Agenda item - Capital Spending and Project Approvals

(Lead Member: The Mayor, Director: Melanie Corcoran)

Resolved:

a) That in respect of Project Marigold, the Combined Authority approves that:

i) The Project Marigold scheme progresses through decision point 2 (Strategic Outline Case) and work commences on activity 4 (Full Business Case).

ii) An indicative approval of the Combined Authority’s contribution of £5,000,000 is given. The total scheme value is £100,000,000.

iii) Future approvals are made in accordance with the assurance pathway and approval route outlined in the submitted report and where required any change requests are delegated to the Business, Economy, and Innovation Committee. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

b) That in respect of Bradford Interchange Resurfacing Works, the Combined Authority approves that, subject to the conditions set by PAT:

i) The Bradford Interchange Resurfacing Works scheme proceeds through decision point 4 (full business case) and work commences on activity 5 (delivery).

ii) Approval be given to the Combined Authority’s contribution of £8,039,000, bringing to total to £8,501,000. The total scheme value is £8,501,000.

iii) Future approvals are made in accordance with the assurance pathway and approval route outlined in the submitted report and where required, any change requests are delegated to the Place, Regenerations and Housing Committee. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

Conditions

The following conditions have been set by PAT to gain Approval to Proceed to Delivery:

a) Confirmation of funding and total scheme cost is within those set out in the FBC approval.

b) Contract with delivery partner finalised and evidenced.

c) Confirmation whether an Asset Protection Agreement from Network Rail is required and if so, what impact this has on the programme.

d) Supply of an up-to-date programme for delivery.

e) Confirmation of project board set up and met.

The Combined Authority considered a report on proposals for the progression of, and funding for, two Combined Authority supported projects that had been considered at stages 1, 2 or 3 of the Combined Authority’s assurance process. The schemes being considered for approval had come directly to the Combined Authority due to expediency of delivery, and would be reported to the relevant thematic Committee as appropriate.

The first project was commercially sensitive and under a strict Non-Disclosure Agreement (NDA), so was being referred to as Project Marigold. A £5 million loan was proposed in order to facilitate the outside investment of £100 million into a manufacturing facility to be based in West Yorkshire,. Approval was sought to proceed through the Strategic Outline Case, and for work to commence on the Full Business Case. Local authority partners had indicated there would be likely to an accommodation given regarding business rate relief for a period of time, but the loan sought from the Combined Authority would be on commercial terms with appropriate safeguards.

The second project concerned repairs to Bradford Interchange Station. Aspects of the station had deteriorated since its construction in 1973 and approval was sought for the scheme to proceed through decision point 4 (Full Business Case) to commence the delivery of repairs, subject to conditions set by PAT (the Programme Appraisal Team). It was noted that although the initial amount sought for repairs had been £2 million and this had received indicative approval as part of the Strategic Outline Case, the total estimated scheme costs had since risen to £8,501,000. Members questioned why the costs had risen; officers advised that originally it had been believed that only surface repairs needed to be undertaken, but investigative work done as part of the preparation for these repairs had indicated that further works were needed. There was also significant contingency within the estimates.

Members were also updated on a number of schemes which had been approved through delegation since the previous meeting by the Finance, Resources and Corporate Committee or the Place, Regeneration and Housing Committee. It was noted that where applicable, outputs from these schemes would still be recorded as part of the Housing and Regeneration Programme within the Growth Deal up until March 2024, and would also come into use at an appropriate time to count toward the Mayor’s pledge of 5000 affordable and sustainable new homes.