The Cabinet Member with the Economy Portfolio introduced the report of the Chief Executive (previously circulated) requesting that consideration be given to the Council completing discussions with the Tees Valley Combined Authority (TVCA) and utilising £4,000,000 from the TVCA Investment Fund to supplement other agreed funding streams, to enable the redevelopment of the former Northern Echo Building into an Adult Skills Facility on the ground floor and quality office space on the upper three floors.
The submitted report stated that the Council acquired the former Northern Echo Building for £925,000 in 2022, with funding from the Towns Fund and TVCA Indigenous Growth Fund; following the acquisition, the Council commenced plans for the building to host an Adult Skills Hub, in partnership with the Darlington College, on the ground floor with the remaining floors being refurbished into quality office space for business; a procurement exercise had been completed to identify an experienced and imaginative development partner to design, redevelop, repurpose, and once complete to operate, manage, and maintain the entire building; the preferred tenderer had submitted a bid which included a full refurbishment of the building in addition to a full fit out of the Adult Skills Hub on the ground floor; and that the overall redevelopment would take around 18 months.
References were made to the funding for the redevelopment phase of the building; the overall budget for the purchase, design and redevelopment; the leasing of the building; and the process of drawing down funds from TVCA.
Particular reference was made at the meeting to the of importance of the building; the demand for office accommodation in the town centre; and to the environmental impact of the building, to ensure that it was net zero.
RESOLVED - (a) That the draw down of £4,000,000 from the TVCA Investment Fund alongside other funds, as detailed in the submitted report, be approved, to enable the full refurbishment of the former Northern Echo Building to accommodate the planned Adult Skills Hub and facilitate the delivery of circa 3,235 square metres of quality office space in addition to an Adult Skills facility on the whole of the ground floor.
(b) That the use of various funding initiatives, as detailed in the submitted report, to fully fund the construction project with no Darlington Borough Council requirement, be acknowledged, and that when completed it be a sustainable grade A office location in the Town Centre.
(c) That delegate authority be granted to the Assistant Director of Economic Growth to enter into the funding agreements with the preferred partner once the procurement process is complete.
REASONS - (a) To attract more professional, business and office-based jobs to the centre of Darlington contributing to Town Centre vitality.
(b) To enable the project to advance in line with the desired timetable.
DELEGATIONS- The delegation sought is to enable the design and build of the offices to advance in a timely manner to ensure the necessary project timetable can be adhered to, and to agree execution of Council funding.