Market View: Leeds Arena
In the first of a new series asking the business community for their thoughts on property issues affecting the region, TheBusinessDesk.com asks: What is your opinion of the recent debate surrounding the public funding for the Leeds Arena?
Beverley Smith director at GVA Grimley’s Leeds office:
“A question that many will ask is whether the arena project can be fully justified in the current economic climate? It is essential that it delivers meaningful sustainable benefits – economic, social and environmental – not just for Leeds and the City Region, but for the Yorkshire region as a whole.
“Given the squeeze on public finances the key issue is whether the arena is a ‘front line service’ as there are many other regeneration initiatives that require Yorkshire Forward intervention.
“My view is that the arena is an important facility that will generate significant direct and indirect benefits that will ripple through the regional economy. It is good news that funding has been found and even better news that the development programme is now on track for delivery in 2012.”
Alastair Reid, partner and head of commercial property at law firm Halliwells in Sheffield:
“The use of public funds to underwrite part of this project seems unfair bearing in mind the lack of similar support for the arena in Sheffield.
“If Leeds can demonstrate that there is a real need for such a facility and a demand backed up by a credible business plan then it should be able to find the funds from a commercial lender.
“We all recognise that in the current climate some publicly funded projects will need to be dropped and this would seem to fall within that category and the money better spent elsewhere.
“If there is to be competition between venues then it needs to be based on a level playing field and the large public subsidy that is being proposed for Leeds does not provide that.”
Alex Munro, head of commercial development agency at Knight Frank in Leeds:
“The arena is something the city should aspire to have. However, my view is that these things need to be secured in a thriving market.
“When we are in recession people are more concerned about job creation and the concern about the arena is that it does not really generate many jobs – I personally would prefer to see public money invested in something that is more tangible in terms of job creation at this point in the economic cycle.
“Ultimately an arena is desireable and necessary for the city to compete on an international level but even so it would be behind a high speed rail link to London – something that the North West will achieve ahead of the East Coast.”
John Ogden, managing director of CB Richard Ellis in Leeds:
“The Leeds Arena will provide a boost to the city and I think that, providing it is done properly, the funding package will facilitate a fantastic asset for Leeds.
“The arena will benefit around 3m people living and working in the region, providing them with a first class venue on their doorstep. It will also generate employment opportunities and keep expendable income within the city as venue-goers visit local bars, restaurants and hotels.
“Leeds and Sheffield are both large enough cities to warrant high quality venues and the Leeds Arena will also help to raise the profile of Leeds to a wider audience.”
