Decision Maker: Cabinet, Full Council
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: No
1. Notes the progress since the October 2019 Cabinet report.
2. Notes the output of the soft market testing for the deconstruction of the tower blocks.
3. Notes that the outline financial appraisal for an initial phase consisting of the two footprints is positive with the caveats noted in the financial implications.
4. Approves a change to the Capital Programme for the use of the Housing Revenue Account's (HRA) Major Repairs Reserve (MRR) to fund the deconstruction and site preparation of the two towers up to a value of £10m.
5. Delegates authority to the Director of Regeneration in consultation with the Director of Housing, Neighbourhood and Building Services and the Section 151 Officer to tender and enter into contract with the preferred bidder for the deconstruction work following full evaluation of the tender.
That the Council approves
1. That the full deconstruction and redevelopment scheme for the two tower blocks is added to the capital programme in the sum of £120m.
2. That the scheme is funded by a suitable mix of HRA and General Fund Prudential Borrowing as determined by the S.151 Officer.
3. That the scheme can only proceed, including through its procurement gateways, if a satisfactory financial appraisal which demonstrates viability is approved by the Section151 Officer.
4. That, given the early stage of design, delegated authority be given to the Section151 Officer to vary the overall scheme cost and borrow as required but subject to the Section 151 Officer being satisfied that the associated financial appraisal demonstrates continued viability and acceptable risk and that the gross cost of the scheme does not exceed £145m.
5. In the event that the scheme varies significantly from the design parameters (described in section 5) and/or the gross cost exceeds £145m, even if viability can still be demonstrated, the scheme will not proceed without further approval from the City Council.
Report author: James Hill
Publication date: 16/09/2020
Date of decision: 15/09/2020
Decided at meeting: 15/09/2020 - Cabinet