Purpose

To allow the delivery of Civic Centre Redevelopment

1. Reprofiling of existing approved funds

2. Award of Phase 1 works contract within existing financial threshold

3. Agreement for Lease for City College Plymouth

Decision

Purpose of report

The purpose of the report is to award the phase 1 contract for the Civic Centre works and to reprofile the £7.2m of approved corporate borrowing to allow construction works to progress immediately given the requirements of the Building Safety Act (BSA). This will also include the Civic Square pond being moved into the project. To also approve the terms for an agreement to lease of parts of the basement, ground floor and first floor spaces to City College Plymouth (CCP) for a blue green skills hub.

Decision

Cabinet agreed:

1. To proceed with the phase 1 works to the Civic Centre on the basis of the cost profile set out in this report;

1. To approve the reprofiling of Plymouth City Council (PCC) capital funding of £7.2m to enable the appointment of the Phase 1 contractor whilst remaining within the approved cost envelope;

1. To award a contract to Morgan Sindall to deliver the phase 1 works in the sum of £6,488,753.43;

1. To accept the risks highlighted in this report particularly the Homes England Gateway Review in relation to proceeding to the phase 2 works;

1. To enter a long lease with City College Plymouth (CCP) on the terms set out in this report;

1. To add £600,000 to the capital programme in order to undertake works to the Civic Square Pond as part of the Civic Centre Project. Funded utilising corporate borrowing budgeted within the capital pipeline.

Reasons for decision

1. To enable the timely commencement of the approved Civic Centre redevelopment programme and secure delivery of Phase 1 works within the established financial framework, ensuring the building is brought forward for occupation and future phases of the project;

1. To align the timing of capital expenditure with project delivery requirements, allowing the contractor to be appointed and works to commence whilst remaining within the approved cost envelope.;

1. To appoint a suitably qualified and procured contractor capable of delivering the Phase 1 works, providing certainty on programme, cost and delivery arrangements and enabling project mobilisation;

1. To acknowledge and formally accept the identified project risks in order to allow the project to progress, recognising that mitigation measures are in place and that delaying decisions could adversely impact programme delivery, funding and strategic objectives;

1. To establish the legal and operational framework required for City College Plymouth's occupation of the Civic Centre, supporting the viability of the redevelopment project and contributing to the building's long-term use and sustainability;

1. To ensure the Civic Square Pond is refurbished and integrated into the wider Civic Centre regeneration scheme, improving the public realm, addressing asset condition requirements and delivering a cohesive and high-quality environment as part of the overall project.

Alternative options considered and rejected

Option 1 - Do not proceed and stop all works to the Civic Centre. The Civic Centre would remain undeveloped and would further deteriorate, blighting the surrounding area and detracting from the image of the city. An application could be made to the Secretary of State to delist the building and if successful demolition could be an option. The Secretary of State can only consider a building’s architectural and historic interest when considering an application for de-listing. An application for de listing may be made because new evidence is available about the lack of special architectural or historic interest of the building, or a material change of circumstances. It is unlikely that a de-listing application would be successful. This option would result in PCC handing back the grant funding secured from Homes England of circa £18.4m. It would not achieve the growth and market-making ambitions of the project.

Option 2- Do not award the phase 1 contract and await a single price to complete the shell and core works in 12 months' time. The BSA requires detailed designs to RIBA 4 to pass through Gateway 2. If a single stage contract was awarded it would take a further 12 months to reach this stage. This would result in a delay to opening the Civic from 2030 to 2031 and likely additional cost price inflation of circa £2m. There is a risk that our future tenants decide not to proceed with the project and fit out as timetables would slip significantly.

Declarations of interest

None declared in respect of this item.