Agenda item

Report from the Executive Director of Regeneration and Environment.

Recommendations

That Cabinet:

1. Notes the completion of Stage 1 of the Council’s phased approach to the redevelopment of the 5 Strategic Sites.

2. Approves the allocation of £2.42m from the Council’s unallocated Local Regeneration Fund to facilitate the completion of Stage 2 of the redevelopment of the sites, the detail of which is described in section 2.1.

3. Delegates authority to the Executive Director of Regeneration & Environment, in consultation with Cabinet Member for Transport, Jobs & Local Economy and S151 Officer to negotiate contract terms with Capital and Centric and enter into contract to complete all elements of Stage 2 development work for the 5 strategic sites.

4. Notes the presentation of a further report to Cabinet in Summer 2027 summarising the outcome of the stage 2 work and setting out final recommendations for a detailed delivery strategy that will form stage 3.

5. Approve necessary consultation and engagement activity with all stakeholders to inform and support the progression to the next stages of development.

Consideration was given to the report which presented the regeneration proposals for five Strategic Sites in Rotherham town centre. The five sites were:

·       Westgate Car Park 

·       Sites on Sheffield Road (SIG and Bedell land)

·       The Statutes Car Park

·       Snail Yard, High Street

·       3-7 Corporation Street

The report outlined the Council’s ambitions for the sites, the phased approach to redevelopment, and the outcomes of the work to date, including feasibility work to produce initial outline concepts and Strategic Regeneration Plans (SRPs) which were contained within exempt Appendix 1. Exempt Appendix 2 contained the financial breakdown associated with the proposals.

The report also set out the next steps required to progress through Stage 2 of the process to produce detailed, deliverable, costed development plans, with financial models, over the next year that would clearly illustrate how the sites could be delivered in the final stage and recommended an allocation of £2.42m from the Council’s Local Regeneration Fund to facilitate this.  No decision was required at this stage on the ultimate development plans for the sites, their funding, financial models or land ownership arrangements, however emerging thinking was referenced. A Cabinet report would be presented in Summer 2027 which detailed the final proposals.

Paragraph 1.9 of the report detailed the aims of the town centre regeneration proposals. Paragraph 2.1 of the report set out Stage 1 of the process which included a summary of the outcomes of the Strategic Regeneration Plans for the five sites. This included design concepts, programme details and the funding strategy, viability & development options & structure.

Paragraph 2.2 of the report outlined Stage 2 of the process. Stage 2 culminated in the production of Full Business Cases (FBC) for each of the Strategic Sites. Specifically, this must include as a minimum:

-       Intrusive site investigations in preparation for remediation of vacant sites

-       Detailed viability appraisals and funding strategies

-       RIBA Stage 3 design concepts

-       Securing Planning Permissions

-       Raising of the required development finances

-       Detailed cost plans

-       Presented as a HM Treasury Compliant 5 Case Full Business Case

Progression to Stage 2 would require the Council to meet the pre-development costs of £2.42m. It was proposed that this was funded through unallocated Local Regeneration Grant. The Local Regeneration Grant was the name applied to the Central Government funding previously known as Pathfinder, the name for the collated pots of Town Deal, Future High Streets and Levelling Up funds. Use of this underspend to progress these schemes accorded with the longstanding strategic intent to diversify the town centre through the development of these sites. It was also consistent with the Government’s intention to enable local authorities to have flexibility over the use of these funds.

Up to the conclusion of Stage 2, the financial risk to the Council was £3.02m, of grant funding and would represent the full costs incurred to achieve detailed development plans and planning approval for the five strategic sites. There remained a risk that ultimately the Council may decide not to proceed past Stage 2 and into delivery. This was considered a necessary risk in order to unlock these strategically important sites to achieve transformational change in the town centre and for the Council to retain control of the development activity and regeneration message. It was acknowledged that this stage only represented the comprehensive feasibility work and therefore there was a risk that the outcome would be that the sites were not feasible to be developed in this way, due to the funding gap identified as part of the scope of works.

Resolved:

That Cabinet:

1.    Notes the completion of Stage 1 of the Council’s phased approach to the redevelopment of the 5 Strategic Sites.

2.    Approves the allocation of £2.42m from the Council’s unallocated Local Regeneration Fund to facilitate the completion of Stage 2 of the redevelopment of the sites, the detail of which is described in section 2.1.

3.    Delegates authority to the Executive Director of Regeneration & Environment, in consultation with Cabinet Member for Transport, Jobs & Local Economy and S151 Officer to negotiate contract terms with Capital and Centric and enter into contract to complete all elements of Stage 2 development work for the 5 strategic sites.

4.    Notes the presentation of a further report to Cabinet in Summer 2027 summarising the outcome of the stage 2 work and setting out final recommendations for a detailed delivery strategy that will form stage 3.

5.    Approve necessary consultation and engagement activity with all stakeholders to inform and support the progression to the next stages of development.