Decision details

Purpose of Report: The report will set out the business case and delivery options for the first phase of the regeneration of the Castle Gateway.

The Executive will be asked to consider the options and associated budget to allow the next stage of the delivery of the Castle Gateway to proceed.

Resolved:  (i)      That Option 1 (the council to act as developer for all elements of Phase One) be approved for the council to deliver Phase One of the Castle Gateway regeneration and allow the future closure of Castle Car Park.

Reason:     To implement the first phase of the Castle Gateway under the delivery option that allows the council to control timescales, quantity and delivery and requires the lowest level of long-term financial commitment from the council.

                   (ii)      That approval be given to carry out a procurement to engage a construction contractor to undertake the design and subsequent construction of the multi-storey car park at St George’s Field, and that authority be delegated to the Director of Economy & Place, in consultation with the Director of Governance or her delegated officers, to take such steps as are necessary to award and enter into the resulting contract.

Reason:     To proceed with RIBA stage 4 design and provide fixed build costs to inform the actual project budget.

                   (iii)     That approval be given to carry out a procurement to engage a construction contractor to undertake the design and subsequent construction of the proposed development at Castle Mills, and that authority be delegated to the Director of Economy & Place, in consultation with the Director of Governance or her delegated officers, to take such steps as are necessary to award and enter into the resulting contract.

Reason:     To proceed with RIBA stage 4 design and provide fixed build costs to inform the actual project budget.

(iv)    That it be noted that a further report will be brought to Executive in late 2020, on completion of the early contractor engagement steps of the contracts in respect of St George’s Field and Castle Mills, to report on the actual build costs and ask Executive to agree to proceed with construction and to recommend to Council the full contract delivery budget.

Reason:     To allow the final decision to proceed with the project to be made, based on fixed prices.

                   (v)     That it be noted that a report will be brought to Executive in summer 2020 to establish the design and construction budget for the new public realm at Castle Car Park and the Eye of York.

Reason:     To set out the outline business case for phase two and allow the design of the new public realm to commence, based on an agreed budget.

                   (vi)    That a recommendation to approve a budget of £2.15m to deliver the above decisions be included in the Capital Programme 2020/21-2024/25 to be presented to Budget Council in February.

Reason:     To enable these decisions to be carried out.

                   (vii)    That a recommendation to approve a budget of £532k for diversion of the Yorkshire Water sewer and associated demolition of the toilet block at St George’s Field be included in the Capital Programme 2020/21- 2024/25 to be presented to Budget Council in February, and that authority be delegated to the Executive Member for Finance & Performance to take a decision to proceed with this.

Reason:     To allow a decision to be made at the appropriate time to proceed with the sewer diversion, which will enable the construction at St George’s Field to commence.

                   (vii)    That approval be given in principle for the Housing Revenue Account to fund the construction of 20 apartments at Castle Mills as new council housing at an estimated value of £3.7m, should the council act as developer for the site.

Reason:     To enable new council housing to be delivered as part of phase one of the project, should the decision be taken to proceed with Castle Mills in late 2020.

                   (viii)   That it be noted that a report will be brought to Executive in summer 2020 setting out the recommended delivery strategy for 17-21 Piccadilly.

Reason:     To enable a decision to be taken on whether 17-21 Piccadilly should be included in the council-led delivery strategy once early design work has provided a more detailed viability appraisal.