Decision

Salford City Council - Record of Decision

I, Councillor Jack Youd, Deputy City Mayor and Lead Member for Finance, Support Services and Regeneration, in exercise of the powers contained within the City Council Constitution do hereby:

1. Note the current financial and programme position associated with Salford Rise, following the re-tendering of the project;
2. Note the proposed financial contribution to the project from the 2025/26 Place Capital Programme;
3. Note that DHLUC (now known as the Ministry of Housing, Communities and Local Government) are fully aware of the current financial and programme challenges associated with the project;
4. Note the alternative options explored historically to address connectivity issues across the Innovation Zone and the wide-ranging benefits of Salford Rise in not only enhancing connectivity, but  as a catalyst project to unlock significant wider benefits for Crescent Innovation, enabling the area to realise its full potential as part of the Innovation Greater Manchester ecosystem;
5. Note the previous delegated approvals secured at Property and Regeneration Briefing on 23rd January 2023, where the Site Business Plan for Salford Rise was approved; and
6. Re-confirm Salford City Council’s support for delivery of this important project, endorses the appointment of the main contactor by the English Cities Fund and the commencement of the main works to deliver the project. 

The Reasons are:

In January 2023 the Council approved the English Cities Fund’s (ECF) Site Business Plan for the Salford Rise project alongside approval for the Council to enter into a Development Agreement with ECF, setting out the terms of ECF’s role as Development Manager for the project.

Eric Wright Civil Engineering (EWCE) have been identified as the main contractor. An anticipated cost-overrun has been identified which is in large part driven by continued national inflationary pressures in the construction and logistics market. Contractual mechanisms exist to cover cost overruns associated with projects brought forward within the Crescent area. Given the importance of the project to the Innovation Zone in terms of improving connectivity between the area and surrounding deprived communities and improving perception of place through significant public realm enhancements, it is proposed that the Council also make a financial contribution (of up to £2m) to the project from the 2025/26 Place capital programme.

Once the final price is fixed,  to maintain programme progress, ECF wish to formally enter into contract with EWCE as quickly as possible, so that the main works can commence on-site.

The Council has secured £13.17m of Levelling Up Funding (LUF) to deliver Salford Rise, and this funding must be fully drawn down by 31st March 2025. The indicative programme from EWCE shows a completion date which is beyond the longstop date for funding expenditure. DHLUC area aware of the current position with the project and confirmed that while the funding must be drawn down by the long-stop date, they will take a pragmatic view on practical completion being achieved after March 2025, on the basis that contracts are in place and the main elements of the project will have been completed by then

The above approvals allow for ECF to formally appoint EWCE and commence the main works to deliver the project as soon as possible, to avoid any further programme slippage.

Options considered and rejected were: not to proceed with the project

Assessment of Risk: Medium

The source of funding is:

• £2m of funding from the Councils 2025/26 Place Capital Programme is invested as a contribution to the project
• £13.17m of Levelling Up Funding (LUF)

Legal Advice obtained: Lauren Armstrong, Shared Legal Service

Financial Advice obtained: Daniel Hillman, Senior Accountant, Property and Regeneration Capital Programme

Procurement Advice obtained: Deborah Derbyshire - Procurement Category Management Level 2

HR Advice obtained: n/a

Climate Change Advice obtained: Dan Welsh

A site-specific Sustainability Strategy has been prepared for the overall Crescent area and this has informed the sustainability measures that will form part of the project.

The following documents have been used to assist the decision process:

Public briefing report submitted to Property/Regeneration  Briefing on 22nd July 2024

Contact Officer:                               

Kurt Partington - Head of Development  

Kurt.Partington@salford.gov.uk

Dan Welsh - Principal Programme Manager     

Daniel.welsh@salford.gov.uk

-       This decision is not subject to consideration by another Lead Member.

-       The appropriate scrutiny to call-in the decision is the Growth and |Prosperity Scrutiny Panel                       

Signed: Councillor Jack Youd

Deputy City Mayor and Lead Member for Finance, Support services and Regeneration

Dated: 22nd July 2024

This decision was published on Monday 22nd July 2024                                            

This decision will come in force at 4.00 p.m. on Monday 29th July 202 unless it is called-in in accordance with the Decision Making Process Rules.