Issue - meetings

RECOMMENDED TO COUNCIL:

(i)        that the progress made to date in the delivery of Phase 1 of the Glass Works development, as detailed in Section 4 of the report now submitted, be noted;

(ii)       that recommendation be given to Full Council approval to proceed with the construction of the Glass Works scheme and the wider town centre redevelopment at a total estimated cost of £178.1m including; completion of the Phase 1 construction, construction of the Phase 2 retail and leisure element, town centre public realm works and construction of the Mark Gate Bridge (referred to in Section 5 of the report);

(iii)      that the £11.3m of pre-opening costs be that will be incurred prior to the development becoming fully operational (as detailed in Section 5 of the report) be noted;

(iv)      that recommendation be given to Full Council approval of the remaining £115.7m resources required to complete the wider scheme (noting that £73.8m has previously been approved via separate reports), to be funded via a combination of borrowing and reserves previously set aside (as referred to in Section 6 of the report);

(v)       that the projected ongoing costs of managing and operating the Glass Works together with the annual income yields which are projected to be delivered (as set out in Section 8 of the report) be noted;

(vi)      that the estimated additional business rate income from the Glass Works of £0.8m which will serve to reduce the estimated annual cost of funding the overall scheme be noted.  This income has been reflected in the Council’s updated Medium Term Financial Strategy (as detailed in Section 9 of the report);

(vii)     that a provision of £2.6m be recommended to be set aside within the Medium Term Financial Strategy to fund the ongoing annual net costs to the Council of owning and operating the development (as noted in Section 13 of the report);

(viii)    that the Glass Works Board led by the Executive Director Place in conjunction with the Executive Director Core Services be tasked to continue to stringently review all costs and income projections associated with the development to ensure value for money continues to be achieved;

(ix)      that a further report be prepared on the final Phase 2 construction price prior to formally entering into a contract with the preferred bidder;

(x)       that authority be delegated to the Executive Director Core Services to extend the current Pre-Construction Services Agreement with the short listed bidders up to an estimated cost of £0.680m, with this cost being contained within the total approval requested at recommendation (ii) above;

(xi)      that authority be delegated to the Executive Director Core Services to enter into a contract with Yorkshire Water for the diversion of sewers necessary for the progression of the Glass Works Phase 2 scheme; and

(xii)     that the development of a Glass Works asset management strategy be noted and the outcome of which will be the subject of a future report.

RECOMMENDATION TO FULL COUNCIL ON 27^TH SEPTEMBER, 2018