Meeting documents
Cabinet
Wednesday, 13th July, 2005
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Bath & North East Somerset Council |
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MEETING: |
Council Executive |
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DATE: |
13 July 2005 |
PAPER NUMBER |
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TITLE: |
Bath Western Riverside : A Review |
EXECUTIVE FORWARD PLAN REFERENCE: |
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EWP |
01097 |
RG |
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WARD: |
Kingsmead, Newbridge, Westmoreland, Widcombe |
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List of attachments to this report: Exempt Appendix 1: BWR and Future for Bath Project Strategic Timetable Exempt Appendix 2: Current Draft BWR Master Plan Exempt Appendix 3: Developers Current Proposals for Scheme Exempt Appendix 4: BWR Risk Analysis: Key Risks (in 2 parts) Exempt Appendix 5: Options Report (in 2 parts) Appendices 1, 2, 3, 4 & 5 are not for publication by virtue of paragraph 9 of Part 1 of Schedule 12a of the Local Government Act 1972. |
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1 THE ISSUE
1.1 The Executive will be presented with a series of appendices on key issues on the BWR project for their review and consideration. The Executive will be asked to make decisions from the recommendations to move the project forward.
2 RECOMMENDATION
The Council Executive is asked to:
2.1 Note the key relationship and linkages between the proposed processes and timetables for the `Future for Bath' initiative and the Bath Western Riverside Master Plan and planning application (see Exempt Appendix 1);
2.2 Note the current iteration of the draft Master Plan (Exempt Appendix 2)including high level design principles and indicative land uses, which will be developed in more detail and presented to a meeting of the Executive, targeted for October 2005, for approval to be released to the public;
2.3 Note the Council's proposed Planning process and proposed draft strategic timetable leading to the approval of an SPD and the submission of a planning application for Bath Western Riverside, targeted for April 2006, which is currently under discussion with the Master Development Partners (see Exempt Appendix 1);
2.4 Consider the Council's key priorities and key requirements for Bath Western Riverside within the current approved policy and budget framework in order of preference to help guide the negotiations (see Exempt Appendix 3);
2.5 Consider and note the BWR Risk Analysis and associated options paper (see Exempt Appendix 4 & 5);
2.6 Decide on any issue relating to the negotiations referred to in the appendices (see Exempt Appendix 4 & 5);
3 FINANCIAL IMPLICATIONS
3.1 Council in January agreed to fund the BWR project to the stage of completion of the draft Development Agreement without funding commitment beyond it's planned £5M contribution. It is currently projected that the Council's funding commitment is sufficient to sustain the project up to summer/autumn 2006. Council also required a project strategy and plan for the Bath Western Riverside project to be prepared on the following basis:
Limiting risk and funding exposure to the satisfaction of full Council
Clarifying inter-dependencies between BWR and other major projects and services
Identifying and appraising alternative courses of action to that currently proposed, together with the impacts of such options
Council noted the projected cost of a further c£1M to progress the project from draft development agreement to an unconditional agreement and first stage implementation; and agreed to include this sum within the financial plan for 2006/07 - 2007/08.
3.2 The BWR Project financial model, prepared by Grosvenor and Crest Nicholson, which sets out the scheme's financial position based on the Developers' assumptions, currently displays a significant viability gap over the life of the development. This is the subject of on-going work between the Council and the Development Partners, but the means of bridging the gap is, as yet, unresolved and as such represents a significant risk to the smooth delivery of the project. There are also wide implications for other prospective Council investment/activities arising from or contributing to the viability of the scheme, notably the resiting of the Waste Transfer Station and associated Waste Strategy and the provision of the necessary transport infrastructure as part of local/regional transport plan bid for government funding. In providing a steer on the future direction of the project, the Executive should be mindful of the potential overall impact on the Council's financial position.
The Major Project Director's view is that complex schemes of this scale and nature encounter significant uncertainty and raise many questions at an early stage of assessing viability.
This will inevitably require the Council to review its key priorities and requirements (See 2.4) and in the context of that review (which will take place over the summer and early autumn involving a group of Members and Senior Officers) to consider potential sources of funding from both internal resources and external funds. This should be considered in the context of the Future for Bath and BWR as an integral first stage of that regeneration programme.
4 THE REPORT
4.1 The Bath Western Riverside Project is currently approaching a critical milestone in its development.
During 2004 the Project Partnership comprising the Council, Grosvenor and the South West of England Regional Development Agency developed the early principles of the Bath Western Riverside Master Plan, commissioned extensive studies and site investigations and began to engage a variety of community groups and stakeholders. This process took place against the backdrop of the impending Local Plan Inquiry and the Section 78 Appeal by Landscape Estates.
The arrival of Crest Nicholson at the end of 2004, who acquired the Landscape Estates site and secured the withdrawal of the Section 78 Appeal, has added additional residential expertise and momentum to the Partnership.
Throughout 2005, the Project Partnership has continued to develop the Master Plan and the associated cost plan and viability model for the scheme. Details of the likely mix of land uses and key design principles have already been released into the public domain as part of the Local Plan Inquiry process.
A more detailed draft Master Plan is now emerging and a viability model has been released to the Council by Grosvenor and Crest Nicholson. In addition, the Council and its Master Development Partners are close to agreeing a clear and co-ordinated process and timetable for the delivery of Planning/SPD, viability, legal agreements, land assembly and transportation requirements within the context of the emerging Future for Bath vision and business plan.
4.2 The following issues will be addressed in the appendices:
Planning process and current position - Exempt Appendix 1
Current state of negotiations - Exempt Appendix 3 & 5
Interrelationship with other developments - Exempt Appendix 1
Key areas where guidance required and parameters within which they exist
- Exempt Appendix 3
5 RISK MANAGEMENT
A risk assessment related to the issue and recommendations has been undertaken, in compliance with the Council's decision making risk management guidance.
The Executive is to note that the risks have been updated and submitted within the appendices to this report (see Exempt Appendix 4).
6 RATIONALE
To identify, clarify and agree strategies and actions to move forward the project in a pragmatic fashion with the development partners. The proposed strategies are crafted to deliver the optimum between risk, programme and commercial positioning.
7 OTHER OPTIONS CONSIDERED
7.1 To be included in an Options Appraisal which will form an Exempt Appendix to this report (to follow).
8 CONSULTATION
8.1 Executive Councillor, other B&NES Services, Section 151 Finance Officer, Chief Executive, Monitoring Officer
8.2 The appendices will be circulated to the relevant consultees and comments taken account of prior to release.
9 REASONS FOR URGENCY
Commercial sensitivity, expediency and budgetary considerations
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Contact person |
Philip Radford Tel. 01225 477668 |
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Background papers |