Decision Maker: Transport, Regeneration and Climate Policy Committee

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: April 30, 2025

Purpose:

Content: 12.1 The report provides a progress update and current funding position for the Castle Project, the centrepiece and biggest grant share of the Gateway to Sheffield’s Levelling Up Fund bid. In addition, an update of the other two projects included in the Gateway to Sheffield (S1 Art Space and Harmony Works) is also included in Appendices 1 and 2.     12.2 RESOLVED UNANIMOUSLY: That the Transport, Regeneration and Climate Policy Committee:-   (a)  notes the extensive and exciting progress on the Castle Project, with much greater archaeology finds than originally expected;   (b)  notes the strategic importance of a new park in the centre of Castlegate from an economic and regeneration perspective as well as community, health/wellbeing and environmental perspectives;   (c)  notes the extension of the work programme and budget update for the Castle project;   (d)  notes initial proposals for maintaining the new park;   (e)  notes that members of Transport, Regeneration and Climate Policy Committee and Economic, Development  Skills Policy Committee will be consulted on any additional funding proposals following officer discussion at City Futures Programme Board; and   (f)    notes progress on the S1 Artspace and Harmony Works projects.     12.3 Reasons for Decision     12.3.1 This report provides a progress update on the Castle Project (part of the ‘Gateway to Sheffield’ Levelling Up Fund approved funding. It brings to the Transport, Regeneration and Climate Committee some important progress milestones as well as the current timescales and funding position and proposals to mitigate it.     12.4 Alternatives Considered and Rejected     12.4.1 These options relate to the funding shortfall identified in section 2.4     12.4.2 Not increase the budget from the currently approved This would mean that the project could not be delivered. This is linked to the nature of the cost increases as well as the significant amount of incurred costs in preparation for the full works for this complex project.     12.4.3 Seek to secure additional funding to increase the budget to meet the identified shortfall Given the size of the shortfall and the nature of the additional costs, further value engineering is no longer an option. The scope cannot be reduced. Page 358 11 The preferred option is to identify internal SCC funding resources (including additional Gainshare). Given how far the project has progressed and the financial commitment already made to the contractors, it is not possible to seek external funding at this stage.     12.4.4 Preferred Option: The preferred option which represents the best way of delivering the contracted LUF, SYMCA and Environment Agency outputs as well as future proof the park for future generations is b) above.