Agenda item

To consider Report No. RP2106 (copy attached), which sets out the next steps in respect of the Union Yard scheme.

The Cabinet considered Report No. RP2106, which set out the further due diligence and financial modelling in relation to the Union Yard scheme since the report to the Cabinet in April, 2021.

The Report was presented by Cllr M.J. Tennant, Major Projects and Property Portfolio Holder. Members were informed that the Union Yard scheme had taken a number of years and significant work to progress to this stage including complex land assembly issues. He advised that, in line with the decisions taken by Cabinet in April 2021, further due diligence had now been completed and that the purpose of the report now before Cabinet was to enable the construction of the scheme. Section 3 of the Report set out the reasons why it was considered that Hill Partnerships Limited was best placed to deliver this contract. The Report also set out information in relation to construction costs, the future sale or lease arrangements with Rushmoor Homes Limited, the future lease arrangements with registered providers, the options for the management and letting of the student accommodation and the procurement and contract arrangements in respect of the construction and development of the scheme.

The Cabinet then considered the matters in the Exempt Appendices A, B and E of the Report. During this discussion, the public were excluded from the meeting to avoid the disclosure of exempt information within Paragraph 3 of Schedule 12A to the Local Government Act, 1972 (information relating to financial or business affairs). The fixed price construction cost had been received and was reported to the Cabinet. The price was within the budget parameters set out in Exempt Appendix E and the Council would be advised of the required variation to the Capital programme at their meeting on 29th July, 2021.

In discussing the proposals, Members expressed strong support for the suggested approach for the delivery of the regeneration scheme in Aldershot town centre. The Cabinet discussed extensively whether to introduce the further measures to enhance the Council’s performance in relation to energy and sustainability, as set out within Section 4 of the Report, but it was felt that these did not represent good value when measured against the payback period and predicted improvement in environmental performance.

The Cabinet

(i)           RESOLVED

(a)          that the outcomes of the further due diligence, as set out in Report No. RP2106 and in the reports by Grant Thornton UK LLP and Lambert Smith Hampton Investment Management, in respect of development viability and financial modelling, be noted;

(b)          to proceed with the Union Yard scheme, on the basis of a fixed price contract with the project budget, as set out in the Restricted Minute appended;

(c)          to enter into a contract with Hill Partnerships Limited, by means of a Joint Contracts Tribunal (JCT) Design and Build contract, for the delivery of the scheme;

(d)          that the additional energy efficiency improvements, as set out in the Report, not be progressed;

(e)          that a Union Yard Project Board ne established for the next stage of the project, to include the Major Property and Projects Portfolio Holder, the Corporate Services Portfolio Holder and the Leader of the Labour Group, to work alongside officers in providing oversight on the delivery of the consented scheme;

(f)           that the next steps, as set out in the Report, be noted; and

(ii)          RECOMMENDED THE COUNCIL

(a)          to amend the Council’s Capital Programme to provide the project budget set out in Resolution (i)(b) above; and

(b)          to authorise the Executive Head of Finance to amend the Treasury Management Strategy and associated prudential indicators in accordance with the Council’s decision in relation to the scheme.