Ilex Urban Regeneration Company
Ilex Urban Regeneration Company
Minutes of Board Meeting
30th April 2015Boardroom, Ilex
Present:
Philip Flynn (PF) – Chair
Mel Higgins (MH)
Aaron McElhinney (AMcE)
Colm McKenna (CMK)
Henry McGarvey (HMcG)
Geraldine Keegan (GK)
Gerry Mullen (GM)
In Attendance:
CaoimhÍn Corrigan (CC)
Gerard McCleave (GMC)
Angela Hughes (AH) (PART)
Henry Johnston (HJ), OFMDFM (PART)
Siobhan Broderick (SB), OFMDFM (PART)
Minute Taker:
Andrea Mullin
Item
No.
1.
Topic
Action
Apologies:Deirdre Heenan (DH)
John Kelpie (JK)
2.
Conflicts of interest:None.
3.
Minutes of meeting 26th March 2015:
Minutes approved subject to amendment requested by
CMK. Minutes will be updated to reflect the change.
4.
Matter arising: None.
5.
Review of Action List:
MH gave an update on the action list:
CC has met Derry City and Strabane District Council
about events. CC said it was a positive meeting and we
need to be ambitious however it is difficult to take
forward large scale events due to funding constraints.
CC added that the Board previously agreed to support
the Council with legacy events and he recommends that
Ilex continues this support.
GK asked what events are planned on Ebrington during
the summer. CC advised of several events scheduled
and said that the programme is not as intensive as last
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Ilex Urban Regeneration Company
year.
MH advised that a timetable of events is included in
Board papers. MH added that Ilex will continue to
monitor and identify ways to support events. CC said
that a charging policy is in development and that Ilex is
considering outsourcing the management of events.
CMK asked if OFMDFM has been asked for clarification
in relation to the capital position. MH advised that he
intends to raise this with Henry Johnston and Siobhan
Broderick (OFMDFM) when they attend the Board
meeting later today. MH added that Ilex seeks to retain
receipts in the next monitoring round. CMK said that
negotiation with OFMDFM on the retention of
receiptswill be important prior to Ilex transferring to the
Department of Communities (formerly DSD).
6.
Chairman’s Report (verbal):
On behalf of the Board, PF wished James Huey success
in his new business venture at Ebrington as a Craft
Brewery and offered Ilex’s support. PF also thanked
the Ebrington Team on behalf of the Board for their
contribution in taking forward the Craft Brewery
proposal. Board had a tour of the Craft Brewery in
advance of Board meeting.
PF advised that since the March Board meeting he has
met with the consultant leading the review of Ilex. The
meeting focused on evidence of results and history. PF
advised that a further meeting of the Board may be
convened in May to discuss the report if it is received.
MH advised that he also met with the consultant and the
focus was significantly on past performance and how
Ilex delivered on its objectives, staffing and spend.
CMK said it was clearly communicated at the last Audit
Committee meeting that the Board needs to see the
draft report for accuracy.
MH said that there may be a tight turnaround time to
respond upon receipt of the draft report therefore he
would appreciate if Board members could be available
at short notice if necessary to discuss.
Following further discussion by Board PF advised that
Ilex will respond to the draft report as appropriate.
Board agreed to hold an additional Board meeting if
required to consider a draft report.
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Ilex Urban Regeneration Company
PF continued his update advising that an external review
of Unity of Purpose will be considered at their next
meeting.
PF advised that he attended the Strategy Board meeting
where Gavin Killeen provided an excellent presentation
on the skills agenda and Mark Durkan M.P presented on
a new proposal for a ‘City Deal’.
PF also met Sharon O’Connor and on behalf of the
Board, thanked her for her contributions to Ilex and
passed on his best wishes in her new role.
PF and MHattended a meeting with Terence Brannigan,
Chair of Maze Long Kesh (MLK) and Kyle Alexander,
MLK, and said it is pleasing to note how much further on
Ilex is with Ebrington. PF added that MLK hopes to
launch a new revised development programme
imminently.
MH added that there are a number of similarities
between Ilex and MLK and they are keen to engage with
Ilex.
Following a meeting with Patrick Shortall, PF received
correspondence from Patrick which he has responded
outlining Ilex’s requirements for Ebrington and inviting
him for a tour of the site.
7.
P&R Committee Report / Update:
MH advised that the P&R Committee discussed the
transfer of the Strategy and Regeneration function to
Council and staff vacancies. MH said that staff
vacancies are currently amber on the risk register
however this could change to red. MH added that a
case will be submitted to OFMDFM on the justification to
fill vacancies. Staff are needed to take forward projects
as this could impact on Ilex’s ability to deliver on the
Business Plan. Consideration will be given to projects
and work which may stop due to the reduction in staff
and this will be presented to the May Board.
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Ilex Urban Regeneration Company
Transfer of the Strategy and Regeneration Function to
Council:
MH advised that Ilex’s HR Lead has met Derry City and
Strabane District Council (DCSDC). The secondment is
in line with DFP template. MH advised that the
secondment allows staff the right to return to Ilex. MH
added that it is anticipated that the transfer will take
place end May 2015 once all parties have agreed the
paperwork.
MH advised that a Memorandum of Understanding
(MoU) also exists as Ilex will continue its responsibility to
report on the One Plan in 2015/16.
HMcG advised that a Voluntary Exit Scheme will be put
in place if required.
8.
Audit Committee Report / Update:
CMK advised that the main area of discussion for the
Audit Committee was the Peace Bridge and the
recording of the associated risk. CMK added that the
Ilex staff count has reduced by 20% and this escalates
risk. CMK referred to Executive stretch in previous
years and noted the risk that this could happen again as
staff arecurrently stretched and this needs to be
addressed.
CMK said that the transfer of the Peace Bridge is closer
to red on the risk register and he would like this
resolved.
HMcG asked if we have an approach with the
Department on dealing with the staffing issue.
MH advised that the issue is escalated via the risk
register. MH added that a case for staffing is in
development and will be submitted to OFMDFM.
GM expressed concern that the Craft Brewery operator
will be isolated. CC said that Ilex will be based on
Ebrington by Summer 2015 with further developments
coming in place and the ongoing challenge will be in
achieving our longer-term priorities.
CMK advised that the capital underspend issue was also
discussed at the Audit Committee meeting. CMK said
that a middle ground is required with the Department on
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Ilex Urban Regeneration Company
the approval timeframe for business cases.
9.
Grade A Office Accommodation on Ebrington –
Presentation:
AH jointed the meeting at this point.
CC and AHoutlined the presentation to the Board.
In discussion CMK advised that Invest NI (INI) is crucial
in this project. HMcG asked what the Executive’s view is
on funding. MH advised that the economic appraisal will
demonstrate need and that intervention is required to
stimulate the private sector. MH added that he met with
Invest NI’s international team. He advised that Land and
Property services will set a rent for office
accommodation. Ilex will work out the best option to
meet the needs of the city and allow for the most buy-in.
MH added that we need to attract sustainable
businesses and we require an intervention that works
best for the city.
GMC added that Ilex will try to find a solution however
INI’s input in securing tenants was critical.
CMK said if it is properly developed the cost to the
public purse is small. CMK asked if we know the type of
business we want.
HMcG said a leap of faith is neededfor this type of
development and that there is the need to take a
managed risk. He added that political support will be
required.
GMC said that all options work we just need to find the
right one for Derry~Londonderry assessed against the
various levels of risk and risk mitigation.
MH said that an FDI company alone will not fill the
offices and the best option is for an indigenous firm
along with a combination of different floor plates will be
required and we need a guarantee from INI that the
building can be filled. MH added that if we create the
right environment it will create jobs and attract
investment to the city. MH said that we have to work
with INI and its international team to ensure this can be
delivered. AMcE asked what the timescales are for the
proposal.
CC said it is linked to a solution and we need to revisit
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Ilex Urban Regeneration Company
an option without financial support.
Engage further with Invest NI on the Grade A Office
Proposal. ACTION
MH
AH left the meeting.
10.
Chief Executive’s Report:
Recommendation: Board to note update on
Ebrington Development Framework.
MH referred to the Ministerial Advisory Group (MAG)
report contained within Board papers. MH advised that
MAG states that we are not bound to use their
recommendations however Ilex will consider as
appropriate.
AMcE suggested that Ilex consider residential
opportunities on Ebrington and noted concern that
zones do not work. He added that there are a lot of
recommendations contained within the MAG report that
should be discussed.
MH said that the market will dictate investment and
Ilex’s approach is to be flexible to accommodate private
sector investment on Ebrington.
AMcE asked if Ilex will be proactive and have a site that
is living and breathing. AMcE added that the site should
be animated and suggested that a student/residential
offering is considered. CC advised that we would need
to consider how the provision of residential offerings
would impact on the population and we must try to
create jobs first.
PF said that we do need to animate the site and this
should be incorporated as appropriate.
GMC said to be mindful that the MAG report is a view
and is not necessarily based on the most up to date and
robust evidence base. He added that the Ebrington
Development Framework makes provision for learning
and education.
CC added that the MAG report fails to acknowledge that
we need to work with the market. HMcG said that he is
not fully in agreement that jobs should come first and
suggested that both job and residential opportunities are
needed to ensure that the Café etc can survive. CC
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Ilex Urban Regeneration Company
said that any residential opportunities are likely to be
new builds.
AMcE said that the buildings are perfect for tourism and
students. GK said it is important to revisit the MAG
report against priorities developing from it.ACTION
Board
Board noted the update on Ebrington Development
Framework. Executive Team to
considertourism/residential opportunity in line with
commercial and ongoing developments. ACTION
Executive Team
Recommendation: Board to approve the Business
Case for Building 115 (subject to Casework
Committee approval).
CC advised that the client is reassessing needs. The
Business Case summary will be presented at a future
Board meeting.
Recommendation: Board to note Expression of
Interest (EOI) in relation to Building 63.
The EOI was tabled at the meeting and CC advised that
it is commercial in confidence. CC noted that the
opportunity seeks to create a visitor experience offering
a heritage product complementary to the Craft Brewery.
Board noted Expression of Interest in relation to
Building 63.
Recommendation: Board to approve the June
2015/16 Monitoring Round Proposals.
MH advised that the June monitoring round proposal
has been issued to OFMDFM and he outlined the
proposals put forward.
Board approved the June 2015/16 Monitoring Round
Proposals.
Recommendation: Board to note attendance in
2014/15.
MH referred the Board to the attendance report for
2014/15 and PF complimented Board members on the
increased attendance from the previous year.
Board noted attendance in 2014/15.
11.
12 Month Performance to 31 March 2015:
MH referred to the 12 Month Performance Report and
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Ilex Urban Regeneration Company
asked Board for their comments. The report will be
used to prepare the Annual Report.
12.
Business Cases / Tender Actions (log):
The Business Case for the Enterprise Hub has been
submitted to OFMDFM. Appraisals are being developed.
13.
OFMDFM Update:
Henry Johnston (HJ) and Siobhan Broderick (SB) of
OFMDFM joined the meeting at this point.
PF welcomed HJ and SB to the meeting.
HJ provided an update on the Stormont House
Agreement. He advised that an Early Exit Scheme will
also be going ahead.
HJ advised that further budget cuts are expected in
2016/17. MH asked if further cuts are expected this
year. HJ advised that he could not confirm at this stage.
HJ referred to Ilex’s capital position and PF noted his
and the Board’s disappointment in relation to the capital
underspend.
MH added that Ilex was disappointed that it did not
achieve spend on capital. MH said that Ilex was over
optimistic with project timeframes and that the Board
have taken significant steps to ensure that underspend
does not occur again.
HJ advised that the capital underspend also had a
significant knock on effect on OFMDFM.
MH advised that a number of projects had to cease and
this led to a significant element of capital not being
spent. SB said it is problematic for OFMDFM that the
Peace Bridge appears on Ilex’s accounts. MH advised
that Ilex is engaging with Council and DSD on the
matter. SB said that the Peace Bridge should be
recorded in the Risk Register as red.
CMK advised that the risk with the Peace Bridge is kept
under constant review and is closely monitored by the
Audit Committee.
HJ said he is concerned with the pipeline of projects for
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Ilex Urban Regeneration Company
2015/16 as a lot of spend is required in the final quarter
and this could easily slip. HJ said he would be more
content if the pipeline of projects was delivered earlier in
the year. HJ encouraged Ilex to develop a strong
pipeline of projects adding that there is money available
and focus should be on getting buildings on site for the
benefit of people in the city.
SB advised that OFMDFM has a resource available to
Ilex to assist with the drafting of business cases.
MH said that Ilex is carrying a number of vacancies
however understands that there is a moratorium on
recruitment.
HJ advised that the likelihood of adding staffing
resources are quite slim and said that Ilex may wish to
redirect skills within existing personnel. HJ said that Ilex
needs to animate the Ebrington site and safeguard the
legacy of the One Plan in line with the Community Plan.
HJ added that Ilex should consider redirecting personnel
in–house given the number of staff they have across the
organisation.
SB added that OFMDFM can supply a resource for
business cases however cannot fund it.
MH said that Ilex has a staff shortage. He added that
projects are being worked up however we cannot
speculatively build as we must demonstrate need. MH
said there is sufficient demand and we will consider the
offer of an additional resource to work up business
cases. ACTION MH stressed the need for OFMDFM to
OFMDFM/Ilex
improve the turnaround time for the approval of business
cases.
HJ advised that the issue is the quality of business
cases submitted however OFMDFM economists could
engage earlier to discuss generic concerns bias and
give advice on best practice.
HJ asked for clarification on Ilex’s internal processes for
the business case log. MH advised that business cases
are reviewed by the Ilex Casework Committee and are
subject to a comprehensive internal review process. HJ
suggested that the business case log would be easier to
read if divided into sections to highlight current as
opposed to historic cases. ACTION
MH
CMK advised that there is executive stretch within Ilex
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Ilex Urban Regeneration Company
and if we continue at 70% staffing we cannot deliver to
100% of our plan and may have to take a decision on
what areas can be stopped. HJ said that Ilex will have to
prioritise and noted that their revenue spend including
staffing is set to exceed their capital spend.
MH added that Ilex is operating with 19 staff and it is the
replacement of existing staff vacancies that is required.
HJ said that Ilex needs the right people with the right
skills and suggested buying in resource.
HJ said that Ilex should have a reservoir of business
cases and the earlier that the bulk of these get away the
better.
SB asked what steps have been taken to resolve the
capital issues.
CC advised that going forward Ilex will not be as
optimistic with approval timeframes and will review in
line with the monitoring round. MH added that Ilex will
also seek to accelerate works, overcome the quality
issue in business cases and make stronger judgement
calls.
MH explained why addendums were required for several
business cases due to unforeseen works. MH added
that in the future, a Red/Green/Amber system will be
introduced and money will be handed back if approval
for projects is not obtained when anticipated. CMK said
that collectively, sleek management is required around
the business case process. CMK added that we cannot
afford to slow things down when dealing with the private
sector.
SB expressed concern in relation to the turnaround time
that Ilex takes to respond to queries relating to the
cases.
CMK asked how we can work out the quickest way to
turnaround business cases. HJ said that the volume of
queries from OFMDFM relates to the quality of business
cases. HMcG asked if the resource offered by
OFMDFM will help with the quality issue. SB said that it
may. HJ added that it is priority to get a reservoir of
business cases lined up.
MH advised that Ilex has established a Casework
Committee to review and improve the quality of business
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Ilex Urban Regeneration Company
cases. MH added that Ilex will engage with OFMDFM
economists on business cases to improve the process.
CC asked if business cases that have gone through the
Department process faster were better quality.
OFMDFM to check this with economists. ACTION
There was discussion regarding Ilex’s capital budget for
2014/15 and Programme for Government Targets. MH
advised that the Peace Bridge was European Funding
however it appears on Ilex’s accounts. OFMDFM to
confirm impact of this on Programme for Government
Targets. ACTION
OFMDFM
OFMDFM
HJ noted the presence of the DOE office on the site and
asked where Ilex was with the animation of Ebrington
and how many businesses are on site. CC outlined the
current status of projects and advised that he will
demonstrate further when HJ and SB visit Ebrington
following the meeting.
MH advised that the transfer of One Plan support to
Council will take place via a secondment. MH
explained that the Council will have responsibility for the
One Plan and taking forward the Community Plan.
GMC advised that Ilex will still drive forward the
implementation of the One Plan. He added that Ilex is
working with John Kelpie on the Community Plan and
carrying out research for it. GMC added that the
intention is for the Strategy and Regeneration function to
move to council with a view to aligning the One Plan and
Community Plan.
HJ asked if the seconded staff will be absorbed by
Council. MH advised that staff will move to Council and
the intention is that they will be aligned with the RPA
model. MH added that the intention is for the funding to
go to council via DSD.
PF asked for an update on the Ilex Review.
SB advised that the review requires further work. CMK
asked that the report is shared with Board.
SB said that the review requires more work and there
has also been a time delay due to obtaining key
individuals.
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Ilex Urban Regeneration Company
MH advised that the Ilex Board meets once a month and
he is concerned that a response to the report would be
required within a short timeframe and Board would like
the opportunity to respond. PF added that a realistic
timeframe would be required to respond.
CMK said it is important that there is an understanding
of the Audit Committee process and would prefer that
Department representatives attending the meeting
discussed information as opposed to presenting
documents.
SB said that OFMDFM attends the Audit Committee to
observe. She added that the Department
Representative has an open discussion on views to
allow for resolution.
CMK expressed concern in relation to the interpretation
of risk. MH added that the Audit Committee has agreed
to review the interpretation of targets and agreed a
process for going forward.
CMK said that it is important that the Department and
Ilex are on the same page. SB added that she goes
through the Assurance Reports in detail. SB referred to
the Assurance Report and outlined the red/green/amber
status of targets. SB advised that she would be content
to attend the next Audit Committee as an observer.
CMK agreed that this would be useful.
HJ outlined the Programme for Government targets.
CMK said that clarity and agreement is required
between the Department and Ilex on the targets.
SB asked if the Board was concerned regarding the
approach taken to agreeing Heads of Term.
MH advised that Ilex goes through a detailed Expression
of Interest and if a project is viable confirmation is
sought for Heads of Term which outline what we seek to
do and what we seek the prospective clients do.
MH explained Heads of Term and said it gives comfort
to businesses that they are not committed and a project
is subject to contract.
SB asked what Ilex’s plans are for events and if Ilex
intend to generate cash from events.
MH advised that a Charging Policy is in development.
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Ilex Urban Regeneration Company
He added that there has been no charge for events over
the last three years however we have to be mindful that
many events on Ebrington are charitable. MH added
that Ilex needs to recover some costs and the intention
is to raise a level of receipts. MH added that Ilex had to
reduce the support afforded to events due to
efficiencies. MH added that we must be mindful of what
we charge however the intention is to charge for events,
office space and retain receipts.
CC said that due to the staffing structure there is
pressure on facilities to ensure that we market the site to
the best of our best ability. CC added that if we can
retain receipts other things can be progressed.
OFMDFM to consider retention of receipts and to check
options with OFMDFM Finance Dept. ACTION
OFMDFM
CC added that there is a renewed energy for events with
the new Council and he has met with Council to discuss
events.
SB asked when Ilex will be moving to Building 83.
CC advised that there is currently a resource issue with
CPD.
MH advised that it will be beneficial when Ilex is on site
to free up monies paid on rent. SB said she could
engage with CPD on the matter. MH asked if CPD
could ensure that Building 83 is given priority.
14.
Items for information:
Noted as read.
15.
AOB
16.
Date of next meeting: 28th May 2015
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