Tenants in a successful office complex feel “betrayed” after the council asked almost two dozen to find a new home.
One business based in the Harborough Innovation Centre said the change in policy that had seen 22 asked to leave was “flawed, unjustified, unfair and contradictory, without any substantiated evidence or merit”.
They have objected to Harborough District Council saying a lack of alternative space meant some could be forced to leave the south Leicestershire district altogether, taking jobs and business rates with them.
They said they had been told they would have to leave at the end of their next renewal date or the one after that.
They said the council told them it had brought in a new lettings policy targeting sectors more closely aligned to a countywide industrial strategy – principally space technologies, health and medical technologies, advanced manufacturing and engineering, advanced logistics and textiles.
The centre has 55 companies, and there are four offices as well as a desk in a shared office currently unoccupied.
Current tenants work in areas such as digital marketing, technical publications, apprentice recruitment, demolition, cleaning services, estate agency, law and risk management.
Now, however, the council has said it has reconsidered and will offer long-term occupants “more time and flexibility”.
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It said when the council opened the centre on the Airfield Business Park in 2011, the idea was to support start-ups and have a regular turnover of businesses, allowing new occupants to take advantage.
It said: “Some current occupants of the centre have been there for a long time.
“There is a risk that we could have to repay funding if we do not meet the original intentions.”
One of the occupants told BusinessLive the council had done a poor job of explaining its actions.
The tenant, who asked not to be named, said: “Harborough Innovation Centre (HIC) businesses had not been informed that their contract would not be renewed at the end of the term, nor was there any mention of a yearly review of business growth.
“In addition, no formal notice of eviction was served.
“It was correctly assumed therefore that HIC business owners would demonstrate their own business growth and move on when they felt ready and stable enough to do so.
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“Many HIC businesses are small to medium sized enterprises and not large enough to absorb the costs associated with larger office premises that are available in Harborough. What are the alternative options available to them?
“It is vital that these businesses have the services and support on site in order to assist with continued growth.
“It appears that the council have failed to give this proper consideration.
“HIC businesses feel deeply betrayed, essentially now being ‘kicked out’ by the council and believe that the council’s decision is flawed, unjustified, unfair and contradictory without any substantiated evidence/merit.”
They said the council had even told them it anticipated a drop in occupancy rates because of the new policy and had “allowed for the shortfall”.
The tenant said: “What are the council’s plans in relation to the empty office spaces once they have evicted HIC businesses?”
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Over the past seven years, innovation centre management estimated it had helped create 796 jobs across 122 companies and pumped £19 million into the economy.
The council took back responsibility for managing the centre on July 1, then told long-term occupants to look for somewhere new to ensure the original vision for the building was delivered.
A spokesman has now said it had changed its plan, recognising that what it had said could cause undue difficulty for some firms.
He said: “Therefore the council is going to offer the affected occupants flexibility and agree departure dates that work for them as best as possible.”
Asked if there was enough appropriate alternative accommodation, he said: “We believe so, and will work with them to ensure that as many as possible re-locate within the district. If this means, they stay longer then we will do this.”
In a statement council leader Coun Phil King said: “We are acutely aware of the important role businesses play in our district and we’re delighted to see so many start-ups navigate their way successfully through their initial years.
“It is important that we continue to provide this important launch pad for emerging businesses in the district, but we recognise that the way existing occupants have been informed about the need to relocate could have been handled better.
“We have taken immediate steps to make sure our existing occupants are given the support and flexibility they need to make the right choices for their business as they look to find more permanent premises and I would like to apologise for any concern our initial approach may have caused.
“I have asked senior officers to meet with businesses at the innovation centre and a meeting has been arranged with the chairman of the innovation centre board.”