A grant scheme of £500,000 is to be set up to support reconfiguring empty shops on Union Street after a report was agreed at Full Council today.
Aberdeen City Council’s Full Council approved the move which will lever in match funding, and is part of an action plan to help reinvigorate and reimagine the area.
From consultation work, five ‘development principles’ for the Plan have been developed:
- In areas of weak demand like Union Street, offer something different to what it has done in the past – catering for new audiences and footfall and embedding local and regional businesses at the heart of the city;
- Retail is not the only solution – focus on ‘functions’ of footfall eg hospitality, culture, streetscape, public realm enhancement
- Create the conditions for investment – sustainability and environment, local leadership, devolved powers;
- Capitalise on the city centre – it is more productive – agglomeration benefits of clustering workers and knowledge to generate new ideas and innovation and these workers are providing demand for new services;
- De-risk interventions on Union Street – public sector can provide certainty through its policies.
Aberdeen City Council Co-Leader Councillor Alex Nicoll said: “It is good the action plan has been agreed today at Full Council. Delivering it will rely on a number of different organisations and groups as well as the Council, and I am looking forward to seeing it develop.
“The city centre is emerging from the effects of the pandemic, and now rising living costs. The Plan proposes new uses for Union Street shops, combined with retail.
Aberdeen City Council Co-Leader Councillor Ian Yuill said: “The costs of vacant units is considerable in terms of attracting investment and vibrancy of the city. The Plan and in particular the proposal to incentivise investment in these units to secure occupancy will be a welcome boost for Union Street.
“We look forward to hearing updates on the Action Plan in due course.”
The report to committee said in September 2022, the most recent data, there were 47 vacant ground floor units on Union Street. Of a total of 461 rateable units on Union Street, 350 are occupied. There is a total of 111 vacant units on Union Street (an additional 64 units on the upper floors), and over 80% receive 100% Empty Property Relief for the duration of unoccupancy due to being of listed building status.
The report said the ‘cost’ of the vacant units relates to the lack of business rates they collect, the reliefs they attract, and the effect on investor, business, and consumer confidence in the immediate vicinity.
In September 2022, city centre footfall in Aberdeen reached its highest level since the pandemic, with more than 2 million for the first time since February 2020. On Union Street specifically, footfall in the same month was in excess of 600,000. While not yet reaching pre-pandemic levels, footfall recovery has been relatively stronger in Aberdeen compared to other places, the report said.
The positive impact of increased footfall is evident in increasing offline sales (sales made in person) for operating businesses in Aberdeen city centre. Against a baseline of average in-person sales from 2019 (ie pre-pandemic), in-person sales have increased from 52% in July 2020; to 74% in July 2021; and 92% in July 2022.
Aberdeen’s cultural offering and events programme has positively impacted city centre footfall. 2022 visitor numbers for Aberdeen City Council attractions total 250,000 in the year to date and events such as the Tour of Britain and Spectra Festival of Light attracted weekend crowds of 164,000 and 163,000 respectively. An average weekend would normally attract 71,000 visits.
The City Centre and Beach Masterplan provides an ambitious vision for the city centre. The proposed interventions for repopulation of empty units in this Action Plan align with the objectives for the Masterplan and the results of the ‘simulator exercise’ as part of the consultation, including Union Street as heart of the city, make outdoor café culture in the Belmont Street area permanent, focus on building maintenance and upkeep for Union Street, more trees, flowers and green spaces on Union Street, and remove street clutter on Union Street.
The Action Plan also coincides with the work of the Business Improvement District, Aberdeen Inspired, in convening a ‘Union Street Summit’ on 9 November 2022 to discuss city centre challenges.
Officers are report back on progress of the action plan to the Finance and Resources Committee in early 2024.