‘Flexible TIF approach can help build region’s future’
LEGISLATION set to be introduced by the Government to introduce a new way for towns and cities to fund major capital projects in the future must be flexible and not introduce “straightjacket” restrictions, an audience of business leaders was told.
And a panel of leading property experts, including Gerald Jennings of Land Securities and Robin Dobson of Hammerson, agreed that a collaborative approach between the public and private sectors was crucial to get property developments off the ground.
The ”Getting Property Moving Again’ seminar, hosted by law firm Hammonds and the British Property Federation (BPF), was held last at No 1 Leeds on Tuesday.
Speakers at the event were Martin Farrington, director of city development at Leeds City Council, Mr Jennings, portfolio director for retail at Land Securities, the developer of the Trinity Leeds retail scheme, and Mark Simpson, tax partner at Hammonds.
Liz Peace, chief executive of the British Property Federation, chaired the event, which was attended by more than 100 people. TheBusinessDesk.com was the media partner for the event.
Mr Simpson told the audience that Tax Increment Financing (TIF) – through which the Government will lend to councils against the promise of increased revenue from future business – would offer a vital way for property and regeneration projects to get started.
But he warned that the timetable for the Government’s planned introduction of TIF legislation, which is already available in Scotland, was uncertain and question marks remained about how it will work.
Mr Simpson said: “What we need is flexibility (regarding TIF). The last thing we want is a straightjacket approach saying you will do this regardless of the cirumstances. If you have flexibility you can make use of TIF.”
He also advised those looking to develop to consider other forms of finance as TIF “won’t be the only prize in town”.
Greg Stype (pictured), a partner at law firm Squire Sanders & Dempsey in the US, a country in which TIF has been available for more than 50 years, said local authorities and developers should guard against being dependent on TIF.
“TIF is rarely the singular answer in our experience of financing infrastructure or any project,” Mr Stype said. “But it is a layer of financing that can make a substantial difference.”
And he advised: “Don’t wait for the government to fill the vacuum and write in the blank slate. Write in the blank state now.”
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Mr Farrington said he believed TIF offered the opportunity for areas like the Leeds City Region to effectively devolve powers from central government and urged the business community to make its voice heard in Whitehall about how it would like TIF to work.
The audience also heard that TIF schemes could be seen as a major boost to the UK’s emerging Local Enterprise Partnerships – the new bodies charged with driving economic growth when regional development agencies are abolished.
The panellists, which also included Alex Munro, of Knight Frank in Leeds, and Mr Dobson, director of retail development at Hammerson, also agreed that a partnership approach between the public and private sectors was crucial for the future of property development.
Mr Dobson said this approach had been important for Hammerson’s plans for the Eastgate Quarters mixed-use development scheme in Leeds to remain in place.
Mr Jennings, retail portfolio director for the North and Scotland at developer Land Securities, agreed: “We’ll need a shared ambition for what we’re trying to achieve.”
Mr Farrington outlined the possible development opportunities in Leeds city centre, including the introduction of public green space around new developments, but said market conditions would remain challenging.
He concluded: “I think there’s a key role for the public sector to play and that role is multi-faceted but crucially we have to work collaboratively with you (the private sector).”
