Agenda item

Report of Senior Head of Regeneration, Planning and Assets and

Senior Head of Tourism and Enterprise.

Cabinet lead member:  Councillor Margaret Bannister.

(1) Full council recommended to approve the addition of £44m to the capital programme to complete the scheme, subject to final due diligence.

(2) Support for the Devonshire Park redevelopment scheme as presented in report confirmed.

(3) Officers instructed to continue to seek external funding sources.

(4) Appointment of the existing multi-disciplinary design team to complete the scheme be confirmed.

(5) Approval given to the commencement of the public procurement processes referred to in report to deliver the project and delegation of the detailed development, management and approval of the public procurement processes to be followed and of all the procurement documentation required to deliver project to the senior head of regeneration, planning and assets in consultation with chief finance officer, lawyer to the council, lead cabinet member and opposition spokesperson; such delegation to include approval to allowing exceptions to the council’s contract procedure rules should that become necessary.

(6) Delegated authority to appoint all the contractors necessary to deliver the project given to senior head of regeneration, planning and assets in consultation with chief finance officer, lawyer to the council, lead cabinet member and opposition spokesperson.

47.1 Councillors Jenkins and Freebody addressed the cabinet.  Councillor Jenkins praised the project but asked about the impact on the council’s total debt if all costs were funded by the council.  Councillor Freebody indicated his group’s support, acknowledged that the project was likely to benefit the town and endorsed the desire for external funding sources.

47.2 Cabinet considered the report of the senior head of regeneration, planning and assets seeking further decisions to advance this project.  Cabinet on 18 March 2015, after consideration of the business case, had given approval to the scheme and agreed the necessary funding to proceed with RIBA stage 3 design and submission of the planning application.  This was followed on 21 October when approval was given for funds to undertake RIBA stage 4 design works in advance of final scheme and funding authorisation. 

47.3 The report detailed the council’s vision and objectives underpinning the scheme and outlined the financial and economic benefits of investment.  In developing and costing the scheme a process of prioritisation had been undertaken to achieve an affordable scheme and at the same time meet the council’s objectives.  The current estimate of cost for the scheme was c.£50m (against the forecast estimate of £40 - £42m at RIBA stage 2) as a result of additions and variations to the scheme design.  A subsequent ‘value engineering’ exercise had reduced the scheme cost total to c.£44m. through a mixture of re-design, omission of non essential elements and use of alternative funding sources for certain items.  The £44m budget now required to deliver the scheme was in addition to funding previously approved to achieve RIBA stage 2 (£950,000) and stages 3 and 4 (£1,925,000).

47.4 The report noted that there were 3 listed buildings on the site (Congress Theatre, Winter Gardens and Devonshire Park Theatre).  These buildings had long term defects which would require sympathetic restoration intervention requiring Historic England approval and listed building consent.  Following a period of negotiation and amendments to the scheme, Historic England had indicated support for the scheme subject to conditions regarding design details and materials.  These were included in the planning and listed building consent granted by the council’s planning committee on 24 November.

47.5 A key stakeholder in the in the project was the Lawn Tennis Association (LTA). The project would deliver significant improvements to the tennis court layout to accommodate increased court sizes and a new show court.  The LTA was also be keen to see significant improvements to the player facilities which they would contribute to.

47.6 The buildings, in particular the theatres, as currently arranged, presented significant challenges for disabled access.  The approved design had successfully addressed these challenges and included a controlled access drop of point within the plaza.

47.7 The first construction phase of the project was scheduled to begin in summer 2016 and the overall project was programmed to complete in early 2020.  During this period it would be necessary to close the Congress Theatre for 14 months, of which the last 6 months would overlap with the closure of the Winter Gardens.  The construction procurement process would explore how the Winter Gardens could operate with a series of partial closures.  A temporary modular kitchen would be located at the rear of the Winter Gardens as the current kitchen would be demolished at an early stage of the project.  The works would have an impact on both the conference and show programmes and plans were being developed to address this and notify hirers.  The Devonshire Park Theatre programme should not be affected and the Aegon Tennis tournament would continue throughout the construction phase and no other significant business interruptions were foreseen. 

47.8 Details of scheme phasing, procurement, risk management, legal implications (including consideration of ‘state aid’ legislation and equalities were given in the report.  Existing governance arrangements would remain in place.  A summary of consultations undertaken to date was given in the report.  In addition the council’s scrutiny committee had reviewed the economic case for the investment at their meeting on 7 September 2015.

47.9 Capita Asset Services Ltd. Had been appointed to provide advice on the robustness of the business case, potential funding options and affordability.  A final report was expected in the new year.  Overall the scheme would cost the council in the order of £44m if all allowances for inflation and contingency were exhausted.  In summary the implications for the councils finances were:

1.   £1m of revenue to fund business interruption (set aside in March 2015).

2.   Use of £12m - £20m of future capital receipts.

3.   Use of the ongoing surplus created by the improved business following scheme completion to part finance the capital investment.

4.   That the council plan recurring growth of £500,000 per annum in its capital financing (revenue) budget in the period 2016-2020 depending on 2 an 3 above and its overall capital programme.

The report also noted efforts made to secure outside funding focussing on the Heritage Lottery Fund, Arts Council England and the Local Economic Partnership.  To date no funding commitments had been made, however discussions would continue.

47.10 Resolved (key decision): (1) That full council, at their meeting on 17 February 2016 and as part of their consideration of the 2016/17 budget, be recommended to approve the addition of £44m to the capital programme to complete the scheme, subject to final due diligence.

(2) That support for the Devonshire Park redevelopment scheme as presented in the report be confirmed.

(3) That officers be instructed to continue to seek external funding sources.

(4) That the appointment of the existing multi-disciplinary design team to complete the scheme be confirmed.

(5) That approval is given to the commencement of the public procurement processes referred to in this report to deliver the project and delegate the detailed development, management and approval of the public procurement processes to be followed and of all the procurement documentation required to deliver the project to the senior head of regeneration, planning and assets in consultation with the chief finance officer, the lawyer to the council, lead cabinet member and opposition spokesperson; such delegation to include approval to allowing exceptions to the council’s contract procedure rules should that become necessary.

(6) That delegated authority to appoint all the contractors necessary to deliver the project be given to the senior head of regeneration, planning and assets in consultation with the chief finance officer, the lawyer to the council, lead cabinet member and opposition spokesperson.