Part 1 A REPORT OF THE STRATEGIC DIRECTOR FOR SUSTAINABLE REGENERATION TO THE LEAD MEMBER FOR PLANNING FOR BRIEFING ON 3rd DECEMBER 2008 FOR DECISION ON 16th DECEMBER 2008 TITLE: Greengate Public Realm Scheme – Funding Agreement, Collaboration Agreement and Design Team Deeds of Appointment. RECOMMENDATIONS: That the Lead Member for Planning is recommended to: 1. To give approval for the Head of Legal Services to enter into the Funding Agreement with English Partnerships. 2. To give approval for the Head of Legal Services to enter into a Collaboration Agreement with ASK Developments. 3. To give approval for the Head of Legal Services to enter into Deeds of Appointment with the Design Team, Project Managers and Cost Consultants for the Greengate public realm scheme. EXECUTIVE SUMMARY: The purpose of the report is to seek Lead Member approval to enter into the Funding Agreement with English Partnerships, a Collaboration Agreement with ASK Developments and Deeds of Appointment with the Design Team (Whitelaw & Turkington, Faithful & Gould and Turner and Townsend) for the Greengate public realm scheme. The URC on behalf of Salford City Council has been negotiating the Funding Agreement and Collaboration Agreement with English Partnerships to secure the £5.5M funding needed to deliver Phase 1 of the Greengate public realm scheme. Phase 1 of the Greengate public realm scheme comprises the Urban Cove, which includes the new pedestrian footbridge linking Salford with Manchester and The Link between Chapel Street and the area of Greengate to the north of the railway viaduct. Negotiation on the Funding Agreement and Collaboration Agreement with English Partnerships has now been completed and drafts Deed of Appointment prepared. 1 The Funding Agreement and Collaboration Agreement have to be entered into by 31st December 2008 at the very latest to ensure release of the remainder of English Partnerships £5.5M of funding on and above the initial £250,000 of funding. BACKGROUND DOCUMENTS: ASSESSMENT OF RISK: Low SOURCE OF FUNDING: LEGAL IMPLICATIONS: Contact Officer and Extension No: Ian Sheard x 3084 Date Consulted: 24.11.2008 Comments: In order to protect the Council’s position and secure the relevant funding from EP, the Council needs to be able to enter into the various documentation as soon as possible FINANCIAL IMPLICATIONS: Contact Officer and Extension No: Nigel Dickens x 2585 Date Consulted: Comments: The Funding and Collaboration agreements will allow the £5.5m agreed with English Partnerships (now part of the HCA) to be drawn down. COMMUNICATION IMPLICATIONS: N/A VALUE FOR MONEY IMPLICATIONS: N/A CLIENT IMPLICATIONS: The URC has been leading on behalf of the city council, which is the client. There are significant implications for the delivery of good quality public realm, which are under discussion. PROPERTY: N/A HUMAN RESOURCES: N/A CONTACT OFFICER: Nik Puttnam (Central Salford) Extension No: 0161 601 7727 David Evans x 3641 2 WARD(S) TO WHICH REPORT RELATE(S): Ordsall Ward KEY COUNCIL POLICIES: City of Salford Exchange Greengate Planning Guidance (January 2007) Central Salford Urban Regeneration Company Vision and Regeneration Framework Central Salford Urban Regeneration Company Business Plan 2007/2008 to 2009/2010 DETAILS: 1.0 Background 1.1 Greengate is a priority project for Salford City Council and Central Salford URC and is a joint project with English Partnerships and the private sector. This project has been ongoing for a number of years and we are at the stage where English Partnerships has approved funding of £8.5 million and we have an agreed Design Team and contractor to deliver the public realm. 1.2 We are now at a critical stage with regard to the Grant Funding Agreement, Collaboration Agreement and Deeds of Appointments for the Professional Team and these documents need to be signed before Christmas (the target date actually being 12 December 2008). If this is not achieved we are at risk of not being able to draw down the remaining funding of £5.5 million from English Partnerships to continue with this important project. It is also important to ensure that Greengate is a legally committed project now that English Partnerships has become part of the new Homes and Communities Agency. 1.3 The Exchange Greengate Planning Guidance sets down the principles to establish Greengate as a dynamic new part of the city centre. The transformation of this area will deliver a distinctive and diverse mixed-use quarter, which will combine high quality commercial development and residential properties with leisure uses, dramatic public spaces and new waterside environments. 1.4 The high quality public realm is seen as an important component of a redeveloped Exchange Greengate and a catalyst to the development potential set out in the Planning Guidance. The development potential could see up to £580M of private sector investment in the area over the next 10-15 years. 1.5 For the past two years the URC has been working with English Partnerships on behalf of the City Council to secure investment to deliver early phases of the Greengate public realm. At the same time the URC has been working with ASK Developments and Network Rail to bring forward the delivery of the ASK/Network Rail scheme to ensure a start 3 on site by ASK/ Network Rail on or before the start on site of Phase 1 of the public realm works. 1.4 On 18th December 2007, English Partnerships Project Executive approved an investment of £5.5M in the Greengate public realm scheme. 2.0 Details 2.1 English Partnerships initially approved investment of £3M to fund the acquisition of the former Victoria bus station site, Chapel Street in March 2007. This investment was formalised in the form of a Funding Agreement between the City Council and English Partnerships on 30 March 2007. 2.2 Following the acquisition of the former Victoria bus station site the Urban Regeneration Company, worked up a funding proposal for additional funding from English Partnerships to fund the delivery of Phase 1 of the Greengate public realm works. The proposal identified an additional funding requirement of £2.5M plus £3M of funding to cashflow the Phase 1 public realm works. 2.3 On 18th December, English Partnerships Project Executive approved an investment of £5.5M in the Greengate public realm scheme, subject to entering into a Funding Agreement and a Collaboration Agreement between the City Council and ASK Developments. In approving this funding English Partnerships approved £250,000 of funding in advance of entering into the Funding Agreement to cover initial Design Team fees. This initial funding of £250,000 covers the Design Team fees up to 31st December 2008. 2.4 The Design Team have been procured from English Partnerships Framework Panel (Landscape Architects) and the project management services and quantity surveying services from the Northwest Regional Development Agency’s Framework Panel (Lot 1 Panel - Project Management services and Lot 8 - Quantity Surveying services). 2.5 The Urban Regeneration Company and Cobbetts acting on behalf of the City Council have been negotiating the Funding Agreement and Collaboration Agreement with English Partnerships and have now concluded negotiations. 2.6 The Funding Agreement incorporates an investment schedule, which sets out private sector and public sector investment milestones. This investment schedule will also be incorporated within the Collaboration Agreement which will be entered into between the City Council and ASK Developments. The Funding Agreement will go unconditional once the Collaboration Agreement is entered into. 3.0 Conclusion 3.1 The negotiation of the Funding Agreement and Collaboration Agreement has now been completed to the satisfaction of both parties. Once the Funding Agreement and Collaboration Agreement are entered into the detailed design work will commence with a new planning application programmed to be submitted in February 2009 with start on site of Phase 4 1 programmed for late Autumn 2009. 3.2 The Design Team are presently appointed ‘subject to contract’ and negotiation on the Deeds of Appointment need to be concluded and the appointments formalised. Paul Walker Strategic Director for Sustainable Regeneration 5