As local leaders look to kick-start regeneration in parts of the North East which have been languishing for years, are mayoral development corporations (MDCs) the answer?
MDCs are statutory bodies with powers to acquire, develop, hold, and dispose of land and property, as well as powers to speed up new infrastructure. Only two exist outside London; in Stockport in Greater Manchester and the Teesworks industrial site at Redcar.
But in recent weeks Tees Valley mayor Ben Houchen has announced plans for new development corporations in Hartlepool and Middlesbrough. And now Labour mayor Jamie Driscoll is looking at using his powers to speed up regeneration in his North of Tyne patch.
The Northern Agenda political newsletter understands Mr Driscoll is exploring the possibility of setting up an MDC in an as-yet-unnamed area featuring several previously-used brownfield sites that have been resisting regeneration efforts for years.
He told the UK’s Real Estate Investment and Infrastructure Forum in Leeds last week that currently available land is parcelled up in such a way by landowners that it ends up being sold as flats which are unaffordable for many locals.
He said: "So put it on a bigger area, we're looking at developing our own development corporation in Tyneside, which is going to be placemaking as opposed to just house-building. So you've got the services, you've got the open space, you've got the small and medium-sized enterprises all taking advantage of these developments."
In Middlesbrough, most of the public land in the town centre will be transferred over to the new body, which was described by Tory MP Simon Clarke as "being able to act boldly with a less risk-averse attitude towards investment".
The Middlesbrough Development Corporation was launched earlier this month by Ben Houchen and Middlesbrough mayor Andy Preston.
Once the body is established it will have planning powers that leaders hope will cut red tape and drive forward projects in a quicker time frame than if businesses had to work through the council.
The development corporation will be overseen by a new board, which will be chaired by Mr Houchen and include Mr Preston. Mr Houchen said that this was required to supercharge the area, while Mr Preston stated it was big news for the entire region.
A submission will be sent to the Government in July with an aim of having the body up and running by late October with plans ready to roll out.
The recent Levelling Up White Paper proposed stronger Compulsory Purchase Order (CPO) powers for regeneration sites. And Jamie Driscoll said government should extend these powers to MDCs to speed up sites where land assembly is complex.
He said: “In an MDC you’ve already got the agreement of the local authority, it’s already defined as a development site, so let the Mayor use the CPO powers. And if there’s an objection, fast track it to the Secretary of State for a decision, rather than spending years going through the courts. It saves everyone time and money.”
