Issue - meetings

To consider and decide on the recommendations as set out in the attached report.

RESOLVED –

1.     That the final expenditure figures related to the development and delivery of the Calverley Square project in accordance with Full Council decisions be approved.

2.     That the closure of the Calverley Square project be noted. And it be noted that the planning permission remained valid until 14 June 2021, and the CPO remained valid until 9 May 2022, in accordance with statutory requirements.

3.     That the planning or CPO consents that are in place be not implemented.

REASON FOR DECISION:

To implement the decision made by Full Council on 8 October 2019 to terminate the Calverley Square project.

Cllr David Hayward had registered to speak and made the following comments:

-       A formal request for an independent audit of the project had been made by the Audit and Governance Committee. 

-       The primary issue that required review were the Governance arrangements that related to the Calverley Square Project.

-       The original plan to appoint Mid Kent Audit Services to undertake this work was unpalatable as they had previously worked on the scheme. 

-       The Cross Party Working Group were now looking at the way forward.

-       The Audit terms of reference had not been indicated and there was concern that details of who will be appointed and details of their terms of reference would not be known.  There was also concern as to how the public would be engaged in the process. 

-       The lessons of Calverley Square needed to be learnt so mistakes were not repeated.  

-       A request for an external and independent auditor be accelerated and the terms of reference be made available to the relevant Committees for discussion and approval.

David Candlin, Head of Economic Development and Property then introduced the Report that gave an update on the consequences and financial implications following the decision taken at Full Council on 8 October 2019 to terminate the Calverley Square project.  Discussion and responses to Members questions included the following matters.

-       The report included details of the closure of the contracts, including Mace and Avison Young.  This work had now been completed.

-       The report also set out the work that had now been abandoned, including Traffic Regulations Orders and other enabling works that would now not be going ahead.

-       Following an FOI request the minutes of the Development Advisory Panel meetings for the period between July 2013 and June 2018 had been made publicly available.

-       Final overall expenditure was £10.8m.  Of which £10.6m was between RIBA stages 0-4.

-       The direct expenditure for RIBA stage 4 was £6.4m.  Indirect staffing costs were not included.

-       Final invoices for the BBC and Mace would be submitted post decision by Cabinet. These costs were already known and were included in all the figures.

-       The associated funding strategy and the Calverley Square reserve had been closed and funding restored to the base budget and to usable reserves.

-       The expenditure treated as capital would need to be charged to revenue and this would be set out within the financial report and statement of accounts for 2019/20.

-       The planning permission would remain valid until 14 June 2021.  The CPO would remain capable of being implemented until 10 May 2022.

-       The additional social, environmental and economic benefits, including the £33.2m of annual economic benefit from the new office development to the economy from 2022 would not now be delivered.

-       Moving forward, the report highlighted the proposed expenditure of £2m of capital works required to keep the Great Hall car park, Calverley Terrace, Assembly Hall Theatre and the Town Hall operational. 

-       The Cross  ...  view the full minutes text for item 127

To consider and provide a recommendation to Cabinet on the proposals set out in the attached Report. 

David Candlin, Head of Economic Development and Property introduced the Report that gave an update on the consequences and financial implications following the decision taken at Full Council on 8 October 2019 to terminate the Calverley Square project.  Discussion and responses to Members questions included the following matters.

-       The planning permission would remain valid until 14 June 2021. 

-       Expenditure at the end of Stage 4 was expected to be £6.4m. A couple of legal bills remained outstanding which would add about £1,900.00  Final invoices from the BBC and Mace were also outstanding.

-       Overall, final expenditure was expected to be £10.8m of which £10.6m was due from RIBA stages 1-4.

-       Funding had now been restored to the base budget and useable reserves. 

-       Expenditure that had been treated as capital, approximately £6.17m   would need to be charged to revenue.  As planning consent would remain valid, this would be taken into account when the Council revalued its assets that were part of the Calverley Square project.

-       The CPO would remain capable of being implemented until 10 May 2022. There was no power under the 1981 Act to revoke the CPO. 

-       There was no intention to implement either the planning permission or the CPO consents that were in place. 

-       Capital works at an expected cost of £2m would now be required for the Great Hall car park, Calverley Terrace, Assembly Hall Theatre and the Town Hall to ensure they remained operational. 

-       Following an FOI request the Development Advisory Panel minutes for the period between July 2013 to June 2018 had been made publicly available.

-       No internal staff costs had been included in the figures. 

-       TWBC had received 16 invoices to date from Mace – with one still outstanding.  Invoices were detailed against a programme and so needed to read in conjunction with the work that had been done. 

-       Documents were received in digital format, but due to their size (e.g. the contractors proposal was 563 pages, 23MB)  it was impractical to send via email.  Mace were also due to send a copy of approximately 3,000 files that related to the scheme. 

-       All documents related to the scheme, were available to Members to ensure that an informed decision could be made.  Members were welcome to review the documents at any time. 

-       The figures included in the report were broken down by individual invoices.  Invoices over a certain level were published in the Council’s accounts. Members were also able to view invoices should they wish to do so.

-       Mace were in the process of negotiating reimbursements for work that would now not take place.  These included diversions of utilities now not required, BT Open Reach and trees that no longer needed to be removed. 

-       An audit of the scheme had been proposed as part of the closedown report.  A decision would have to be taken whether to make those elements of the scheme currently exempt, available.

-       Following a meeting  ...  view the full minutes text for item 81