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Agenda Item No

 

The Vale of Glamorgan Council

Cabinet meeting 18th March 2013

Report of Cabinet Member for Regeneration, Innovation, Planning and Transportation

Innovation Quarter (Barry Waterfront) – Updated Indicative IQ Master Plan and Consolidation Paper

 

Purpose of the Report

1.             To report the progress and achievements of the Innovation Quarter (IQ) to date as outlined in Appendix A, the “Updated Indicative Innovation Quarter Master Plan and Consolidation Paper (February 2013), “the Consolidation Paper”, (a copy of which will be placed in the Member's Room), and to seek endorsement from Cabinet for the Consolidation Paper;

2.             To seek Cabinet approval for the Updated Indicative IQ Master Plan in Figure 9a (Page 83) of the Consolidation Paper and attached as Appendix B  of this Cabinet Report as the flexible framework for guiding the completion of the full redevelopment of the IQ;

3.             To seek Cabinet approval to implement the IQ projects identified in Figure 13 (Page 95) of the Consolidation Paper and listed in paragraph 11 of this Cabinet report subject to the availability of funding, statutory consents and Welsh Government consent (excluding the school);

4.             To seek Cabinet approval to use the existing and potential IQ capital receipts identified in Figure 13 (Page 95) of the Consolidation Paper and set out in the Resource Implications of this Cabinet Report towards the cost of the proposed IQ Projects (excluding the school);

5.             To seek Cabinet approval for the updated Project Governance Structure for the remainder of the IQ through to project closure for the IQ identified in Figure 12 (Page 93) of the Consolidation Paper and attached as Appendix C of this Cabinet Report;

6.             To seek Cabinet approval to market and dispose of the Building Development Site for an appropriate use identified indicatively edged green in Figure 6a and attached as Appendix E of this Cabinet Report and appoint property agents.

Recommendations

1.             That Cabinet endorse the progress and achievements of the Innovation Quarter (IQ) to date as outlined in the “Updated Indicative Innovation Quarter Master Plan and Consolidation Paper (February 2013), “the Consolidation Paper”,(Appendix A);

2.             That Cabinet approve the Updated Indicative IQ Master Plan attached as Appendix B of this Cabinet Report as the flexible framework for completing the full redevelopment and thereby achieve project closure of the IQ, subject to Welsh Government consent;

3.             That Cabinet approve the implementation of the IQ projects identified in Figure 13 (Page 95) of the Consolidation Paper and listed in paragraph 11 of this Cabinet report subject to the availability of funding, statutory consents and Welsh Government consent (excluding the school);

4.             That Cabinet authorise using the existing and potential sources of IQ capital receipts identified in the Resource Implications of this Cabinet Report towards the cost of the proposed IQ Projects identified in paragraph 11 of this Cabinet Report (excluding the school);

5.             That Cabinet approve the updated Project Governance Structure identified in Appendix C of this Cabinet Report for the remainder of the IQ through to project closure for the IQ;

6.             That Cabinet approves the marketing and disposal of the Building Development Site (subject to Welsh Government consent) identified indicatively edged green in Figure 6a and attached as Appendix E of this Cabinet Report;

7.             That Cabinet approves the appointment of property agents to assist with the marketing and disposal of the Building Development Site;

8.             That Cabinet approves the Head of Legal Services/Operational Manager to prepare, complete and execute the appropriate legal documentation required to dispose of the Building Development Site.

Reasons for the Recommendations

1.             To ensure Cabinet endorse the progress and achievements of the IQ outlined in the “Updated Indicative Innovation Quarter Master Plan and Consolidation Paper (February 2013);

2.             To secure the approval of Cabinet for the Updated Indicative IQ Master Plan attached as Appendix B through to project completion of the IQ, subject to Welsh Government consent;

3.             To secure the approval of Cabinet for the IQ projects identified in paragraph 11, subject to funding and statutory consents (excluding the school);

4.             To secure the approval of Cabinet to use the existing and sources of IQ capital receipts identified in the Resource Implications of this Cabinet Report towards the cost of the IQ projects identified in paragraph 11 (excluding the school);

5.             To secure the approval of Cabinet for the updated Project Governance structure in Appendix C of this Cabinet report;

6.             To secure the approval of Cabinet to market and dispose of the Building Development Site (subject to Welsh Government consent) identified as Appendix E of this Cabinet Report;

7.             To secure the approval of Cabinet to appoint property agents to assist with the marketing and disposal of the Building Development Site;

8.             To secure the approval of the Head of Legal Services/Operational Manager to prepare, complete and execute the appropriate legal documentation required to dispose of the Building Development Site.

Background

7.             The Innovation Quarter (IQ) is a 19-acre mixed use development area located within the heart of Barry Waterfront.  The Council purchased the freehold of the land with 100% WDA grant aid and is in a Joint Venture with the Welsh Government aimed at regenerating the area as an urban quarter comprising a mix of learning, employment, tourism, leisure and other appropriate uses that complement and enhance the wider Waterfront.

8.             In 2004 Cabinet approved an indicative and flexible master plan to guide the delivery of the IQ.  In pursuit of the original master plan much has been achieved and the attached paper titled “Updated Indicative Innovation Quarter Master Plan and Consolidation Paper” (February 2013) (“the Consolidation Paper”) attached as Appendix A sets out the achievements and progress to date.  The Consolidation Paper also proposes the way forward for achieving project closure for the IQ by providing and Updated Indicative IQ Master Plan. 

9.             This Consolidation Paper has been prepared now because of the need to update the IQ master plan, in order to take on board the development and infrastructure projects completed over the past eight years within the IQ and the proposed new Quays development, which is recently underway on land adjoining the IQ

Relevant Issues and Options

10.        The “Purpose” (Section 1) of the Consolidation Paper (Appendix A) is to consolidate in one report the progress and status of the Innovation Quarter (IQ) and to update its indicative master plan.  After outlining the regeneration and planning context in the “Introduction” (Section 2) the Consolidation Paper proceeds to set out the “Progress and Achievements” (Section 3) namely the delivery since 2004 (the year Cabinet approved the original master plan) of the following development projects:

 

·               The BSC (with its offices and workshops);

 

·               The West Quay Medical Centre;

 

·               The Skills Training Centre (with its IT Training Centre and adjoining railway workshop);

 

·               The Premier Inn and Brewers Fayre Restraurant;

 

·               The restored and occupied Hood Road Goods Shed;

 

·               The restored grade II Listed Hydraulic Pumphouse (currently on the market); and

 

·               The recently adopted Hood Road highway (linking the IQ to Broad Street/High street shopping centre to the north, and to the south the Waterfront via Fford Y Mileniwm).

 

11.        Section 3 of the Consolidation Paper also identifies the economic, environmental and social/community regeneration benefits generated by the above completed projects.  It identifies the IQ has attracted £25.7 million of public and private investment leading to c14 acres of the 19 acre site being regenerated, creating and safeguarding 184 operational jobs (full time and part time), creating an estimated 600 construction jobs, constructing 8,900 sq m of new floorspace, 1,800 sq m of historic buildings externally restored, and the delivery of 22,673 sq m of adopted highway.

 

12.        The Consolidation Paper proceeds to identify for the IQ its “Remaining Development Opportunities” (Section 4), firstly the ongoing challenge of securing an end use for the grade 11 Listed Hydraulic Pumphouse and secondly the requirement to redevelop the 4 acres of undeveloped land in front of the Hood Road Goods Shed referred to as the Southern Development Site. 

 

13.        Section 4 of the Consolidation Paper refers to the status of the ongoing marketing of the Hydraulic Pumphouse (due for completion April 2013) and provides an options appraisal for the future of the undeveloped 4 acres in front of the Hood Road Goods Shed, i.e. the Southern Development Site.  The options appraisal compares and evaluates (in Figures 8a and 8b on Pages 69 and 70) two alternative options for the Southern Development Site:

 

·               Option 1 – Building Development Site, Public Car Park and Primary School; and

 

·               Option 2 – Events Area, Public Car Park and Primary School.

 

14.        The conclusion of the options appraisal and Section 4 is the temporary events area should be redeveloped as a Building Development Site (as per the original 2004 master plan), alongside the proposed school and a 56 space public car park (required to serve the IQ), i.e. it concludes the preferred option is Option 1.

 

15.        The Consolidation Paper proceeds to set out the “Updated Indicative IQ Master Plan” (Section 5) incorporating a Hydraulic Pumphouse brought back into beneficial use and Option 1 for the Southern Development Site.  It illustrates this in an “Updated Indicative IQ Master Plan” drawing (Figure 9a, Page 83 of the Consolidation Paper) and included as Appendix B of this Briefing Note.

 

The IQ Projects to achieve Project Closure

 

16.        The Consolidation Paper emphasises that the updated master plan is indicative and provides a flexible framework for guiding the coordinated completion of the 19-acre IQ development area.  It identifies six proposed development and infrastructure projects, which when completed will result in the IQ being fully developed i.e. project closure, namely:

 

·               Proposed construction of a Primary School (partly on IQ land within the Southern Development Site and partly on adjoining Barry Waterfront Consortium land);

 

·               Marketing and Disposal of the Hydraulic Pumphouse (ongoing);

 

·               Proposed marketing and disposal of a Building Development Site (on approx. 1.6 acres of undeveloped land within the Southern Development Site);

 

·               Proposed surfacing, drainage and landscaping of the existing Public Car Park (approx. 56 spaces within the Southern Development Site);

 

·               Proposed enhancement and realignment of the internal road to adoptable standards (within the Southern Development Site); and

 

·               Proposed new T-Junction and highway access to adoptable standards (from the Link Road into the Southern Development Site).

 

17.        Delivering the Updated Indicative IQ Master Plan” (Section 6) of the Consolidation Paper focuses on the project governance and management of the IQ project through to project closure, identifies the overall costs and funding, the revenue implications (namely of the proposed public car park), sets out the headline risks to project delivery, and provides an indicative programme for the completion of the above six proposed IQ projects. 

18.        The Consolidation Paper proposed for the Project Board established to oversee the marketing and disposal of the Hydraulic Pumphouse, to widen its remit to act as the Project Board for the full completion of the Innovation Quarter.  The Project Board membership for the IQ project therefore is proposed to comprise:

 

·               Cabinet Member For Regeneration, Innovation, Planning And Transportation;

·               Managing Director;

·               Director Of Development Services; And

·               Head of Regeneration Policy (Welsh Government).

 

19.        The updated project governance structure proposed is illustrated in Section 6 (Figure 12, Page 93) of the Appendix A and for ease is also in Appendix C of this Cabinet Report.

Resource Implications (Financial and Employment)

20.        The estimated capital cost and the potential capital funding sources for the six IQ projects set out in paragraph 11 are summarised in a table in Appendix D of this Cabinet report.

21.        Recognizing the present lack of public monies the Consolidation Paper puts forward a funding strategy that would use existing and potential capital receipts from disposals within the IQ towards the cost of the IQ projects listed in paragraph 11.  The existing and potential IQ capital receipts include the recent Whitbread land disposal (i.e. the land upon which the Premier Inn and Brewers Fayre is located), the Hydraulic Pumphouse and the Building Development Site proposed to the south of the Hood Road Goods Shed building.

22.        The Consolidation Paper emphasizes that the implementation of any of the above IQ Projects is subject to the availability of funding.   The IQ Project Manager will ensure that no expenditure is incurred without the prior written approval of the Board (excluding the school, which is a financial matter for the Directorate of Learning and Skills).  In the event the capital receipts generated from the IQ land are insufficient to fund the IQ projects (excluding the separately funded school), then the intention would be at the time to review the IQ master plan and projects and in liaison with the IQ Project Board agree an affordable way forward including if required amending the IQ master plan accordingly.

23.        The proposed primary school will be funded solely from the Section 106 Agreement for the Quays development for the first form with funding for the second form to be determined.  For this reason the cost of the school is not identified as an IQ project cost and therefore is not identified as requiring capital receipts from the IQ land disposals.

24.        In terms of revenue implications that result from the proposed Updated Indicative IQ Master Plan these relate to the proposed 56 space public car park.  As stated in Section 6 of the Consolidation Paper the potential sources of revenue for the car park are:

·               charging  for daily parking if viable;

·               negotiating with potential third party beneficiaries of the public car park to be responsible for the revenue cost; and

·               making it a condition of the disposal of the Building Development Site for a Commuted Sum to be paid towards the cost of maintaining the car park.    

 

25.        It is assumed the Directorate of Learning and Skills will separately deal with the revenue implications of the proposed school.

Sustainability and Climate Change Implications

26.        The Welsh Government will require any new building development on the undeveloped areas of the IQ to achieve a BREEAM Excellent rating (Building Research  Establishment Assessment Method).

Legal Implications (to Include Human Rights Implications)

27.        The land at the IQ was purchased by the Council with 100% WDA grant aid and therefore is in a legal joint venture with the Welsh Government for the regeneration of the IQ

28.        The proposed marketing and disposal of the Building Development Site is subject to consent from the Welsh Government.  Any capital receipt generated from the disposal of the site as with other land within the IQ will be shared between the Council and Welsh Government

Crime and Disorder Implications

29.        The detailed design of the remaining physical development and infrastructure projects identified in the Consolidation Paper will aim to minimise crime and achieve a secure urban quarter.

Equal Opportunities Implications (to include Welsh Language issues)

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

Corporate/Service Objectives

31.        The delivery of the IQ will assist the Council towards achieving its Regeneration Priority in the Corporate Plan (2010-2014 Revised), which aims to “To work with partners to develop a sustainable community which maximises opportunities for economic growth, social improvement and environmental regeneration and protection”

Policy Framework and Budget

32.        The report is a matter for an Executive decision by Cabinet

Consultation (including Ward Member Consultation)

33.        The IQ is located in both the Buttrills and Baruc wards and the ward members have been notified about the report. 

Relevant Scrutiny Committee

34.        Economy and Environment

Background Papers

None

Contact Officer

Mark White

 

Officers Consulted

Head of Strategic Planning and Performance (Learning and Skills)

Operational Manager, Property Division

Schools Organisation and Buildings Manager

Estates Group Manager

Lawyer, Legal Services

Senior Accountant, Resource Management

 

Responsible Officer:

Rob Thomas – Director of Development Services

 

 

 

 

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