Upperbanks Development Update
Report of the Portfolio Holder for Economy and Communications/Director of Economy
Consideration was given to a report of the Cabinet Member for Cabinet Member for Economy and Communications / Director of Economy which sought approval to fund the construction costs and commence work on the main contract for the Upperbanks residential and hotel development in Rochdale town centre (Rochdale Riverside Phase 2).
By not developing the site the significant regeneration benefits and outcomes would not be realised and the £20m of external grant funding would not be available for the Council to utilise towards the project. Additionally there was potential for up to £8.7m of enabling/design works and fees to be written off to the Council’s revenue account should the scheme not proceed. Risks to further loss of income would be significant should the Local Housing Company not be established and/or the hotel franchise agreement not be realised.
1. That it be noted the costs of the construction of the apartments and hotel are to be funded from Public Works Loan Board borrowing and external grants as detailed within the submitted report.
2. That delegated authority be given to the Chief Finance Officer to rephase and transfer budgets within the capital programme to reflect the separation of the Upperbanks scheme and the Property Growth Fund.
3. That that the review of the build contact is on-going and once the contract has been agreed delegated authority to award the build contract to construct the apartments and hotel via the procurement framework identified within the submitted report to the Assistant Director Legal, Governance & Workforce in consultation with the Cabinet Member for Economy and Communications and Cabinet Member for Finance and Corporate.
4. That it be noted an emergency decision had been undertaken by the Chief Executive to issue a Letter of Intent to enable allowed the preferred contractor to place orders in advance of the main contract being awarded to ensure the risk of significant additional construction costs are mitigated.
5. That approval be given to enter into a procurement process to appoint a management company to ensure the future operation, letting and management arrangements for the apartments are in place prior to completion of the scheme, as identified within the submitted report; and the awarding of the contract to be delegated to Director of Economy in consultation with the Chief Finance Officer, Assistant Director for Legal and Governance, and relevant portfolio holders.
6. That approval be given to enter into a procurement process to appoint a management company to ensure the future operation, letting and management arrangements for the hotel are in place prior to completion of the scheme, as identified in the report and the awarding of the contract to be delegated to Director of Economy in consultation with the Chief Finance Officer, Assistant Director for Legal & Governance, and relevant portfolio holders.
7. That approval be given to the Director of Economy, Assistant Director for Legal, Governance and Workforce and the Chief Finance Officer in consultation with the Portfolio Holders for Economy & Communications and Finance & Corporate to enter ... view the full minutes text for item 40