Minutes:
Members considered a report which provided an update on the tendered costs of the proposed cinema and leisure scheme as part of ‘Thriving Gainsborough 2024’ and which, as a result, recommended approval of a revised funding schedule as a result of inflation and other cost pressures.
In presenting the report, the Director of Regeneration, Planning and Communities outlined the background and decisions made to date, the original budget afforded and the now tendered development costs. Rational was afforded as to why costs had an increased and this was a situation being experienced nationally. It was also confirmed that despite these national increases to costs, the Government had indicated no additional funding would be provided and local authorities must deliver their schemes within the original funding budget.
Cost reductions were being explored, including value engineering options, but the Scheme would not be delivered within the original budget, unless the monies afforded to other interventions were revisited.
Officers advised how these additional budget requirements could be met and which of the other interventions would need to be streamlined as a result; namely a reduction of funding to support the heritage interventions of the Levelling Up Programme and the resurfacing and redevelopment works planned for the Bus Station.
It was important to note the Council’s development partner had also agreed to increase their contribution to the Scheme, showing a real developer confidence in the proposal.
Debate ensued, and whilst the Council would want to see all the interventions delivered, there was a general acceptance, that this Scheme needed to be delivered, acting as a flagship project. With demolition having occurred, leaving the site undeveloped would not be an acceptable position.
Members took a great a level of confidence from the Councils development partner having increased their contribution to the Scheme, in light of rising costs.
In respect of the value engineering works being undertaken, in response to members concerns that the quality of the build should not be impacted, the Director outlined the types of things which were being investigated, none of these related to the build quality, nor where climate change solutions being compromised on.
There were discussions around the Councils wider role to deliver social return, create jobs, increase visitor spend and experience and this Project was one that would deliver those wider returns not necessarily financial ones.
The impact of the revision to the revised Public Realm works where highlighted, with Members noting these interventions would be the subject of further Committee decision, and at the request of Members, the impact on outcomes to be delivered in respect of the THI work were shared. An economic assessment in respect of the latter had been undertaken, and Officers indicated they could share this with Members.
Members again welcomed the commitment shown by the development partner and requested that a full communications Plan be undertaken as there were doubts circulating around the Town about the Project.
Assurance was given that full communications were planned, but owing to the legalities, this decision had needed to be taken in the first intake.
Having being proposed and seconded it was
RESOLVED that: -
(a) the revised funding schedule set out at table 1 of the report be approved; and
(b) the capital programme, approved by Full Council on 6 March 2023 be updated to reflect the revised funding and expenditure schedules at tables 1 and 2 of the report.