Meeting documents
Cabinet
Wednesday, 3rd September, 2003
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Bath & North East Somerset Council |
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MEETING: |
Council Executive |
AGENDA |
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MEETING DATE: |
3rd September 2003 |
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TITLE: |
Commercial Implications of Delayed Completion:- |
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WARD: |
Abbey |
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AN OPEN PUBLIC ITEM |
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List of attachments to this report: None |
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This report is for information for the public. It was received after the printing deadline and therefore does not appear as part of the main printed agenda pack. It is provided to give a brief description of the contents of the exempt report, which has been sent to Exec Members only.
1 THE ISSUE
1.1 The Development Agreement of 21 March 2001 envisaged a Construction Contract completion of 7 October 2002. This currently constitutes slippage in excess of ten months, and the current problems will extend this further.
1.2 This delay has impacts on both the Council and TDC which are now considered.
1.3 Most of the implications and information relating to this issue is very commercially sensitive, and therefore falls within many of the subsections of s.12 Local Government Act 1972, as well as being of a fundamentally confidential nature.
1.4 The discussions and information presented however includes estimates of the probable and possible costs of final completion of the Spa building, and the range of risks associated with the conversion of buildings of special historic interest to a modern public Spa facility.
1.5 In addition, commercial information relating to the additional costs and funding issues for TDC are considered.
2 RECOMMENDATION
2.1 That the Executive consider, in the light of all the confidential information received, and in view of the considerable additional unexpected financial pressure that these delays have caused, a package of loan support for their partner TDC; and
2.2 That any financial implications for the Council of the delays to completion of the facility are included in the revised financial plan.