3 Burnside of Birnie, Elgin (20.74 ha) • LONG MU1 South of the A96 (8 ha) • LONG 2 West of Mosstodloch (11.2 ha) • LONG 2 Westerton Road, Keith (2.5 ha) • LONG 2 March Road, Buckie (5.62 ha) Page 193
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Moray Business Property Needs Study Ryden, May 2023 64 CONSTRAINED 8.19 The employment land supply which is subject to constraints is 78.03 ha (net) across 16 sites. The constrained supply has increased by 2.8ha compared to 2021. In the main, this is due to the addition of land at I5 Harbour Buckie at the former shipyard. The constrained supply can be broken down into the type of constraints identified in the following table. The predominate constraints relate to infrastructure (e.g. access and location of utilities etc.) and physical (e.g. contamination, steep slopes, flood risk, natural features of significance etc.). TABLE 29: CONSTRAINED EMPLOYMENT LAND SUPPLY BY CONSTRAINT (2022) CONSTRAINT CONSTRAINED (NET FIGURE IN HA) NO. OF SITES Infrastructure 45.75 8 Ownership 14.15 4 Physical 44.23 11 Source: Moray Council Employment Land Audit, April 2022 SITE EFFECTIVENESS 8.20 Moray Council has supplied its latest employment land data which includes ‘live sites’ as at 1st January 2022 and tallies with the data for the Employment Land Audit 2022. Ryden has ranked the effectiveness of these sites on a desktop basis. 8.21 As such 36 sites were reviewed on a desktop basis. The sites review focused on 8 scoring categories: A. Strategic fit with economic development priorities and re-development policy aims and objectives B. Commercial market assessment of likely demand from occupiers, developers and investors C. Quality of public transport and access to the strategic road network D. Potential economic impact based on existing uses and the types of businesses which may be attracted E. Development potential in terms of whether a large proportion could be developed for marketable space F. Alternative use pressure is scored on a negative scale. Sites with significant alternative use pressure are given a low score and those with little or no alternative use pressure are awarded a high score Additionally, limited assessments based upon Council information were made of: G. Ground conditions based on any information provided within the Employment Land Audit or LDP H. Utilities and Drainage information based on any information provided within the Employment Land Audit or LDP 8.22 A maximum score of 5 points is awarded for each of these 8 criterion which allows each site to be ranked, highlighting which sites are more or less likely to be developed in the future, establishing a hierarchy of priority. The maximum score a site could theoretically achieve is 40 points. 8.23 A detailed spreadsheet at Appendix A provides the full comments and scores against each site by category. The spreadsheet is designed to be a working document which the Council can utilise, update and expand as more information becomes available or as conditions alter over time. In particular, the technical assessments at criteria G and H as above are only tentative without more comprehensive information. The Council may also wish to consider weighting particular criteria depending on its own priorities. For the purposes of this report the analysis provides a robust desktop review of each site against relevant criteria. 8.24 A summary of the scoring is shown in Table 30. The overall results are: • 10 sites scoring under 20 points • 17 sites scoring 20-24 points Page 194
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Moray Business Property Needs Study Ryden, May 2023 65 • 7 sites scoring 25-29 points • 2 sites scoring 30 or above 8.25 With so few sites achieving a score of 30 or above, in general this shows the limited number of allocated employment sites in Moray which offer a promising combination of market appeal, development potential and (at this tentative stage) technical deliverability. The assessments can also have a combined effect, as in situations where market potential is limited, this introduces market failure (or simply uneconomic market conditions) to compound the costs of the technical investigations and remediation / servicing works which would be required to bring a site to market. It is worth noting that the sites that are highly rated include those that have had some form of intervention from the public sector. 8.26 It is recommended that more detailed desktop assessments of both ground conditions and utilities and drainage are undertaken. This would include the review of sources such as: • The British Geological Survey online viewer for superficial deposits and bedrock • Online OS maps 1: 25,000 scale to review topography • Coal Authority online maps to review mineral stability constraints • SEPA flood maps • Scottish Water records on surface water drainage, foul water discharge and water supply servicing • SGN and Scottish Power records in relation to gas and electricity servicing • BT Openreach records for telecoms servicing information 8.27 This would allow scoring under these categories to be more accurate as there is limited information on these factors within the LDP and Employment Land Audit. Further investigation of these factors could have a significant impact on site effectiveness and subsequent scoring. 8.28 There is also an evolving need to look more closely at active travel to/from employment sites and consider this as part of the scoring with Category C. 8.29 With regard to Ryden’s scoring for market assessment and development potential, sites have tended to score more highly where they would be the next phase in an estate with recent development, e.g. Forres Enterprise Park, Chanonry Industrial Estate in Elgin and March Road in Buckie etc. Whereas lower scoring sites are future opportunities dependent upon settlement expansion and market needs at that time, e.g. Burnside of Burnie in Elgin and Sunbank in Lossiemouth etc. Page 195
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Moray Business Property Needs Study Ryden, May 2023 66 TABLE 30: SITE EFFECTIVENESS SUMMARY Ref LPR Location Town Gross Area (Ha) A. Strategic Fit B. Market Assess- ment C. Transport & Access- ibility D. Economic Impact E. Development Potential F. Pressure for Alternative Use G. Ground Conditions H. Utilities & Drainage TOTAL M/FR/E/001 20/BP1 Forres Enterprise Park FORRES 22.88 5 4 4 5 4 5 2 4 33 M/BC/E/004 20/I3 March Road (SE) BUCKIE 17.69 4 4 4 3 4 5 3 3 30 M/EL/E/001 20/I7 Elgin Business Park, Barmuckity ELGIN 33.83 5 4 3 4 4 3 2 2 27 M/EL/E/008 20/I2 Chanonry Industrial Estate ELGIN 3.17 4 4 3 4 4 4 2 2 27 M/BC/E/006 20/I5 The Harbour Area BUCKIE 1.77 5 4 3 4 3 3 2 2 26 M/MS/E/005 20/I2 North of Baxter's MOSSTODLOCH 3.22 4 3 3 4 3 5 2 2 26 M/EL/E/012 20/I6 Linkwood East ELGIN 1.71 4 4 4 3 4 2 2 2 25 M/EL/E/016 20/I8 Newfield ELGIN 12 4 4 3 4 3 3 2 2 25 M/MS/E/003 20/I5 Baxters MOSSTODLOCH 2.22 4 2 4 4 3 4 2 2 25 M/BC/E/007 20/LNG2 March Road (LONG) BUCKIE 7.02 3 3 3 2 3 5 2 2 23 M/FR/E/013 20/I2 Waterford FORRES 1 3 3 3 2 3 5 2 2 23 M/FR/E/014 20/I4 Easter Newforres FORRES 27.6 4 3 3 4 3 4 1 1 23 M/EL/E/017 20/I16 Burnside of Birnie ELGIN 22.3 3 3 3 3 3 3 2 2 22 M/EL/E/018 20/LNG3 Burnside of Birnie (LONG) ELGIN 38.2 3 3 3 3 3 3 2 2 22 M/EL/E/019 20/MU2 Lossiemouth Road (NE) ELGIN 7 4 3 3 3 3 2 2 2 22 M/BC/E/005 20/I4 Maltings BUCKIE 10.3 3 2 3 2 2 5 2 2 21 M/EL/E/002 20/MU1 Riverview ELGIN 4.12 3 3 3 3 3 2 2 2 21 M/FR/E/006 20/I3 Benromach Distillery FORRES 4 3 3 3 3 3 2 2 2 21 M/KH/E/010 20/I2 Westerton Road South KEITH 0.52 3 3 2 2 3 4 2 2 21 M/KH/E/011 20/I11 Westerton Road East Expansion KEITH 1.74 3 3 2 3 2 4 2 2 21 M/EL/E/011 20/I5 Pinefield Industrial Estate ELGIN 0.18 3 2 3 2 2 4 2 2 20 M/EL/E/020 20/OPP4 Ashgrove Road (Yard) ELGIN 1.6 3 3 4 2 3 2 1 2 20 M/KH/E/004 20/I4 Bridge Street KEITH 2.05 3 2 2 3 2 4 2 2 20 M/KH/E/012 20/LNG2 Westerton Road (LONG) KEITH 3.2 3 2 2 3 2 4 2 2 20 M/LS/E/007 20/OPP1 Sunbank LOSSIEMOUTH 12.8 3 3 3 3 2 3 1 2 20 M/MS/E/007 20/I3 West of Mosstodloch MOSSTODLOCH 16 3 2 2 2 3 4 2 2 20 M/AB/E/005 20/R2 Speyview ABERLOUR 1 3 3 3 2 2 2 2 2 19 M/CL/E/002 20/I1 South of Cemetery CULLEN 0.81 2 2 2 2 2 5 2 2 19 Page 196
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Moray Business Property Needs Study Ryden, May 2023 67 M/MS/E/008 20/LNG2 West of Mosstodloch (LONG) MOSSTODLOCH 14 3 2 2 2 2 4 2 2 19 M/RS/E/001 20/I1 Back Burn ROTHES 0.75 2 2 3 2 2 4 2 2 19 M/BC/E/001 20/MU High Street (W) BUCKIE 6.37 3 2 3 2 2 2 2 2 18 M/MS/E/006 20/MUL1 South of A96 MOSSTODLOCH 11 3 2 2 2 2 3 2 2 18 M/TV/E/001 20/I1 Troves Industrial Estate TROVES 1.61 2 2 2 2 2 4 2 2 18 M/EL/E/004 20/I12 Glen Moray Distillery ELGIN 1.3 3 2 3 2 2 1 2 2 17 M/KH/E/005 20/I7 Isla Bank Mills KEITH 1.84 2 2 3 1 1 5 2 1 17 M/KH/E/013 20/MU Banff Road South KEITH 1.75 3 2 2 2 2 2 2 2 17 Page 197
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Moray Business Property Needs Study Ryden, May 2023 68 8.30 An example of a full desktop assessment is shown below. M/FRE/E/001, 20/BP1, FORRES ENTERPRISE PARK 8.31 The top scoring site is M/FRE/E/001, 20/BP1 Forres Enterprise Park which has a gross area of 22.88 ha and a net area of 13.02 ha. This site has received an overall score of 33. It is owned by Highlands and Islands Enterprise who are considering various options for the development of the site. The site is highlighted in bold in Table 30 above. 8.32 With regards to strategic fit, the site is located within a secondary growth area but is key for accommodating growth sectors such as advanced engineering and space. The market assessment reflects the fact the Park is an existing business location which has availability for office and industrial uses albeit they should conform to the high amenity and design standards of the Enterprise Park. 8.33 In terms of transport and accessibility the site is located on the eastern edge of Forres off the A96 which is part of the strategic road network. The Enterprise Park is an existing business location and internal roads have been provided. It is worth noting that development proposals will require to take into account the preferred option for the A96 dualling which may impact this site. 8.34 The potential economic impact of the site is significant as it is a proven high impact site accommodating key growth sectors. As the site is owned by Highlands & Islands Enterprise this increases its development potential and we are aware they are progressing several medium to long term options for the site. 8.35 There is potential pressure for alternative use in the form or a hotel or nursery however this provision would be complementary to the site. 8.36 The site ground conditions are not known and in terms of utilities and drainage it is understood that the strategic servicing is in place. 8.37 The site characteristics noted above show a site which is developable in market and technical terms but still requires public sector intervention to allow it to come to fruition. This illustrates the challenges associated with the large number of sites which achieve lower scores on market potential and/or technical deliverability. EMPLOYMENT LAND TAKE-UP 8.38 Employment land take-up was 4.74ha across 6 sites in the year to 1st January 2022. This includes completion or occupation of sites at Barmuckity (I7) for business plots and industrial units, Chanonry (I2) for industrial units, Linkwood East (I6) for sale of motor vehicles, Ashgrove in Elgin (OPP4) for an industrial building for Seamount and Greshop in Forres (I1). A new road has also been completed at Forres Enterprise Park (BP1). This is a similar level of take up and construction as recorded in 2021 when 4.68 ha was recorded but is across a greater range of sites (6 compared to 4 in 2021). Historic employment land take- up is provided in the Table below and shows that take up in recent years is above historic levels although it is noted that Covid-19 may have affected the figures. The average take-up across the 6 year period is 2.4 ha per annum. Page 198
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Moray Business Property Needs Study Ryden, May 2023 69 TABLE 31: MORAY EMPLOYMENT LAND TAKE-UP Source: Moray Council Employment Land Audit, 2022, 2021, 2020, 2019, 2018 * there was a reliance on Development Management and Building Standards data rather than the usual site visits which were curtailed due to Covid-19 restrictions. 8.39 The Council is currently working on its Employment Land Audit for 2023 and notes that employment land take-up has slowed slightly to 3-3.5 ha over 3 or 4 sites (still to be confirmed). This is lower than levels achieved in 2021 and 2022 but still above historic levels. 8.40 These levels can be compared with other relevant (semi-rural) local authorities as per Table 32. Moray is performing well against its peers with average take up exceeding levels in Perth & Kinross, East Lothian and South Ayrshire and on par with that in Stirling. Fife is outperforming Moray however it is much larger in terms of population. TABLE 32: COMPARABLE EMPLOYMENT LAND TAKE-UP YEAR PERTH & KINROSS TAKE UP (HA) STIRLING TAKE UP (HA) EAST LOTHIAN TAKE UP (HA) FIFE TAKE UP (HA) SOUTH AYRSHIRE (HA) 2022 0 N/A N/A N/A N/A 2021 1.61 5.91 0 1.6 0.93 2020 1.15 4.56 6.7 1.6 0.93 2019 0 0 33.9 1.95 2018 1.92 2.99 0.45 35.05 N/A 2017 N/A 1.4 0.15 47.45 N/A Source: Heads of Planning Scotland, Planning Performance Framework Reports EMPLOYMENT LAND MARKET 8.41 The market for employment land in Moray comprises land which is being advertised for development for office, industrial or distribution use and land which is bought and sold for those purposes. The land market is a sub-set of all allocated employment land in the development plan, as analysed above, plus any windfall sites which were not allocated in planning but were marketed or taken-up for employment use. 8.42 There is currently 81.71 acres (33 hectares) of land over six locations actively being marketed in Moray. These are shown in Table 33 and are all employment land allocations within the LDP. The majority of sites are in the Elgin area however there are also sites available in Buckie and Forres. Contrary to what is being advertised it is understood from the owner of Elgin Business Park that all sites there are now sold or under offer. This site accounts for much of the serviced supply in Elgin and therefore it is likely there could be un- met demand in the area in the short term until further sites and serviced are made available. YEAR TAKE UP AREA (GROSS FIGURE IN HA) NO. OF SITES 2022 4.74 6 2021 4.68 4 2020* 0.85 3 2019 1.29 5 2018 1.6 3 2017 1.23 Not recorded Page 199
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Moray Business Property Needs Study Ryden, May 2023 70 TABLE 33: CURRENT EMPLOYMENT SITES SUPPLY ADDRESS SIZE (ACRES / HA) DETAILS ELGIN MARKET AREA Chanonry Road North, Chanonry Industrial Estate, Elgin 1.18 (0.48 ha) No 1 0.592 acres (0.24 ha) No 3 0.593 acres (0.24 ha) Can be combined to a single site. Moray Council will consider offers to lease the sites on a long (99 years to 125 year) development lease basis. Suitable for general purposes and industrial operations Elgin Business Park, Elgin 10 (4 ha) Sites for sale on a 50-acre business park. Many sites sold but still being advertised are: Site 1C: 0.59 acres Site 2: 1.18 acres Site 8: 1.07 acres Site 10: 1.07 acres Site 11: 1.25 acres Site 14: 2.13 acres Site 15: 0.98 acres Site 16: 1.73 acres Discussions with owner suggests all sites are now sold or under offer. Linkwood Park, Elgin 5 (2 ha) Prime site available. From 1 acre. Identified within the extant and emerging Local Development Plans as an Opportunity Site suitable for a variety of uses including office, retail, leisure, trade counter, industrial and potentially education related uses Findrassie Elgin North, Elgin 29 (12 ha) Findrassie is a major land release allocated in the Moray LDP. The Masterplan covers a total area of c. 112 hectares, which will comprise c. 12 hectares of employment land for Use Class 4 (business) and c. 100 hectares of housing land. Land for sale or to let BUCKIE MARKET AREA Rathven Industrial Estate, Buckie 26.7 (10.8 ha) Phase 1 extends to 10.8 hectares (26.7 acres). Development sites available from 0.25 acres (0.1 ha) to 9.9 acres (4 ha). Short and medium term leases for storage yards and on long term leases for periods up to 125 years, for development purposes, at c. £9,000 pa per acre (£22,250 pa per ha) (Moray Council). Serviced site. FORRES MARKET AREA Plot 2, The Enterprise Park, Forres 3.73 (1.51 ha) High amenity development site. Generally rectangular and level. The site will be able to connect to mains electricity, water and sewerage, gas is available nearby. Suitable for Class 4 Business use. Possible sub-division. (HIE /Graham & Sibbald) Plot 5, The Enterprise Park, Forres 6.10 (2.47 ha) High amenity development site. Generally rectangular and level. The site will be able to connect to mains electricity, water and sewerage, gas is available nearby. Suitable for Class 4 Business use. (HIE / Graham & Sibbald) Source: Ryden / CoStar/ HIE / Zoopla Page 200
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Moray Business Property Needs Study Ryden, May 2023 71 8.43 Ten sites totalling 32.37 acres (13 hectares) have been recorded as taken-up for employment purposes since January 2018 (transactions) which equates to 2.6 ha per annum (correlating with earlier figures from the Employment Land Audit). These are at known employment locations in Elgin and Forres. (Table 34). Again, there is a caveat around potentially further sites having been taken up at Elgin Business Park. TABLE 34: EMPLOYMENT SITES TAKE-UP ADDRESS SIZE (ACRES / HA) DETAILS ELGIN MARKET AREA Elgin Business Park 8 (3.2 ha) 1 (0.4 ha) 1 (0.4 ha) 1 (0.4 ha) 2.99 (1.21 ha) Sold in January 2023 to MacGregor Industrial Supplies Ltd for £1.2 million, to be developed into a showroom Sold in September 2021 Sold in July 2021 Sold in December 2020 to Whiterow Properties Sold in June 2019 to Springfield Properties for £523,250 FORRES MARKET AREA The Forres Enterprise Park, Forres 11.131 (4.5 ha) In November 2020 Highlands & Islands Enterprise purchased the freehold interest in The Enterprise Park, Forres comprising 11.131 acres from an unknown vendor for £408,476 Source: Ryden / CoStar SUMMARY 8.44 The Moray Employment Land Audit was most recently undertaken in April 2022 and shows an established employment land supply of 298.55 ha with a net established area of 226.48 ha across 36 sites. Of this, the marketable/effective employment land supply is 100.37 ha (net) across 21 sites. The Moray LDP 2020 included LONG employment sites for the first time which in the latest audit total 48.06 ha (net) across 5 sites. These sites set out the direction of growth and assist in forward planning. With regard to constrained sites these total 78.03 ha (net) across 16 sites. Infrastructure and physical constraints dominate. 8.45 Employment land take-up was 4.74ha across 6 sites in the year to 1st January 2022. The average take-up across the last 6 years has been 2.4 ha per annum and therefore take up in recent years in above historic levels. The average employment land take-up in Moray is exceeding levels in Perth & Kinross, East Lothian and South Ayrshire and on par with that in Stirling. Fife is outperforming Moray however it is much larger in terms of population. Moray appears to be ‘punching above its weight’ in this regard. 8.46 Ryden has undertaken a desktop assessment of Moray Council’s established employment land supply which ranks their effectiveness based on 8 categories with a maximum score of 40. Just 2 sites scored 30 or above which shows the limited number of sites in Moray which offer a promising combination of market appeal, development potential and (at this tentative stage) technical deliverability. In addition, these two sites required public sector intervention in order to come to fruition which suggests there will continue to be a role for the public sector in terms of site servicing. 8.47 The supply of employment land in terms of those which are physically on the market does appear to be tightening over the short to medium term as the majority of sites at Elgin Business Park are understood to be sold or under offer. Again, further public sector intervention will be required in order to ensure there is an ongoing supply of appropriate land in the future. Page 201
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Moray Business Property Needs Study Ryden, May 2023 72 09 BUSINESS SURVEY, CONSULTATION AND ENQUIRIES INTRODUCTION 9.1 This section summarises the results of the business survey and consultation exercises which were undertaken. It also analyses enquiries data received from the Council and HIE to provide further evidence of demand. Taken together these items provide further evidence of demand. BUSINESS SURVEY 9.2 In order to assess potential demand for business property in Moray, a survey of business property occupiers was undertaken during February and ran until 15 March 2023. This was promoted by Moray Council on its own website, on mymoray.co.uk and its Facebook page and in the local press. It was also shared with local business organisations for distribution amongst their members. This included Moray Chamber of Commerce, the Federation of Small Businesses and the Scottish Whisky Association. A copy of the survey questions can be found in Appendix B. 9.3 A total of 51 responses were received. Of these 9 were from industrial occupiers, 10 from office occupiers, but 32, although of interest, were less relevant to this study (i.e. retail, restaurants, accommodation services). 9.4 Positively these 19 business property responses provide a selective but detailed insight into the performance and constraints of existing business premises and potential future demand in Moray. 9.5 Respondents were asked for their postcode to gauge the spread of locations within the region. Industrial occupiers are more widely spread throughout the region, while office occupiers are concentrated in Elgin. • 2 industrial occupiers are located in the Elgin Market Area, 1 in Forres Market Area, 3 in Buckie Market Area, with 2 in Keith Market Area. • 9 office occupiers are located in the Elgin Market Area, with 1 in the Forres Market Area. 9.6 The status of each business was asked. The majority of industrial respondents are sole operators (6), while office occupiers are either Headquarters or sole premises. (Figures 25 and 26) FIGURE 25 FIGURE 26 9.7 Eight business sectors are represented (Figure 27), with Real Estate Activities having the most (7, of which 2 are industrial and 5 office); followed by ‘Other’ Service Activities with 3 (1 is industrial and 2 are office); Repair of Motor Vehicles and Motorcycles has 2; and Arts, Entertainment and Recreation (industrial), Page 202
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Moray Business Property Needs Study Ryden, May 2023 73 Construction (industrial), Food Production (industrial), and Human Health and Social Work Activities (office), Wholesale and Retail Trade (office) all have 1 each. FIGURE 27: BUSINESS SECTOR 9.8 Survey questions turned to the occupiers’ current premises, asking what is the nature of the premises occupied. As noted above this is 9 industrial occupiers, which includes one stating ‘storage yard’ rather than a unit, and two home based; and 10 office occupiers, with one of the office occupiers home based.20 9.9 Three industrial occupiers stated the size of their premises: all 3 are in the 1,000 – 4,999 sq.ft. sizeband but one of these is the storage yard. Four office occupiers know the size of their premises: 3 are in the 0 – 999 sizeband, with the other 1 in the 5,000 – 9,999 sq.ft. sizeband. 9.10 All respondents are ‘Small Businesses’, i.e. with 0 – 49 employees. The smallest employee bracket of 1- 5 employees had the majority at 14, with 8 for industrial and 6 for office sectors. The office sector had 1 business in the 6-10 employee band, while 1 business in the industrial sector and 2 businesses in the office sector fell within the 11-49 employee band (Figure 28). One did not state their employee numbers. FIGURE 28: EMPLOYEES 20 Only responses from relevant questions from the Home based occupiers were analysed. 0 2 4 6 8 10 12 14 16 1 -5 6 - 10 11-49 50-249 250+ number employees Number of Employees Industrial Office Page 203
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Moray Business Property Needs Study Ryden, May 2023 74 9.11 Respondents were asked the length of occupation in the current premises (Figure 29). Industrial and office occupiers have a similar spread in length of occupation. Six office occupiers have been in occupation for between 1 month to 9 years, with one over 40 years. Industrial occupiers have 2 in each of the 1 to 4 years, 10 to 19 years and 20 to 39 years categories. FIGURE 29: LENGTH OF OCCUPATION 9.12 On tenure of property, a majority of respondents lease their property (10, with 5 for each sector), while 6 are owner occupiers (2 industrial and 4 office) (Figure 30). FIGURE 30: TENURE 9.13 Respondents were asked to rate their existing property and environment. Overall industrial respondents considered this positively. Views on location, size, condition, road connection, parking, access, image/ general environment, security, staff services/amenities and communications were viewed as Good or Satisfactory. While Energy efficiency, accommodation and public transport links were identified as Less than Satisfactory and Poor (Figure 31). 9.14 Office occupiers rated their properties more positively than industrial occupiers, with location, size, condition, accommodation, road connections, public transport links, parking, access/ circulation, image/ Page 204
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Moray Business Property Needs Study Ryden, May 2023 75 general environment and staff services/amenities all scoring well. With energy efficiency, security and communications scoring less well. (Figure 32) FIGURE 31 FIGURE 32 9.15 Fourteen of the respondents (73%) have a requirement to expand/relocate. This suggests a high propensity to move but it may be the case that there is some self-selection, with responses to the survey potentially more likely from those with a potential property requirement. In addition, one businesses (in an arts, entertainment & recreation building) has a requirement for an industrial property. 9.16 Nine have a requirement for an industrial property, with two of these for land, 3 of which are definitely considering expanding / relocation, with 6 stating a possibility. Table 35 below provides summary tables of these requirements. Smaller units and both the Elgin and Buckie Market Areas are the most popular. TABLE 35: INDUSTRIAL REQUIREMENTS When Requirement Size Location Type In the next 12 months 4 0 - 999 0 Elgin Market Area 3 Industrial 2 After 12 months 4 1,000 – 4,999 3 Forres Market Area 1 Industrial / office mix 1 Don’t know 1 5,000 – 9,999 1 Buckie Market Area 3 Land for storage 1 10,000 + 0 Speyside Market Area 1 Land for development 2 No response 4 Moray 1 Commercial unit 3 1 – 5 acres 1 9.17 The main reasons given for industrial occupiers with a requirement to relocate/expand are: property too small, configuration, out-of-date premises and location. 9.18 While two office occupiers are definitely considering expanding/relocation, with 4 stating a possibility. Table 36 below provides summary tables of these requirements. All would like space in and around Elgin. TABLE 36: OFFICE REQUIREMENTS When Requirement Size Location Type In the next 12 months 3 0 – 999 1 Elgin Market Area 6 Office 1 After 12 months 3 No response 5 Office / industrial mix 1 Office / retail 3 Co-working space 1 Page 205
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Moray Business Property Needs Study Ryden, May 2023 76 9.19 The main reasons given for office occupiers with a requirement to relocate/expand are: property too small, location, building configuration, environment, out of date premises, other occupiers and pricing. 9.20 On a scale of 1 to 5, where 1 is not important and 5 is very important, respondents were asked to rate what is important in deciding new premises. The results are noted below. Industrial: • of greatest importance was location, cost, size and digital connectivity (mainly ranked 5) • energy efficiency, quality of building and transport connectivity ranked high • on site facilities ranked in the middle, neither not important or very important • of least importance was the opportunity to share facilities Office: • of greatest importance was cost (mainly ranked 5) • location, quality of building, energy efficiency, transport connectivity, size and digital connectivity ranked high • Onsite facilities ranked in the middle, neither not important or very important • of least importance was the opportunity to share facilities 9.21 Looking at future tenure, four of the industrial respondents would like to purchase new premises, one would like to lease with a view to purchase, while 3 would like to lease. One already owns the land. In the office sector leasehold is the preference with 5 stating this as the preferred option, with only one looking to purchase. 9.22 Respondents were asked if they had any specific requirements from the new property. Industrial respondents selected mainly prominent location / visible to passing trade, vehicle access to the building, and yard space. Eaves height, alarms and trade / retail counter were also noted. While three phase electricity was an additional requirement. In the office sector, similar requirements of prominent location / visible to passing trade, vehicle access to the building were selected by most. Eaves, height alarms and trade/ retail counter were also noted. Heating was also noted by one. 9.23 Seven industrial respondents and 5 office respondents have started to look for new / additional premises. The constraints those businesses have found are: • in the industrial sector: Lack of suitable properties, costs, location, no land for sale and planning issues. • in the office sector: Cost, lack of and standard of available property, Non-domestic rates charges too high, and current lease arrangement. Constraints for both property sectors are similar, i.e. Cost and the lack of suitable quality premises. 9.24 Respondents were asked if they had any additional property related comments. The majority relate to the costs (both rent and rates), transport and access, regeneration required, and planning constraints. These comments are summarised below: Additional property related comments: industrial I feel the council need to improve their current leased buildings to a better standard. Cost is crippling to business in current climate. Landowners around Dufftown unwilling to sell or rent. Dufftown Valley is owned by 5 named landowners. Totally constrained. To look at the possibility of developing an area of my woodland for commercial use, such as shared-use office space/hot- desking, smaller industrial units Better public transport and pedestrian access would help the town, along with improved & free car parking Page 206
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Moray Business Property Needs Study Ryden, May 2023 77 Additional property related comments: office The high street will never recover without serious overhaul of the non-domestic rates system. It is archaic and has not been adjusted to move with the changing face of the high street and how the public has shifted in its shopping habits. We see regular demand for independent retailers looking to take on premises however once they see the cost associated with Rates it makes small business non-viable. Batchen Street only succeeds due to many of the shops being eligible for Small business relief. Previously the feedback from the council is landlords need to reduce rents. Most landlords are happy to be flexible regarding rates and offer discounted periods and reduced rents for long periods whilst the tenant gets established. The Empty Property Relief offers a very short window of assistance and then no assistance once it ends. The council also voted to bring in a charge for empty properties normally eligible for Small Business Relief when the property was empty. They did this with no consultation and via Zoom in April 2020 right at the start of the pandemic. Hardly a supportive decision for any of those properties affected and the business/landlord communities. Elgin's high street has beautiful historical buildings many of which have been allowed to fall into disrepair by distant landlords. The lack of maintenance of the exteriors/roofs and upper floors is firstly so dangerous but incredibly sad. Legislation needs to be introduced to penalise neglectful landlords. You only need to look at The Thunderton to see the fantastic restoration work done there to see what can be achieved. We have owned this property in the centre of Forres now for 15 months, we hoped to satisfy the demand for commercial space in Forres as there has been a lack of it for years. Unfortunately delays in replies from planning department is holding up tenants moving in. Rates of retail premises along with high rents, just put the high street off limits for affordability to a small company like mine. Add the compulsory fee for Elgin Bid and it just isn't an option. 9.25 The other property sectors (not of interest for the main survey), provided some valid comments. Those of particular interest are: Additional property related comments: miscellaneous Local government needs powers to press on landlords - especially absent ones to maintain their premises. The bigger next step is to downsize the large High St units in Elgin (& other towns) to make them more appropriate for smaller businesses as there are plenty looking to open but not enough options. Lots of small businesses in a town centre keep it different and interesting High street dirty and tired looking with poor quality expensive parking, difficulties getting deliveries as high street pedestrianised and shop units empty and uninviting. Better public transport and pedestrian access would help the town, along with improved & free car parking Access to the Town Centre is poor due to inadequate/expensive parking and lack of a traffic warden to police the illegal all day parking, is making the area inaccessible to some. Allowing drop off/pick up areas, instead of pedestrianising more areas would allow greater access to all and help create an atmosphere, air of vibrancy with more footfall and activity. It's an excellent location for our upcoming business Re- location to our new and superior premises, has greatly increased our profitability reflected by the very high level of service we can now provide to the wider Moray community. Regrettably, our plans for future development are being impeded by the high level of business rates currently inflicted by Moray Council. Businesses will not be encouraged to expand , or to locate to Moray , unless high-level, non -domestic rate payers are given some incentive. 9.26 A number of these comments relate to changes to the retail environment which have been accelerating over the last few years and have had an impact on towns and their High Streets. STAKEHOLDER CONSULTATION 9.27 In addition to the business survey, Ryden also consulted with members of the Moray Business Resilience Forum. The Business Resilience Forum includes representatives from Moray Council, Highlands and Islands Enterprise, Moray Chamber of Commerce, Moray Business Women, Elgin BID, Visit Moray Speyside, Business Gateway Moray, Skills Development Scotland, Federation of Small Business, Scottish Council for Development and Industry, and Department for Work and Pensions. Ryden undertook a workshop session with the Forum in March 2023 and picked up others from the group who couldn’t attend separately via Teams meetings. 9.28 Consultations were also undertaken with local developers, HIE, the Scotch Whisky Association and Chivas Brothers who own several distilleries in the area. A full list of consultees can be found at Appendix 3. Page 207
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Moray Business Property Needs Study Ryden, May 2023 78 9.29 There was discussion amongst consultees in terms of ‘winners and losers’ within the local economy. The ‘winners’ were noted to be organisations such as Orbex and the Ministry of Defence who are expanding in the area and capitalising on growth within the key sector of aerospace. Orbex is a key tenant at Forres Enterprise which is owned by HIE. Orbex occupy a number of properties within the Park and hope to increase staffing numbers from the current 100 to 400 over the next few years as they expand their rocket production but consultees noted there are constraints in attracting jobs to the area particularly because of a pressing need for housing in the area. HIE is keen to attract further space companies to the Park but large sites are required. HIE is also considering further complementary uses on the Park including childcare, an additional food offering and/or a budget hotel. Forres Enterprise Park will also be a key location for a number of the Moray Growth Deal projects and it is anticipated that incubation and “grow-on” space will be developed on site later this year as part of the Manufacturing Innovation Centre Moray (MICM). Consultees stated that there is uncertainty around Phase 2 of the Park as it may be affected by the dualling of the A96. 9.30 There was also noted to be a lot of activity at Elgin Business Park where, although visually there are notable areas of land still to be developed, all employment land plots for sale were noted to be sold or under offer. Businesses within the Park are diverse and will include (subject to planning consents) engineers, food and drink, construction, industrial suppliers and an accountant amongst others. The question was raised of “where next” if Elgin Business Park does become full. Consultees stated there is uncertainty over Phase 2 of Elgin Business Park because of flood risk issues. 9.31 A further key sector considered to be ‘winning’ in the area, was the whisky industry with over half of all of Scotland’s whisky distilleries found in Moray Speyside. Several distillery expansions have been undertaken in recent years and many are upgrading sites and considering facilities such as biomass to meet their own carbon neutral targets. Many are also upgrading their visitor experiences. This is positive not only for the industry but also for the local supply chain including farming and logistics and the tourist industry. Consultees considered there was future potential for synergies between the whisky industry and the Council’s plans for renewables in the area. Many distilleries already have lorries running on green gas and it was considered there could be better co-ordination between producers and the Council in this regard. 9.32 There was also considered to be a “continuing and increasing demand” in the area for whisky storage with one consultee commenting “the industry can’t get enough”. Whisky is a highly flammable product and therefore it was noted that rural locations can often be more suitable for this purpose. Consultees acknowledged that warehousing is not particularly employment generating in itself but again that the industry as a whole supports a wider supply chain as well as this global industry which was noted to be responsible for 77% of all Scottish food and drink exports21. It was noted by consultees that planning permission for warehousing could take a long time. Meanwhile, the industry was described as taking a very long term view and therefore has a good understanding of what their land and property requirements will be for the next decade. 9.33 Meanwhile, a number of businesses were considered to still be “battening down the hatches” following the impact of the pandemic, Brexit and the continuing effects of the energy crisis and inflation. This was considered to be true particularly of the retail and hospitality sector. 9.34 There was concern about those businesses ‘stuck in the middle’. One consultee noted that “there is an appetite for business growth in Moray from SMEs but the current cost and skills pressures mean that many are happy to stick where they are”. The labour market was noted to be tight in Moray with an example provided of a recent call centre closure (Kura contact centre, Forres) where all affected staff were quickly re-employed. 9.35 It was considered that more support could be provided to SMEs to enable them to gradually expand and move “out of bedrooms and into property”. Reference was made to a new co-working space (Greenbrae Steading, Elgin) where people can gradually step up their requirements from a desk space to a larger self- contained unit. This “stepping stone” approach, which also builds a business community at the same time, 21 Scotch Whisky Association Page 208
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Moray Business Property Needs Study Ryden, May 2023 79 was considered to be important for Moray. Incubator premises were acknowledged amongst consultees to be part of the Growth Deal although it was noted they will be targeted at specific growth sectors. 9.36 Premises which were appropriate for the community and wellbeing economy were also noted to be important for the area going forward. An example was given of a martial arts club with over 100 members who cannot find appropriate premises yet is making a real difference in the community. Consultees noted change of use planning applications had been slow and reported many businesses had had to “push quite hard to make them happen”. This was particularly true of former retail premises. 9.37 There was considered to be a growing trend for mixed use businesses such as tap rooms which may also include the main brewery as well as a food and retail offering. Facilities such as these were also considered to be a potential test bed for start-ups. 9.38 There was also considered to be demand for larger bespoke premises including from the transportation sector. It was noted that currently it was unfeasible because of construction costs for businesses to build their own large bespoke premises and that developers are not building these units in the area currently. As a result, some companies were reported to be experiencing restricted growth within unsuitable premises. 9.39 More generally, it was raised that there is a lack of energy efficient buildings in Moray and that this is an area which will need to be considered further as Scotland aims to reach net zero carbon emissions by 2040. It was also realised that there will be a greater requirement for more energy efficient buildings not simply to create cost and carbon savings but also to attract businesses which will be part of the net zero revolution. Moray is a key location for Scotland’s transition. 9.40 Non domestic rates were also considered to be affecting businesses in the area. It was commented that “small businesses pay nothing and while large ones simply absorb the costs; it is the middle ground businesses trying to expand which face the ‘cliff edge’”. It was suggested rates should be tapered further to avoid this impact. OCCUPIER ENQUIRIES 9.41 In order to further understand demand, Moray Council and HIE shared details of their business enquiries. 9.42 Since January 2022 Moray Council received 43 enquiries for industrial, yard or office premises, these total 22,440 to 29,395 sq.ft.22 Forty of the enquiries were for industrial property. Only one enquiry was specifically for offices and two enquiries were for yards. Enquiries received by an organisation can to some extent reflect the type of premises which they are marketing, so given the Council’s portfolio of small industrial units (see Section 7) it is not unexpected that this is the most common type of enquiry. 9.43 The 40 enquiries for industrial premises together total between 22,440 to 29,395 sq.ft. (where a size was stated). The market areas of Forres and Buckie were the preferred locations with 30% each of all industrial enquires. By sizeband 15 enquiries had no suggested size, 19 are in the 0 - 999 sq.ft. range, and 6 in the 1,000 – 5,000 sq.ft. range. No enquiries larger than this were received. FIGURE 33 Source: Moray Council / Ryden 22 Not including yard sizes Page 209
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Moray Business Property Needs Study Ryden, May 2023 80 9.44 Two enquiries were specifically for yards, one of c. 21,500 sq,ft. and the other with no specified size. Additionally, 10 of the enquiries for industrial property also stated they would like a yard with the premises, only one size (1,615 sq.ft.) was noted. 9.45 The one office enquiry was for an office in Elgin, no size was provided 9.46 Over the past six months Highland and Islands Enterprise (HIE) received 13 enquires. • for The Enterprise Park, Forres, with 3 for a 22,000 sq.ft. industrial unit and one for a 3.7 acre development plot • enquiries from the space sector, totalling 123,600 sq.ft. • 1 from the manufacturing sector, for a factory of 135,000 sq.ft. • enquiries for 5 offices at Horizon Scotland at The Enterprise Park, Forres LEASE EXPIRIES 9.47 As a sample of potential future demand using available lease data, 19 leases totalling 91,008 sq.ft. are due to expire across the region in the next 10 years at a rate of 1-4 each year. Nine of these are for industrial units totalling 53,643 sq.ft. and 10 are for offices totalling 37,365 sq.ft. (Figure 34). In addition, there are a high number of Council tenants on rolling short term leases. FIGURE 34: LEASE EXPIRIES SUMMARY 9.48 A total of 51 responses were received to the business survey which sought to understand the views of business occupiers and their experiences of the property market. Responses from industrial occupiers were spread throughout the region however responses from office occupiers were concentrated in Elgin. The majority occupy small premises with only one in a unit above 5,000 sqft. In terms of existing properties and their environment, occupiers raised energy efficiency and standard of accommodation amongst features which were less than satisfactory or poor. 9.49 73% of respondents had a requirement to expand/re-locate with the majority seeking industrial property with a preference for the Elgin or Buckie area. Those seeking office properties were only interested in the Elgin area. Cost was a key consideration in deciding on new premises as was digital connectivity, size and energy efficiency. A lack of suitable properties was raised as a constraint by those who have started to look for new/additional premises. Page 210
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Moray Business Property Needs Study Ryden, May 2023 81 9.50 Consultation described a dichotomy between those businesses in the area which are seeking to grow and expand and others which are experiencing economic, staffing and other pressures and “happy to stick where they are”. Further consultation with the whisky industry is recommended. There was considered to be a requirement for mixed use properties and for properties suitable for the wellbeing economy. The energy efficiency of buildings was again raised as an issue in the area. 9.51 Council enquiries focus on small industrial stock which represents its own portfolio. It is notable that a quarter of enquiries sought premises with a yard. HIE has received a mix of mobile enquiries as well as those with specific interest in their properties. Enquiries from the space sector totalled 123,600 sq.ft. Page 211
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Moray Business Property Needs Study Ryden, May 2023 82 10 FUNDING POTENTIAL 10.1 This section provides an update and summary on the employment land and property public funding landscape. Public sector intervention in the property market is often required in areas where market failure exists in order to support economic development. Market failure is common in Scotland outside of city centres and strategic transport corridors. Public sector intervention has moved from large scale development in the 20th Century to selective support for target locations and sectors, allied to economic strategies. 10.2 However, in recent years this landscape and the funds available has altered as a result of Brexit and the Covid-19 pandemic. Britain’s exit from the European Union in January 2020 means it cannot participate in the next round of European Union Structural Funds for which the Scottish Government was the managing authority. This has affected funds such as SPRUCE and LEADER with SPRUCE in particular being a previously important funding source for the refurbishment or conversion of employment space. In its commitment to fully replacing European funding levels, the UK Government has introduced several new funding streams as part of its Levelling Up agenda which are applicable to the whole of the UK. This means that the UK Government is now more actively involved in economic development in Scotland than was the case previously. 10.3 The policy landscape has also moved on. In Scotland, there is an increased focus on net zero and other agendas including a greater focus on place, community wealth building and natural capital which has resulted in a number of funders reviewing their objectives and re-casting grant programmes. The recovery from the pandemic has also had an impact on funding streams. 10.4 Applicable funding sources for Moray are discussed within this section. UK GOVERNMENT LEVELLING UP FUND 10.5 Levelling Up is the UK Government’s “moral, social and economic programme which aims to spread opportunity more equally across the UK”. 10.6 The Levelling Up Fund was launched in 2021 and is a capital fund designed to directly support communities across the UK with capital investment in local infrastructure. It is open to all areas of the UK and seeks to regenerate town centres and high streets, invest in local transport schemes and create, renew and upgrade local cultural and heritage assets. Projects should also be aligned to and support net zero goals. 10.7 The Fund will provide £4.8bn of capital investment across the UK over the next 5 financial years for local infrastructure projects with £800m of this ring-fenced for Scotland, Wales and Northern Ireland. It is anticipated that all funding provided from the Fund will be spent by 31 March 2024 with the potential exception of larger schemes into 2024-25. 10.8 In Scotland, funding will be delivered through local authorities. Bidders are encouraged to collaborate with neighbouring authorities on cross boundary schemes where applicable. 10.9 Funding is competitive and will be targeted towards places with the most significant need as measured by an index which takes into account need for economic recovery and growth, need for improved transport connectivity and need for regeneration. This index places areas into a category 1, 2 or 3, with category 1 representing places with the highest level of identified need. The Levelling Up Index for Scotland is shown Page 212
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Moray Business Property Needs Study Ryden, May 2023 83 below. Moray sits in the Priority 2 Category. 10.10 Two rounds of the Levelling Up Fund have been awarded to date with £3.8bn awarded to 216 projects. To date, Scottish local authorities have been awarded funding for 18 projects with a total value of £349m. In Scotland to date, priority 1 areas have received 56% of the funding. 10.11 Projects have included: • £38.7m to improve travel links between the Advanced Manufacturing Innovation District Scotland (AMIDS) and the towns of Paisley and Renfrew • £19m in Stirling which will go towards the regeneration of Forthside, helping to create 1,000 jobs • More than £9m for Cumbernauld to support the demolition and regeneration of two failing shopping centres and a vacant office block to help bring education, employment and homes 10.12 Unfortunately, Moray Council was unsuccessful in its bid to deliver on elements of the Elgin City Centre Masterplan which would have helped regenerate South Street and redevelop vacant and derelict buildings and sites for a mix of uses including offices, retail, commercial and residential. 10.13 Whilst this fund does not specifically target employment land and property it can play a role in the provision of employment property in a town centre regeneration context as per the Elgin bid. Linking in with ambitions around 20 minute neighbourhoods, the provision of local enterprise hub/co-working spaces could be relevant. 10.14 The UK Government has confirmed there will be a round 3 of the Levelling up Fund however no further details have been published at this stage. UK SHARED PROSPERITY FUND 10.15 The UK Shared Prosperity Fund (UKSPF) is another pillar of the UK Government’s Levelling Up agenda. It provides £2.6 billion of new funding for local investment by March 2025, with all areas of the UK receiving an allocation from the Fund via a funding formula rather than a competition. 10.16 The primary goal of the UKSPF is to build pride in place and increase life chances across the UK. Underneath this overarching aim there are three UKSPF investment priorities: communities and place; supporting local business; and people and skills. 10.17 Moray will receive a total of £4.3 m from the Fund. This will be £3.6 m in core funding and £0.7 m for the Multiply programme which focuses on adult numeracy across the Region. A high level investment plan outlining the proposed interventions has been developed and approved by Moray Economic Partnership and the UK Government. 10.18 All interventions should end by March 2025 and match funding should be considered in order to fully leverage options when selecting communities and place and supporting local business interventions to fund. GREEN FREEPORTS 10.19 Green Freeports are designed to boost innovation and inclusive growth within communities, while supporting Fair Work First practices, creating new green jobs, upholding the highest environmental protections and supporting economic transformation. 10.20 A Green Freeport is a large zoned area within a defined boundary which includes a rail, sea or airport. Operators and businesses in the zone can benefit from a package of tax and other incentives through a combination of devolved and reserved levers. They allow goods to be imported, manufactured and re- exported without being subject to checks, paper work or import taxes (tariffs). This means raw materials Page 213
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Moray Business Property Needs Study Ryden, May 2023 84 can be imported, then engineered into whole products for export. Typically, companies operating in the zone pay lower taxes, such as reduced VAT and lower rates of employment tax. 10.21 Green Freeports are an adaptation of the UK Government’s Freeport model and is backed by up to £52m of seed funding from the UK Government. The Green Freeports must contribute to four policy objectives: • Promoting regeneration and high-quality job creation (lead policy objective) • Promoting decarbonisation and a just transition to a net zero economy • Establishing hubs for global trade and investment • Fostering an innovative environment 10.22 On 13th January 2023, it was announced that Opportunity Cromarty Firth and Forth Green Freeport have secured Green Freeport status in Scotland. The Inverness and Cromarty Firth Green Freeport will focus on industries around offshore wind, hydrogen and nuclear, covering sea ports in the region as well as Inverness Airport. It is expected to create 25,000 jobs and generate up to £4.8 billion in investment for the area. Whilst the Highland Council area will be the predominate benefactor of this project it is likely there may also be an impact on the Moray area as a neighbouring authority. This could take the form of supply chain opportunities resulting in demand for land and property. However, a common criticism of Green Freeports is that economic activity may also be displaced from other areas. This may also have a potential impact on Moray. There is no evidence currently as to which scenario will prevail. 10.23 The UK Government has also mooted the topic of Investment Zones however in Scotland the interaction between these and Green Freeports is to be agreed. It has been announced that there will be “at least one23” Investment Zone in Scotland. The investment zones will also have numerous tax benefits over five years, similar to Green Freeports, with enhanced rates for Capital Allowances and Structures and Buildings Allowance. The areas will be exempt from Stamp Duty Land Tax, Business Rates and employer National Insurance contributions. They will also have access to “flexible grant funding” for funding apprenticeships, supporting businesses operating in the zone and for local infrastructure projects. It is likely that local authorities will have to apply for Investment Zone Status and it will be competitive. Plans will need to demonstrate how the Investment Zone will support net zero ambitions. Further details are to be announced in due course. SCOTTISH GOVERNMENT JUST TRANSITION FUND 10.24 The Just Transition Fund is a £500m ten-year commitment that will support projects in the North East and Moray which contribute towards the region’s transition to net zero. The Fund was announced in recognition of the particular need to diversify the regional economy away from carbon-intensive industries and to capitalise on the opportunities, including jobs and prosperity, that the transition to net zero will bring. 10.25 Year 1 projects were announced in October 2022 and included investments in research and innovation new green skills training facilities; pilots for emerging energy technologies and projects that will get businesses ready for the supply chain opportunities to come from the energy sector’s transition to net zero. Over £50m has been awarded for Year 1. 10.26 As part of the awards, Moray Council will receive £881,000 for its Just Transition Masterplan which will fund 5 interlinked projects to support Moray’s journey away from fossil fuels, including projects to support offshore renewables, creation of a local hydrogen economy, natural capital approach to offsetting, and redeveloping derelict land and premises. The 5 projects are: • Buckie Harbour feasibility study 23 Chancellor Jeremy Hunt, Spring Budget, 15th March 2023 Page 214
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Moray Business Property Needs Study Ryden, May 2023 85 • Blackhillock Masterplan • Hydrogen feasibility study • Carbon Offset feasibility study • Vacant Land Development feasibility study 10.27 The funding for this stage of the work is for 2022/23 and the intention is that this feasibility work will result in costed plans for how these projects will be delivered. 10.28 Funding from the Just Transition Fund will be critical for Moray moving forward in order to ensure it can capitalise on the journey to net zero which will require careful planning of the employment land and property required, not only for direct property demand but also supply chain and induced economic activity. PLACE BASED INVESTMENT PROGRAMME (PBIP) 10.29 Announced in February 2021, the PBIP is being used to link and align place-based funding initiatives within the Scottish Government. Its aim is to ensure that all place based investments are shaped by the needs and aspirations of local communities and accelerate Scottish Government ambitions for place, 20-minute neighbourhoods, town centre action, community led regeneration and community wealth building. 10.30 The PBIP is supported by an initial £325m capital over 5 years (commencing 2021/22) with funds being allocated to local authorities by the Scottish Government. Allocations are based on a weighted formula based on the number of towns and population in a local authority area and deprivation indices. 10.31 The PBIP aims to invest in centres or neighbourhoods connected with 2 categories of settlement: i. Rural settings with smaller populations, dependent on larger geographical areas for support, for example: • Small Towns with a limited range of non-specialised facilities • Villages with very limited, or non-existent, access to facilities ii. Urban settings with sizeable populations, for example: • Regional Capitals with extensive provision supporting a wide geographical area • Larger Towns with a comprehensive range of dedicated services and facilities. • Individual Neighbourhoods with limited access to relevant local provision. 10.32 The allocation for Moray for 2021/22 was £770k capital funding and this was used for the purchase of property at Buckie Harbour to enable regeneration and employment associated with offshore wind. The funding allocation for 2022/23 is £466k with a similar allocation expected in future years. It is anticipated that further properties may be purchased at Buckie Harbour to facilitate harbour development and the supply chain for offshore wind which will create jobs and opportunities or to directly deliver harbour improvements associated with offshore wind. VACANT AND DERELICT LAND INVESTMENT PROGRAMME (VDLIP) 10.33 The VDLIP is a Scottish Government capital programme scheduled across five years to help with tackling persistent VDL and supporting place based approaches to delivering regeneration and sustainable inclusive growth, as part of a ‘just transition’ to net-zero by 2045. 10.34 The VDLIP has four pillars of action: sustained place-based approaches; urban green spaces; community- led regeneration and; low carbon developments and renewables. The total level of funding over the 5 years is £50 million. 10.35 The VDLIP is available to all 32 Scottish Local Authorities and Clyde Gateway URC. Grants are for capital Page 215
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Moray Business Property Needs Study Ryden, May 2023 86 works with the fund specifically targeting ‘long term’ (15 years+) VDL. It is to be noted that the Investment Panel may prioritise proposals that involve DUSTE (Derelict and Urban Sites unused since Two Thousand or Earlier) sites, as identified by the VDL Taskforce. Essentially these are Scotland’s ‘stuck sites’ and are captured on the Scottish Land Commission’s DUSTE map. There are however many sites that meet the DUSTE criteria but because of their size (>0.1 ha) have never been formally recorded on the register. Proposals for both registered and unregistered DUSTE sites are welcome. 10.36 In the 2021 Scottish Vacant and Derelict Land Register, Moray recorded 17 sites totalling 14.96 ha. This includes the former Jones shipyard in Buckie which is a designated site for mixed use including employment. It is noted there are no DUSTE sites in Moray. REGENERATION CAPITAL GRANT FUND (RCGF) 10.37 The RCGF is part of the Scottish Government’s Capital Investment Fund and is delivered in partnership with COSLA and local government. It supports locally developed place based regeneration projects that involve local communities, tackle inequalities and deliver inclusive growth in deprived, disadvantaged and fragile remote communities across Scotland. Local authorities must act as the lead applicant for RCGF bids. 10.38 The fund has been operative since 2014 and the funding made available across Scotland is c. £20m per annum. The 2023/24 allocations, recently announced, will provide funding for 23 different projects. 10.39 The RCGF has been used to pump prime a number of Council (or Council subsidiary) property developments particularly enterprise or community business hubs. However, it has also been used for more commercial projects by applicants. For example, Clyde Gateway has brought the Olympia Housing building in Bridgeton back into commercial business use as well as delivering flexible hybrid industrial space at Magenta Business Park, Shawfield. North Lanarkshire Council has also received funding for the refurbishment and renewal of the run-down and partially derelict Braidhurst Industrial Estate, ensuring its long-term viability and supporting local businesses and jobs. 10.40 In the 2023/24 funding round Moray Council was successful with its bid for Lossiemouth Community Hub and was awarded £270,200. SCOTTISH NATIONAL INVESTMENT BANK (SNIB) 10.41 The Scottish National Investment Bank (SNIB) is a development investment bank, established and funded by Scottish Ministers on behalf of the people of Scotland. SNIB has been established to operate commercially, and is operationally dependent from the Scottish Government. It invests in Scottish business, projects and communities to deliver environmental, social and financial returns. Investments in debt and equity are made on commercial terms and all investments must support at least one of SNIB’s missions. These are: • Achieving a just transition to net zero by 2045 – rebalancing the economy towards leadership in sustainable technology, services and industry • Extending equality of opportunity through improving places by 2040 – invest in places and regeneration to reduce inequalities and improve opportunities and outcomes for people and communities • Harnessing innovation to allow Scotland’s people to flourish by 2040 – invest in innovation and industries of the future for a healthier, more resilient and productive population 10.42 SNIB provides patient (long term) capital to businesses and projects throughout Scotland to support the development of a fairer, more sustainable economy. SNIB launched in November 2020 and the total investment committed to date is £378.2m 10.43 Typically, the Bank will invest in businesses and projects seeking more than £1m in investment support (debt or equity). The maximum level for projects is £50m. The Bank does not provide grants and is unable Page 216
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Moray Business Property Needs Study Ryden, May 2023 87 to offer investment on sub-commercial terms. 10.44 The Bank invests in businesses based in Scotland, projects based in Scotland, or businesses seeking to move to Scotland. It can invest in all stages and sizes of business but expects to focus its business, demonstrating commercial progress. SNIB’s particular focus is on small and medium sized Enterprises (SMEs). 10.45 The Bank may also undertake project investment which is distinct from business investment as it typically brings together a number of parties to deliver a project. Project finance is typically associated with infrastructure and energy investment. 10.46 The Bank will also support investment in communities and the third sector, e.g. charitable businesses, clean energy projects, local affordable housing developments, local regeneration projects. 10.47 To date monies have been provided to allow a number of companies to scale up production in turn expanding their footprint and creating jobs. As noted in Section 4, this has included funding for Orbex, headquartered in Forres, to help scale up operations. SNIB’s role is in supporting the demand side through organisations and projects rather than any direct provision of employment land or property. TAX AND INCREMENTAL FINANCING INITIATIVES 10.48 The Scottish Futures Trust leads the Tax Incremental Financing (TIF) programme for Scotland as a way of securing infrastructure investment in order to unlock regeneration and inclusive economic growth. TIF seeks to capture locally generated, incremental public sector revenues (e.g. business rates) that would not have arisen were it not for investment in the delivery of ‘enabling’ public sector infrastructure. 10.49 The use of TIF is normally predicated on a ‘but for’ test i.e. that but for TIF, the anticipated outcomes from a regeneration and economic perspective would not occur or not occur in the time frames which TIF would enable. A TIF project must therefore demonstrate that the enabling infrastructure will generate additional public sector revenues to repay the financing requirements. 10.50 As an example in the employment property market, the Falkirk TIF, led by Falkirk Council will deliver an initial phase of 53,582 sq.ft. of business space. The total area has the potential to deliver up to 400,000 sq.ft. of business space across a number of sites. Fife Council also has a TIF focused on industrial property. GREEN GROWTH ACCELERATOR 10.51 The Green Growth Accelerator was launched in June 2021 as a new investment programme to help deliver Scotland’s just transition to a net-zero emissions economy. The Green Growth Accelerator will speed up delivery of low carbon infrastructure projects across Scotland and provide extra resources and technical support to local authorities to get projects off the ground more quickly. Once fully opened the programme will unlock £200m of public sector investment to drive the transition to net zero – with further investment from private sector also anticipated. 10.52 Developed in collaboration with COSLA, it builds on the principles of the Growth Accelerator model which has already supported major economic investment opportunities including the St James Quarter in Edinburgh and the Waterfront in Dundee. 10.53 Six pilot projects are currently underway to help test the Green Growth Accelerator model. The pilot projects include a hydrogen refuelling module in Aberdeen; hydrogen production infrastructure in the Western Isles; building efficiency upgrades in Edinburgh; natural coastline adaptations in the Highlands; and a water source heat pump retrofit at Strathclyde Park in North Lanarkshire. A further rollout of the model has been mooted. Page 217
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Moray Business Property Needs Study Ryden, May 2023 88 CITY REGION AND REGIONAL GROWTH DEALS 10.54 City Region and Regional Growth Deals are bespoke packages of funding and decision making powers negotiated between the Scottish Government, the UK Government and local government designed to bring about long-term strategic approaches to improving regional economies. They are implemented by regional partners and overseen by the Scottish City Region and Growth Deal Delivery Board. 10.55 Each of the Deals agreed in Scotland is tailored to its region, reflecting its individual economic strengths and weaknesses, and comprises a programme of interventions to support positive, transformative change. 10.56 There are 6 City Region and 6 Regional Growth Deals which provide 100% coverage of Scotland. Moray has been awarded funding for the Moray Growth Deal which as noted in Section 3 has a focus particularly on the development of the manufacturing, aerospace and life sciences sectors. Specific business property projects include the Moray Aerospace, Advanced Technology and Innovation Campus (MAATIC) and the Manufacturing Innovation Centre for Moray (MICM). 10.57 MAATIC will provide training, innovation and research development supporting aerospace and other manufacturing enterprises, and the development of advanced engineering skills in the region’s workforce with specialisms in aviation, aerospace, and digital manufacturing. Meanwhile, MICM will bring world- leading research and development expertise in advanced manufacturing to increase productivity, create jobs, attract inward investment and grow the region's manufacturing outputs. Further support will also be offered for the scaling-up of existing small and micro-businesses through a Business Enterprise Hub. Full Business Cases are being finalised for the projects yet to commence delivery. ENTERPRISE AGENCIES 10.58 Moray is covered by the Highlands and Islands Enterprise Agency (HIE) which works with businesses and communities of all sizes to help them grow. HIE is an active participant in the provision of employment land and property in Moray and are the owners of Forres Enterprise Park. Through grant support they have also helped to service employment sites including Elgin Business Park. The Council should continue to work collaboratively with HIE. JOINT VENTURES 10.59 There are a number of instances of joint ventures being set up across Scotland to enable property development for specific sectors or sites. This is a model which has been used by Enterprise Agencies as well as a number of local authorities as a way of furthering their employment land and property ambitions. As well as the public sector, JV arrangements can also incorporate universities and the private sector. 10.60 For example, Fusion Assets Limited is a special purpose vehicle developed by North Lanarkshire Council following the closure of Boots’ manufacturing operation in Airdrie. Fusion Assets works together with private sector partners through establishing joint ventures for the delivery of property development and land reclamation initiatives. 10.61 This includes the development of Gartcosh Industrial Park, situated at junction 2A on the M73, where Fusion Assets has entered into a JV with J Smart & Co. The JV – Gartcosh Estates LLP, has constructed three new speculative industrial units totalling 60,000 sqft. Fusion Assets purchased the land from SE in 2015 and have spent the last 2 years undertaking a programme of enabling works to bring the site up to a development ready condition. The works included construction of a new access road and ground consolidation and was financed through the Scottish Government’s Vacant and Derelict Land Fund. Fusion Assets has drawn up plans for further phases of development on the site totalling some 160,000 sq.ft. Page 218
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Moray Business Property Needs Study Ryden, May 2023 89 OTHER COUNCIL FUNDING SOURCES PUBLIC WORKS LOAN BOARD 10.62 Councils are able to borrow from the Public Works Loans Board, a national government body and arm of the Treasury, at interest rates lower than those commercially available to the private sector. It is mainly targeted towards capital projects and funding cannot be used to plug gaps in everyday funding of services. CIPFA guidelines are in place however there is no upper limit on borrowing. It is the responsibility of Councillors to ensure funds borrowed appropriately and responsibly. Guidelines for the scheme were tightened at the end of 2020 and local authorities are no longer able to purchase assets purely for yield or investment income. 10.63 A relevant example is of the City of Edinburgh Council which borrowed from the Public Works Loan Board for part funding of the £85m redevelopment and expansion of the Edinburgh International Conference Centre. Completed in 2013, the development includes office and retail space alongside the conference venue. Atria One and Atria Two together comprise almost 200,000 sq ft of Grade A office and retail accommodation. At the time, Atria was the largest speculative office development over 100,000 sq ft outside of central London and satisfied the need for new Grade A office space in central Edinburgh during the market crash. The buildings are now home to a variety of high quality tenants. In 2016, the Council sold Atria for £105m to Deka Immobilien. Proceeds from the sale were used to pay off borrowing costs, with profits going to a City Strategic Investment Fund which was used (amongst others things) for East Hermiston Business Park. This development, completed in 2017, comprises 16 light industrial units (17,200 sq.ft) on Council-owned land in Sighthill. The development is fully let and generates c. £140,000 pa in rental income for the Council. COUNCIL’S CAPITAL PROGRAMME 10.64 Local authorities in Scotland receive the majority of their funding from the Scottish Government with the level of support for each authority determined by the Cabinet Secretary for Finance and Constitution. Councils obtain additional income through Council Tax, that the Council sets itself. Council’s produce a Capital Expenditure Plan which details their capital funding priorities for a set period (usually 10 years). COMMUTED SUMS 10.65 A number of local authorities have a policy within their LDP that where employment land is lost to alternative land uses it is required to be either replaced in an appropriate location (to meet existing and future employment and business needs) or where this is not possible a commuted sum payment is often required. The commuted sum is ring-fenced and used only for bringing forward the implementation, or upgrade, of existing and planned employment sites. This policy tends to be used on a limited and discretionary basis where a notable loss has to be compensated for. 10.66 Fife Council is one local authority who currently implements this policy. A commuted sum was required as part of the planning conditions associated with the new Dunfermline Learning Campus which is currently being built on the site of the former Hyundai manufacturing facility. The site was designated as an employment/development opportunity site within the Fife LDP however there were material considerations which outweighed planning policy. This included the redevelopment of brownfield land which had been vacant for some time, limited success in the prior marketing of the site for employment use and that the education institution in itself would directly support employment sites through providing training and future labour. 10.67 The loss of 16.63 hectares of employment land to education uses was compensated against by a commuted sum totalling £1.64m (£99,000 per hectare). This figure is equivalent to the replacement value of the gross area lost, calculated at serviced land value at the time of the decision arbitrated by the District Valuer. A Legal Agreement is used to structure the payment of the commuted sum. Page 219
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Moray Business Property Needs Study Ryden, May 2023 90 10.68 A Planning Policy in line with the above could be considered in the next Moray LDP as a means of protecting employment land and enabling sites to be brought forward. This may be useful given the planned settlement expansions in Moray. SUBSIDY CONTROL BILL 10.69 From 4 January 2023, public funding is subject to a new, UK-wide subsidy control regime which replaces EU State aid rules. The framework for this new regime is provided in the Subsidy Control Act 2022. The Act represents a more flexible approach to subsidy control by adopting a principles based and self-assessment focused approach to compliance. This may have a positive impact on property interventions via aid for local infrastructure schemes. FUNDING RAG 10.70 Ryden has placed the funding sources discussed in this section into a RAG (Red, Amber, Green) summary shown at Table 37 on the next page: • Red indicates that it is unlikely that Moray Council could attract this funding • Amber indicates that there is some potential although there may be constraints • Green indicates that Moray Council is eligible and could pursue this funding source 10.71 The purpose of the RAG is to help summarise for the Council how it may wish to prioritise these funds when considering the delivery of future projects. This is primarily based on current eligibility and whether a partnering arrangement would be required, but also some of the funds are time limited so this is also considered where relevant. 10.72 The Scottish Government’s Just Transition Fund will be key in terms of maximising Moray’s future economic potential however there are a number of other funding mechanisms available to Moray which should also be considered. # Page 220
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Moray Business Property Needs Study Ryden, May 2023 91 TABLE 37: MORAY FUNDING RAG RAG FUNDING SOURCE SUMMARY UK Government’s Levelling Up Fund Does not specifically target employment land however could play a role in provision in a town centre regeneration context. £800m ring-fenced for Scotland. Moray sits in Priority Category 2 (out of 3). UK Government’s Shared Prosperity Fund All areas of the UK will receive a share via a funding formula rather than a competition. Supporting local businesses is one of the investment priorities. Moray will receive £4.3m from the fund. Scottish Government Just Transition Fund £500m 10-year commitment that will support projects in Moray and the North East which contribute to the region’s transition to net zero. Critical for Moray moving forward in order to ensure it can capitalise on the journey to net zero which will require careful planning of the employment land and property required. Scottish Government Place Based Investment Programme Funding for place based investment to target efforts in a particular geography. Ensure inclusive economic development. Moray received £770k for 2021/22 and £466k for 2022/23. Focus to date on Buckie Harbour site assembly. Scottish Government Vacant & Derelict Land Investment Programme Funding to tackle persistent VDL sites. The Fund is competitive and available to all local authorities. Should align with Place Based Investment Programme. Moray has 17 registered VDL sites but no DUSTEs. Scottish Government Regeneration Capital Grant Fund All local authorities are eligible however it is competitive and primarily focuses on areas that suffer high levels of deprivation. Growth Deals The Moray Growth Deal has a focus on the development of the manufacturing, aerospace and life sciences sectors. Specific business property projects include the Moray Aerospace, Advanced Technology and Innovation Campus (MAATIC) and the Manufacturing Innovation Centre for Moray (MICM). Enterprise Agencies (Highlands & Islands Enterprise) HIE is an active participant in the provision of employment land and property in Moray and are the owners of Forres Enterprise Park. Through grant support they have also helped to service employment sites including Elgin Business Park. The Council should continue to work collaboratively with HIE. Joint Ventures with the public and private sector JV can be a way of bringing sites forward which are out with Council ownership. JVs can be with both the private and public sector. Public Works Loan Board Available to every local authority for a range of capital projects Council capital and portfolio The Council has access to their own capital and portfolio subject to internal approval/discussions Commuted Sums This is not currently in place for lost employment land. This could be reviewed as part of the next LDP. Commuted sums tend to be ring-fenced and used only for bringing forward the implementation, or upgrade, of existing and planned employment sites. Green Freeports Opportunity Cromarty Firth has been awarded Green Freeport status in Scotland. Whilst Highland Council area will be the main benefactor it is likely there may also be an impact on the Moray which could take the form of supply chain opportunities resulting in demand for land and property. Green Growth Accelerator Allows for the delivery of public sector enabling (emissions reducing) infrastructure in order to stimulate private sector investment and the wider economy. Six pilot projects are currently underway. Moray does not have a pilot project however there could be further roll out of the model. Tax Incremental Funding All pilot projects have been awarded. Focus on infrastructure investment primarily on vacant and derelict land. Scottish National Investment Bank Available across Scotland with a focus on green investment, placemaking and innovation. Focus is on SMEs and targets the demand side through organisations and projects rather than direct provision. In order to be eligible the Council would need to partner with private sector. However, the bank operates commercially and therefore likely the Council would achieve better interest rates elsewhere, e.g. PWLB. Page 221
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Moray Business Property Needs Study Ryden, May 2023 92 SUMMARY 10.73 The RAG provided within this section suggests how available funds could be prioritised for employment land and property purposes. There are a number of ‘new entrants’ to the funding landscape largely associated with the UK Government’s Levelling Up Agenda as well as the Scottish Government’s Just Transition Fund. However, funding streams are not exclusively available for employment land and property and therefore there is a requirement to prioritise a wide range of potentially applicable projects within the Council. To date, where property and sites have been enabled this has tended to be on the back of Council/Enterprise Agency intervention. The Growth Deal will also be important. However, even in these circumstances it is likely a ‘cocktail’ of funding sources will be required. It is also noted that the Moray Council area is often considered comparatively affluent next to other regeneration candidates and thus will need to compete hard and often to secure funding success. This further emphasises the importance of using allocated funds well as the probability of securing competitive funding is potentially below average. Page 222
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Moray Business Property Needs Study Ryden, May 2023 93 11 SUMMARY AND MARKET NEEDS INTRODUCTION 11.1 Ryden was appointed by Moray Council to provide analysis of the local authority area’s employment land and property market in order to help inform the development of the next LDP which is planned for 2027. This section summarises the work and market needs for Moray. SUMMARY 11.2 The most recent projections suggest that the population of Moray is likely to fall in the coming years. Compared to Scotland as a whole, Moray also has a lower proportion of working aged people. Access to an adequate supply of labour is an important consideration for any business and new economic opportunities in the area could stem or reverse these trends. The current distribution of economic activity and working aged population in Moray is concentrated in and around its largest town of Elgin. This makes Elgin attractive to new and expanding businesses which will influence future demand for business property. It is also likely that development will be more viable in Elgin than some of the smaller towns. This correlates with the current LDP which notes that overall demand is greatest within the Elgin area, followed by Forres and then Buckie, Keith and Speyside. 11.3 The qualifications profile of the local workforce is skewed toward lower-level qualifications, which is likely to favour expansion of elementary occupations and skilled trades rather than professional and managerial roles. Alongside changes to working patterns including working from home it is likely that industrial space will be more important than office space in the future. 11.4 Most businesses in the region are micro-businesses however the Council is keen to enable growth in start- ups and scale-ups, which will have implications for the size of units required in the future. Premises up to 2,000 sqft would be desirable for micro-businesses in the area with larger premises (5,000 - 10,000 sqft) more suitable for scale-ups. There is significant opportunity associated with the renewable energy sector with expected growth in on and off shore wind and hydrogen developments in the area. The sites analysis confirms that the market is currently supplying plots of between 0.5 - 2 acres for general market use. The public sector is also providing larger opportunities of up to 6 acres (at Forres Enterprise Park). It will be important to maintain a supply and choice of these larger sites to deliver business growth and attract inward investment. Although lower value, there is also likely to be future demand associated with large open sites for uses such as forestry and logging or whisky cask storage. The requirements for whisky cask storage are often for large sites in rural areas. 11.5 Contributing to the UK Government and Scottish Government agendas, local authorities such as Moray are gaining more power through city and growth deals to address the key challenges and opportunities of individual areas. The Moray Growth Deal focuses particularly on the development of sectors such as manufacturing, aerospace and life sciences. 11.6 The Moray Regional Skills Assessment includes projections of how employment could change in the region, in part as a result of the Moray Growth Deal. Overall, it is expected that in the mid-term (2021-2024), employment in the region should grow by 800. However, it is expected that in the long term (2025-2031), the region will experience a contraction in employment, with projections suggesting that there will be 1,000 fewer people in employment in the Moray Growth Deal region in 2031 compared to 2024. The contraction is mainly due to decrease in job numbers associated with manufacturing which reflects the general trend of more capital intensive and higher value-added activity in the sector, which requires less labour intensive methods. Interestingly, this could drive land/property investment but without accompanying job growth – a current example of this is whisky storage. Page 223
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Moray Business Property Needs Study Ryden, May 2023 94 11.7 Future decisions associated with the dualling of the A96 will have an impact on the employment land designations in a number of key locations. In addition, Moray has a number of Special Landscape Areas particularly in the Speyside area which means there is a particular focus on design standards and visual/landscape impacts associated with development proposals. 11.8 From a planning perspective, several masterplans are in place in order to guide the development of specific growth areas with employment allocations. This includes Buckie Harbour, Findrassie (north Elgin), Elgin South and Elgin Business Park (Barmuckity). 11.9 The existing Moray LDP identifies an annual employment land requirement of 4-5 ha per year, split across these market areas. This correlates with recent take-up levels noted in the Employment Land Audit. Take- up has increased to this level in recent years however it is understood this will potentially slip back to 3-3.5 ha for the 2023 Employment Land Audit. 11.10 There is strong demand for industrial property across Scotland however supply is tightening in many areas including Moray. Meanwhile the office market has experienced a seismic shift following the Covid-19 pandemic and the flight to smaller, better quality offices is now evident across the market. In terms of employment floorspace, 83% relates to industrial property making it by far the largest sector with office property accounting for the remaining 17%. The majority of industrial and office floorspace is located in Elgin. 11.11 The largest proportion of industrial and office property was built 30-50 years ago which means there could be an issue of looming obsolesce associated with some stock in the area. This is coupled with greater pressure for energy efficient properties. Much of Moray’s office stock is contained within older town centre buildings which often have added complexities in terms of modernisation, e.g. conservation areas, listed buildings, access etc. 11.12 The industrial sector in Moray has a low floorspace vacancy rate of 3.6% while offices have a much higher level of 16%. Vacancies in both sectors lean towards traditional and in some cases very poor quality supply. Average industrial rents for modern second hand stock are between £7-8 per sq.ft. Rents are pushing up to £8.50 per sq.ft. for new build. In the office sector, rents range from £5-16 per sq.ft. It would be challenging to build viable new office or industrial premises with rents at this level, particularly considering current construction costs. 11.13 The majority of units in both sectors are small and there is a lack of stock above 5,000 sqft. This could have an impact on business ability to scale-up and perhaps to attract inward investors to the area. 11.14 There has been new development in the area recently including most notably at Elgin Business Park and Chanonry Court, Elgin. It is also notable that there are a high number of planning applications for food and drink storage. In the office sector, the majority of developments have been conversions or office extensions. 11.15 The Council operates its own sizeable industrial portfolio which includes industrial buildings, business centres, development and ground leases and serviced and un-serviced land for future development. The majority of premises are tailored towards SMEs in-keeping with the Council’s economic development objectives. 11.16 The Council portfolio benefits from high occupancy of around 93%. The Council proactively reviews its portfolio to ensure it is meetings its objectives, disposing of properties where appropriate and taking steps to increase supply where demand dictates. It also undertakes strategic acquisitions to support key sectors such as offshore wind in Buckie. Current construction costs are a barrier to new Council development, as well as restricted public sector finance. The Council considers opportunities for the redevelopment of vacant and derelict buildings for employment use and continue to explore opportunities to access external funding to expand its portfolio. 11.17 A small number of units within the portfolio are occupied by Council services. A review of Council depots and stores may provide an opportunity to re-locate these services and free up the industrial portfolio for letting to businesses. This would create new supply without the outlay or risk of construction costs. Page 224
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Moray Business Property Needs Study Ryden, May 2023 95 11.18 As per the Employment Land Audit 2022, Moray has an established employment land supply of 298.55 ha with a net established area of 226.48 ha across 36 sites. Of this, the marketable/effective employment land supply is 100.37 ha (net) across 21 sites. With regard to constrained sites these total 78.03 ha (net) across 16 sites. Infrastructure and physical constraints dominate. 11.19 As noted, demand in the area is generally focused on smaller units from small local businesses however there also needs to be larger sites available for inward investment and scale-up. Whisky distilling has seen considerable expansion over recent years, including bonded warehousing and the current LDP seeks to support this where there is locational justification. 11.20 Provision of further serviced sites and units is an issue and a number of projects have been considered by the Council with a focus on Forres and Speyside where there are shortages and no private sector interest in providing units on speculative basis. 11.21 Employment land take-up was 4.74ha across 6 sites in the year to 1st January 2022. The average take-up across the last 6 years has been 2.4 ha per annum and therefore take up in recent years is above historic levels. Moray appears to be ‘punching above its weight’ in this regard when compared to other comparable local authorities. Servicing sites throughout Moray will likely be reliant on externally leveraged public sector intervention. 11.22 Moray is a key benefactor of the Scottish Government’s Just Transition Fund which will be key alongside the Growth Deal in terms of maximising Moray’s future economic potential. However, there are a number of other funding mechanisms available to Moray which should also be considered as a ‘cocktail’ of funding sources is often required. 11.23 From the business survey, 73% of respondents had a requirement to expand/re-locate with the majority seeking industrial property. Cost was a key consideration in deciding on new premises as was digital connectivity, size and energy efficiency. A lack of suitable properties was raised as a constraint by those who have started to look for new/additional premises. MARKET NEEDS 11.24 Regional strategies highlight Moray’s aim to create work opportunities in the region which will support well paid work and retain the workforce. The strategy expects demand from existing businesses looking to expand and relocate, and future demand within key growth sectors and from inward investors. The sectors which should be considered as part of employment land decisions are shown in Table 38 on the next page. 11.25 In terms of volumes of employment land and property, the potential requirement for employment land and property in Moray over the period of the next LDP (2027-2037) is based upon the research and market analysis presented in this report. The projections are split into two 5-year periods: 2027-32 (25-30 ha) and 2033-2037 (25-30 ha). As the LDP start and end dates respectively are four and fourteen years from now, these are simply projections forwards from this 2023 baseline and market conditions can and will change (particularly as the property market in 2023 is currently in a period of post-pandemic adjustment to normalised interest rates). Page 225
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Moray Business Property Needs Study Ryden, May 2023 96 TABLE 38: MORAY MARKET NEEDS SECTORS LAND AND PROPERTY REQUIREMENTS LOCATIONS SMEs (all general employment property sectors) Responsible for the majority of demand for employment land and property across Moray. The Council is seeking to increase the number of start-ups and mid-range businesses and therefore there will be a need for small business units and also for those expanding and modernising. Primarily small to medium standard industrial units and serviced sites for bespoke requirements. Also small modern office premises in service centres. Across Moray, with Elgin as the regional centre accounting for c.60% of the market and a tiered focus on employment centres below that. Due to lack of development viability Council direct provision is expected to be required outside of Elgin. Energy & Renewables Expected to grow substantially in the coming years. Sites ranging from battery storage to operations and maintenance hubs or production facilities which may include a requirement for laydown space and port access and infrastructure. Likely to be heavily concentrated around Buckie as an important location for operations and maintenance activity. Demand for battery storage around Keith which is in close proximity to the Blackhillock sub station Manufacture of food & beverages Largest sector of manufacturing in the area. Moray is home to over half of all the whisky distilleries in Scotland and a number in the area have recently undergone significant expansion with others exploring options for their sites. In addition, there is a significant development pipeline for whisky storage/bonded warehouses. Hazardous Substances Consent required and particular requirements around ventilation. Concentrated in Speyside which may require additional sites for storage or maturation in the near future however other locations may also be suitable Manufacture of wood products Above average and increasing job numbers and likely to be an increase in employment land. Land hungry and possibly site specific. Most significant in Elgin, Forres and Mosstodloch. Sustainable tourism Numbers of businesses now exceeding pre-pandemic levels and could perhaps lead to some demand for Class 4 space, but more likely demand for Class 7 & 11. Potentially around Elgin. Life sciences Has attracted recent investment but starting from a low base so may not generate significant demand in short term. Longer term growth could lead to increased demand. Growth Deal includes proposals for the Moray Rural Centre of Excellence for Digital Health and Care Innovation (now launched) as well as 5 ‘Living Lab’ testbeds. Demand is likely to be focused around Forres but ‘Living Lab’ testbeds will be across the region. Defence activities Employment has more than doubled in recent years with the addition of military personnel. Additional expected investment will increase direct and indirect employment and thus demand for employment land. Demand for general employment land as well as at the two RAF bases. RAF Lossiemouth and Kinloss Barracks Aerospace Strengths in the defence sector is also likely to enable development of an aerospace sector in Moray alongside projects such as MAATIC. The Moray space cluster is currently developing. Requirements to include premises for manufacturing and engineering and testing facilities. Large sites required. Potentially around Forres and wider supply chain. 11.26 Further investigation into the specific requirements of the above sectors is recommended. As noted previously in this report, further consultation with the whisky industry is particularly recommended. 11.27 Moray’s industrial stock will require steady upgrade and in some cases replacement. While it does not appear to be obsolete on any major scale, a combination of building age (much of it is 40 years old), Page 226
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Moray Business Property Needs Study Ryden, May 2023 97 environmental requirements and occupier modernisation will continue to drive change. Assuming a building lifespan of around 60 years, to include periodic refurbishment, the run rate to maintain a stock of approximately 2 million sq.ft. through full replacement or comprehensive refurbishment around a frame is c.333,000 sq.ft. over the proposed 10-year LDP. 11.28 This is a guideline to sustain the current market in modern industrial premises. Growth, new sectors and inward investment would be additional. In particular Moray has a number of land-hungry extraction and production industries as well as growth prospects at the other end of the spectrum in technology-rich sectors which require more space per job than traditional industrial premises. These require a generous approach to employment land estimates and allocations (below). 11.29 In terms of the need for modern premises on that scale, industrial property development has been positive in Moray recently, particularly in Elgin. The recent development cycle in Moray shown in this report is c.115,000 sq.ft., not including refurbishments. However, across the UK property market higher interest rates have reduced property values at the same time as costs have risen, suppressing developer activity for the short term at least. It is assumed that this alleviates and new development by the private sector is once again positive and viable again in Elgin before the LDP period in 2027, although public sector intervention will still be required in lower tier settlements and for specialist properties. Public sector intervention will also still be required for the servicing of land unless cross funding from large scale residential development is available. 11.30 Moray’s office market is following the wider post-pandemic transition to greater hybrid working. In broad terms that involves contraction into smaller but higher quality premises on a more flexible basis. There can be variation by occupier type and location however and Moray is a comparatively thin market with only a few transactions each year and economic projections for office space as a distinct property type (rather than forming part of larger industrial-led premises) are not positive. The market and planning requirement is to support the adaptation of premises around flexible and possibly co-working as it continues to evolve. At the moment the private sector appears to be meeting the market needs, but a combination of older town centre buildings requiring new purposes and the high cost of offering best-in-class fitted out offices – ‘CAT A-plus’ – on a fully flexible basis could merit a public sector demonstration project in Elgin. 11.31 Moray’s employment land demand is demonstrated in enquiries, take-up and development. It outperforms comparable regions and has increased recently, as occupier modernisation and growth take effect. As noted, Moray has existing and emerging land-hungry industries. To accommodate this trend, the currently adopted demand rate of 4-5 hectares per annum is inflated by 20-25% to 5-6 hectares per annum. In LDP periods this equates to: • 25-30 hectares for the period 2027-2032, and subject to a mid-term review: • 25-30 hectares for the period 2032-2037 11.32 The current LDP directs 54% of its land requirement towards the Elgin market area with 15% for each of Forres and Buckie and 8% for each of Keith and Speyside (see Table 28). The research provided in this report shows no reason to change these levels dramatically and the levels noted still provide a good benchmark for the Council moving forward. Within the Elgin market area there should be an emphasis upon development in and around the town itself as the principal market focus. Flexibility will also be required as additional, ad hoc demand for larger sites above these take-up rates can be anticipated in particular locations from specific sectors such as whisky, renewables and aerospace. Ryden LLP May 2023 Page 227
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Ryden, May 2023 98 APPENDIX 1 EMPLOYMENT LAND SITE ASSESSMENTS Page 228
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Ryden, May 2023 99 Ref LPR Location Town Gross Area (Ha) Supply Type Constra int Long Area Prop osed Use Owner Desig- nations A. Strategic Fit B. Market Assessment C. Transport & Accessibility D. Economic Impact E. Development Potential F. Pressure for Alternative Use G. Ground Conditions H. Utilities & Drainage M/AB/E/005 20/R2 Speyview ABERLOUR 1 Effective 0 EMPL SLA (Special Landscape Area) Tertiary growth area. 1ha employment space to be provided as part of wider residential masterplan for 60 units. Distilleries nearby. Gateway into settlement suitable for higher amenity employment uses. Emp land to be located to south of site. A95 runs along western edge and Ruthrie Road to south of site. Active travel connections to be provided. Medium sized site depending on sector and user who would most likely be local. Un-serviced dependent on wider residential delivery. Part of wider residential masterplan. Could be commercial gateway potential. Not known. Currently open space. Drainage Impact and Flood Risk Assessment required. M/BC/E/001 20/MU High Street (W) BUCKIE 6.37 Effective 0 BUSP Private Secondary growth area but restricted uses. Mixed use site on edge of town that can accommodate Class 2 and 4. Site also appropriate for hotel and potentially residential. Not acceptable for general industrial use. A98 currently runs along southern site boundary and A942 to eastern boundary. Transport Assessment for combined sites R5 and MU will be required. May require new roundabout. Limited by service sector demand in local market area May appeal to local business for office or employment generating use Mixed use site Not known. Currently open space. Flood Risk & Drainage Impact Assessments required which may reduce developable area of the site M/BC/E/004 20/I3 March Road (SE) BUCKIE 17.69 Effective 0 EMPL Moray Council Secondary growth area. Extension of popular March Rd industrial area (Ruthven) to east of town. March Road runs along western boundary and new access road provided by Council. Potential for medium to larger uses in proven market area In Council ownership and site is serviced and access provided. Industrial area with no known alternative use interest. Serviced, assumed no major constraints but unconfirmed. SUD system installed by Council M/BC/E/005 20/I4 Maltings BUCKIE 10.3 Constrained Owner 0 EMPL Boortmalt Secondary growth area. Undeveloped area around the maltings has in the past been reserved for expansion purposes and there may be scope for alternative compatible business activities to be introduced. Existing business area. March Road runs along the eastern boundary of the site. Access is provided to maltings site. Large site but uncertain depending on expansion land or future general industrial supply. Depending on intentions of land owner (could remain undeveloped). Industrial area with no known alternative use interest. Not known. Currently open space. Drainage Impact Assessment required. M/BC/E/006 20/I5 The Harbour Area BUCKIE 1.77 Part Constrained Infrastru cture, Physical 0 EMPL Moray Council/ Private Part SLA, Special Area of Conservatio n (SPC) and Special Protection Area (SPA). Secondary growth area. Important area for renewable s sector. No longer restricted to harbour related uses but operational needs of harbour still have priority. Scope to redevelop and regenerate the area with the introduction of a wider range of uses. Important area for future renewables sector. A Transport Statement or Assessment may be required. Direct impact for harbour industries and strategic support for major renewables sector. Mixed ownership and mix of sites and buildings so may be piecemeal or site assembly. Proposals for retail, residential or tourist related developments will be considered on their merits inland. Unknown but has been operational harbour and port for some time. Flood Risk & Drainage Impact Assessment required. Development to be connected to mains water and sewerage, or demonstrate there will be no adverse effect on the integrity of the SPA M/BC/E/007 20/LNG2 March Road (LONG) BUCKIE 7.02 Effective 5years+ Infrastru cture 5.62 MEDI Moray Council Close proximity to scheduled monument to the SE. Secondary growth area. Strategic reserve. Would be natural extension to March Rd/Ruthven industrial areas. March Rd runs along western boundary of the site. Transport Assessment likely to be required as part of a wider masterplan with I3 to identify any junction/road improvements. Large site for future demand if it continues in this market area. To be determined in future market circumstances. None known Not known. Currently open space. Drainage Impact Assessment required. M/CL/E/002 20/I1 South of Cemetery CULLEN 0.81 Effective 0 Moray Council / Lawtie Trust SLA Smaller towns/ villages. Small development opportunity for business uses within Class 4 or light industrial uses that are compatible with the scale of the site and the historic setting. The site is located within the Cullen House Garden and Designed Landscape and is adjacent to the formal entranceway. Proposals must demonstrate suitable access into the site can be achieved which is not detrimental to the formal entranceway into the Designed Landscape. Access to be taken off B9018. Traffic Speed Survey required. Third party land owner agreement required to provide and maintain the visibility splay. Siting of bus stops to be investigated. New footways along the site frontage required. Depending on local demand for site Depending on local demand for site and/or Council promoting development. None known Not known. Currently open space. Not known. M/EL/E/001 20/I7 Elgin Business Park, Barmuckity ELGIN 33.83 Part Constrained Physical 0 MIXU Primary Growth Area Phase 1 already in progress with Springfield. Land plots selling well. Popular new estate. Located to the east of the town. Existing site is serviced with access developed off A96. Access to remainder of site to be confirmed. Large site for future demand for modern industrial and business premises Significant potential for further modern development. Active developer. A greater mix of uses is supported across the site. Not known. Currently open space. Level 2 Flood Risk Assessment required. No development within functional floodplain. Drainage Impact Assessment is required. Page 229
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Ryden, May 2023 100 M/EL/E/002 20/MU1 Riverview ELGIN 4.12 Constrained Infrastru cture, Physical 0 BUSP Moray Council Primary Growth Area Mixed use site. Suitable uses are for business, hotel and/or residential. Development proposals must be compatible with the quality and high amenity setting of site. Existing access must be used. A Transport Assessment required, the scope of which must be agreed with Transport Scotland and the Moray Council Transportation. Development proposals will require to take into account the preferred option for the A96 dualling route Larger site though more likely to be commercial mixed rather than industrial and business Depending on local demand for mixed use and/or Council promoting development. Mixed use site. Not known. Currently open space. Level 2 Flood Risk Assessment required. No development within 6m of existing flood alleviation measures will be permitted. M/EL/E/004 20/I12 Glen Moray Distillery ELGIN 1.3 Constrained Owner, Physical 0 EMPL Glen Moray Distillery Primary Growth Area Reserved for distillery related uses. Located on western edge of town. Close proximity to A96. Medium site but uncertain depending on expansion land or future general industrial supply. Controlled by owner The site has consent for warehouses which Glen Moray have been implementing in stages. Unknown Level 2 Flood Risk Assessment required. M/EL/E/008 20/I2 Chanonry Industrial Estate ELGIN 3.17 Part Constrained Infrastru cture, Physical 0 EMPL Moray Council Primary Growth Area Popular existing industrial estate. Suitable for light and heavy industrial operations. Limited land available. Remainder of site built out with new development likely to comprise redevelopment, extension or change of use. To east of town. Close proximity to A96. General employment use potential in proven market area. Owned by Council. Would be continuation of development and re-development of estate. None known but has been COU applications in estate Unknown. Flood Risk & Drainage Impact Assessments required. M/EL/E/011 20/I5 Pinefield Industrial Estate ELGIN 0.18 Effective Owner 0 Primary Growth Area Small area to NW of site identified for the expansion of Hendry Hydraulics To east of town, close proximity to A96. Transport Statement required. Local site potentially for owner Controlled by owner None known Unknown. Flood Risk & Drainage Impact Assessments required. M/EL/E/012 20/I6 Linkwood East ELGIN 1.71 Effective Owner, Physical 0 EMPL Private Primary Growth Area Edge of popular existing industrial area. Front of site along A96 frontage is built out for restaurant, café and retail uses. The remaining undeveloped land is suitable for Class 4, 5 and 6. Access via roundabout junction on the A96 with Reiket Lane. Medium sized site for general employment use. Depending on local demand in popular estate Site is partly built out for restaurant, café and retail uses. Unknown. Flood Risk & Drainage Impact Assessments required. Any proposal must not impact on the integrity of the Flood Alleviation Scheme. No development within 6m of the embankment. M/EL/E/016 20/I8 Newfield ELGIN 12 Effective 0 EMPL Pitgaveny In close proximity to SLA and SSSI Primary Growth Area Part of major land release associated with the Findrassie masterplan which also includes 1500 houses over next 20-25 years. Suitable for business uses within use Class 4 and 5 that are compatible with predominantly residential surroundings. Actively marketed with a reasonable level of interest Located to the NE of the town. Transport Assessment required. The site may be impacted by the A96 dualling and development may require to take into account the preferred A96 dualling route. Significant expansion site which is currently being actively marketed with a reasonable level of interest. Potential alongside residential expansion Potential but separated from residential area Unknown currently open space. Flood Risk & Drainage Impact Assessments required. Requirement to demonstrate that there will not be an adverse effect on the integrity of SPA. M/EL/E/017 20/I16 Burnside of Birnie ELGIN 22.3 Part Constrained Infrastru cture, Physical 0 EMPL Primary Growth Area The site's primary function is for Class 4, 5 and 6. Minimum of 9ha is reserved for these uses. A greater mix of uses is supported across 5ha of the site; these areas are adjacent to the A941. The site must provide a minimum of 30% open space. Development Framework required in conjunction with LONG3. Located to the south of the town adjacent to LONG residential area Elgin South. A941 runs along eastern edge of the site and new junction would be required. Transport Assessment required. Development proposals will require to take into account the preferred option for the A96 dualling route which impacts on this site. Significant expansion site but potentially longer term. Future potential alongside future residential expansion Potential but separated from residential area Unknown currently open space. Level 2 Flood Risk & Drainage Impact Assessments required. No development within the functioning floodplain. A Water Framework Directive waterbody specific objective will require to be addressed. M/EL/E/018 20/LNG3 Burnside of Birnie (LONG) ELGIN 38.2 Part Constrained Physical 20.74 EMPL Primary Growth Area Development Framework required in conjunction with I16. A941 runs along eastern edge of the site and new junction would be required. Transport Assessment required. Development proposals will require to take into account the preferred option for the Significant expansion site but potentially longer term. Future potential alongside future residential expansion Potential but separated from residential area Unknown currently open space. Level 2 Flood Risk & Drainage Impact Assessment required. No development within the functioning Page 230
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Ryden, May 2023 101 A96 dualling route which impacts on this site. floodplain. A high pressure gas pipeline crosses the site. M/EL/E/019 20/MU2 Lossiemou th Road (NE) ELGIN 7 Effective 0 MIXU Pitgaveny In close proximity to SLA and SSSI Primary Growth Area Adjacent to I8. Mixed use site suitable for business uses within Class 4 or light industrial uses that are compatible with surrounding uses. Up to 2ha can be developed for live work units/workshops. Will require integration with Findrassie masterplan. Located to the NE of the town. Transport Assessment may be required. The site may be impacted by the A96 dualling and development may require to take into account the preferred A96 dualling route. Significant expansion site but mixed use and potentially longer term. Future potential alongside future residential expansion Mixed use designation Flood Risk & Drainage Impact Assessment required. Full SUDS design required at an early stage. Requirement to demonstrate that there will not be an adverse effect on the integrity of SPA. M/EL/E/020 20/OPP4 Ashgrove Road (Yard) ELGIN 1.6 Effective 0 Primary Growth Area Opportunity site suitable for residential, industrial or commercial uses. Now significantly built out with trade counters operating. Existing access off A96. Opportunities to provide a pedestrian/cycle route through the site must be explored and safeguarded. Depends upon remaining opportunity for employment uses Potential for employment uses within mixed use site Mixed use designation Contamination issues arising from site’s former use will require to be considered. Level 2 Flood Risk Assessment required. M/FR/E/001 20/BP1 Forres Enterprise Park FORRES 22.88 Effective 0 HIGA HIE Secondary Growth Area Existing business location. Area to south available for general industrial units subject to being designed and constructed to conform to the high amenity and design standards of the Enterprise Park. Located on eastern edge of Forres off the A96. Development proposals will require to take into account the preferred option for the A96 dualling route which impacts on this site. Proven high impact site accommodating key growth sectors HIE progressing with several options for site. Potential demand for complementary hotel and/or nursery on site. Not known. Strategic servicing understood to be in place M/FR/E/006 20/I3 Benromac h Distillery FORRES 4 Constrained 0 Gordon & MacPhail Secondary Growth Area Distillery on part of site. Located opposite Waterford Industrial Estate so could provide natural expansion. Located to the north of Forres in close proximity to A96. Development proposals will require to take into account the preferred option for the A96 dualling route which impacts on this site. Potential general site for local or major employers Potential for employment uses dependent on owner. Consent for whisky warehousing and owned by the distillery. Archaeological targeted evaluation of 10% required. Flood Risk & Drainage Impact Assessments may be required. M/FR/E/013 20/I2 Waterford FORRES 1 Constrained Infrastru cture, Physical 0 Moray Council Secondary Growth Area Existing industrial estate. Transport Assessment/Statement required. Potential general site for local employers Council site with employment use potential. None known. Archaeological targeted evaluation of 10% required. Drainage Impact & Flood Risk Assessments required. M/FR/E/014 20/I4 Easter Newforres FORRES 27.6 Constrained Infrastru cture 0 Secondary Growth Area Would be natural extension of Forres Enterprise Park. Development Framework is required which is informed by a Landscape Integration Study addressing key views. Transport Assessment required. The junction onto the A96 is unsuitable for the development traffic. Development of the site will require an order to stop up part of this route to prevent access to and from the development via this route. Future extension to proven high impact site accommodating key growth sectors Dependent upon continuing demand and business case None known but adjacent to Lochyhill residential development area. Site Investigations were carried out by HIE. Most of the Eastern side of the site is peat/clay and some flood risk, which makes development very difficult. Flood Risk Assessment may be required. Site Investigations were carried out by HIE. Most of the Eastern side of the site is peat/clay and some flood risk, which makes development very difficult. M/KH/E/004 20/I4 Bridge Street KEITH 2.05 Effective 0 EMPL Private Tertiary growth area. Part of existing Westerton Rd industrial estate. Keith Builders Merchants has taken up much of this site. Range of site constraints may affect interest. Keith Builders Merchants has added access to the north. Proposals must incorporate a road layout that connects to I2 and Westerton Road to the north and safeguard connections to I11 and LONG 2. An area on the south east is constrained by road access and overhead cables but could be utilised if solutions are identified. Subject to local demand Subject to local demand and range of site constraints None known but adjacent to residential expansion Not known A Drainage Impact Assessment is required to ensure that the existing flood risk on Bridge Street is not increased from development on this site. M/KH/E/005 20/I7 Isla Bank Mills KEITH 1.84 Constrained Physical 0 EMPL Moray Council Tertiary growth area. Not an “industrial site” in the accepted sense. Mills have been converted into a range of units and a number of businesses accommodated. Close to Keith railway station and c. 0.5 mile from A96. Could be variable depending on reuse of site and buildings Variable depending on market demand for restricted site (flooding) None known Flat areas of land are liable to flooding but may be suitable for storage use. 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Ryden, May 2023 102 that is submitted for this area. River Isla runs along northern perimeter. M/KH/E/010 20/I2 Westerton Road South KEITH 0.52 Effective 0 EMPL Moray Council Tertiary growth area. Existing industrial estate. Phase 1 effectively fully taken up. Road layout must allow for potential connection through to sites I4, I3 and I11 to the east. Dependent on local demand Potentially developable gap site in existing estate owned by Council None known but battery storage investing in adjoining site Not known A Drainage Impact Assessment is required to ensure that existing flooding on Bridge Street is not increased through developing the site. M/KH/E/011 20/I11 Westerton Road East Expansion KEITH 1.74 Effective 0 LARI Tertiary growth area. New allocation to increase the supply of employment land. Next to existing industrial estate. Site is landlocked and it is unlikely that access can be taken from Westerton Road. Access can be taken from the adjacent I4 site. Road layout must provide future connections to the identified LONG2 to the south. Pedestrian connections must be made to Westerton Road South. Transport Assessment/Statement will be required and subject to the scale of development a Travel Plan may be required. Potentially significant long term depending on demand Subject to local demand and site infrastructure requirements None known but battery storage investing in adjoining site Not known Not known M/KH/E/012 20/LNG2 Westerton Road (LONG) KEITH 3.2 Effective 5years+ Infrastru cture 2.5 Tertiary growth area. New allocation to increase the supply of employment land. Next to existing industrial estate. Must connect to existing industrial estate. Access to be provided via the I11 and I4/I5 sites. Transport Assessment/Statement will be required and subject to the scale of development a Travel Plan may be required. Potentially significant but reliant on long term futre demand To be determined in future market circumstances and eastward expansion of settlement. None known but adjacent to residential expansion Not known Not known M/KH/E/013 20/MU Banff Road South KEITH 1.75 Effective 0 HIGA Tertiary growth area. A mixed use site that can accommodate residential, community facilities, and high amenity/high quality business uses (Class 2 & 4 uses) should there be the demand. General industrial use not permitted. NHS has identified the need for a Healthcare facility on the site and 3 ha reserved on the northern part of site. Should part of this land be deemed surplus to requirements for the healthcare facility it could be brought forward for other acceptable uses. The site can be developed in phases but it must be done as part of a comprehensive layout/masterplan to ensure that a single phase does not prejudice the development of the remainder of the site. Transport Assessment is required for the masterplan. 2 points of access are required. The access from the A95 must be considered in association with the access into R4 to the north. An initial junction may comprise a priority T or ghost island if R4 has not been developed. Land must be safeguarded to serve a roundabout to both sites which will form a gateway feature. Second point of access should be taken from Drum Road with eventual connection through the site to Banff Road. Drum Road must be widened to 5.5m and the provision of a 2m wide footway and connections to west of site must be provided. Off-site junction improvements may be required at Union Terrace and Drum Road junctions with the A96. Limited by restriction to Class 2 and 4 uses Dependent on long term demand for Class 2 and 4 Part of residential led expansion Not known Pylons cross the site which will affect the overall developable area. Flood Risk Assessment required. M/LS/E/007 20/OPP1 Sunbank LOSSIEMO UTH 12.8 Constrained Infrastru cture, Physical 0 MIXU Pitgaveny SLA Tertiary growth area. Opportunity site which may be suitable for business park, industrial, retail and housing where this is part of the development of the whole site for a wider mix of uses. Consultation with MOD required. Access must be provided onto the A941 and connections made to R1. Transport Assessment required. Access to public transport must be provided either through the site or new bus laybys on the A941 with associated pedestrian crossing facilities. Pedestrian and cycle connections to the north of the site and to the Core Path required to provide connections to Lossiemouth High School, and the open space. Depending on extent of employment uses Related to local demand and MOD presence and wider mixed use potential including neighbouring residential site. Former quarry. Part of mixed use expansion adjacent to residential expansion Archaeological evaluation required. Former quarry. Level 2 Flood Risk & Drainage Impact Assessments required. Page 232
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Ryden, May 2023 103 M/MS/E/003 20/I5 Baxters MOSSTODL OCH 2.22 Constrained Owner 0 EMPL Baxter’s Adjacent to SLA, SAC and SSSI Smaller Towns and Villages Baxter's existing business area. Major employer and significant tourist attraction. New development will comprise redevelopment, extension or change of use. Just off A96. Access through Baxter's existing site. Potentially significant in food and drink and visitor sectors Depending upon Baxter's plans None known Not known Demonstrate that there will be no adverse effect on the integrity of the SAC from development activity M/MS/E/005 20/I2 North of Baxter's MOSSTODL OCH 3.22 Constrained Owner, Infrastru cture 0 EMPL Smaller Towns and Villages Site to provide for expansion of Baxter’s. As access is through the existing Baxter’s site development by others is not intended. Just off A96. Provision of cycle and pedestrian links to the A96 and bus stops required. This may involve upgrading the Core Path to Redhall to the north. Transport Assessment may be required. Potentially significant in food and drink sector Depending upon Baxter's plans None given restriction on access The site slopes upwards from the existing Baxter’s buildings Drainage Impact Assessment required. M/MS/E/006 20/MUL1 South of A96 MOSSTODL OCH 11 Effective 5years+ Infrastru cture 8 EMPL Crown Estate Scotland Smaller Towns and Villages Mixed use site. Residential and industrial. Embargoed from development in current LDP period unless DP3 conditions are met. Proposals must deliver a minimum of 8ha (net) of employment land. May suit a lower density user. Runs adjacent to A96. Transport Assessment required. Consultation with Moray Council Transportation and Transport Scotland required. New cycle path provision required. Improvements required to provide safe routes to School and access to local shops. Development proposals will require to take into account the preferred option for the A96 dualling route which impacts on this site. Dependent on scale and sectors of users To be determined dependent upon user demand Mixed use site 30% open space required due to the mix of residential and industrial and edge of settlement location. Archaeological evaluation of the site required. Drainage Impact Assessment with SUDS plans required. Flood Risk Assessment required. M/MS/E/007 20/I3 West of Mosstodlo ch MOSSTODL OCH 16 Effective 0 Crown Estate Scotland Smaller Towns and Villages Potential new industrial area. May suit larger lower density user. Adjacent to A96. Transport Assessment required. Dependent on scale and sectors of users To be determined dependent upon user demand None known Minimum of 30% open space required Archaeological evaluation of the site required. Flood Risk & Drainage Impact Assessment required. A Water Framework Directive waterbody specific objective will require to be addressed. M/MS/E/008 20/LNG2 West of Mosstodlo ch (LONG) MOSSTODL OCH 14 Effective 5years+ Infrastru cture 11.2 LARI Crown Estate Scotland Smaller Towns and Villages LONG can only be brought forward if the Policy DP3 triggers are met. The scale of this site may be suitable for large scale inward investment. Adjacent to A96. Transport Assessment required. Dependent on scale and sectors of users To be determined dependent upon user demand None known Minimum of 30% open space required. Archaeological evaluation of the site required. Flood Risk & Drainage Impact Assessment required. A Water Framework Directive waterbody specific objective will require to be addressed. M/RS/E/001 20/I1 Back Burn ROTHES 0.75 Effective 0 EMPL Private SLA. Adjacent to SAC. Smaller Towns and Villages Site bounded by distillery and other uses. Close proximity to A941 Dependent on local demand To be determined None known Not known Demonstrate that there will be no adverse effect on the integrity of the SAC from development activity M/TV/E/001 20/I1 Troves Industrial Estate TROVES 1.61 Effective 0 MEDI Strathdee Properties Rural grouping Rural area but to the south of Elgin, close to expansion areas. Development must unify the existing building pattern be consistent in terms of materials, size/scale and overall design. Access off Linkwood Road Dependent on rural demand Dependent on rural demand None known Not known Options for waste water drainage should be investigated as options for discharge to the water environment are limited. Page 233
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Ryden, May 2023 104 APPENDIX 2 BUSINESS SURVEY Page 234
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Ryden, May 2023 112 APPENDIX 3 LIST OF CONSULTEES Page 242
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Ryden, May 2023 113 During the course of this study, Ryden consulted with the following: • Chris Muir, Senior Officer Economic Strategy & Development, Moray Council • Rowena MacDougall, Senior Planning Officer, Moray Council • Stuart Beveridge, Asset Manager – Commercial Buildings, Moray Council • Lorna Williamson, Business Gateway Manager, Moray • Richard Lochead, SNP MSP for Moray • Mike Duncan – Development Manager, Federation of Small Businesses in Scotland • Andrew Stanley, Head of Regional Development – Moray, Highlands & Islands Enterprise • David Reid, Area Manager, Highlands & Islands Enterprise • Ailsa Stinson, Moray Business Women • Grant Campbell, Highlands & Islands Regional Manager, Scottish Council for Development Industry • Sarah Medraf, Chief Executive, Moray Chamber of Commerce • Gemma Cruickshank, Chief Executive Officer, Visit Moray Speyside • Fraser Grieve, Deputy Director, Strategy & Communications, Scotch Whisky Association • Brian Macaulay, Operations Director Chivas Brothers • Alan Esson, Managing Director, Saltire Business Parks Page 243
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Ryden, May 2023 114 EDINBURGH 7 Exchange Crescent Conference Square EH3 8AN 0131 225 6612 GLASGOW ONYX 215 Bothwell Street G2 7EZ 0141 204 3838 ABERDEEN The Capitol 431 Union Street AB11 6DA 01224 588866 LEEDS Northspring Park Row 36 Park Row LS1 5JL 0113 243 6777 LONDON Suite 410, Linen Hall 162-168 Regent Street W1B 5TF 020 7436 1212 MANCHESTER 2nd Floor 28 King Street M2 6AY 0161 249 9778 Page 244
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REPORT TO: ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 SUBJECT: INFORMATION REPORT: LIST OF PROPERTY TRANSACTIONS CONCLUDED UNDER DELEGATED POWERS BY: DEPUTE CHIEF EXECUTIVE (ECONOMY, ENVIRONMENT & FINANCE) 1. REASON FOR REPORT 1.1 To inform the Committee of property transactions which have been dealt with under delegated powers. 1.2 This report is submitted to the Economic Development and Infrastructure Services Committee in terms of Section III F (3) of the Council's Scheme of Administration relating to industrial and commercial development. 2. BACKGROUND 2.1 In terms of the Council’s Scheme of Delegation, the Head of Housing and Property has delegated authority to grant leases, licenses or other occupation agreements of land and buildings for 25 years or less duration where the initial rent does not exceed £35,000 per annum and sites on long term building leases of up to 125 years duration where the initial rent does not exceed £35,000 per annum. 2.2 In terms of the Council’s Scheme of Delegation, the Head of Housing and Property has delegated authority to conduct rent reviews and fix new rents. 2.3 In terms of the Council’s Scheme of Delegation, the Head of Housing and Property has delegated authority to grant wayleaves or servitudes over Council owned property. 3. SUMMARY OF IMPLICATIONS (a) Corporate Plan and 10 Year Plan (Local Outcomes Improvement Plan (LOIP)) The proposals support the aim of delivering financial stability. (b) Policy and Legal None. (c) Financial Implications Page 245
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The transactions detailed in APPENDICES I, II and III will generate an income to the Council. (d) Risk Implications None. (e) Staffing Implications None. (f) Property None. (g) Equalities/Socio Economic Impact None. (h) Climate Change and Biodiversity Impacts None. (i) Consultations None. 4. CONCLUSION 4.1 It is recommended that the Committee notes the 14 leases, 25 rent reviews and 1 wayleave as set out in APPENDICES I, II and III. Author of Report: Stuart Beveridge, Asset Manager (Commercial Buildings) Background Papers: Ref: SPMAN-1285234812-1368 Page 246
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APPENDIX I REPORT TO THE ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 LIST OF LEASES OF BUILDINGS AND SITES – SUBMITTED FOR NOTING 1. Reference No. 2. Officer’s Ints 1. Address 2. Tenant 1. Building (m²) 2. Site (Ha) 1. Date of Entry 2. Review Period Rent Remarks 1. EL/1/120 2. TIBA 1. 1A Chanonry Road South, Elgin 2. Vodafone Ltd (Company No: 01471587) 1. - 2. 0.02Ha 1. 27/11/22 2. 5 years £1,415 p.a. + VAT Permitted Use: Use for telecommunications purposes. 1. BK/750/88 2. CQ 1. 31 Commercial Road, Buckie 2. CHAP Civil Engineers 1. - 2. 240sqm 1. 15/5/23 2. - £2,003 p.a. Permitted Use: Contractors site compound in relation to adjacent commercial harbour front development. 1. FR/4/203 2. IAWA 1. 5 Waterford Circle, Forres 2. Modu Project Services Ltd 1. 70sqm 2. - 1. 7/6/23 2. 3 years £7,750 p.a. Permitted Use: Storage in association with tenants energy project assistance business. Page 247
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1. BK/1/208 2. IAWA 1. 4 March Lane, Buckie 2. The Heilan Coo Ltd 1. 70.79sqm 2. 0.02Ha 1. 1/6/23 2. 3 years £5,900 p.a. Permitted Use: Workshop & store in connection with tenants mobile hot food business. 1. BK/1/221 2. IAWA 1. 17 March Road East, Buckie 2. Housing DLO 1. 70sqm 2. - 1. 25/5/23 2. 3 years £0 Permitted Use: Two month short term internal lease to Housing DLO to facilitate relocation and commercial letting of Unit H Isla Bank, Keith. 1. BK/1/222 2. IAWA 1. 18 March Road East, Buckie 2. Housing DLO 1. 70sqm 2. 0.03Ha 1. 25/5/23 2. None £0 Permitted Use: Short term 2 month lease to Housing DLO to facilitate relocation and commercial letting of Unit H Isla Bank, Keith. 1. KE/600/4 2. ALBU 1. Land Behind Linn Home, Station Road, Keith 2. Oakwood Cooperage Ltd (SC596065) 1. - 2. 0.41Ha 1. 1/11/22 2. None £8,100 p.a. Permitted Use: Barrel storage yard. 1. KE/3/267 2. ALBU 1. Unit H Isla Bank Mills, Keith 2. Oakwood Cooperage Ltd (SC596065) 1. 726sqm 2. 0.384Ha 1. 9/6/23 2. 3 years £26,200 p.a. Permitted Use: Workshops & storage in relation to cooperage & barrel storage. Page 248
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1. LO/555/3 2. ALBU 1. 1st Lossiemouth Scout Hall, Elgin Road, Lossiemouth 2. North East Scotland Regional Scout Council (SC039551) 1. - 2. 0.01Ha 1. 1/7/23 2. None £1 Permitted Use: Scout Hall development. Original lease of site undocumented. Short term lease granted pending long term lease being agreed & concluded. 1. BK/1/213 2. IAWA 1. 9 March Road East, Buckie 2. Kevin Thomson 1. 110sqm 2. 0.03Ha 1. 12/6/23 2. 3 years £9,100 p.a. Permitted Use: Use as a workshop & store in association with tenant’s joinery business. 1. BK/1/117 2. IAWA 1. Yard, 7 March Road East, Buckie 2. Steve Hill 1. - 2. 0.09Ha 1. 16/6/23 2. 3 years £3,500 p.a. Permitted Use: Vehicle parking yard associated with tenant’s garage business. 1. FR/1 2. CQ 1. Castlehill Road, Forres 2. Mr G Sewell, Thistle Bar (Forres) Ltd 1. - 2. 0.002Ha 1. 26/06/23 2. Annual. £900 Permitted Use: Public House wishing to serve food & both alcoholic & non-alcoholic drinks to customers in outdoor seating area. Vendor holds valid Outdoor Serving Licence. Page 249
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1. FR/4/201 2. IAWA 1. 1 Waterford Circle, Forres 2. Biomatrix Water Solutions Ltd 1. 220sqm 2. 0.12Ha 1. 30/6/23 2. 3 years £19,500 p.a. Permitted Use: Workshop, store & yard used for the tenant’s improvements in water habitat business. 1. KE/3/254 2. ALBU 1. Units B & C, Isla Bank Mills, Keith 2. Oakwood Cooperage Ltd 1. 217.6sqm 2. 0.08Ha 1. 28/7/23 2. 3 years £15,000 p.a. Permitted Use: Storage & repair of casks & ancillary purposes. Page 250
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APPENDIX II REPORT TO THE ECONOMIC DEVELOPMENT AND INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 LIST OF RENT REVIEWS OF BUILDINGS AND SITES - SUBMITTED FOR NOTING 1. Ref No. 2. Valuer’s Ints. 1. Address 2. Tenant 1. Building (m²) 2. Site (Ha) 1. Date of Entry 2. Review Period Interval 1. Previous Rent 2. New Rent Remarks 1. EL/1/113 2. TIBA 1. 2 Chanonry Road South, Elgin 2. Woodland Pychley Investments Ltd (014954V) 1. - 2. 0.72Ha 1. 1/6/82 2. 5 years 1. £10,000 p.a. +VAT 2. £12,000 p.a. + VAT Permitted Use: Wholesale cash & carry warehouse for wholesaling in all merchandising including wines, spirits & intoxicating liquor. 1. EL/1/232 2. TIBA 1. 13 Chanonry Road South, Elgin 2. Access Platforms (Aberdeen) Ltd 1. 180sqm 2. 0.11Ha 1. 7/3/14 2. 3 years 1. £17,300 p.a. + VAT 2. £19,950 p.a. + VAT Permitted Use: Plant hire & maintenance. 1. EL/5/275 2. TIBA 1. Unit J Pinefield Business Centre, Elgin 2. Eric MacDonald 1. 138sqm 2. 0.01Ha 1. 17/6/11 2. 3 years 1. £9,400 p.a. 2. £10,500 p.a. Permitted Use: Joiner’s workshop. Page 251
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1. EL/1/202 2. TIBA 1. 4 Chanonry Spur, Elgin 2. Iain Emslie 1. 96sqm 2. 0.01Ha 1. 16/10/19 2. 3 years 1. £6,500 p.a. + VAT 2. £7,500 p.a. + VAT Permitted Use: Vehicle repair & MOT garage. 1. KE/410/002 2. SB 1. Strathisla Children’s Centre, Keith 2. Flexible Childcare Services 1. 460sqm 2. 0.53Ha- 1. 2. Yearly 1. £5,330 p.a. 2. £10,660 p.a. Permitted Use: Childcare Nursery. Stepped rent. 1. ME/482/7 2. SB 1. Rothiemay Primary School 2. Rothiemay & District Playgroup 1. 44sqm 2. 1. 2/8/21 2. Yearly 1. £258 p.a. 2. £516 p.a. Permitted Use: Childcare Nursery. Stepped rent. 1. PK/482/2 2. SB 1. Portknockie Primary School 2. Portknockie Playgroup 1. 74.3sqm 2. 1. 2/8/21 2. Yearly 1. £970 p.a. 2. £1,940 p.a. Permitted Use: Childcare Nursery Stepped rent. 1. MW/482/9 2. SB 1. Knockando Primary School 2. Knockando Playgroup 1. 49sqm 2. 1. 2/8/21 2. Yearly 1. £408 p.a. 2. £816 p.a. Permitted Use: Childcare Nursery Stepped rent. 1. BK/482/5 2. SB 1. Portessie Primary School 2. Portessie Playgroup 1. 68sqm 2. - 1. 2/8/21 2. Yearly 1. £631 p.a. 2. £1,262 p.a. Permitted Use: Childcare Nursery. Stepped rent. Page 252
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1. MO/1/301 2. IAWA 1. Yard at 8 Mosstodloch Industrial Estate, Mosstodloch 2. Almacit Ltd 1. - 2. 0.09Ha 1. 1/3/14 2. 3 years 1. £3,000 p.a. 2. £3,200 p.a. Permitted Use: Metal fabricators yard. 1. MO/1/252 2. IAWA 1. 8 Mosstodloch Industrial Estate, Mosstodloch 2. James Jones & Sons Ltd 1. 400.3sqm 2. 0.09Ha 1. 1/1/20 2. 3 years 1. £16,000 p.a. 2. £17,600 p.a. Permitted Use: Storage depot. 1. FR/1/209 2. IAWA 1. Unit 12 Greshop Road, Forres 2. Stephen Duncan 1. 85sqm 2. 0.01Ha 1. 1/10/19 2. 3 years 1. £6,500 p.a. 2. £7,300 p.a. Permitted Use: Maintenance, repair & storage of vehicles. 1. EL/1/122 2. TIBA 1. 6 Chanonry Street, Elgin 2. Trustees of Michael & Jennifer O’Driscoll SIPP Trusts 1. - 2. 0.04Ha 1. 2/6/08 2. 5 years 1. £2,900 p.a. + VAT 2. £3,275 p.a. + VAT Permitted Use: General industrial or storage use. 1. KE/1/228 2. ALBU 1. 8 Westerton Road North, Keith 2. Michael Duffus 1. 52.7sqm 2. 0.01Ha 1. 6/4/14 2. 3 years 1. £3,600 p.a. 2. £4,100 p.a. Permitted Use: Baker’s store. 1. KE/1/226 2. ALBU 1. Unit 6, 4 Westerton Road South, Keith 2. Nigel Devlin 1. 49sqm 2. 0.01Ha 1. 1/6/20 2. 3 years 1. £3,600 p.a. 2. £4,200 p.a. Permitted Use: Vehicle repairs excluding spray painting or coachworks or other uses likely to create excessive noise or noxious fumes. Page 253
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1. EL/1/231 2. TIBA 1. 11 Chanonry Road South, Elgin 2. Raymond MacIntosh 1. 70sqm 2. - 1. 10/4/17 2. 3 years 1. £5,700 p.a. +VAT 2. £6,500 p.a. + VAT Permitted Use: Motor vehicle repair garage. 1. EL/1/205 2. IAWA 1. 7 Chanonry Spur, Elgin 2. Moycroft Contracting Ltd 1. 85.47sqm 2. - 1. 15/1/05 2. 3 years 1. £6,000 p.a. 2. £6,900 p.a. Permitted Use: Use Classes 4, 5 & 6 of T & CP (Use Classes)(S) Order 1997 as amended. 1. EL/1/204 2. IAWA 1. 6 Chanonry Spur, Elgin 2. Education & Social Work – Criminal Justice Service 1. 174sqm 2. 0.01Ha 1. 1/7/11 2. 3 years 1. £12,400 p.a. 2. £14,750 p.a. Permitted Use: Workshop & store in connection with Community Service Scheme. 1. MO/1/102 2. IAWA 1. 1 Mosstodloch Industrial Estate, Mosstodloch 2. Housing DLO 1. - 2. 0.35Ha 1. 17/4/98 2. 5 years 1. £10,000 p.a. 2. £14,000 p.a. Permitted Use: Office & workshop. Ground Lease. 1. EL/8/203 2. SB 1. 3 Tyock Industrial Estate, Elgin 2. J P McDougall & Co Ltd 1. 302sqm 2. 1. 23/7/11 2. 3 years 1. £13,800 p.a. 2. £16,150 p.a. Permitted Use: Storage, distribution and sales of decorating supplies. Page 254
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1. EL/8/226 & 227 2. SB 1. 26 & 27 Tyock Industrial Estate, Elgin 2. JNK Kitchen Studio Ltd 1. 216sqm 2. 1. 9/9/17 2. 3 years 1. £14,950 p.a. 2. £17,950 p.a. Permitted Use: Kitchen and bathroom showroom. 1. FR/1/210 2. IAWA 1. 9 Greshop Road, Forres 2. ReBoot Trading (Moray) Ltd 1. 100sqm 2. 0.03Ha 1. 1/8/02 2. 3 years 1. £8,350 p.a. 2. £8,700 p.a. Permitted Use: Workshop for computer recycling. 1. BK/1/209 2. IAWA 1. 3 March Lane, Buckie 2. Iain Flett Addison 1. 70.79sqm 2. 0.02Ha 1. 15/6/20 2. 3 years 1. £5,300 p.a. 2. £6,050 p.a. Permitted Use: Workshop & store in association with the tenant’s vehicle tyre replacement service. 1. MO/1/251 2. IAWA 1. 7 Mosstodloch Industrial Estate, Mosstodloch 2. Stevenson Brothers (Avonbridge) Ltd 1. 143.7sqm 2. 0.17Ha 1. 10/5/05 2. 3 years 1. £14,500 p.a. 2. £14,900 p.a. Permitted Use: Storage & repair of goods vehicles. 1. EL/3/205 2. SB 1. 5 Linkwood Lane, Elgin 2. Scottish Ministers (Historic Environment Scotland) 1. 130sqm 2. 1. 27/1/11 2. 3 years 1. £8,925 p.a. 2. £9,800 p.a. Permitted Use: Storage. Page 255
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APPENDIX III REPORT TO THE ECONOMIC DEVELOPMENT & INFRASTRUCTURE SERVICES COMMITTEE ON 5 SEPTEMBER 2023 GRANT OF SERVITUDES AND WAYLEAVES Officer Intls File Ref Address Description Price Comments CQ EL/675/55 Land at Reiket Lane, Elgin Grid Ref NJ 22966 61777 Wayleave to SSEN/Springfield £4,000 To complete SSEN wayleave for connection to Elgin Sports Centre and Elgin South developments. Page 257
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