The Officer Key Decision meeting scheduled for Friday 16 February 2024 was set to discuss the award of a grant for the Tate Institute. This decision has been delegated to a relevant officer, and details are available in the attached documents.

Award of Grant for Tate Institute

The primary item scheduled for discussion was the proposed award of a grant agreement for the Tate Institute, located at 1 Wythes Road, London E16 2DN. The report indicated that this was an officer key decision, delegated by the Cabinet to the Corporate Director of Inclusive Economy and Housing, in consultation with the Lead Member for Inclusive Economy, Housing Delivery and Climate Emergency, Performance and Transformation.

The report recommended approving the award of a grant agreement for £1,381,500 to Respace Projects. This grant would enable Respace Projects to partner with Newham Council in managing the design, refurbishment, and subsequent operation of the Tate Institute for a 25-year lease period.

The Tate Institute is a vacant, locally listed building owned by the Council. The project is part of the Council's Connections to Opportunities Levelling Up Fund bid, which received an allocation of £1,177,000 for its refurbishment and activation. The proposed approach involves a partner coordinating both the refurbishment and operation of the building, taking a long lease from the Council. This strategy aims to leverage additional capital from external funding sources.

Following an initial procurement process that received no responses, the tender was revised in October 2023. The revised tender removed the requirement for bidders to provide a cash injection and reduced the scope of works to achieve the Levelling Up Fund requirements. The Council also reduced the commercial rental ask from £110 per square metre per annum to £55 per square metre per annum, reflecting current market conditions.

Respace Projects emerged as the highest-scoring bidder in the revised procurement process. Their proposal includes delivering a vibrant and multi-faceted 'village centre' with an enterprise hub, production and event space, creative studios, and a communal garden. The grant agreement is tied to project milestones, and upon completion of works to the Council's satisfaction, Respace Projects would enter a 25-year lease, paying annual rental payments of £55 per square metre for commercial space. A discount of up to 80% on the commercial rent is available, contingent on the achievement of Social Value targets.

The project is expected to contribute to the Council's Building a Fairer Newham Corporate Plan priorities, specifically enhancing satisfaction with the local area and reducing the building's CO2 footprint through improved thermal efficiency. It will also support the Council's Community Wealth Building Programme.

The report also detailed financial implications, noting that the project is fully funded by the Levelling Up Fund, with no direct cost to the London Borough of Newham beyond staff and miscellaneous costs. Legal implications were also outlined, including the Council's general power of competence and the requirement for the grant agreement to mirror obligations imposed by the Department for Levelling Up, Housing and Communities (DLUHC). Equalities and climate emergency implications were also considered, with the refurbishment expected to significantly reduce the building's operational carbon emissions.

The report referenced a previous Cabinet decision on 6 July 2023, which approved the procurement exercise and delegated authority to the Corporate Director of Inclusive Economy and Housing to approve the contract award. Further consultation with the Mayor, Rokhsana Fiaz OBE, had also taken place.

The meeting documents also included a Change Request Form from April 2023, which reallocated £435,134 of Levelling Up Fund funding and partial outputs from the Over the Tracks project to the Tate Institute project. This reallocation was deemed necessary due to revised project scopes and funding requirements.