Agenda item - Royal Pavilion Estate Capital Project Progress Up-date

Joint report of the Executive Director for Economy, Environment & Culture and the Executive Director for Finance & Resources (copy attached).

RESOLVED:

1)    That the Committee notes the progress made to date on the Royal Pavilion Estate capital project Phase 1 and approves:

a)        The revised expenditure and funding model of £21.493m as detailed in the part 2 report (for the expenditure) and paragraph 3.14 (for the income).

b)        Council borrowing of £2.704m to be financed by BDFL as set out in paragraph 3.14

c)         Delegated authority to the Executive Director for Economy Environment & Culture and Executive Director Finance & Resources to increase the budget and implement the option of further borrowing capped at a level which is affordable for BDFL to finance (as set out in paragraphs 3.15, 3.16 and 7.2) should the tender cost estimates be higher than anticipated,

2)    That Policy, Resources & Growth Committee notes the financial implications in section 7 and agrees that the Executive Director for Economy Environment & Culture and Executive Director Finance & Resources may implement the option of further borrowing to mitigate financial risks set out in paragraphs 7.3 and 7.5.

67.1         The Committee considered a report of the Executive Director for Economy, Environment & Culture in relation to Royal Pavilion Estate Capital Project Progress Up-date. The report summarised the progress made to date on the project, and sought agreement to a new funding model that responded to the unsuccessful LEP funding bid and increased project costs while identifying the risks of not proceeding. This project was due to bring into the city additional funding of £17m which would be at risk should this project not proceed. The approval of the new funding model presented in the report would enable the project to proceed according to programme with an anticipated start of works on site in January 2017 subject to receipt of tender returns for the main contractor by 28 October 2016.

67.2         The Chair highlighted the importance of the report, and the importance of the building for the city.

67.3         In response to Councillor Mac Cafferty it was explained that the LEP funding bid had been unsuccessfully largely due to changes in the LEP’s assessment criteria. There was now a stronger focus on projects that directly delivered employment and housing, and this project did not score as highly as others against that criteria. However, the LEP had indicated that it would consider a bid for underspend funding. The Chair provided assurance that the authority remained fully engaged with the LEP.

67.4         The Chair then put the recommendations to the vote.

67.5         RESOLVED:

1)      That the Committee notes the progress made to date on the Royal Pavilion Estate capital project Phase 1 and approves:

a)        The revised expenditure and funding model of £21.493m as detailed in the part 2 report (for the expenditure) and paragraph 3.14 (for the income).

b)        Council borrowing of £2.704m to be financed by BDFL as set out in paragraph 3.14

c)        Delegated authority to the Executive Director for Economy Environment & Culture and Executive Director Finance & Resources to increase the budget and implement the option of further borrowing capped at a level which is affordable for BDFL to finance (as set out in paragraphs 3.15, 3.16 and 7.2) should the tender cost estimates be higher than anticipated,

2)      That Policy, Resources & Growth Committee notes the financial implications in section 7 and agrees that the Executive Director for Economy Environment & Culture and Executive Director Finance & Resources may implement the option of further borrowing to mitigate financial risks set out in paragraphs 7.3 and 7.5.