Issue - meetings

To receive the recommendation from the meeting of Cabinet held on 22^nd March 2018 in respect of the approval of a supplementary capital budget for the redevelopment of Piries Place Car Park

(The full Cabinet report is online at:  Cabinet_agenda)

Two members of the public spoke in objection to the proposed additional budget.

The Cabinet Member for Finance and Assets reported that Cabinet, at its meeting earlier in the day, had considered and approved the authorisation of the Director of Planning, Economic Development and Property to enter into a contract for the redevelopment of the car park at Piries Place within the proposed new budget figure of £8,000,000, subject to Council’s approval of the additional supplementary capital budget.

Council was therefore requested to approve the additional supplementary capital budget to enable the project to proceed.

It was moved by Councillor Brian Donnelly and seconded by Councillor Gordon Lindsay that the recommendation should be approved.

            RESOLVED

            That a supplementary capital budget of up to £750,000 be approved in addition to the figure of £7,250,000 previously approved on 18^th October 2017, thus increasing the total budget to £8,000,000.

            REASON

            To allow the Council to proceed with the demolition of the existing multi storey car park and replacement with a new larger facility, which will meet modern standards and customer expectations.

To receive the report of the Cabinet Member for Finance and Assets and the Cabinet Member for Local Economy

            RESOLVED

            That, subject to Council’s approval of the additional supplementary capital budget, the Director of Planning, Economic Development and Property be authorised to enter into the contract for the construction of the facility within the proposed new budget figure of £8,000,000.

The Cabinet Member for Finance and Assets reminded Cabinet that, on 21^st September 2017, they had approved a proposal to demolish and redevelop Piries Place Car Park subject to satisfactory funding and satisfactory planning permission being granted and to delegate authority to the Director of Planning, Economic Development and Property to enter into a construction contract with a nominated contractor for a new facility (Minute EX/33 refers).

At that time two schemes were proposed, one comprising ground floor plus three upper floors and a larger scheme of ground floor plus four upper floors.  The budget for the smaller scheme was estimated at £6,250,000 and for the larger scheme £7,250,000.  Council on 18^th October 2017 had approved a supplementary budget of up to £7,250,000 (Minute CO/41 refers).

Since the Cabinet decision, the proposals had been progressed with planning permission being obtained for the demolition of the existing car park and the construction in respect of both schemes.  During the consultation process Cabinet and Members had expressed a preference for the larger scheme.

In addition, design details had progressed and a contract sum marginally under £7,100,000 had been agreed with the contractor.  The contract sum was higher than had been anticipated when the initial budget was prepared and, as a result, the approved budget was inadequate.  A supplementary capital budget would therefore be required for the project to proceed.

The shortcomings of the existing car park and the case for its demolition and a new facility had not changed since the original report. However the effect on project viability of the increase in costs was reported.

A suggestion was made to consider the introduction of overnight charges at the new car park, especially as it was anticipated that the facility would be used by the occupants of the hotel. The Cabinet Member for Local Economy responded to explain that the at the point of setting the charges for the car park, this suggestion would be given consideration.

A joint meeting of the two Cabinet Members’ Policy Development Advisory Groups in September 2017 had considered and supported the redevelopment proposal, expressing a preference for the larger scheme.  The Finance and Assets Policy and Development Advisory Group had now also been consulted regarding the budgetary position and support the recommendation before Cabinet.

            RESOLVED

            That, subject to Council’s approval of the additional supplementary capital budget, the Director of Planning, Economic Development and Property be authorised to enter into the contract for the construction of the facility within the proposed new budget figure of £8,000,000.

            RECOMMENDED

            That a supplementary capital budget of up to £750,000 be approved in addition to the figure of £7,250,000 previously approved on 18^th October 2017, thus increasing the total budget to £8,000,000.

            REASON

            To allow the Council to proceed with the demolition of the existing multi storey car park and replacement with a new larger facility, which will meet modern standards and customer expectations.