Agenda item

(Member lead: Cllr P Box, Director: Melanie Corcoran)

Resolved:  In order to allow these additional and accelerated Local Growth Fund benefits to be delivered on new jobs created and new homes completed, the Combined Authority approves that:

(i)          The Local Growth Fund be over-programmed.

(ii)           The Combined Authority agree to borrow to a maximum of £90 million (above currently agreed borrowing on the Transport Fund of circa £40 million to £50 million by March 2021, part of the £217 million already agreed as match within the £1 billion programme).

(iii)         The above will be reviewed bi-annually dependent upon the progress of schemes / more accurate forecasting and will be implemented as phased expenditure to ensure borrowing limits and approvals are closely monitored.  It is proposed that schemes achieve an approval at decision point 5 (full business case with costs) by 30 June 2020 at the latest.

(iv)         In order to minimise the risk of over commitment, as schemes are developed and pass through the assurance process the phasing of schemes will be encouraged to ensure commitments are kept within the agreed borrowing cap.

The Combined Authority considered a report of the Director of Delivery which, following the call for projects in Autumn 2017, put forward proposals regarding progression of the following West Yorkshire Combined Authority supported projects, for funding through the West Yorkshire plus Transport Fund (Transport Fund) and Growth Deal, for consideration by the Investment Committee at stage 1 of the Combined Authority’s assurance process.

 

·         Institute for High Speed Railways and System Integration – Phase 1

·         Leeds City Region Enterprise Zones Programme

·         Leeds Inland Port

·         Gateway to Huddersfield – Phase 1

·         CityConnect Cycle City Ambition Programme (CCAG) Phase 1 & 2 extension

·         Bradford City Centre Heritage Properties

·         Halifax Living, Halifax

·         Wakefield City Centre – South East Gateway

·         Rail Park & Ride Programme – Phase 2

·         York Central Kickstarter – Phase 1

·         Leeds City Centre Package – change request

               

It was noted that in-principle support for the 11 projects listed above had been approved in February 2018 by the Combined Authority and the promoters had been invited to resubmit their expressions of interest and provide updated information.

 

A summary of the call for project submissions was attached at Appendix 1 and the background information on the Combined Authority’s assurance framework through which each of the schemes are being approved was attached at Appendix 2. The Investment Committee had considered the benefits of the schemes at a workshop held on 5 June 2018 and the location maps for the projects were attached at Appendices 3-8.

 

It was noted that the York Central Kickstarter Phase 1 project was not seeking a recommendation at the present time although it may be resubmitted at a later stage in the programme.

 

It was reported that the Investment Committee had strongly supported the Leeds Inland Port scheme and had asked that opportunities be investigated in the other districts.

 

Resolved:

(a)       In order to allow these additional and accelerated Local Growth Fund benefits to be delivered on new jobs created and new homes completed, the Combined Authority approves that:

(i)            The Local Growth Fund be over-programmed.

(ii)           The Combined Authority agree to borrow to a maximum of £90 million (above currently agreed borrowing on the Transport Fund of circa £40 million to £50 million by March 2021, part of the £217 million already agreed as match within the £1 billion programme).

(iii)         The above will be reviewed bi-annually dependent upon the progress of schemes / more accurate forecasting and will be implemented as phased expenditure to ensure borrowing limits and approvals are closely monitored.  It is proposed that schemes achieve an approval at decision point 5 (full business case with costs) by 30 June 2020 at the latest.

(iv)         In order to minimise the risk of over commitment, as schemes are developed and pass through the assurance process the phasing of schemes will be encouraged to ensure commitments are kept within the agreed borrowing cap.

(b)       In respect of the Institute for high speed railways and system            integration -

That following a recommendation from the Investment Committee, the  Combined Authority approves:

(i)         That the Institute for High Speed Rail and System Integration scheme Phase 1 proceeds through decision point 2 and work commences on activity 4 (full business case).

(ii)        That an indicative approval to the Combined Authority’s contribution of £11.44 million is given, which will be funded through over-programming against the Local Growth Fund, with full approval to spend being granted once the scheme has progressed through the assurance process to decision point 5 (full business case with finalised costs). The total Phase 1 value is £22.88 million (The University of Leeds will contribute match funding of £11.44 million).

(iii)     That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report including at decision point 5 (full business case with finalised costs) through a delegation to the Combined Authority’s Managing Director following a recommendation by the Combined Authority’s Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(c)        In respect of Leeds City Region Enterprise Zones -

That following a recommendation from the Investment Committee the Combined Authority approves:

(i)         That the full Enterprise Zones programme proceeds through decision point 2 (case paper) and work commences on Activity 3 (outline business case) for all Enterprise Zones sites, with the exception of Leeds (Aire Valley) which will continue progressing through Activity 4 (full business case).

(ii)        That an indicative approval to the Combined Authority’s contribution of £45.044 million is given (which will be funded through £20 million from Local Growth Fund’s existing approval,  £24.939 million from over-programming against the Local Growth Fund, £75,000 of Department of Communities and Local Government Grant funding and £30,000 of other Combined Authority budget funding), with full approval to spend being granted once individual schemes have progressed through the assurance process to decision point 5 (full business case with finalised costs). The total programme value is £49.558 million.

(iii)       That development costs of up to £1.541 million are approved in order to progress the schemes within the programme to decision point 3 (outline business case) taking the total development cost approval up to £1.923 million.This will be funded from Local Growth Fund (£1.516 million) and the Department of Communities and Local Government Grant funding (£25,000).

(iv)     That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report. This will be subject to the programme remaining within the tolerances outlined in the submitted report. 

(d)       In respect of Leeds Inland Port -

That following a recommendation from the Investment Committee the Combined Authority approves:

(i)         That the Leeds Inland Port project proceeds through decision point 2 and work commences on activity 3 (outline business case).

(ii)        That an indicative approval to the Combined Authority’s contribution of £3.17 million is given, which will be funded through over-programming against the Local Growth Fund, with full approval to spend being granted once the scheme has progressed through the assurance process to decision point 5 (full business case with finalised costs). The total project value is £3.37 million (Canal & Rivers Trust match funding of £200,000).

(iii)       That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report including at decision points 3 and 5 through a delegation to the Combined Authority’s Managing Director following a recommendation by the Combined Authority’s Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(e)       In respect of Gateway to Huddersfield - Phase 1 -

That following a recommendation from the Investment Committee, the Combined Authority approves:

(i)         That the Gateway to Huddersfield Phase 1 project proceeds through decision point 2 and work commences on activity 3 (outline business case).

(ii)        That an indicative approval to the Combined Authority’s contribution of £5.05 million is given, to be funded from over-programming against the West Yorkshire plus Transport Fund, with full approval to spend being granted once the scheme has progressed through the assurance process to decision point 5 (full business case with finalised costs). The total value of this element of the project is £5.55 million (£500,000 contribution from Kirklees Council). The total forecast value of the project as a whole is £10.55 million (this incorporates the existing allocation within the West Yorkshire plus Transport Fund).

(iii)       That development costs of up to £115,000 are approved in order to progress the scheme to decision point 3 (outline business case), taking the total development cost approval to £165,000.

(iv)       That the West Yorkshire Combined Authority enter into a funding agreement with Kirklees Council for expenditure of up to £115,000. This funding agreement will also acknowledge the existing £50,000 development funding approval.

(v)        That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report including at decision point 5 through a delegation to the Combined Authority’s Managing Director following a recommendation by the Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(f)        In respect of the City Connect Cycle City Ambition Programme - Phase 1 & 2 extension -

That following a recommendation from the Investment Committee, the Combined Authority approves:

(i)         That the City Connect Cycle City Ambition Programme – Phase 1 & 2 extension proceeds through decision point 2 and work commences on activity 3 outline business case for each of the projects within the programme.

(ii)        That an indicative approval to the total project value of £14.824 million is given of which £14.424 million will be funded by the Combined Authority with full approval to spend being granted once each of the projects within the programme have progressed through the assurance process to decision point 5 (full business case with finalised costs). The Combined Authority contribution will be funded from £12.053 million from over-programming against the West Yorkshire plus Transport Fund and £2.371 million from the existing City Connect programme funding from the Department for Transport.

(iii)      That development costs of up to £350,000 are approved in order to progress the projects within the programme to decision point 3 (outline business case) to be funded from over-programming against the West Yorkshire plus Transport Fund.

(iv)       That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report including at decision point 3 (outline business case) through a delegation to the Combined Authority’s Managing Director following a recommendation by the Combined Authority’s Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(g)       In respect of the Bradford city centre heritage properties development scheme -

That following a recommendation from the Investment Committee the Combined Authority approves:

(i)         That the Bradford city centre heritage properties development scheme proceeds through decision point 2 and work commences on activity 3 (outline business case).

(ii)        That an indicative approval to the Combined Authority’s contribution of up to £7.4 million, which will be funded through over-programming against the Local Growth Fund, is given with full approval to spend being granted once the scheme has progressed through the assurance process to decision point 5 (full business case with finalised costs). The total project value is £31.602 million (private sector investment estimated at £24.202 million).

(iii)       That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report, including the use of a delegation to the Combined Authority’s Managing Director at decision point 5 (full business case with finalised costs).  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(h)       In respect of the Halifax Living programme (Phase 1) -

That following a recommendation from the Investment Committee, the Combined Authority approves:

(i)         That the Halifax Living Programme (Phase 1) proceeds through decision point 2 and work commences on activity 3 (outline business case).

(ii)        That an indicative approval to the Combined Authority contribution to the programme of £764,000 is given to be funded from over-programming against the Local Growth Fund with full approval to spend being granted once the scheme has progressed through the assurance process to decision point 5 (full business case with finalised costs). In addition, that an additional £797,000 of over-programming against the Local Growth Fund can be utilised to fund the land remediation element of the Beech Hill project (which will be considered as a separate business case at a later meeting) and subject to satisfactory progress through the assurance process.

(iii)       That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report, including through a delegation to the Combined Authority’s Managing Director at decision point 5. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(i)          In respect of Wakefield City Centre South East Gateway -

That following a recommendation from the Investment Committee, the Combined Authority approves:

(i)         That the Wakefield City Centre South East Gateway project proceeds through decision point 2 and work commences on activity 3 (outline business case) or 4 (full business case) dependent on sufficient detail being available at submission stage.

(ii)        That an indicative approval to the total project value of £41.55 million is given, which includes a £6.505 million contribution from the Combined Authority to be funded from over-programming against the Local Growth Fund, with full approval to spend being granted once the scheme has progressed through the assurance process to decision point 5 (full business case with finalised costs).

(iii)       That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report, including through a delegation to the Combined Authority’s Managing Director at decision points 5, following a recommendation by the Combined Authority's Investment Committee or Programme Appraisal Team respectively. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(j)         In respect of the Rail Park & Ride Programme Phase 2 -

That following a recommendation from the Investment Committee, the Combined Authority approves:

(i)         That the Rail Park & Ride Programme Phase 2 proceeds through decision point 2 and work on the individual schemes commences on activity 3 (outline business case).

(ii)        That an indicative approval to the total project delivery cost of £33.638 million is given which will be funded entirely by the Combined Authority (with £5 million from the Leeds Public Transport Investment Programme to fund works at New Pudsey rail station and £28.638 million from over-programming against the West Yorkshire plus Transport Fund) with full approval to spend being granted once individual projects have progressed through the assurance process to decision point 5 (full business case with finalised costs).

(iii)       That development costs of up to £2.016m are approved in order to progress the scheme to decision point 3 (outline business case) from over-programming against the West Yorkshire plus Transport Fund.

(iv)       That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report, including the use of a delegation to the Combined Authority’s Managing Director at decision points 3 and 5, following a recommendation by the Combined Authority’s Programme Appraisal Team. This approval route will be subject to the scheme remaining within the tolerances outlined above.

(k)        In respect of the Leeds City Centre Package -

That following a recommendation from the Investment Committee, the Combined Authority approves:

(i)         That the change request for Leeds City Centre Package (LCCP) to increase the funding contribution from the West Yorkshire plus Transport Fund from £36.5 million to £66.8 million is given indicative approval, that the LCCP package will now be delivered as four individual phases is approved and work continues on Activity 4 (full business case) for Phase 1 and on Activity 3 (outline business case) for Phases 2, 3 and 4.

(ii)        That the revised total package delivery cost of £149.8 million is noted of which indicative funding from the Combined Authority is £79.6 million. This will be funded from the West Yorkshire plus Transport Fund’s original allocation (£36.5 million), over-programming against the West Yorkshire plus Transport Fund’s requested as part of this report (£30.3 million) and Leeds Public Transport Investment programme (£12.8 million).

(iii)       That future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report, including at decision point 5, which will be made through a delegation to Combined Authority’s Managing Director following a recommendation by the Combined Authority’s Programme Appraisal Team. This approval route will be subject to the scheme remaining within the tolerances outlined above.