Council looks to buy key Leeds business sites
LEEDS City Council is proposing to buy two major commercial buildings it helped bring to development, one of which will become home to a law firm later this year.
It said the plans were “part of its innovative approach to raising income in the face of shrinking budgets while also boosting the local economy.”
The council’s executive board will receive a report from officers on June 22 recommending buying 3 Sovereign Square in the city centre, which is to become the home of law firm Addleshaw Goddard later this year, and Building 1 at Logic Leeds in the Leeds City Region Enterprise Zone.
It said the “substantial rental income” from tenants would exceed the borrowing costs and part of the council’s “ongoing policy to act as a catalyst in Leeds’ economic recovery by intervening proactively to stimulate growth.”
Leeds City Council said examples of this include building the first direct Arena, using local authority powers to assemble land for the Victoria Gate and Trinity retail and leisure schemes, freeing former council car park land for the Sovereign Street development and adjacent public green space and readying land in the enterprise zone for manufacturing and logistics.
The two proposed purchases are also strategically located to help the council further plans to develop the South Bank- the largest regeneration opportunity in Europe- and grow the enterprise zone, it said.
Coun Richard Lewis, executive member for regeneration, transport and planning, said: “We’re absolutely determined to drive Leeds towards having a strong economy while being a compassionate city that embraces opportunity for all. Our proactive approach to economic development underpinned by wise asset investment and management enables the council to be a real catalyst in stimulating the local economy.
“It has enabled us to play a pivotal role in Leeds’ economic resurgence, working closely in partnership with a resilient and innovative private sector. These two investments should further cement that approach.”
Other recent economic interventions driven by the council include investing in a new railway station at Kirkstall Forge, which has helped enable the bringing forward of a major brownfield development project with 1,000 new homes.
Council grants have also been made to businesses that have levered in private investment and created new jobs and to land owners for site reclamation in the enterprise zone.
If councillors agree the proposed purchases it is at a time when there is the opportunity to fix long-term borrowing at significantly low interest rates. The buildings are expected to fit well into a property portfolio alongside other major key investments, such as the arena, the redeveloped Merrion House, held jointly with Town Centre Securities and the Harper Street (markets) multi-storey car park.
