Issue - decisions

Central Park - Hybrid Business Innovation Centre

01/05/2020 - Central Park - Hybrid Business Innovation Centre

To develop a Hybrid Business Innovation Centre, comprising offices and clean workshop space, known as Business Growth Hub 2 on Central Park.

RESOLVED – (a)  That the contents of the submitted report, in particular paragraph 27, be noted, and the release of the £500k development funding provided by Tees Valley Combined Authority, be approved.

 

(b)  That funding bids for £2.8m from the Tees Valley Combined Authority and £4.2m of European Regional Development Fund funding for the full design and construction phases of the project, be approved, and a further report be provided regarding the outcome and conditions associated with the funding if those bids are successful.

 

(c)  That delegated powers be granted to the Procurement Board to:

 

        (i)             approve the appointment of a third party for the design, construction and associated infrastructure work with the appropriate breaks linked to the funding applications and planning; and

 

       (ii)             approve the Council entering into an agreement to lease with the chosen operator for the Hybrid Business Innovation Centre and subject to satisfaction of conditions of the operator lease terms.

 

(d)  That the acquisition of land at Central Park from Homes England, on the terms as set out in the submitted report, be authorised.

 

(e)  That the Assistant Director Law and Governance be authorised to document and to put in place all the necessary legal agreements and enter into contracts to deliver the project.

 

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.

 

Representations Received - A Member submitted his views, welcoming the project and asking for clarification about the funding and potential risks. The issues raised were considered and answered ahead of the decision session by Ian Williams (Director of Economic Growth and Neighbourhood Services) who clarified that the Council is making a case for 100% funding (60% ERDF and 40% from TVCA) to cover capital costs and an element of revenue to cover early years. Work is ongoing to sources additional funding ERDF and TVCA funding. There will be a final price tender through SCAPE framework which will limit exposure to capital cost rise. On revenue we will be seeking to procure an operator similar to the process we did with Business Central Incubation which means that they take the upside and downside risk. The Leader was provided with both representation received and the response ahead of the decision session.  The representation received, and the response of the Director to that representation, can be seen at Item No. 2 of this agenda.

 

Members and Officers in Attendance at the Session:

Councillor Johnson, Cabinet Member with the Resources Portfolio

Councillor Marshall, Cabinet Member with the Economy Portfolio

Paul Wildsmith, Managing Director

Ian Williams, Director of Economic Growth and Neighbourhood Services

Elizabeth Davison, Assistant Director – Resources

Luke Swinhoe, Assistant Director - Law and Governance

Andy Walker, Communications Manager

Lynne Wood, Elections Manager

 

Conflicts of Interest – None

 

Alternative Options Considered – None