Decision

1.    
That proposal A (as set out at exempt Appendix 1 to
this report) is approved be appointed as the Council’s
Regeneration Partner, as the preferred way forward for the delivery
of strategically important growth and regeneration projects in
Torbay for a period of at least five years which could be extended,
against performance criteria yet to be established;

 

2.    
That the Director of Pride in Place, in consultation
with the Cabinet Member for Place Development and Economic Growth
and the Director of Finance, be given delegated authority to
establish the Partnership and to include additional projects for
delivery by the Regeneration Partner which will further facilitate
the growth and regeneration of Torbay; and
 

3.    
That the Overview and Scrutiny Board be requested to
include in their work programme six monthly updates (as a minimum
or as projects require) on delivery with the Regeneration Partner
as to progress.

Reasons for the decision

Having reviewed its
approach to delivery of the Town Deal for Torquay and the Future
High Street Fund programme for Paignton, in late 2022 the Council
attended the UK Real Estate Investment and Infrastructure Forum
(UKREiiF) in order to raise the profile
of the opportunities that exist in Torbay.

 
The positive reception
translated into receiving proposals over the summer from two
prospective partners in the delivery of relevant Towns Fund
regeneration projects.  These proposals
have been assessed and Cabinet was asked to agree the appointment
of a preferred Regeneration Partner.

Alternative options considered

The alternative options were:

 
·        
Do nothing:
A do-nothing
option would see the status quo persist with progress potentially
limited. There are procurement compliant routes that would enable
appointment of developers or contractors to deliver the Towns Fund
schemes but the challenges that are being experienced around cost,
viability and funding of the scheme would be considered without the
benefit of market expertise. The likelihood is that this will
prolong the project development stage and delay starts on site.
This would in turn increase the risk that the projects would lose
their grant funding leading to a lack of delivery and the various
negative outcomes of that. This option was therefore not
recommended.

 
·        
Run a more formal competitive procurement
process:
The Council has
the option to conduct a competitive procurement to seek a
development partner to deliver the projects or become the
development partner.

 
A
competitive process would allow the Council more control over the
procurement and the future development and delivery of the projects
when compared to the preferred option in that it has clarity over
the individual delivery routes. It is a safe and recognised route
to delivering complex capital projects and programmes in a
procurement compliant manner reducing the likelihood of any
challenges for non-compliance.
However
Government requires that all Towns Fund grants are spent by March
2026 and in Torbay’s case the agreed position with Government
is currently March 2024 meaning that the urgency is pressing. This
immediacy of the Towns Fund deadlines and the need to accelerate
delivery makes a time-consuming option impractical and this option
would likely result in the loss of the Towns Fund. Therefore, this
option was not recommended.
 
·        
Appoint the preferred delivery partner set out in
Exempt Appendix 1:

Not to follow this option would secure the negative
outcomes referenced above. In accepting this recommendation, the
prospects for successful delivery of the changes desired in the
town centres will be significantly enhanced. The presence of a
credible recognised regeneration partner in Torbay will assist the
Council in negotiations with Government, reassure the community
that the regeneration plans they wish to see delivered are viable
and provide confidence to funders and occupiers.