Agenda item

To receive a verbal update on the Calverley Square Development.

David Candlin (Head of Economic Development and Property) provided a verbal update, illustrated by a visual presentation, which included the following comments:

·         Officers were in the process of receiving and collating RIBA Stage 4 reports from the project managers Avison Young.

·         Final reports would be published following a meeting with contractors Mace around the turn of the week.

·         Full, un-redacted reports were expected to be available to members in week commencing 26 August.

·         An All-Member briefing would be held on 28 August 2019 followed by a meeting of the Development Advisory Panel on 29 August 2019.

·         Public documents would be published on 28 August 2019 ahead of the Cabinet Advisory Board meeting on 5 September 2019.

·         Councillors Scott and Dawlings would also be arranging various meetings of the cross-party work group agreed by Full Council.

·         Further meetings would be held with Parish Chairmen on 3 September 2019 and Town Forum on 12 September 2019. Meetings with Royal Tunbridge Wells Together and Friends of Calverley Ground were to be arranged.

·         RIBA Stage 4 reports were expected to follow a similar pattern to the Stage 3 reports and would include a covering report followed by sub-reports covering Calverley Square Development, Civic Complex Feasibility and Project Financials.

·         The reports would be considered by Cabinet on 12 September 2019 ahead of Full Council on 25 September 2019.

Discussion included the following points:

·         Details of any value engineering would be included in the report to Council. Any such works did not affect the approved planning permission or undermine the objectives of the development.

·         Recent Avison Young project reports had not been seen by the Auditors in the preparation of the annual accounts. The Auditors reports were retrospective.

·         Civic Complex Feasibility would cover the existing Town Hall, Assembly Hall Theatre, 9-10 Calverley Terrace and the Police Station. Crescent Road car park was not within its scope.

·         Calverley Square Development would cover the new offices, underground car park, theatre, public realm and landscaping within Calverley Grounds.

·         The current project RAG status was red. The status was for the project as a whole and it was not possible to apportion any particular impact from any value engineering that may occur or have occurred.

·         The Council’s Auditors had signed off the RAG status for the previous year as green, which this year had changed to red. The change may have implications for the value for money statement and a request should be made to the Audit and Governance Committee for this to be revisited.

·         The precise wording of the decision to be made was to be determined but would likely be a recommendation to take account of the latest information and progress the project through to completion.

·         Legal costs associated with the Compulsory Purchase Order Enquiry were funded from the Calverley Square Reserve.

·         Not all aspects of the project were risk rated red and some aspects were by their nature red by default. As at 31 March 2019, risks were identified, mitigation was in place and the project was on track. Therefore, the overall status was green.

·         The budget for the project of £90m was agreed by Full Council. If value engineering was taking place then the forecast must be for more the £90m and Full Council should authorise budget changes. A lack of engagement with the Development Advisory Panel (DAP) cast doubt over the legitimacy of the process.

·         Full Council resolved that the DAP would be engaged at ‘appropriate points during the process’, meaning from decision to completion in 2022. The Council was currently proceeding through a detailed process in order to get to a position where substantive plans could be brought to the DAP.

·         The Constitution was clear on the decision-making processes and the Leader was expected to confirm this at Cabinet on 15 August 2019.

·         The terms of reference for the DAP, which indicate quarterly meetings, were set up for a development programme established in 2013, not specifically the Calverley Square project. Therefore, its lack of meetings did not impact on the risk status of the project. Questions as to the frequency of meetings should be addressed to the Leader.

·         Officers were working to an agreed timetable, the decision making process was necessary to enable commencement in January 2020. The process was at the end of the first of a two stage design-and-build contract but there was no contractual obligation to proceed at this stage.

·         Additional design work, value engineering and programme amendments agreed with Mace had delayed the completion of the RIBA Stage 4 reports.

·         Assurances that Full Council would have the final decision on Calverley Square had been undermined by comments by the Leader in the press that nothing could be done to stop the project, this and other perceived failings undermined confidence in the Leader and governance processes. Members needed confidence from the Auditors that statements they made previously still stood.

·         Had the Auditors had sight of the Avison Young reports their decision may have been different.

·         The project was live. The evidence that was available at the end of 31 March 2019 did not highlight anything necessarily untoward in the overall elements. New information would always come forward, potentially until completion in 2022. There will always be elements that need to be under review.

·         Cabinet on 01 August 2019 had failed to guarantee that a final decision would be taken by Full Council, this undermined trust.

·         The wording of the Full Council resolution to request the Full Council take the final decision had deliberately been changed to make it conditional. A Full Council resolution should be binding. Councillors, as trustees of the public purse, had a responsibility to hold decisions makers to account.

RESOLVED –

1)    That the update be noted;

2)    That the Leader of the Council be invited to confirm the decision-making process of the Calverley Square project, which should include a final decision being made by Full Council, as a matter of urgency; and

3)    That the Chairman of the Audit and Governance Committee be invited to ascertain whether the External Auditor still stands by the 2018/19 Audit Findings Report given:

a)    A change in the Calverley Square performance RAG rating since 31 March 2019; and

b)    That the Development Advisory Panel had not yet been engaged on Calverley Square as recommended by Full Council resolution on 6 December 2017 (FC50/17) which stated: (9.) That the Development Advisory Panel is engaged as appropriate during the delivery of the work and that an outline programme of engagement is developed with wider Council members, stakeholders, community groups, businesses and residents.