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Agenda Item No

 

The Vale of Glamorgan Council

 

Cabinet Meeting: 2nd November, 2011

 

Report of the Cabinet Member for Economic Development and Regeneration

 

Innovation Quarter: Hydraulic Pumphouse, Barry Waterfront

 

Purpose of the Report

1.             To report the completion of the enveloping works project resulting in the external restoration of the Hydraulic Pumphouse;

2.             To obtain authority to market and dispose of the Hydraulic Pumphouse site in consultation with the Director of Finance, ICT and Property and the Cabinet Member for Economic Development and Regeneration, subject to the consent of the Welsh Government;

3.             To obtain authority for the Director of Legal, Public Protection and Housing Services to prepare, complete and execute the appropriate legal documentation required to dispose of the Hydraulic Pumphouse site.

4.             To report a budget surplus of £160,000 from the Pumphouse Enveloping Budget and obtain authority to vire the £160,000 from the Pumphouse Enveloping budget to a new "Innovation Quarter Infrastructure Budget".  For this new budget to be utilised for additional security, landscape and physical measures and feasibility/surveys within the Innovation Quarter, subject to the approval of the Cabinet Member for Economic Development and Regeneration.

Recommendations

1.             That authority is granted to market and dispose of the Hydraulic Pumphouse site in consultation with the Director of Finance, ICT and Property and the Cabinet Member for Economic Development and Regeneration, subject to the consent of the Welsh Government;

2.             That authority is granted to appoint property agents/consultants to assist with the marketing and preferred bidder selection exercise;

3.             That authority is granted to the Director of Legal, Public Protection and Housing Services to prepare, complete and execute the appropriate legal documentation required to dispose of the site;

4.             That authority is granted to vire £160,000 from the Pumphouse Enveloping budget to a new "Innovation Quarter Infrastructure Budget" subject to full Council save for £90,000 which will be vired immediately.  And for this budget to be utilised for additional security, landscape and physical measures and feasibility/surveys within the Innovation Quarter, subject to the approval of the Cabinet Member for Economic Development and Regeneration.

Reasons for the Recommendations

1.             To facilitate the marketing and disposal of the Hydraulic Pumphouse site ;

2.             To facilitate the appointment of property agents/consultants to assist with the marketing of the Hydraulic Pumphouse site;

3.             To enable the preparation, completion and execution of the appropriate legal documentation required for the disposal of the Hydraulic Pumphouse site;

4.             To vire £160,000 from the Pumphouse Enveloping budget to a new "Innovation Quarter Infrastructure Budget".  And for this new budget to be utilised for additional security, landscape and physical measures and feasibility/surveys within the Innovation Quarter, subject to the approval of the Cabinet Member for Economic Development and Regeneration.

Background

5.             The Hydraulic Pumphouse site is located in the centre of the Innovation Quarter, Barry Waterfront (refer to the Site Plan in Appendix A, which indicatively shows the site boundary).  The freehold interest of the site is owned by the Vale of Glamorgan Council. 

6.             The aim of the Innovation Quarter (IQ) is to deliver a high quality mixed use development within the heart of the Waterfront.   Projects within the Innovation Quarter include the Council's Heritage Skills Training Centre (comprising an IT Training Centre operated by Barry College and a Conservation Workshop utilised as a railway training school by BRECCO); the Council's BSC with its high quality offices, workshops and conference facilities; a new Primary Care Centre ("West Quay Medical Centre); a recently completed highway contract (the IQ Spine Road) providing pedestrian, cyclist and highway access to the new Primary Care Centre; the restored Goods Shed property accommodating a part of the BRECCO railway training school; a proposed new 80 bed hotel and a restaurant (the subject of a recently submitted planning application), and the subject of this Cabinet report the Hydraulic Pumphouse site.

Relevant Issues and Options

7.             In accordance with Cabinet Minute C456 the grade II Listed Hydraulic Pumphouse has been externally restored by specialist conservation contractors John Weavers (Contractors) Limited.  The external refurbishment works (the enveloping project) were completed at the end of September 2011 with the assistance of a £800,000 Welsh Government grant. 

8.             The final cost of the main works contract undertaken by John Weavers (Contractors) Limited is circa £1.43 Million.  The original Contract Sum was £997,660.39.  The works contract incurred additional costs amounting to circa £430,000 due to the discovery during the works of additional contamination including arsenic paint on the roof trusses, and additional asbestos within the property and in the ground.   However, the project budget included a contingency which has been utilised to pay these additional costs and authorised by various Chief Executive Emergency Powers.

9.             The enveloping project has been completed within budget and there is a budget surplus of circa £160,000 (which is not the subject of any grant clawback).  It is proposed subject to Cabinet approval to vire this £160,000 from the Pumphouse Enveloping budget to a new "Innovation Quarter Infrastructure Budget" for additional security, landscape and physical measures and feasibility/surveys within the Innovation Quarter, subject to the approval of the Cabinet Member For Economic Development and Regeneration.  To avoid delaying the implementation of various security, physical and landscape measures it is proposed to vire £90,000 immediately, with the remaining £70,000 to be vired at a later date subject to full Council.

10.        It is now intended to market and dispose of the Hydraulic Pumphouse site (by way of a 999 year lease) to secure a new end use as part of the ongoing regeneration of the Innovation Quarter.     

Resource Implications (Financial and Employment and Climate Change, if appropriate)

11.        It is intended that the costs associated with the marketing and disposal of the Hydraulic Pumphouse site will be funded from the capital receipt. 

12.        The Legal section has reviewed the terms and conditions of the Welsh Government grant awarded to envelope the Hydraulic Pumphouse and the marketing and disposal of the site will not result in any clawback of the £800,000 grant.  The Welsh Government have also written to confirm this point.

Legal Implications (to Include Human Rights Implications)

13.        The Hydraulic Pumphouse site was originally purchased by the Council with 100% WDA grant aid and as stated a joint venture legal agreement exists between the Council and Welsh Government in respect of the Innovation Quarter.  In accordance with this joint venture agreement the Council must (a) obtain formal written consent from the Welsh Government for any disposal of land, and (b) share with the Welsh Government the capital receipt generated by a disposal. The share of the capital receipt is based on the ratio of investment made by both parties within the Innovation Quarter at the time of the disposal.   The Welsh Government has been consulted and is supportive of the Council marketing the Hydraulic Pumphouse site on the basis of a 999 year lease disposal.

14.        The disposal of the land is subject to Section 123 of the Local Government Act 1972.

Crime and Disorder Implications

15.        The aim will be to address issues of crime and disorder in the design of the project.

Equal Opportunities Implications (to include Welsh Language issues)

16.        The project will be delivered in accordance with the Council’s equal opportunities policies and ethos.

Corporate/Service Objectives

17.        The disposal of the Hydraulic Pumphouse will assist the Council to continue the redevelopment of the Innovation Quarter and deliver its Corporate Plan Priority under “Regeneration”.

Policy Framework and Budget

18.        The report is a matter for Executive Decision by Cabinet save for Recommendation 5 which is a matter for Council.

Consultation (including Ward Member Consultation)

19.        The property is located within the Buttrills ward and the ward members have been written to notifying them of the report.  Councillor M.Alexander has written stating "…it is a big opportunity to do something commercial and pleasing to the people of Barry…"and is particularly keen for the property to be marketed for a cinema use.  Councillor N.Hodges has written stating "…very happy with the next steps. Hope we can find outside interest…"

Relevant Scrutiny Committee

20.        Economy and Environment.

Background Papers

None.

 

Contact Officer

Mark White (Major Projects Manager) Tel. 01446 704698.

 

Officers Consulted

Head of Planning and Transportation

Operational Manager, Countryside and Economic Projects

Principal Lawyer (Legal Public Protection and Housing )

Estates Group Manager, Strategic Property

Senior Accountant, Accountancy

 

Responsible Officer:

Rob Quick - Director of Environmental and Economic Regeneration.

 

 

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