Mayoral Development Corporations: How To Deliver a £200million Investment in Ten Weeks to Transform Towns

A £200m development set to regenerate a key gateway location in Middlesbrough was the focus of Tuesday’s final UKREiiF session – as the new name of Crown Square was announced the project. 

Tees Valley Mayor Ben Houchen began by explaining the reasons for setting up the Middlesbrough Development Corporation, with a key focus to drive regeneration in Middlesbrough Town Centre. 

He said the huge investment taking place at Teesworks is presenting major opportunities for nearby towns such as Middlesbrough such as boosting demand for hotel accommodation. 

Crown Square will include more than 230 build-to-rent properties and student accommodation for more than 400 people – with one of the country’s first Fairfield by Marriott hotels also due to be built.  

It is being led by developers iMpeC and Buccleuch Property with the support of Middlesbrough Development Corporation. 

Mayor Houchen also outlined the benefits that Investment Zone status will bring to Middlesbrough delivering funding from a £160m pot to support digital and creative industries.  

The Mayor said a significant amount of investment was now going into Middlesbrough and the role of the Middlesbrough Development Corporation was to take pressure from work previously done by local authorities to speed up development. 

He said this was shown through the ability to speed up planning, with the permission for Crown Square taking just 10 weeks from submission to approval. 

iMpeC Director Neil McMillan said the support of the Mayor and the Development Corporation team had been pivotal in the decision to develop Crown Square. 

He said developers could pick and choose locations but understanding by the Mayor and his team of their role in unlocking investment and removing obstacles was key. 

Neil said his team had spent the last 18 months talking to local people and businesses to understand the challenges faced by Middlesbrough Town Centre in helping shape the vision. 

He said there are “wonderful things” going on in Middlesbrough, including having one of the fastest growing digital sectors. Teesside University is also investing £280million, most recently in a new Digital Life building.  

However it is clear the town centre is lacking and behind the curve. Neil said a consistent theme from local feedback was that the town centre is barrier to recruitment for businesses. 

Therefore the focused objective is to deliver a new accommodation offer that is not available anywhere on Teesside.  

This will appeal to professional and help businesses to attract and retain talent, while the student accommodation would similarly support the University. 

iMpeC director Leigh Creswell said there are now more than 100 people working on the project, ranging from architects to construction contractor. 

He highlighted the “phenomenal” speed of securing planning permission in just 10 weeks in contrast to 12 months for smaller projects elsewhere in the UK. 

He praised both the work of the Development Corporation and Middlesbrough Council in helping to achieve swift approval. 

He added: “This gives us confidence this is the right project and a catalyst for future regeneration.” 

Sandy Smith, director at Buccleauch, said working on this project so far has been a “breath of fresh air”.  

He said: “Middlesbrough wasn’t on our radar but we picked up a real vibe and buzz. It’s the can-do attitude that has been most impressive. If everyone could get approvals through in 10 weeks we’d be in a much better position.” 

Sandy added that there’s still a lot of work to be done but the approach from Development Corporation and the Mayor, with a willingness to sit down on daily basis to work through the project, was bringing major benefits 

He said there is strong investor appetite and the aim continues to be to get spades in the ground before the end of the year.