A report concerning new business development in the local area, which is the Paddington Basin Regeneration Project. As this development will have many different and significant environmental impacts

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Bojana Simulija 13A1

Paddington Basin Development Assignment 

INTRODUCTION

     For this assignment our group is requested to write a report concerning new business development in the local area, which is the Paddington Basin Regeneration Project. As this development will have many different and significant environmental impacts, it is our group’s objective to further investigate the effects of this development on the local residents.

     

    We are aiming to explore the background to the development, the effects on the environment, the social costs and benefits in terms of quality of life indicators. Additionally the various stakeholders (in our case local residents), and also pressure groups involved. Furthermore, legal constraints or government intervention which would evidently effect this development, are other key areas our group shall consider in order to gain a clear insight into the benefits and drawbacks as a result of this development.

     

   As stated on the Paddington Basin Development website, Paddington Basin is no longer simply a major regeneration opportunity, and is fast establishing itself as a premier business, residential, healthcare and leisure district of central London. It offers unrivalled, first class opportunities and its position in the central London and links with west London make it a perfect location for international business modern living and unsurpassed life style.

   

    The last few years have seen foremost changes at Paddington Waterside. The first places of development at Paddington Central and Paddington Basin are complete and major corporate occupiers and residents are enjoying their exciting new environment. This attraction development is supposed to provide a balanced mix of offices, homes, shops, restaurants, leisure facilities and a spectacular 300m waterfront alive with activity and of outstanding quality. Paddington Basin will create a world – class, fully integrated living and working environment.  

    As I previously mentioned, there are a number of different organisations and stakeholders that will be involved and affected by the development.

OPEN QUESTIONNAIRE ANALYSIS

    By looking at the previous, closed questionnaire our group conducted, we can clearly note than 46% of the people interviewed, responded that the Paddington Basin Development has affected their lives. In the open questionnaire we took a further step by asking how and to what extent this has affected them. The majority claimed that the transport had some changes and as a result caused many delays, which affected people that had to move to and from the local area. Additionally, this business activity, the Paddington Basin Development, has resulted in other social costs, apart from the heavy traffic and congestion, which is noise and environmental pollution. As many of our interviewees have realised this development has required many builders and constructors, which makes the local area more crowded also blocking many entrances. A few mentioned that NWCS is closing down and they are not pleased with this fact.

   Nonetheless, others recognised a few social benefits, such as that as an outcome of this development process many people were acquired with jobs, eg builders. Several people responded that it provides them with closer lunch facilities and shorter routes.

      Our group was also interested on how the development might affect people in the future once it has been completed. The majority have mentioned that it would be useful and bring more employment opportunities and leisure facilities. Others were excited about the new and greater shopping area and additional things to do, not depending on the fact whether they live in the local area or not. This shows that this development is a possible success. A number of people stated that it would be a better touristy facility for the travellers and they could build an excellent reputation. Yet those that viewed this as a negative impact for the future (28%), have acknowledged the social costs. They complained that the houses prices have increased and are not affordable. One person believed that as a result of this development the country’s economy would strive.  The NWCS librarian pointed out that as the school is shutting down and moving, it indicates that she would have to move her job, yet this includes all the staff in the school.

      We also considered people with children and how they will be affected. A very large number agreed that it would be a disappointment and were unhappy about the fact their children might have to move further away to a different school which gives them less chances to check up on them. Some realised that this might increase their costs, as they would have to pay for the travel. As a result, they might desire and demand a rise in their income. However some were not affected by this question as they do not have children, and approximately two people would be happy to move their children to a better school with improved staff and education.

   Our last question was to check whether people believed it was worth investing into this new development rather that having an educational facility. As seen in our previous questionnaire, the majority of people (80%), approved of this development and the investment, as it brings more jobs, improves the area and makes it more inspiring, increases tourism and improves the economy as a whole. Several people agreed that it is dangerous to have a school so close to a major motorway. Some believed that it would not make a difference as they would build a new, modern academy, yet a few argued that NWCS holds memories and history behind it. However may people thought that education is far more essential or maybe improve the school and also invest in other areas of London.

     

STAKEHOLDERS

    Stakeholders are individuals or groups with direct interest in an organisation’s performance, and therefore have an effect or are affected by a business or an organisation. The main stakeholders are: employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organisation, but some management theorists believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these groups and to include their objectives in the decision making process.  In a modern economy a firm cannot just rely on advertising and marketing to build up customer loyalty, but must look to the building of a more long-term relationship with its stakeholders.

    As we are obliged to analyse the social costs and benefits of the five main stakeholders, (developers, local council, local businesses, local residents and North Westminster Community School), who will be affected by the Paddington Basin Development, our class was equally divided into five groups of people who were allocated with different stakeholders. This way the research was completed in a more efficient and faster way, as at the end every group presented their information and findings to the class, while others took notes in order to continue with the assignment.

Paddington Basin Regeneration organisation and developers

    The developers still claim that this development is under control and running smoothly as it should be. They believe that there are no major problems concerning the development, for instance no hidden costs as this improvement of the local area was planned ahead in order to avoid certain situations and extra, unnecessary costs.

    Quality of life indicators are used to measure the effect and the potential impact of this development on the community and the environment. In order to make rational decisions on the plans, the developers will have to consider all the relevant quality of life indicators, such as economic growth, social investment, employment, education and training, housing quality, air pollution, transport, water quality, land use and waste, so that information collected guides them with their plans. The reason why these indicators are so important is because a long-term view of the project needs to be included and all affected stakeholders taken into consideration, rather that profitability alone.

     The employees were only allowed to work certain hours with the intention of reducing the level of pollution and the complaints from the local residents and businesses. For example, the working hours were 8am to 6pm Monday to Friday; and 8am to 1pm on Saturdays. They were of course not permitted to work on Sundays, in order not to spoil the relaxation and a quiet day for the local residents. One of the major developers to help with the Paddington Basin Regeneration organisation was the Grand Union. The Grand Union building is the final phase of Paddington Basin. This flagship building was designed by world-class architects Richard Rodgers Partnership. The building is located on the waterside at the far eastern end of the development between Harrow road and the Basin, which makes it convenient to interact with the development.

     The developers’ plans for the local Paddington area appeal to me as I believe it will make the area much more attractive and bring a new, stimulating life to it. As a result, it will bring many social benefits such as new shops, residential areas and facilities, additional employment (50 thousand developers were employed) and many other exciting remunerations. This is the main reason the developers feel the development is going according to their plan and they are looking forward to the complete and final area.

    In order to receive everyone’s support, the developers contacted most of the local businesses for further advice and managed to maintain a friendly and stable relationship with them so that they get their full sponsorship. Businesses that contacted the developers back were the ones interested in the final outcome of the area and were willing to help to make it a better and more comfortable place for everyone. Naturally the developers also received some negative responses and these are considered as the social costs of the whole development plan. Concerns over the rent are the main worry now. Local residents are not sure if they are going to be able to sustain their cost of living with the prices of the properties increasing. This is considered as the long-term effect and the developers need to pay close attention to this issue. Another social cost is the developer’s decision with the NWCS. Once again there are complaints from the local residents and teaching staff, as their school will be demolished due to the fact that it is not included in the developer’s plans for the new Paddington Basin. As an outcome of their decision, the developers have come under a great pressure. However this is a short-term social cost as the teachers and other staff in the school will be provided with jobs elsewhere.

  I strongly feel that it is essential for the developers to take into account the views of their stakeholders in order to get new and different ideas on their plans. Additionally, the developers will experience a few private costs and benefits. For instance, the main benefit they would gain is profit from the residents and local businesses, i.e. anyone who has bought the land, or property that is part of the development. However one of the private costs is the expense o the materials and equipment required and purchased prior to the development. Thus this difference between the costs would possibly be balanced, yet as the development is well known and advanced, many people would like to work/live there, and as a result the developers would gain high profit. Another benefit of this is that the developers would gain a good reputation reflecting their work. This would be beneficial in the future for further projects.

Council

     The overall views of the local council concerning the Paddington Basin development were positive. The £1.1m comes from the developers under legal agreements negotiated when Westminster Council granted the planning permission. The council has also recognised the social benefits this project will bring to the local businesses, residents and the economy as a whole. As I previously mentioned, it raises the employment levels, improves the residential areas, and brings many other different facilities that can be used by children and the elderly. The council is the main stakeholder as they give permission on what the developers can and cannot do. The main interests of the council are the thoughts of the residents, whether they will be satisfied with the ideas or not has a major impact on the final decision on what the developers are allowed to do. The Westminster Council seeks to improve one of the life indicators which is transport, by for example improving bus operations for the benefit of the passengers by providing bus priority schemes and protecting bus stops with ‘no stopping’ restrictions. Moreover, the council is looking to advance street lightning; road safety and transport links in order to further assure its residents and make them feel safe in their local area. I believe this is a very important indicator, which will recover their long-term satisfaction. Additionally, the Westminster Council is willing to improve the parking facilities for the disabled drivers or passengers and make them feel comfortable and like they fit in. The council is interested in the economic growth, which is the total output of the economy. Gross domestic profit can be defined as the sum total of the value of a country’s output over the course of a year, and the council naturally expects and wishes an increase of this output.

     However there are also some short-term social costs that the council has recognised. Evidently, like all the other stakeholders, the council is concerned with the noise and pollution that is coming from the development. Nonetheless, these drawbacks are only temporary as when the project is completed, the council is looking forward to provide a clean and pleasant and also attractive new area for the residents and the local businesses.

     As for the long-term effect, the council has noted that there will be an increase in competition between the new local businesses. Yet this will improve customer satisfaction, as it would advance the quality of the product and keep them at reasonably low prices. As a result the Westminster council will be very pleased with this outcome, as they are interested in their residents and their views.

Local Residents

   This is the group of stakeholders that was researched by our group. By interviewing the local residents we gathered our information and separated their responses into social costs and benefits. In this project many businesses and houses will be built. These new businesses are evidently going to seek new employees, which will conveniently be good for the local residents who are currently unemployed. Furthermore, new houses indicate more accommodation for the local residents. This will as a result boost the local economy, which once again will help the surrounding businesses. The residents will have higher incomes and more money to spend, thus will be spending it in the local shops. Yet, some of these vacant jobs might require certain skills and qualifications, therefore competition will exist and training will be necessary.

Many interviewees noted that the area will be a new public attraction and will look much more inspiring and not just for the local residents but for the passers by, which will automatically give the organisations and the developers a good reputation. The new bridge being built is one of the main features of the development, thus it is vital to mention the quality of life indicator – water quality, as it is fundamental for the council and the developers to consider the aquatic life in the long-term. What’s more, there is a new play centre in the area so the children can have another source of fun in their spare time.

       Jenny Greenwood, Head of Early Childhood Service stated:

“Parents of children who use the play centre told us they are delighted with this injection of further funds to improve the centre and bring a new day care centre to the site. The money from the fund is vital, it is helping to deliver benefits for the community that otherwise could not have been possible.” This clearly shows that many residents are pleased with the new facilities they will have in their area.

Yet, there are also other social costs with which the local residents are concerned. Their main worry is the increase in noise and pollution that is coming from the development. From our questionnaire we have assembled that many are concerned about the future rent increases and are afraid that they will not be affordable. One person who we interviewed believed that because of this the country’s economy would struggle. This is because as the rent increases, people would tend to spend less and save more of their income. As a result they might demand higher wages/salaries in order to maintain the balance of spending, i.e. having a sufficient amount for all their expenses and also other purposes, e.g. leisure and entertainment. Many businesses might lose on average profit because of this. As the cycle continues, people and the economy as a whole would struggle.  

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   As an additional research, I have discovered on the Internet that some of the older residents would like to see a community centre built and there was a call to make sure there were facilities for disabled people available. The call for compensation is relatively unreasonable, as the developers could not afford such a suggestion.

   Another concern is the rent and the prices of houses. Most of the local residents have noted that these prices have risen since the development has been introduced and are not pleased with this fact. Even though the residents are aware of the ...

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