Issue - meetings

Appendix 3 and its associated schedules to the report relate to information which following a public interest test the public is likely to be excluded by virtue of paragraph 3 of Schedule 12A of Part 1 of the Local Government Act 1972 because it contains detailed cost reports that may impact a future procurement process and commercially sensitive information on existing business models.

 

Public appendices can be found here Cambridge Civic Quarter: Strategy and Resources Scrutiny Committee - Cambridge City Council

Matter for Decision

The Council was looking at proposals for investment in the Guildhall, Market Square, Corn Exchange and public realm, making them fit for a fast growing global city in the 21st century society, which residents could be proud of.

 

This report outlined investment proposals that included:

·      Making the council’s heritage buildings net zero, and improve biodiversity and water efficiency across the site.

·      Improving accessibility and creating a welcoming new civic heart open to the public.

·      Consolidating office space in the city and creating a working environment that supports staff retention, collaboration and enhanced productivity.

·      Creating space for a cultural attraction within the Guildhall.

·      Saving the council money by reducing running costs and creating opportunities for additional income.

 

Decision of Executive Councillor for Finance and Resources

 

i.    Recommends that Full Council note the indicative capital cost budget of £55m as set out in paragraph 8.3 of the Officer’s report and approves an allocation of £3m from the existing Civic Quarter reserve for stage 3 design costs and associated on-costs.

 

And subject to Full Council agreement approves the recommendations below outlined in the report that includes, Concept Design Report, Public Engagement Report and the Commercial Report for the Civic Quarter including to:

 

i.               Note the outcomes from the first Public Consultation that took place to shape the outcomes of the Concept Designs and in response adds to the Market Square Design Principles that alongside other objectives which should bring a beneficial impact on the market itself, the project should support a substantial reduction of anti-social behaviour in the square and the achievement of an attractive public space outside of market hours.

ii.             Approve to proceed to the next stage of design with a planning submission in late summer 2025 for the Guildhall, Corn Exchange, Market Square and the associated public realm, carrying out a second public consultation in Spring 2025

iii.            Approve the allocation of a capital budget of £55m as set out in paragraph 8.3 of the Officer’s report and delegated authority to the Council’s Section 151 Officer to apply the agreed capital financing to the project in the most cost effective way.

iv.           Delegate authority to the Chief Executive Officer and Executive Councillor for Finance, and Resources to carry out a procurement process for the appointment of a contractor by Spring 2025

v.             Approve the Civic Quarter Project team to work closely with the Corporate team, Market Operations team, Cultural Services team and Market traders to develop a business plan by Spring 2025 which would include:

a.    Completion of the Terms and Conditions and the balance of trade work on the Market ahead of the proposed second public consultation for the Civic Quarter in Spring 2025.

b.    An assessment of the revenue impact of decanting the Guildhall, Market and Corn Exchange.

c.    A business plan for the operation of the future Guildhall, Market and Corn Exchange.

vi.Delegate authority to the Chief Executive Officer and Executive Councillor for Finance and Resources for the future use of Mandela House subject to review by Property Services.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

See Officer’s report.

 

Scrutiny Considerations

The Committee received a report from the Assistant Director (Development).

 

Members noted the additional information which had been published following the agenda publication. This included:

 

        i.       Revised Executive Councillor recommendations as follows

 

It is recommended that the Executive Councillor for Finance and Resources:

 

1.1  Recommends that Full Council notes the indicative capital cost budget of £55m as set out in paragraph 8.3 of the officer’s report and approves an allocation of £3m from the existing Civic Quarter reserve for stage 3 design costs and associated on-costs.

 

And subject to Full Council agreement approves the recommendations below outlined in the report that includes, Concept Design Report, Public Engagement Report and the Commercial Report for the Civic Quarter including to:

 

1.2         Note the outcomes from the first Public Consultation that took place to shape the outcomes of the Concept Designs.

1.3         Approve to proceed to the next stage of design with a planning submission in late summer 2025 for the Guildhall, Corn Exchange, Market Square and the associated public realm, carrying out a second public consultation in Spring 2025

1.4         Grant delegated authority to the Chief Executive Officer to carry out a procurement process for the appointment of a contractor by Spring 2025

1.5         Approve the Civic Quarter Project team to work closely with the Corporate team, Market Operations team, Cultural Services team and Market traders to develop a business plan by Spring 2025 which includes:

1.5.1   Completion of the Terms and Conditions and the balance of trade work on the Market ahead of the proposed second public consultation for the Civic Quarter in Spring 2025

1.5.2   An assessment of the revenue impact of decanting the Guildhall, Market and Corn Exchange

1.5.3   A business plan for the operation of the future Guildhall, Market and Corn Exchange

1.6 Note the review by the Property Team of property assets including Mandela House to generate a capital receipt to contribute towards the Civic Quarter project.

ii.  Amendments to paragraphs within the Officer’s report as follows:

·      Paragraphs 2.5.2 and 8.2.6

It is recommended that £4.5m is allocated as phase 1 to enable completion of a full roof replacement at the Corn Exchange, and this will be tabled for approval at Full Council in Autumn 2025. Approval of further funding beyond the initial £4.5m will remain subject to the agreement of the business plan. Any immediate emergency repairs required will be brought forward for approval as an out of cycle decision.

·      Paragraphs 2.6.2. and 8.2.4

It is recommended that an initial capital investment of £3m is allocated as phase 1 to enable the re-surfacing works of the Market Square, and this will be tabled for approval at Full Council in Autumn 2025. Approval of further funding beyond the initial £3m will remain subject to the agreement of the business plan.

·      Paragraphs 2.8.1 and 8.3

The overall estimated costs for the completion of the Guildhall and phase 1 of the Market Square and phase 1 of the Corn Exchange remain the same at £55m. With the updated recommendations, the estimate for design costs and associated on costs for RIBA Stage 3 is £3m (£2.5m design and survey fees plus £0.5m on costs). Approval is sought for this £3m at this stage. An updated cost estimate for design and associated on costs beyond RIBA Stage 3 will be tabled for approval in Autumn 2025

·      Paragraphs 2.8.2 and 8.9.1

Addition of the following milestones:

Full Council 28 November 2024

Full Council September 2025

 

The Assistant Director (Development) and Chief Finance Officer said the following in response to Members’ questions:

      i.         External finance / funding was easier to obtain when planning permission was in place. Could not confirm where the funding for the redevelopment would come from at this stage. This would be explored as part of the next phase of the project.

    ii.         Noted concerns raised regarding the impact on market traders if the redevelopment work was undertaken in two phases. The current proposals were looking at what work could be done off-site to reduce the impacts on traders and to explore if the works could be done in one phase.

   iii.         The confidential commercial report had a 5-year plan for the market. This showed a small increase in income through more efficient use of market stalls. The Council was aware of the concerns regarding business continuity for Market Traders resulting from the redevelopment proposals. Support packages for Market Traders would be looked at as part of the next phase of work when discussions could take place between officers and the contractor about the development proposals. 

  iv.         There was a confidential business plan for the Corn Exchange included within the agenda, which detailed costs and predicted revenue and indicated an increase in income because of the design changes. The next stage of the project would scrutinise these figures and explore if the figures could be improved.

    v.         The urgent repairs to the Corn Exchange’s roof were estimated to cost £180,000. Approval for this funding was proposed to be taken via an out of cycle decision.  

  vi.         The capital cost for the refurbishment of the Guildhall was estimated to be £41 million. It was estimated that the technical design costs would be £500,000-£750,000. With a capital project, costs were usually split between build costs, design costs and on-costs.

 vii.         The report set out where the business plan needed further work. The report also set out where costs were excluded; and an example was decanting costs. Advised at RIBA 2 stage it was unusual to have certainty regarding costs, this would follow at the build / contract stage.

viii.         An allocation for the estimated capital costs for the Guildhall refurbishment had been included within the report.

  ix.         The proposal in the report was to explore appropriate options regarding Mandela House for example refurbishment / lease / sale.

 

The Executive Councillor for Finance and Resources and the Leader said the following in response to Members’ questions:

        i.       Currently the project had approval for a conceptual design. Approval was being sought at the next Full Council meeting to develop the proposals in more detail to RIBA stage 3 to submit a planning application.  It is intended to return to Committee in Autumn 2025 for a decision on the final designs and business plan.

 

Councillor Bick proposed an amendment to the amended recommendation 1.2 (additional text underlined):

 

1.2         Note the outcomes from the first Public Consultation that took place to shape the outcomes of the Concept Designs and in response adds to the Market Square Design Principles that alongside other objectives which should bring a beneficial impact on the market itself, the project should support a substantial reduction of anti-social behaviour in the square and the achievement of an attractive public space outside of market hours.

 

On a show of hands, the Committee unanimously supported the amendment to recommendation 1.2. The Executive Councillor also accepted the amendment to recommendation 1.2. 

 

Councillor Bennett proposed an amendment to recommendation 1.1 that the recommendation set out the detail of the costs contained within paragraph 8.3 of the officer’s report rather than the recommendation referring to paragraph 8.3 of the officer’s report. The amendment was not seconded and therefore the amendment fell and was not voted on. 

 

The Committee resolved by 7 votes to 1 to endorse the amended recommendations.

 

The Executive Councillor approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

No conflicts of interest were declared by the Executive Councillor.