Agenda item
Levelling Up Funding Update - Report to follow
This report will be published in a Supplementary Papers pack.
Minutes:
The Board received an update with respect of progress in delivery of the Levelling Up Fund (LUF) projects (LUF0297) in Bromsgrove Town Centre between April and August 2022. The two projects were taking place at Windsor Street and the former Market Hall site.
The Board was first updated on the Windsor Street Site (former Fire Station at Windsor Street).
The Leader of the Council addressed the Board, explaining that the Windsor Street site had stood empty for more than six years and interest had been expressed in the site for some time. The District Council purchased the full site from the Herefordshire and Worcestershire Fire and Rescue Service (HWFRS) and Worcestershire County Council (WCC) before the end of the 2021/22 financial year at a cost of £1.806m. It was noted the purchase price for the site was below the original asking price of £2.4m, and the acquisition was necessary to enable the start of feasibility works.
The Head of North Worcestershire Economic Development and Regeneration confirmed that the District Council needed to acquire freehold of the full site before a site feasibility study could be undertaken. Members were informed that the site was purchased from other public agencies, meaning the transaction was cost-neutral to the taxpayer.
The Head of North Worcestershire Economic Development and Regeneration clarified that the aim of the Windsor Street site redevelopment was to deliver residential-led mixed housing which was proposed to include 29 town houses. It was confirmed that the residual land value stood at £1.90m (as of April 2022).
It was reported that pre-development remediation works were taking place at the former Fire Station in Windsor Street. An intrusive ground investigation (phase II) report was submitted to the Environment Agency (EA). The EA agreed with the findings of the report but requested a further ground contamination water sampling at the Spadesbourne Brook, which was undertaken by the consultants in August.
In addition, a detailed quantitative risk assessment (DQRA) and draft remediation strategy were currently in the final preparation stages before submission to the EA.
Members were assured that building works would not commence on the Windsor Street site until the remediation strategy and the environmental method statement had been fully approved by the EA.
Following the update on the Windsor Street Site, Members asked for clarification with regards to some of the areas highlighted and provided a number of comments as follows:
- Some Members expressed concern about the financial implications of the Council purchasing the site.
- Members complained about the agenda for this meeting containing a number of supplementary packs, which consequently resulted in some Members being unable to properly consider all the facts in advance of the meeting. In response Officers apologised and explained this issue would be discussed at a Corporate Management Team (CMT) meeting.
- It was reported that whilst the Windsor Street Site was acquired for £1.806m, the direct cost to the Council was only £285,000, the rest coming from Government funding.
- It was clarified that the Council did not currently plan to resell the Windsor Street Site. Instead, it was envisaged the site would be redeveloped, once land remediation had been completed, and a lease would be granted to an operator following the completion of redevelopment. The process of appraising operators was currently ongoing.
- Members asked if there was an option to redirect any of the UK Shared Prosperity Fund (UKSPF) if there was an overspend on either of the two Levelling Up projects, given that many aims of the UKSPF related to digital matters. In response, Officers confirmed it was an option but any changes needed to be approved by the Bromsgrove Partnership Board which oversaw the UKSPF funding. Authorities were nonetheless advised to prepare reserve allocations from operational costs to ensure any overspends could be managed without redirecting funding to UKSPF projects.
The Board subsequently received an update on the former Market Hall site project.
The Head of North Worcestershire Economic Development and Regeneration addressed the Board and stated that the development of the Market Hall site required caution as part of the site was in a conservation area and with a landmark building adjacent. It was noted that the main risk to the project’s delivery remained cost, especially considering the current inflationary pressures.
It was recalled that the results of the survey of the creative business sector on the preferred uses for the Market Hall site showed support for several uses including multifunctional community space, creative studios, and workshop spaces. The soft market testing undertaken in July 2022 for appointment of a design team confirmed interest in the West Midlands for flexible workspaces and commercial support behind such proposals.
It was noted that the original recommendation of the technical advisor for the former Market Hall project was to proceed with a two-stage design and build contract from feasibility (RIBA stage 2) with a contractor-led design team. However, following the request of the Levelling Up Programme Board in August for a review of the route to procurement, the advice was updated. It was now recommended that a multidisciplinary design team (Multi-dis DT) be appointed, as opposed to a contractor-led design team, from RIBA stage 2. This had enabled the Council to avoid entering into early agreement with a contractor and provided time to develop the project brief to a sufficient level before being released to the market.
The Head of North Worcestershire Economic Development and Regeneration stated that there was a tight planning submission deadline for the site of March 2023, meaning that public engagement would need to commence immediately following the appointment of a multi-disciplinary design team in December 2022.
In relation to discussion on the Market Hall site, Members asked several questions and the following responses had been provided:
- Members asked for clarification with regards to when the Bromsgrove 2040 Vision would be available for viewing by Members, given that paragraph 3.1. of the update report referred to the results of the creative business community survey undertaken in early 2022 as agreeing with the emerging vision. Officers responded that the vision was at a draft stage and not publicly available, and it was currently envisaged the final version would be prepared in time for the Cabinet meeting on 23 November at the earliest.
- Members requested that they be shown the risk register for both Levelling Up Fund projects to fully understand the risk implications. In response, Officers undertook to provide the risk register update to Members, and it was noted that quarterly risk reports were being submitted to the Interim Section 151 Officer for sign-off and there were bi-weekly meetings of the Governance Board where issues logged for the projects were discussed and updated.
- Members queried whether the design team would be briefed in accordance with the results of the creative business community survey. In response, it was noted that specific details on the use of the site had not been provided in the original application submitted to the Department for Levelling Up, Housing and Communities (DLUHC) to give the Council more flexibility to adjust the design at a later stage, depending on feedback from the business sector. However, it was currently envisaged that potential uses for the site would be a business support space for the creative industry sector with the ground floor occupied by commercial premises including food and beverage and space for temporary exhibitions.
- It was explained that any design proposal for the Market Street project needed to be ultimately justifiable in terms of rental income generation to ensure the site could be self-sufficient once in operation.
RESOLVED that the update be noted.
Supporting documents:
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