MKDP looking for development partner for MK Open Market

The deadline for this opportunity has now passed.

MKDP is seeking a partner to facilitate the development of Milton Keynes Open Market. It is a centrally located prime commercial space that MKDP aspires to transform into a retail, leisure and food destination. Activate, Workman’s in-house placemaking team has been appointed to assess investor interest in this scheme. Potential partners should read the information below and respond to the questions. Please note that responses should be sent by Friday 6h May 2022 to activate@workman.co.uk.

Context

  • Milton Keynes (MK) has a resident population of over 260,000 and it is growing at a rate of 1.04% per year (compared with the overall English growth rate of 0.83%) [1] The population is estimated to reach 500,000 by 2050.
  • Average disposable income of a household in MK is higher than the national average [2]
  • Central Milton Keynes (CMK) serves as both a Regional Shopping Centre, and a local centre, meeting day-to-day shopping needs [3].
  • A number of ambitious redevelopment projects are being planned for CMK over the coming years – and some are already underway, including MK Gateway, Hotel La Tour, Santander UK HQ, plus the redevelopment of The Point, the Former Food Centre and the former Wyevale Garden Centre. There are also ambitious emerging plans for the redevelopment of Station Square and Midsummer Boulevard East in the coming years
  • The CMK Alliance Neighbourhood Plan maintains that by 2026, Central Milton Keynes will be the dynamic centre of one of the fastest-growing regions in the South East [4]

Site Specific

  • Milton Keynes Open Market was part of the original masterplan for the city in the 1970s and is an essential part of both its history and its fabric.
  • The traditional market is a valuable asset serving important everyday needs for MK residents, particularly so for many from BAME backgrounds.
  • The market is centrally located on Midsummer Boulevard and immediately adjacent to Centre:mk shopping centre which attracts 23.4mn visitors per year [5].
  • MK Open Market has a current size of 3,446m2 and contains a strong core of existing traders selling food and dry goods. The market is recognised as the main independent retail centre in Milton Keynes.
  • The market contains over 100 stalls and is currently open between 8am – 5pm on Tuesday, Thursday, Friday, Saturday and Sunday (earlier close of 4pm on Sunday)

Opportunity

  • Milton Keynes Development Partnership (MKDP) is an LLP and owned by Milton Keynes Council (MKC). It uses and develops its land assets to help the city become a better place to live, socialise and work.
  • MKDP, as landowner, is seeking a partner to work with, as well as with key parties and adjacent landowners, to develop and realise its future vision for MK Open Market
  • MKDP’s vision is for the market to evolve into a destination retail and leisure scheme, providing a dynamic, modern customer experience. Ideas to considered to achieve this have included:
    • food court open into the evening
    • creative workspaces
    • event space
  • MKDP is open to these and to other new ideas and to taking inspiration and learnings from other markets and mixed-use schemes around the world.
  • It is important that this future vision is developed in a way that also enhances the existing offer, which brings great social value and is an essential resource for a significant proportion of Milton Keynes’ residents, particularly those with lower incomes.
  • The market site also forms part of Milton Keynes Council’s wider aspirations for Midsummer Boulevard East – an exciting new ‘High Street’ for Milton Keynes, connecting the city’s existing key retail, leisure and cultural hubs to create a vibrant, diverse centre where visitors can meet, shop, eat and relax. There is opportunity to expand the market on both the current site’s western and eastern flanks, along Midsummer Boulevard, on land also owned by MKDP.
  • MKDP wants to maintain and build on the strengths of the existing market offer, whilst also expanding and diversifying it.
  • MKDP understands it will likely take some time to design and consult on the future plans for the market but it is vital that any development partner manages and strengthens the current market offer during this period.

  1. Current Open Market Site
  2. MKDP Land Development Opportunity
  3. Midsummer Boulevard East

MKDP is keen to hear from potential operational and development partners interested in this exciting opportunity. Activate – Workman Placemaking has been appointed to assess the initial level of interest ahead of a full tender process.

At this stage, MKDP is seeking views on the following questions:

MKDP is open to a long-term partnership of at least 10 years (with a 3-year minimum term and appropriate break clause dates thereafter). Whilst this is flexible, an illustrative programme might be:

  • Phase A:     Delivering core current market operation, whilst working with MKDP to define the future market and other potential uses, with an opportunity to deliver some short term enhancements
  • Phase B:     Continuing operation whilst delivering future potential uses and development
  • Phase C:     Full operation of final scheme

1. MKDP would welcome views on this, particularly on whether you feel this could best be served by a consortium of partners?  What would your preference be and what experience do you have of working in this way?

2. For a project of this nature, would you consider the opportunity if it was tendered:

  • as a lease arrangement or
  • a joint venture whereby both parties commit capital expenditure or
  • providing services under a management agreement?

Please give any comment on your preferred option and wider experience you have of entering into any of the three arrangements, whether positive or negative, including challenges encountered.

 

Please email activate@workman.co.uk, with your answers to the above questions, by 7 May 2022.

It is intended that a full tender process will be held during summer 2022.

Thank you for your interest.

[1] Milton Keynes Council website

[2] Milton Keynes Local Economic Assessment 2019

[3] Milton Keynes Retail Capacity & Leisure Study – 2018

[4] CMK Alliance Plan 2026, A Business Neighbourhood Development Plan for Central Milton Keynes (Oct 2014)

[5] Completely Retail website

Contact MKDP