Agenda item

The Corporate Director of Economy & Place to present a report which asks Executive to approve a recommended delivery strategy for the first phase of the regeneration of the Castle Gateway, which will deliver many key public benefits of the masterplan, and to make associated budget recommendations to Council.

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.

The Assistant Director of Regeneration & Asset Management and the Head of Regeneration Programmes presented a report which set out the recommended delivery strategy for the first phase of the regeneration of the Castle Gateway, following submission of the necessary planning applications in autumn 2019.  This phase represented a major step towards unlocking delivery of the whole masterplan.

The following options were presented, as set out in paragraphs 10-18 of the report and analysed in detail in paragraphs 19-44:

Option 1- the council to act as developer for all elements of phase1. This was the recommended option.  It would require short term borrowing of £45.5m and long term borrowing of £3.3m.

Option 2 – the council to build St George’s Field MSCP and dispose of 17-21 Piccadilly and Castle Mills with restrictions limiting the use of these sites to residential and a requirement to build a new Foss bridge.  This would create a higher project liability gap of £13m, to be serviced through long term borrowing.

Option 3 – not to proceed with St George’s Field multi storey car park (MSCP); to close Castle Car Par and dispose of 17-21 Piccadilly and Castle Mills as above. This would minimise the short term financial risk but create significant long term funding liability.

Option 4 – not to proceed with the project, and to sell 17-21 Piccadilly and Castle Mills without any restrictions.  As well as failing to deliver the masterplan, this would result in abortive costs. 

Members welcomed the progress made on the regeneration masterplan, which would provide a range of public realm benefits, including new pedestrian and cycling routes.  Further details would be reported to Executive as Phase 1 progressed, ensuring robust oversight and management of the project risks.  With reference to matters raised under Public Participation and questions from Members, it was confirmed that:

·        responses to the public consultation were available online;

·        15% of the new car parking spaces would be for electric vehicles (compared with the current 2% requirement) and the car park would have solar panels and green walls;

·        alternative uses of the car park had been explored, but its position within the flood zone meant these were limited.

Resolved:  (i)      That Option 1 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.