A presentation will be given covering the following:
· Princes Parade planning application (Y17/1042/SH) update
· Leisure Centre Business Case – presentation by the Sports Consultancy
· Programme and procurement advice – presentation by Hadron Consulting
· Princes Parade Viability Report overview
· Residential soft market testing update
· Contractor soft market testing
· Next steps and forward programme.
Members received a presentation as follows:
Princes Parade planning application (Y17/1042/SH) update
Further information has been submitted to the LPA on a number of matters relating to Cost and Viability; Heritage; Ecology; Lighting impact and Transport.
The LPA may wish to consult further once all responses from HE and KCC have been received.
Leisure Centre Business Case
Simon Molden, Sports Consultancy presented members with an overview of the long term financial business case, providing analysis of the revenue performance the leisure centre could provide, paying particular attention to the following:
· the current financial position of the existing leisure site alongside what the new leisure centre could provide in terms of a management fee payable the council.
· demand informed by current local provision and the local demographic profile
· business plan, including income that can be generated through other means such as an onsite café;
· management options and operator procurement.
Programme and procurement advice
Stephen Jepson, Hadron Consulting presented members with an overview of council priorities, contractor procurement and framework and consultant appointment.
Discussions around council priorities took place paying particular attention to the need to achieve high quality development, compliance, agreement of the construction programme, risk transfer to the contractor where appropriate and cost certainty for the construction works. It was noted that the project would benefit from the early involvement of the contractor during the detailed design stage and that the project would benefit from a contractor and core consultant team with experience of delivering leisure centres that including swimming pools.
Soft market testing has taken with a number of potential contractors who expressed interest in project and were generally comfortable with the suggested budget and timescale.
In respect of consultant appointments there are 3 options that can be taken; traditional OJEU procurement, multi-source framework and single source framework. The benefits of the multi-source framework were explained that includes allowing for the relatively quick appointment of a contractor whilst still providing an element of choice.
Members were informed that Dover District Council had used the the multi-source route, for their new development, and that the programme was being delivered in accordance with the programme.. It was agreed that a site visit to the Whitfield development would be beneficial to members.
A proposed timetable of how the development would proceed was provided subject to the approval of the planning application and agreement of the business case.
Princes Parade Viability Report overview
Based on a cost plan provided by Betteridge and Milsom members were provided with an overview of the cost to the Council of delivering the Princes Parade scheme and an alternative at the Nickolls Quarry site.
Residential/Commercial soft market testing update
Members noted that a number of discussions have taken place with developers who may have an interest in delivering the residential element of the scheme. Officers confirmed that key outcomes from these discussions were very positive with a high level of interest from both local and national housebuilders.
Next steps and forward programme
The estimated high level programme, as set out below, was presented to the group.
Planning and Licencing Committee estimate - April 2018
Business Plan to Cabinet May 2018
Progress procurement of core team, leisure operator and phase 1 contractor following PLC and Cabinet decisions.
Commence disposal process for residential/commercial land – Summer, 2018
Ongoing programme of ecological survey work and mitigation.
Construction to commence – 1st Quarter 2019