Decision details

The previous FBC was secured under a number of previous decisions.  Approval is now sought to consolidate the previous decisions under one SMD and to update the cost envelope and funding streams.

The City Deal agreement with the WoE Authorities have set out their growth ambitions. Bath City Riverside EZ is expected to contribute up to 9,000 jobs. Securing existing businesses in Bath maintains a healthy business community underpinning the ambition to create a vibrant critical mass of commercial employment space on Bath Quays.

This project facilitates the delivery of these aims.

Options considered have included:

Do nothing – this would involve leaving the site in its current state, continuing to incur significant security costs. This is not a viable option as it would not realise the Council’s wider strategic policy ambitions for the site and would not represent an appropriate use of such a strategic property asset. Significant revenue reversion risk on resources deployed to date.

Disposal – the option for the Council to dispose of the freehold or long leasehold interest of the Newark Works on the open market was considered and discounted early in the options evaluation. A Bath based business had approached the Council to acquire this site; however the offer failed to realise best consideration. The option to market the site for general disposal was discounted on grounds that the economic outcome could be best met by the Council in its regeneration capacity to deliver office led regeneration where the private sector has failed to do so. The decision not to progress this option but, rather to deliver this scheme ourselves, ensures we can control expenditure, avoid the additional payment of developers profit and ensure we deliver a scheme in line with Council aspirations based around the market advice we are receiving from our commercial advisers.  The financing route can also be very efficient.  Freehold disposal would not guarantee office delivery to meet occupier requirements and risk losing further significant employers to locations outside B&NES, negatively impacting the economic vitality of B&NES.