DD1445 Market Demand for Science & Technology Workspace

Type of decision: 
Director's decision
Code: 
DD1445
Date signed: 
23 December 2015
Decision by: 
Mark Kleinman, Assistant Director of Economic and Business Policy

Executive summary

Expenditure of £12,000 funding is requested from LEP underspend, in addition to the £40,000 already approved, to cover the full cost of the LEP-funded Market demand study of Science & Technology workspace. Although private sector match funding has been raised, because the study findings need to be seen as independent, it has not been possible to raise the entire private sector match required to cover the full project cost. Resources are available to meet this shortfall. 

 

Decision

The Executive Director approves expenditure of up to £12,000 as grant funding to MedCity to cover the full cost of the LEP-funded Market demand study of Science & Technology workspace in London.

 

Part 1: Non-confidential facts and advice

Introduction and background

1.1    The Mayor, under MD1561, approved £40,000 LEP funding for a Market demand study of Science & Technology workspace in London. 

1.2    An additional request of £12,000 is sought from the LEP’s Strategies EU fund budget to cover the full cost of this project. Therefore, the total amount of LEP funding for this project would be £52,000.

1.3    Despite significant effort by MedCity, it has not been possible to raise all of the private sector match required that would have enabled the full cost of the project to be covered. This is principally because it is important that the study output is seen as independent, which means that it would have been inappropriate to seek funding from real estate companies – although such funding could have been easily secured. 

1.4    Two Higher Education Institutes (HEIs) and one consultancy have put funding in – which has taken up a lot of MedCity’s time to secure. 

1.5    The Co-Chairs of the LEP Digital, Creative, Science & Technology group have, by Chairs Delegation, confirmed that they are happy with the proposal for additional funding from LEP underspend to be used for this project.

Objectives and expected outcomes

2.1    The study will provide a robust evidence base of Life Science space requirements, understanding of the scale of demand for workspace and how it differs in key sub-sectors. The findings will be used to inform planning policy, university and developer investment plans, and European funding bids where market failure has occurred. 

2.2    The £40,000 approved funding is being granted to MedCity who have conducted a competitive tender for the project. This is because MedCity have the capacity and requisite knowledge on life sciences workspace to project manage the study. GLA officers are closely involved with the project, including participating on the project steering group.

2.3    An additional £12,000 is requested to cover the full costs of the project.

Outputs: a published report will set out investment and growth opportunities of London’s key science & technology clusters.

Outcomes: increased awareness of investment opportunities domestically and internationally; relevant private sector investment into London growth areas (e.g. R&D; work and business space above residential dwellings); and increased collaboration between research, teaching, clinician and business base; affordable workspace of varied specifications.

Equality comments

3.1    As a condition of funding agreements, projects awarded LEP funding will be required to meet the Public Sector Equality Duty and demonstrate this through reporting of progress.

 

Other considerations

4.1    The study is a key DCST deliverable – action 31 link expansion opportunities to international business, investors and other global partners to maximise growth potential. 

4.2    It is also critical to delivering LEP Jobs & Growth Plan commitments along the east to west ribbon, building on London’s existing clusters.

Financial comments

5.1    LEP approval is sought for expenditure up to £12,000 to cover the full cost for the LEP-funded Market demand study of Science & Technology workspace in London. This is to be funded from the existing LEP 2015-16 Strategies EU fund.

5.2    The LEP is providing £52,000 of the cost with £20,000 contribution from partner organisations and the consultancy is providing a pro-bono contribution.

Planned delivery approach and next steps

The next steps are summarised below:

Activity

Timeline

Procurement of contract [for externally delivered projects]

Procured

Announcement [if applicable]

N/a

Delivery Start Date [for project proposals]

N/a

Final evaluation start and finish (self/external) [delete as applicable]:

N/a

Funding Agreement 

By end Dec 2015

Delivery End Date [for project proposals]

31 March 2016

Project Closure: [for project proposals]

31 March 2016