Birmingham Enterprise Zone
On behalf of the Birmingham & Solihull LEP, Cushman & Wakefield has provided advice and support for the creation of the new Birmingham City Centre Enterprise Zone.
The EZ covers over 20 key sites in the city centre and aspires to facilitate regeneration and economic growth by reducing barriers to new development; pioneering infrastructure investment, enhanced communications and placemaking; marketing the City Centre as an inward investment opportunity; together with incentives for new occupiers.
Cushman & Wakefield produced a financial model for the EZ reflecting the Tax Increment Finance (TIF) machinery and covering life cycle projections for business rates growth, infrastructure investment funding and establishment overheads. This has enabled various scenarios to be explored to identify base forecasts, optimistic and pessimistic performance projections.
This has involved looking at development projections for each of the city centre sites against the loss of existing hereditaments based on these.
We have contributed to developing contracted structures for engagement with developers addressing issues of risk incidence and transfer to developers as appropriate. The flexibility of our modelling has enabled us to project the financial consequences for the performance of the EZ and high level risks to the LEP arising from various approaches.
The City Council was able to make rapid progress with proposals within the EZ many of which are now in phases of development.