Decision details

To approve the Outline Business Case; to approve delegations to enable submission of a planning application, granting a 15-year commercial lease, and procuring and entering into contracts for construction and related professional services.

To recommend to Council approval of a capital budget of £1.9m including £230k to progress to detailed design phase and submission of a planning application.

The Executive RESOLVED to:

1.       approve the phasing of the project.

2.       approve the Outline Business Case and project timeline for the Phase 1 of the revised project (Exempt Annexe 1).

3.       recommend to Full Council the approval of a budget of £230,000 (Exempt Annexe 2), to be met from the Asset Investment Reserve, to progress Phase 1 of the revised project.  This will be to deliver the commercial element of the project to RIBA Stage 4 (the detailed design phase) and to enable the submission of a planning application for the commercial unit.

4.       delegate authority to the Strategic Director of Place, in consultation with the Lead Portfolio Holder, to submit a new planning application for the commercial unit, including demolition to facilitate delivery and preparation for the prospective housing.

5.       recommend to Full Council the approval of an overall capital budget of £1.96 million (including the £230,000 referred to above), as per the breakdown in Exempt Appendix 4, to cover the anticipated cost of the capital works to the commercial unit, with delegation to Executive to approve the final budget once tender returns for the construction contract have been received.

6.       delegate authority to the Executive Head of Assets and Property to enter into a long-term (15 years) commercial lease for 69 High Street.

7.       delegate authority to the Strategic Director of Place to:

i.        Approve the commencement of tender process for construction contracts, including those of the professional team.

ii.       Approve the appointment of contractors following appropriate procurement subject to the appointment being within the identified budget.

iii.      Approve the entering into any related contractual documentation (including collateral warranties and novation agreements) related to the development of the project.

iv.      Approve the entering into any agreement (including paying any necessary sums provided they are within the project budget) with any utility or related provider to ensure the connection, moving or management of any services to facilitate the project.

Reasons for the decision:

1.       69 High Street, Godalming was purchased as a General Fund mixed use redevelopment project to support the Council’s aspirations contained within the Corporate Strategy.

2.       It aligns with the Government guidelines around ‘Investment for Service Purposes’ being expenditure on assets that form part of the Council’s public service which also support the corporate priorities.

3.       Since the property was bought, macro-economic factors including build cost inflation and increased borrowing costs have adversely impacted the financial landscape. The redevelopment options have been revised accordingly, and are in line with the Council’s Asset Investment Strategy. Further consideration has been given as to how the Council might best look to progress the delivery of the scheme to achieve the strategic objectives. The recommendations in this report will enable the scheme to progress towards delivery of the project.

[Overview and Scrutiny Committee – Resources]