Agenda item

This report will follow in a Supplementary Papers pack once the report has been published for Cabinet’s consideration (due for publication on Tuesday 9 July).

An update was provided on the Levelling Up Projects at Windsor Street, at Market Hall site, and the Public Realm works.

It was reported that challenges had been experienced with delivery of the three Levelling Up projects in Bromsgrove with a number of external factors having influenced the expected delivery timescales and costs of these projects. It was reported that at present the combined projects overspend was projected at £1.769 million. It was expected that the cost and value engineering would result in this overspend figure reducing to circa £1 million.

In order for the projects to proceed the Council would need to look to finance this gap and it was explained that this could be achieved either through debt financing or by making an application for the funding available through the now defunct Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP), which currently held £2.45 million of funds yet to be devolved to the Council through the winding up process. The funds available from the former GBSLEP could only be accessed once it was clear what level of finance the Council required to cover the overspend.

An outline of the progress with the tender process for the Windsor Street project was provided. It was stated that MDA were appointed as project managers for the demolition and clearance of the Windsor Street site. The Planning Application submitted by the Council for the demolition of existing buildings and associated site remediation, removal of existing redundant services and utilities had been approved on 4^th June 2024. MDA had undertaken a tender process for the demolition works and following this City Demolition were appointed. It was expected that demolition of the site commences in August 2024 and be completed before the end of the calendar year.

It was noted that issues were being experienced with a spike in vandalism at the Windsor Street which required the Police, the security company and minor works team to attend site daily. This was resulting in call out and boarding costs of circa £400 a day to keep the site safe (prevent vandalism and breaking into the site). It was clarified that dealing with security of the site would become the responsibility of the demolition contractors once the site demolition had started.

Members were advised that the Council had applied for Brownfields Clearance Funding for the Windsor Street site project to support with the additional costs anticipated as a result of interventions requested from the Environment Agency (EA). The outcome of this bid would be known at the end of summer.

For Public Realm part of Levelling Up projects, it was reported that Worcestershire County Council were responsible for the design and delivery given their statutory responsibilities. It was noted that Memorandum of Understanding (MOU) was in place between Bromsgrove District and Worcestershire County Councils to ensure both parties were fully sighted on detail of the projects, the funding conditionality and timescales in respect of payments for the project.

For Market Hall site project, it was noted that the Council appointed Kier in April 2024 to deliver the Pre-Construction Service Agreement (PCSA) and submit a cost plan for the Council to review before entering into the main works contract.

It was noted that for Market Hall project the use of steel instead of concrete was now recommended by Kier due to lower cost and availability in the supply chain. A 10-week extension to the PCSA was being recommended in the report submitted before Members to enable Value Engineering (VE) to be undertaken, with Kier due to submit their forecast final cost account by the end of August 2024 and completed design to be available in September 2024. If changes proposed required an additional planning application, consultation would need to continue in parallel with the planning process with local traders and the Ward Councillor for the area.

The recommendations as printed in the report were endorsed by the Board.

RECOMMENDED that:

1)    The Cabinet approve the appointment of City Demolition for the demolition of existing buildings and associated site remediation, removal of existing redundant services and utilities; and

2)    The Cabinet approve a 10 week extension in the Market Hall Pre Construction Service Agreement (PCSA) in order to fully validate costs.

(During the consideration of this item, Members discussed matters that necessitated the disclosure of exempt information. It was therefore agreed to move to exclude the press and public prior to any debate of exempt matters on the grounds that information would be revealed which related to the financial and business affairs of any particular person (including the authority holding that information)).