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Agenda item

The Guildhall Redevelopment Tender Evaluation & Project Business Plan Appraisal

The Corporate Director of Economy & Place to present a report which outlines a comprehensive scheme to refurbish and redevelop the Guildhall complex and asks Executive to approve an updated business case for the scheme, the appointment of a construction contractor and proposals to seek tenants for the commercial space, to ensure the future viability and effective re-use of one of York’s most significant historic buildings.

Decision:

Resolved:  (i)      That the additional construction costs necessary to address the structural instability of the Guildhall and to access the riverside site, as set out in paragraph 21 of the report, be noted.

 

(ii)      That the additional costs arising due to inflation and contingency, as set out in paragraph 21, be noted.

 

(iii)     That the 250 additional jobs with a Gross Value Added economic impact (GVA) of £117m over 5 years be noted.

 

(iv)    That the redevelopment of the Guildhall at an additional cost of £7.372m, funded from prudential borrowing identified in the 2019/20 capital budget report, be approved.

 

(v)     That the updated business case for the scheme be approved.

 

(vi)    That it be agreed to proceed to the award of a contract to Bidder B as the construction contractor for the Guildhall project and to delegate authority to the Director of Economy & Place, in consultation with the Assistant Director of Legal & Governance or his delegated officers, to take such steps as are necessary to enter into the contract and, subject to contract, to commence the construction works.

 

(vii)    That approval be given to seek tenants for the commercial space to maximise income to the council and that authority be delegated to the Director of Economy & Place, in consultation with the Executive Leader (incorporating Finance & Performance) to agree the length of the lease(s).

 

Reason:     To ensure the future viability and effective re-use of the Guildhall as one of the city’s most significant historic buildings.

Minutes:

The Corporate Director of Economy & Place presented a report which outlined a comprehensive scheme to refurbish and redevelop the Guildhall complex, generate income of around £848,000 per year and deliver 250 additional jobs, contributing £117m of GVA (Gross Value Added) to the local economy.

 

On 8 May 2018, Executive had given approval to take the detailed specification for the scheme back out to tender (Minute 167 of that meeting refers).  Since then, additional works had been added to the scope, to reflect planning and listed building consent conditions and address structural defects.  These and other factors, detailed in paragraph 21 of the report, had resulted in an overall construction budget of £16.5m and a scheme budget of £20.2m.  The business case had been updated to show revised income estimates, assessment of demand for a business club model, updated operational costs and confirmed grant support.  Two bids had been submitted in response to tender, as detailed in exempt Annex 4 to the report, and an evaluation process had identified Bidder B as the successful bidder.

 

The total net revenue cost of the full revised scheme (Option 1) was £574k.  Of the alternative options modelled (set out in Annex 5), only Option 2 (repair / refurbishment, with leased office space and no restaurant or cafe) led to a lower revenue cost.  This option was not recommended as it would deliver limited public access with poor public facilities, only partial DDA compliance, and low revenue income.  It would also need further procurement, causing more delay.

 

In response to questions from Members, Officers explained that the extent of the structural defects had only come to light after detailed surveys had been carried out.  As identified at the outset, inflation, the length of the project and the addition of contingency were also factors in increasing the costs.  The Chair commented that all other options had been explored and the project should now proceed.  Having noted the comments made under public participation, it was

 

Resolved:  (i)      That the additional construction costs necessary to address the structural instability of the Guildhall and to access the riverside site, as set out in paragraph 21 of the report, be noted.

 

(ii)      That the additional costs arising due to inflation and contingency, as set out in paragraph 21, be noted.

 

(iii)     That the 250 additional jobs with a Gross Value Added economic impact (GVA) of £117m over 5 years be noted.

 

(iv)    That the redevelopment of the Guildhall at an additional cost of £7.372m, funded from prudential borrowing identified in the 2019/20 capital budget report, be approved.

 

(v)     That the updated business case for the scheme be approved.

 

(vi)    That it be agreed to proceed to the award of a contract to Bidder B as the construction contractor for the Guildhall project and to delegate authority to the Director of Economy & Place, in consultation with the Assistant Director of Legal & Governance or his delegated officers, to take such steps as are necessary to enter into the contract and, subject to contract, to commence the construction works.

 

(vii)    That approval be given to seek tenants for the commercial space to maximise income to the council and that authority be delegated to the Director of Economy & Place, in consultation with the Executive Leader (incorporating Finance & Performance) to agree the length of the lease(s).

 

Reason:     To ensure the future viability and effective re-use of the Guildhall as one of the city’s most significant historic buildings.

Supporting documents:

 

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