Agenda item

The Regeneration Project Delivery Manager presented an update on the Levelling Up Fund Programme in Bromsgrove to the Board. 

Members were informed that there was a typographical error within the report at point 3.8 of the table under ‘Risk and fixed price allowance’ and that the figure stated should have read £58,151.08 and not £55,151.08 as recorded.

The following key points were discussed with the Board:

Windsor Street

• Brownfield Solutions had completed Phase One of remediation works. The Environment Agency (EA) technical feedback was expected to be completed in October 2025.
• Once feedback from the EA was received, the Council was likely to undertake Phase Two remediation works, with a budget allowance in place to cover the costs.  Completion was expected by May 2026.
• Cabinet was due to consider housing delivery options in November 2025.

Nailers Yard

• Works to the culvert had increased to £1.6m, with a provisional sum allowance of approximately £225,000 in the Kier contract. This had increased the overall Levelling Up Programme costs by £165,000. Therefore, an urgent decision was taken in August 2025 to commit a further £500,000 to the Levelling Up Programme, which included an allowance of £335,000 for additional contingency.
• The completion date was originally expected to be January 2026; however, this had been extended to 4^th May 2026.
• There had already been strong commercial interest in the office space and food and beverage units in the commercial building with service charge arrangements in progress.
• The Full Business Case (FBC) to secure the Council’s funding from the former Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) was in progress.
• The overall funding secured of £16.103 million had increased by £1.093 million to a total of £17.194 million including the additional £500,000 agreed by BDC which increased the total to £17.694 million.  The final cost would be an estimated £19.8 million.  The GBSLEP bid for £2.425 million was pending.  Therefore, the total potential funding pot was £20.118 million.
• There were risks reported with a potential impact on project budget and programme at the Nailers Yard site for culvert works, incoming electrics and the commercial building layout.  Potential risks were also highlighted at the Windsor Street site for EA sign off of remediation works and BDC were due to agree future delivery options for the site prior to any works.

Following the levelling up update, Members discussed a number of points:

• Assurance on the completion date was discussed, due to the delays arising from culvert works.  It was explained that any delays caused by the client or beyond anyone’s control, such as poor weather, would be met by the Council whereas any delay based on contractor performance would be applied to the contractor Kier Construction Limited.
• Service charge explanations and concerns were discussed with the Board. Officers reassured Members that a resolution to secure the leases with incoming tenants would be a priority.
• Clarification on a cost breakdown was discussed for Mechanical and Electrical (M&E) works, prolongation, insurance and overheads.  Officers agreed that a more detailed breakdown would be provided to Members.
• Return on investment was also discussed with the Board and Officers provided details of the six-year payback claim.
• Clarification on the specifics of spend for the GBSLEP funding were also discussed with details provided to the Board. 
• Further information about housing density at the Windsor Street site was discussed and Members were informed that a meeting was scheduled with the Principal Conservation Officer to review the options available.
• Members were provided with an explanation of the culvert works as requested. It was noted that the works were deemed necessary to mitigate flood risks and that omitting them would have significantly increased the risks.
• Revenue expectations were discussed, with an estimated annual income of £330,000 to the Council. It was explained that service charges covered building upkeep, while voids liability remained with the Council. 
• Members were also given clarification on what service charges entailed and it was explained that it applied to the property management. The Board was informed that the appointment of a property management agent had been delayed due to the procurement process, but progress was being made.
• Homes England funding for Windsor Street was also discussed with Members querying if any restrictions applied.  It was explained that additional affordable housing provision could attract funding opportunities.

RESOLVED that the update on the progress of the Levelling Up Fund projects be noted.</AI9>

(During 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 on the grounds that information would be revealed that included information relating to the financial or business affairs of any particular person (including the authority holding that information).  However, there is nothing exempt in this record of the meeting).