Issue - meetings

RECOMMENDATIONS:

Subject to ongoing gateway reports and financial viability assessments, to:

2.1 Note the increased project cost since Stage 2 and the project’s risk mitigation strategy including the retention of £32.7m in contingency (26% of net scheme cost) 2.2 Approve proceeding to Stage 4 based on Stage 3 Design and Viability Assessment.

2.3 Approve £4.6m additional funding for consultant and direct fees and PCSA fees until the end of Stage 4, mainly to cover increased requirements under the Building Safety Act, noting total forecast fee spend to end of stage 4 is £14.55m. Page 126 2.4 Note the costed risk included in the cost model plus the addition of optimism bias to cover additional risk not fully mitigated within the costed risks.

2.5 Note that while the FLCR scheme is based on a low carbon, policy compliant design, the gas[1]powered EC1 Energy Centre will be removed from the FLC&R site, its future to be resolved as part of a separate strategy for a borough-wide heat network (including Bunhill) that will form a future paper to Executive, also noting the issues set out in section 3.8.

2.6 Note the intention to develop of a wellbeing offer for local residents to take advantage of the co[1]location of leisure and medical facilities.

2.7 Note the full General Fund deficit of £31.029m and Housing Revenue Account (HRA) deficit of £3.187m based on current total cost including all contingencies.

2.8 Approve re-allocation of £6.55m of General Fund capital programme borrowing to FLCR, as set out in para 3.7.20 to mitigate additional revenue pressures of up to £0.711m per annum.

2.9 Note the intention to engage with the GLA to assess any opportunities to secure additional grant to support the affordable housing within the scheme.

2.10 Note that additional Executive approval will be sought prior to award of a construction contract at RIBA Stage 5

DECISIONS

AGREED RECOMMENDATIONS

Reasons for the decision – as detailed in the report

Other options considered – as detailed in the report

Conflicts of interest / dispensations granted – none

RESOLVED:

That, subject to ongoing gateway reports and financial viability assessments, to:

(a) Note the increased project cost since Stage 2 and the project’s risk mitigation strategy including the retention of £32.7m in contingency (26% of net scheme cost), as detailed in the report of the Executive Member for Homes and Neighbourhoods.

(b) Approve proceeding to Stage 4 based on Stage 3 Design and Viability Assessment.

(c) Approve £4.6m additional funding for consultant and direct fees and PCSA fees until the end of Stage 4, mainly to cover increased requirements under the Building Safety Act, noting total forecast fee spend to end of stage 4 was £14.55m.

(d) Note the costed risk included in the cost model, plus the addition of optimism bias to cover additional risk not fully mitigated within the costed risks.

(e) Note that, while the Finsbury Leisure Centre redevelopment scheme (FLCR) was based on a low carbon, policy compliant design, the gas[1]powered EC1 Energy Centre would be removed from the FLCR site, its future to be resolved as part of a separate strategy for a borough-wide heat network (including Bunhill) that would form a future report to Executive, noting also the issues set out in section 3.8 of the report.

(f) Note the intention to develop a wellbeing offer for local residents to take advantage of, the co[1]location of leisure and medical facilities.

(g) Note the full General Fund deficit of £31.029m and Housing Revenue Account deficit of £3.187m based on current total cost including all contingencies.

(h) Approve the re-allocation of £6.55m of General Fund capital programme borrowing to FLCR, as set out in para 3.7.20 of the report, to mitigate additional revenue pressures of up to £0.711m per annum.

(i) Note the intention to engage with the GLA to assess any opportunities to secure additional grant to support the affordable housing within the scheme.

(j) Note that additional Executive approval would be sought prior to the award of a construction contract at RIBA Stage 5.

Reasons for the decision – To enable the proposed design programme to proceed until the end of design Stage 4 with no further delay and associated costs that might incur from a delay. The project would deliver significant benefits, subject to planning consent and ongoing viability, including 100 new council homes (of which 24 would be 3-bed homes and one 4-bed home), 98 sale homes to help pay for them, a brand new leisure centre, a new home for City Road Medical Practice and transformed public spaces with improved greenery, planting, pedestrian, and cycle paths

Other options considered – a full range of options covering all aspects of the redevelopment were considered, as detailed in the report.

Conflicts of interest / dispensations granted – none.