Agenda item - TOWN DEAL BUSINESS CASES - TRANCHE 2

Agenda item

TOWN DEAL BUSINESS CASES - TRANCHE 2

Minutes:

By way of introduction, Chris Barnes (SBC Assistant Director: Regeneration) advised that the Tranche 1 Town Deal Business Cases for the Gunnels Wood Road Infrastructure project and Marshgate Biotech Centre project had been approved by the Accountable Body (Stevenage Borough Council’s Executive) on 17 November 2021.  These Business Cases would be submitted to Department for Levelling Up, Communities and Housing’s Towns Fund Team in the near future.

 

Chris then presented the Tranche 2 Town Deal summary Business Cases for the Enterprise Centre and Station Gateway projects, both of which had been subject to an Officer sift and consideration by an Assurance Panel.

 

(1)       Enterprise Centre Project

 

Chris advised that this project aimed to generate employment space of circa 57,000 square feet in the Town Centre, adjacent to the Queensway North development.  The scheme would be part funded by £4M from the Towns Fund, and required a further £8M of uncommitted match funding, including from the private sector.  The lead organisations would be Reef, supported by SBC and Hertfordshire Local Enterprise Partnership.  The site was currently in private ownership, but Reef/UBS had an option agreement.

 

Chris commented that the proposed scheme was fully consistent with the aims and objectives of the Stevenage Town Investment Plan (TIP), as the current concept was life science sector focussed, and enabled greater interface between Stevenage’s technology business cluster and the town centre, making it more visible and creating activity in the town.

 

Chris explained that the project was at an earlier stage than many of the other TIP schemes and, due to the funding gap, approval would be conditional (ie. no funding drawdown would take place until the business case was updated over the months ahead).  A workshop would be required with specialist legal advice on a Special Purpose Vehicle (SPV) entity, Accountable Body Agreement and subsidy.  A virtual road map would be prepared up to project delivery.  An emphasis would be placed on the market opportunity for this scheme, as viability tests had shown residential use or mixed commercial use to be less viable.

 

Chris recommended that the Business Case be endorsed in principle, with conditions, and the understanding that the Board would be updated when the conditions had been met.

 

The Board debated the Business Case, and the following points were made:

 

·        the project was seen as a positive contribution to the growing Stevenage life sciences cluster, which was the third largest cell and gene therapy cluster in the world and largest in Europe.  All other cities in the Top 12 were in the USA.  Companies now looking to set up life sciences in the UK were asking for Oxford, Cambridge or Stevenage;

·        the town centre location complemented the existing out of town life sciences facilities;

·        the scheme was complex due to the level of investment required, but was an opportunity to raise aspirations in the town.  If delivered well, with good social space, the scheme could provide a positive cultural and social impact;

·        the Business Case should make reference to the Skills Bill currently going through Parliament, which it was hoped would strengthen links between educational skills agendas and business/industry;

·        the location of the Enterprise Centre would assist in breaking down the physical divide between the Gunnels Wood industrial area to the west of the railway line and the largely residential nature of Stevenage to the east of the railway line; and

·        it was hoped that the Centre’s location would provide a positive impact on the night-time economy of the town.

 

In response to a query regarding a mention of housing outputs in the Business Case, Chris advised that he would double check this and amend as appropriate, as there were no direct housing outputs arising from the scheme.

 

It was RESOLVED that the Enterprise Centre Project Business Case be endorsed in principle, with conditions, and recommended to the Accountable Body (Stevenage Borough Council) for approval.

 

(2)       Station Gateway Project

 

Chris advised that this project was for the delivery of a Multi-Storey Car Park (MSCP) as part of a sustainable transport interchange on the Stevenage North railway car park.  The project was being led by SBC and was funded through £6.5M from the Towns Fund and £3.5M direct match funding from SBC and Hertfordshire Local Enterprise Partnership.  The land was owned by SBC and the match funding/investment element would be subject to a separate business plan to be considered by the decision making committees of SBC.  The project was fully consistent with the Stevenage Town Investment Plan and was a key first phase to progress the wider Stevenage Gateway scheme without prejudicing the Area Action Plan process.

 

Chris recommended that the Business Case be endorsed, in the knowledge that funding would be made available when all match funding approvals were in place.

 

Discussion arose as to improving the physical connection between Gunnels Wood Road and the Town Centre via the Station Gateway.  Chris explained that this would not be achieved through this project, but that it was hoped that improvements could be made in the future, in conjunction with Legal & General (the owners of the Leisure Park).  Greg Westover (Legal & General) provided an update, and that there would need to be consideration as to how this would integrate with the wider Station Gateway project, including potential improvements to the public realm links between the town centre and Gunnels Wood Road area.

 

Other points made by the Board included:

 

·        in terms of wider outcomes, it was hoped that community use and tree planting could provide economic and environmental benefits to the area;

·        the quality of design of the MSCP was very important, as it needed to look attractive as well as being functional;

·        it was pleasing that the design would incorporate future increased capacity for electric vehicle charging and cycle parking, although it was recognised that the majority initial use would be for the parking of fossil fuel powered vehicles; and

·        it was acknowledged that complementary improvements to Stevenage Railway Station would be required at some point in the future to provide a welcoming aspect for visitors to the town through the Gateway area.

 

It was RESOLVED that the Station Gateway Project Business Case be endorsed, and recommended to the Accountable Body (Stevenage Borough Council) for approval.