Agenda item

From Cabinet, 1 September 2015

Further to Minute 38/15 of the Cabinet, the City Council considered a report of the Executive Director of Place, which set out the Council’s funding allocation following a bid for further European Regional Development Funding (ERDF) and the proposed amendments to the programme of public realm and major projects as a result of the award.

A corresponding private report detailing confidential aspects of the proposals was also submitted to the meeting for consideration.

The City Council has had a very ambitious major projects programme comprising City Centre public realm, Friargate, station masterplan, Whitley junction, pinch point schemes at Walsgrave Hospital and Warwick University and Nuckle.  In total this represented over £130m of investment in the city.

The report indicated that the lack of corporate resources to support any cost overruns had meant that it was essential that this programme was fully funded from a combination of external grant and existing resources.  The outcome from the latest ERDF bid, the delayed timing of this announcement, and significant cost changes on the Whitley junction project had made it necessary for the overall major projects and public realm programme to be revised.  This was to ensure that it could be delivered on time, within the available budget and thus avoid any claw back of ERDF money.  As the funding for Nuckle and pinch point schemes were effectively ring fenced, they had been excluded from further consideration within the report. 

The previously approved programme for Phase 3a was on the assumption of the full £11.7m of additional ERDF bid for being awarded but had noted the risk that this may not happen and therefore set out a priority list of schemes to be funded in the event of not all of that funding being received.  The Council had been awarded £3m against the bid submitted, but helpfully the Department for Local Government and Communities (DLGC) had agreed to previously approved ERDF of £2.346m being transferred to new projects in cases where projects are no longer proceeding such as the canal basin.

The Council had also been told that the ERDF decision would be announced in February 2015.  In the event, notification was only received on June 4th, whilst the deadline of December 31st 2015 for scheme completion and monetary claims remained unchanged.

The bid to the DCLG for an additional £11.7m of ERDF had also assumed that £3m of Growth Deal 2 money could be brought forward to act as match funding.  Confirmation of this funding had been expected in March 2015 but was now not expected to be given until February 2016 and had to be considered at risk. 

In view of the above changes, options for revisions to the capital programme and funding packages had been considered to ensure a balanced programme could be delivered.

The report set out a proposed works programme that maximized project delivery and would ensure no ERDF was returned whilst requiring no additional City Council money together with details on financing the programme. 

It was now proposed that the following phase 3a schemes be delivered:

•  Fairfax St/Whittle Arch – environmental enhancements and measures to improve safety and connectivity for visitors between the Cathedral and Motor Museum;

•  Hill Top conservation area – repairs to historic features and surfaces, de-cluttering and other enhancements;

•  Extension to the Belgrade Plaza scheme – to include the new pedestrian link through the former Allied Carpets unit (dependent upon the grant of planning permission for the West Orchard House development);

•  Far Gosford Street – provision of additional parking and improved entrance to Fargo village;

•  Lidice Place scheme enhancements.

This followed the priority list previously approved with the proposals for Palmer Lane and Canal Basin schemes postponed.  This programme resulted in a remaining balance of £0.3m to be used to upgrade Greyfriars Lane to provide a more attractive and safe walking route between Salt Lane car park and the new restaurants opening in Cathedral Lanes.  The opportunity had also been taken to expand the intelligent parking direction system to cover the whole ring road.

RESOLVED that the City Council:

1.  Approve the revised Capital Programme as set out in Table 1 of the report submitted.

2.  Authorise the under-writing of the programme at a rate of £0.5m per annum from the Transportation and Highways Capital Programme.