Decision details

The Director of Economic Growth and Neighbourhood Services submitted a report (previously circulated) updating Members on the progress being made on Central Park and requesting that consideration be given to the detailed design and construction (subject to planning) of the Hybrid Business Innovation Centre (HBIC), a business incubator comprising of offices and clean workspaces, known as Business Growth Hub 2, and the remediation and landscaping of Central Park and servicing of the remaining development plots.

The submitted report outlined the decisions made at the Executive Decision-making session held in April 2020; stated that the Council had secured additional funding via the ‘Getting Building’ fund (one of only three awards in the Tees Valley); an increased funding award from European Regional Development Fund (ERDF), had been verbally agreed, taking the available project funding package to £11,237,855; and that as a result, on the proviso that ERDF approval was forthcoming, the Council were in a position to deliver this exciting project that included the submission of planning and, if approved, construction of the Hybrid Business Innovation Centre, procurement of an incoming operator to manage the centre and provide business support to the new businesses and undertake a range of landscaping and remedial works across Central Park.

It was reported that following the success of Business Central on Central Park, the Council, with the benefit of external funding would now realise its plan to create additional business incubation / managed workspace accommodation and serviced plots in a quality environment in readiness for occupation by new companies including Small to Medium Sized Enterprise businesses (SMEs); a demand study had been undertaken that confirmed the demand and need for such incubation / managed accommodation within the Tees Valley region; the Covid 19 pandemic had made attracting occupants for business space more challenging, so this timely opportunity to significantly uplift the whole Park and offer quality serviced plots was ever-more important; Central Park remained a key part of the Council’s economic strategy moving forward and should be viewed through the lens of a medium to long term priority; the HBIC would accommodate 2,370 square metres of business space; the final internal configuration would be arrived at through discussions with the future operator; and outlined the actions required to progress the project.

Discussion ensued at the meeting on the jobs that would be created by the project; if those jobs would be for local people; and whether, in the current economic climate, it was the right time to be progressing the project.  The Cabinet Member with the Economy Portfolio and the Director of Economic Growth and Neighbourhood Services responded thereon.

RESOLVED – (a)  That the work done so far to develop the plans for the Hybrid Business Innovation Centre, as detailed in the submitted report, be noted.

(b)  That the release of £10,737,855, be authorised, subject to formal approval of European Regional Development Funding (this being the balance on the funding package following the earlier release of £500,000 in April 2020).

(c)  That the Director of Economic Growth be authorised to proceed with the project including applying for planning permission.

(d)  That the construction of the Hybrid Business Innovation Centre be designated as a strategic procurement, and the landscaping works and procurement of operator as non-strategic, with powers delegated to the Procurement Board to progress the procurements in accordance with Contract Procedure Rules.

Reasons – (a) To enhance the environmental, social and economic well-being of the Borough.

(b)  To support actions arising from Darlington’s Economic Strategy.

(c)  To support the delivery of the Enterprise Zone on Central Park.

(d)  To enable the project to move forward.