Agenda item - Western Way project (Report number: CAB/WS/23/014)

Agenda item

Western Way project (Report number: CAB/WS/23/014)

Report number:     CAB/WS/23/014

Portfolio holder: Councillor Joanna Rayner

Lead officer: Alex Wilson

 

Decision:

Resolved:

That:

 

1.       subject to completion of heads of terms with Suffolk County Council for their elements of the phase 1 scheme, it be agreed that the Western Way project proceeds to second stage tendering, and its final gateway test, on the basis that all of the financial tests and safeguards required by Council in December 2022 are still capable of being met; and

 

2.       the final budget for the phase 1 Western Way scheme and for interim works to the remainder of the site, including enabling works, remain as agreed by Council in December 2022.

Minutes:

The Cabinet considered this report, which provided details on whether the Western Way project was deemed to have passed the first of two gateway tests. Approval was sought to proceed to second stage tendering, and its final gateway test. 

 

In December 2022, Council approved an updated business case for phase 1 of the Western Way (WW) project in Bury St Edmunds and agreed that Cabinet could deliver the scheme provided it passed two further gateways. Report number: CAB/WS/23/014 covered the first of those two gateways. The second gateway, and the final decision to proceed with the scheme, would not be considered until late summer 2023 at the earliest.

 

Councillor Joanna Rayner, Portfolio Holder for Leisure, Culture and Community Hubs, drew relevant issues to the attention of Cabinet, including that it was not proposed at this meeting to revisit earlier decisions taken by Council on the project, and neither to discuss phase 2 which as agreed by Council in December 2022, would be an entirely separate project requiring a new business case in 2024 and a new decision by councillors.

 

Following Council’s approval of a new budget framework in December 2022 for the WW project to reflect a new phased delivery, section 2.1.1 of the report provided a summary of the tests that must be met to proceed with the delivery of phase 1 of the scheme. The phase 1 scheme must now:

 

 a.      cost no more than £65 million in total (excluding the £10 million of interim works to the remainder of the WW frame/site as set out in paragraph 2.1.3);

 

b.       not increase the Council’s existing Medium Term Financial Strategy (MTFS) provision of £724,000 for Bury St Edmunds Leisure Centre; and

 

c.       in relation to other ancillary elements of the new hub, be capable of achieving at least a break-even position over the whole life of the borrowing (40 years).

 

The remainder of section 2.1 provided details that addressed the above points, culminating in requesting Cabinet to consider as part of gateway 1:

 

a.     whether the budget approved by Council was still sufficient, that is, whether the financial tests were still being met; and

 

b.     whether it was reasonable to proceed to second stage tendering and, ideally, to gateway 2.

 

Detail provided in the report assisted Cabinet in its deliberations on the above matters, which were reiterated by Councillor Rayner at the meeting.

 

Discussion was held on the proposed provision of the health and wellbeing centre and the level of service it would provide. The benefits of a similar facility at the Mildenhall Hub were recognised. Engagement with the NHS on this matter was continuing.

 

Members spoke positively on the project and having considered the contents of the report in detail, they concluded that:

 

·         benchmarking suggested the budget was both reasonable and value for money;

·         the cost plan was already within three percent of the target budget with lots of options to control it through the mitigation plan;

·         the preferred contractor was confident they could hit the budget given their work to date on the project and the working relationships being developed; and

·         continuing to prepare a detailed design for the project was a worthwhile investment.

 

In view of the above, the Cabinet agreed that the Western Way project should proceed to second stage tendering, and its final gateway test, on the basis that all of the financial tests and safeguards required by Council in December 2022 were still capable of being met.

 

Resolved:

 

That:

 

1.       subject to completion of heads of terms with Suffolk County Council for their elements of the phase 1 scheme, it be agreed that the Western Way project proceeds to second stage tendering, and its final gateway test, on the basis that all of the financial tests and safeguards required by Council in December 2022 are still capable of being met; and

 

2.       the final budget for the phase 1 Western Way scheme and for interim works to the remainder of the site, including enabling works, remain as agreed by Council in December 2022.

Supporting documents:

 

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