Agenda item

Report of the Director of Transportation and Highways

The Cabinet considered a report of the Director of Transportation and Highways in respect of further funding in order to deliver the overall Palmer Lane scheme. The report indicated that this increase in cost is a consequence of high inflation over the last 12 months and increases in labour and material costs during 2022/2023. The report therefore also sought  approval for an additional ask of £318k to be funded from corporate reserves.

Since 2019 the Council had transformed the city centre through a £44m programme of investment in the public realm. The impact of this work had been significant, attracting developers to invest in the city and creating a legacy for residents and those living and working in the city.

Palmer Lane is a proposed regeneration scheme that includes de-culverting the river Sherbourne and hard and soft landscaping around the area to create a new city centre place for dwell time and supporting the establishment of a new business in the Illingworth building.

The scheme was first approved by Cabinet as part of the Public Realm Phase 5 report in March 2018, as a complement to the Public Realm 5 (PR5) works taking place in the city centre and to develop designs for the proposal. During 2021 there was an additional need identified for a further £950k to fund the overall regeneration of Palmer Lane as well as approve the external funding contributions towards the project. This was given approval in a Cabinet Member report in July 2021.

The Palmer Lane project had continued to detailed design level throughout the year of 2021 and 2022 to a point where final designs are in place and legal land agreements are concluded.

Following early contractor engagement with a framework construction company the project will need further funding in order to deliver the overall Palmer Lane scheme. This increase in cost is a consequence of high inflation over the last 12 months and increases in labour and material costs that we have seen during 2022/2023. This report therefore also seeks approval for an additional ask of £318k to be funded from corporate reserves.

The report also detailed a grant acceptance from Historic Coventry Trust (HCT) of £534k which took place in March 2023. This was an increase of £155k from the previous approved HCT contribution of £379k. Due to the urgency required to accept the grant funding, this was accepted under delegated powers in accordance with the provisions of the Council Constitution.

RESOLVED that Cabinet:

(1)  Approves the additional funding of £318k for the delivery of the Palmer Lane project taking the total budget for the delivery of the scheme to £2.4m. The additional funding will be added to the 5-year capital programme.

(2)  Notes the grant acceptance of £534k received from Historic Coventry Trust in March 2023 under delegated authority contained in paragraph 2.3.2 (c) of Part 3F (Financial Procedure Rules) of the Council Constitution.

(3)  Notes the delegated authority provided to the Director of Transportation and Highways following consultation (by way of the Cabinet Member report dated 15^th July 2021) to conclude negotiations and enter into legal agreements with the various landowners for parcels of land to be acquired or leased by the Council and/or for licences to be entered into to enable works to be carried out and for agreements to be entered into and/or for leases to be granted by the Council to third parties over land in the Council’s ownership in order for the scheme to be viable and to Authorise any variations related to such legal agreements.

(4)  Notes the continued exercise of the delegated authority provided (by way of the Cabinet Member report dated 15^th July 2021) to commence the procurement in order to appoint a works contractor through an approved procurement framework.

(5)  Notes the delegated authority provided (by way of the Cabinet Member report dated 15^th July 2021) to the Director of Transportation and Highways, following consultation with the Chief Legal Officer, to approve grant expenditure to any such external body, third party or person as is deemed necessary for the delivery of the Palmer Lane project up to an individual maximum sum of £250,000.