Agenda item

Report No: COU/SE/18/022

Council considered Report No: COU/SE/18/022, which sought approval for the adoption of the Outline Business Case, a budget for the next stage of the project and authority for some associated immediate actions for the Western Way Development in Bury St Edmunds, including an outline business case for the replacement of the Bury St Edmunds Leisure Centre.

The following documents were attached to the report:

·         Main Outline Business Case for the Western Way Development and its five appendices:

Appendix 1: Bury St Edmunds Leisure Centre outline business case

Appendix 2: Organisational Overview

Appendix 3: Benefits Appraisal

Appendix 4: Zoning Diagrams

Appendix 5: Plans and Visualisations

Councillor John Griffiths, Leader of the Council, drew relevant issues to the attention of Council, including that the proposed Western Way Development was a nationally ground-breaking investment in public services, skills and jobs.  As an outline business case, it did not contain detailed plans and figures and the intention at this meeting was to support the concept, and test whether there was sufficient confidence in the scheme to progress to the next stage.

Reference was particularly given to:

(a)     the fact that should the recommendations contained in Report No: COU/SE/18/022 be approved, a final business case was anticipated to be presented to West Suffolk Council in 2019 with, subject to approval of the final business case, a planning application being submitted later that year, with a view to phase one being completed by 2023;

(b)     the aspirations of the revised masterplan for the site that was adopted in 2016;

(c)     the concept drawings and use of the existing frame and concrete pad of the depot/DHL distribution building, which would provide an affordable and flexible model for the emerging final uses of the site under either the proposed baseline model or the target model detailed in the Outline Business Case;

(d)     the case for investment (working with partners and external funders) in better facilities, better public services, new jobs and student accommodation and that in order to deliver the wider benefits, the final business case would need to propose the delivery of a break-even scheme for the Council in terms of whole-life costing; 

(e)     that, whilst the Outline Business Case addressed the project in estates terms, other savings and benefits were likely to emanate from how the development would improve people’s lives;

(f)      the opportunity to replace, update and relocate the Bury St Edmunds Leisure Centre to an alternative position within the Western Way Development site (as set out in Appendix 1);

(g)     the allocation of a total budget of £1.5 million to enable the preparation of the final business case, which would be subject to external funding partner contributions being obtained, with the Council contributing up to a maximum of £900,000 as developer and landowner (which would be transferable if the final business case was not adopted);

(h)     the proposal to work with County Highways to produce a new transport assessment, which would address proposals to mitigate increased traffic generation in the locality.  This would be presented to Members at the final business case stage and would detail the expected impact and provide an analysis of the highway network, public transport, walking and cycling, hours of opening and parking to achieve an acceptable solution. Recommendations (6) and (7) sought to address the need to tackle transport and parking issues at this outline business case stage; and

(i)      the proposal to appoint an independent expert to appraise the final business case before Members received it in 2019.

A detailed discussion was held with Members commending the aspiration and ambition of the proposed project, including the potential to replace the leisure centre. The proposal for the traffic assessment to be presented to Members was welcomed at the final business case stage, and it was reiterated that, through working closely with County Highways, appropriate investment in infrastructure improvements and traffic mitigation measures needed to remain a priority.

Other issues raised included exploring alternative means or providing incentives for accessing the proposed development other than by the petrol/diesel fuelled car; whether a precise commitment had been made for a GP surgery to be located at the site; and potential options for improving the existing facilities of the leisure centre.  Specific questions raised by Councillors Diane Hind and Julia Wakelam would be provided by written reply and circulated to all Members for their perusal.

On the motion of Councillor John Griffiths, seconded by Councillor Susan Glossop, and duly carried it was

RESOLVED: That

(1)     the Outline Business Cases for the Western Way Development, Bury St Edmunds and, as part of that scheme, the replacement of the Bury St Edmunds Leisure Centre, as contained in the attachment and its five appendices to Report No: COU/SE/18/022,  be approved;

(2)     subject to match-funding being received from partners and the Business Rates Pilot Place Fund, further project funding to allow the preparation of Final Business Cases of up to £1,500,000 be approved on the basis set out in Section 2 of Part F of the main Outline Business Case; the Council’s own direct contribution of up to £900,000 to be funded from the Strategic Priorities and MTFS Reserve;

(3)     funding bids be made to regional and national funding schemes to offset the project funding and support delivery of the actual scheme;

(4)     the Council’s Section 151 Officer makes the necessary changes to the Council’s prudential indicators to reflect the direct cost to the Council of funding the project budget;

(5)     an external expert adviser be appointed to carry out an independent gateway review of the Final Business Case for the Western Way Development before it is presented to Council;

(6)     subject to planning consent being received by the ESFA, the Council approves the principle of funding the marginal cost of upgrading the Beetons Way/Western Way junction so that it can meet the requirements of the Western Way Development as well as the Abbeygate Sixth Form; officers being authorised to approve these works and meet any capital expenditure from within the project funding approved under (2) above;  and

(7)     the officers be authorised to enter into leases with third parties for temporary off-site parking options within one mile of the site to facilitate the delivery of the project, on the basis set out in section 2.5 of Part G of the main Outline Business Case; any cost incurred before approval of the Final Business Case also being met from within the approved project budget.