· Rawtenstall Redevelopment Zone (Spinning Point).
· Lancaster Health Innovation Park.
· Blackpool Town Centre Quality Corridors.
Minutes:
Not for publication – exempt information as defined in paragraph 41 (Information provided in confidence relating to contracts) of the Freedom of Information Act 2000 it is considered that in all the circumstances of the case the public interest in maintaining the exemption outweighs the public interest in disclosing the information.
The Committee considered presentations regarding two Growth Deal projects that would be seeking funding approval from the LEP Board on the 14th June 2016. An additional presentation was also received to update the Committee on developments in connection with the Lancaster University Health Innovation Campus (HIC) project which had previously received funding approval. It was noted that the two projects had been the subject of independent appraisal while the appraisal for the HIC was ongoing.
a) Rawtenstall Redevelopment Zone (Spinning Point).
The Committee was informed that the project involved the redevelopment of the former Valley Centre and Town Hall to provide a new 8 bay bus station, offices, car parking, apartments, retail/leisure units and landscaping. The project had a total value of £14.8m, of which £1.9m would be funded from the Growth Deal with additional funding being provided by the County Council, Rossendale Borough Council and the Rossendale Together Partnership Board.
It was reported that the independent appraisal of the scheme indicated the project would deliver 178 forecast net jobs with a net GVA uplift of £5.1m per annum. In considering the presentation the Committee noted that the economic benefits of the project were reliant on the occupation of retail units by smaller independent retailers and that the proposed relocation of the market to a more central location would provide an opportunity for increased footfall. The Committee also recognised that the project would support the development of the town as a base for commuters to Greater Manchester.
Resolved: That the LEP Board is recommended to approve a maximum Growth Deal funding contribution of up to £1.9m to theRawtenstall Redevelopment Zone (Spinning Point) project subject to:
1. The Committee being satisfied that all other funding for the scheme has been secured and
2. Rossendale Borough Council agreeing to manage and operate the bus station for a period of 25 years.
b) Lancaster Health Innovation Campus (HIC)
It was reported that the HIC was part of a larger scheme to be delivered in 3 phases over a 15-year period which would create a Centre of Excellence for innovation in health. The independent appraisal had identified that the HIC would create 2,802 gross jobs and 1,722 net additional jobs over its lifetime and the project had previously received a Growth Deal funding allocation of £17m as part of the first phase development with additional funding being provided by Lancaster University and ERDF.
In considering the initial findings of the independent appraisal the Committee expressed a number of concerns regarding the phasing, outcomes, funding, delivery and partnership working associated with the project and requested that additional information be presented to the next meeting in relation to the following:
·
A full business case which would
address the 8 key issues identified inthe appraisal and referred to
in the presentation in order that future
progress with the project can be judged against them.
·
A clearer explanation of the proposed
phasing between investment and
outcomes.
· Evidence that formal buy in of key partners such as the NHS and local consultants has been secured.
It was also suggested that in view of the scale of the project the Committee receive regular updates on the project in the future in order to monitor progress and delivery.
The Committee noted that work was underway to strengthen the business case in response to certain key issues which had been raised as part of the independent appraisal and that a comprehensive report would be submitted to the LEP Board in July 2016 for consideration.
Resolved:
1. That the LEP Board is recommended to note the progress to date in relation to the development of the business case for Lancaster University's HIC project in advance of a more comprehensive report being provided at the special meeting of the Board in July 2016.
2. That a further report be presented to the Committee on the 6th September 2016 in relation to the concerns raised regarding the phasing, outcomes, funding, delivery and partnership working associated with the project.
c) Blackpool Town Centre Quality Corridors
The Committee was informed that the project involved improvements to the public realm, property acquisition and improvements to shop frontages along five key arterial/gateway corridors in the vicinity of Blackpool North Rail Station.
The total cost of the project was £7.34m with Growth Deal funding of £6.6m, requested in order to deliver outputs around reducing the number of empty retail premises, enhancing retail turnover, reduced road traffic accident casualties and improved air quality.
In considering the findings of the independent appraisal the Committee noted that some aspects of the economic, commercial and financial cases required further clarification, specifically in relation to the re-profiling of spend and benefit realisation, provision of specific retail capacity/demand, independent validation of the cost estimates and the development of a robust investment strategy for property acquisitions/demolitions and commercial property aesthetic funds.
With regard to the proposed improvements to shop frontages it was suggested that the availability of funding for such improvements be explored with the BIS High Street Team in order to reduce the overall costs of the project.
Resolved: That, subject to the Committee being satisfied that the issues identified regarding the economic, commercial and financial cases have been addressed, the LEP Board is recommended to approve a maximum Growth Deal funding contribution of up to £6.6m for the Blackpool Town Centre Quality Corridors project.