Purpose

Delegate authority to the Corporate Director
for City Development to enter into pre-construction stage grant
funding agreements with Kier Property Developments Ltd

Decision

For the reasons set out in this report, the
Corporate Director has decided to:
1)   
Enter into a pre-construction stage grant funding agreement with
Kier Property Developments Ltd up to £1.0m.

Alternative options considered

1.1         
Do Nothing – Choosing to take no action would result
in the project stalling at the pre-construction stage. Without
early-stage funding, Kier would be unable to progress essential
design, technical, and procurement work. This would significantly
delay or potentially jeopardise the delivery of Pall Mall Phase 1,
a strategically important regeneration scheme. The opportunity to
secure Liverpool’s first net-zero Grade A office building and
associated public benefits, including new green space and local
economic uplift, would be at risk.
1.2         
Do More – Providing a higher level of funding at this
stage was considered but discounted. While additional funding could
accelerate certain elements of the project, it would increase the
Council’s financial exposure without a corresponding increase
in certainty or control. The current £1.0m grant is
considered proportionate to the scope of pre-construction
activities and strikes an appropriate balance between enabling
progress and managing risk.
1.3         
Do Something Different – Alternative funding
mechanisms, such as direct delivery and/or loans and further equity
investment were considered but deemed unsuitable at this stage.
These approaches would introduce complexity, require longer lead-in
times, and potentially expose the Council to significant financial,
legal and delivery risk. Furthermore, no other public sector
funding sources are currently available to support this phase of
the project. A grant is the most efficient and targeted tool for
supporting early-stage work, particularly where outputs are clearly
defined and time-sensitive.
1.4         
Preferred Option – The recommended option is to
proceed with a time-limited, conditional grant of up to £1.0m
to Kier. This approach enables the completion of critical
pre-construction activities by 2026, de-risks the development, and
supports the retention of a key regeneration project within the
city’s pipeline. The grant structure ensures accountability
and value for money, while aligning with the Council’s
strategic objectives around economic growth, sustainability, and
inclusive development.