Agenda item

From the Cabinet. 12 March, 2024

Further to Minute 92 of the Cabinet, the City Council considered a report of the Director of Regeneration and Economy which sought approval for additional capital funding to cover an increase in cost for the main construction works to the former IKEA building which would be known as the City Centre Cultural Gateway (CCCG). The CCCG will be a landmark destination that will be home to a Collections Centre of national significance and will bring together multiple partners and investors across creative, cultural and technology sectors to engage local people.

Approval had previously been given for the acquisition and development of the CCCG, however currently the economic conditions and volatility within the construction market had returned tender prices from a selected Contractor that take the overall project cost beyond the approval by Council in March 2023 (Minute 127/23 refers).

A corresponding private report detailing commercially sensitive confidential matters was also submitted for consideration (Minute 125 below refers).

The project would bring together a collaboration of key national and local partners: Arts Council England (ACE), British Council (BC), Culture Coventry Trust (CCT) and Coventry University. Coventry University will be developing a new Cultural Hub that will offer a student gallery, café, library and exhibition space, dance studio, conference area, artists’ studios, post-production filming facilities and a shop to sell students’ artwork, with some of these facilities being accessible to the public.

The report also sought future additional capital (under delegation once there has been a developed and approved business case for future tenancies), for the basic fitting out of Floors 1 and 2 to enable them to earn future rental income.

The following amendment was moved by Councillor G Ridley, seconded by Councillor P Male and lost:

“That, in order to proceed with Option 3 (Approve the Additional Capital, without Future Capital Investment into Floors 1 and 2) as detailed in the report, Recommendation 2 (as detailed below) be deleted:

2)  Delegate authority to the Director of Finance and Resources, following consultation with the Director of Regeneration and Economy, the Director of Law and Governance and the Cabinet Member for Housing and Communities, to approve capital expenditure of a further sum in the amount set out in the private element of the Report to be financed from prudential borrowing to fund the construction and professional fees to be utilised towards the delivery of further works to Floors 1 and 2 , only once there has been a developed and approved business case for future tenancies.

(Recommendations 1, 3 and 4 as set out in the report to remain)”

RESOLVED that the City Council:

1)  Approves capital expenditure of a further sum in the amount set out in the private element of the Report to be financed from prudential borrowing to fund the construction and professional fees for delivery of the City Centre Cultural Gateway Project.

2)  Delegates authority to the Director of Finance and Resources, following consultation with the Director of Regeneration and Economy, the Director of Law and Governance and the Cabinet Member for Housing and Communities, to approve capital expenditure of a further sum in the amount set out in the private element of the Report to be financed from prudential borrowing to fund the construction and professional fees to be utilised towards the delivery of further works to Floors 1 and 2 , only once there has been a developed and approved business case for future tenancies.

3)  Notes that the Agreement for Lease between Coventry City Council and Arts Council England, British Council and Culture Coventry in respect of the Collection Centre Development will include a mechanism that facilitates the ability for a request to be made to the City Council to deliver Partner Variations (including fit-out works) on their behalf with the cost being repaid to the City Council.

4)  Delegates authority to the Director of Finance and Resources, following consultation with the Director of Regeneration and Economy, the Director of Law and Governance and the Cabinet Member for Housing and Communities, to undertake the necessary due diligence including approving any incidental and ancillary actions required to bring into legal effect the recommendation set out in Recommendation (3) above.