Decision details

Approval was sought, subject to more detailed due diligence, for the procurement of a joint venture development partner is the preferred route to delivery the West Bromwich Town Centre and Grove Lane Masterplans.

Reasons for recommendations

To ensure the effective delivery of the West Bromwich Town Centre Masterplan in a way that enables high design standards and a holistic approach to regeneration to be achieved

Alternative options considered

Adopt the masterplans and rely on the private sector to deliver.

Agreed:-

(1)     that approval in principle, subject to more detailed due diligence, that the procurement of a joint venture development partner is the preferred route to delivering the West Bromwich Town Centre and Grove Lane Masterplans;

(2)     that the Director of Regeneration and Growth be authorised to procurement a professional team (lawyers and property consultants) to carry out the workstreams set out below:

·      Provide detailed legal advice setting out the advantages, risks and proposed mitigations of the preferred option.

·      Provide advice on setting up a joint venture company

·      Provide a business case including a financial model showing the likely returns. Phasing. Likely gap-funding requirement and options to address this.

·      Provide an analysis showing how the Council might act as bank, lending to JV Co. Set out pros and cons of this.

·      Advise on the attractiveness of the opportunity in the market, and how to present the opportunity to maximize interest.

·      Prepare a development partner procurement strategy, including:

·      Advice re the best Framework to use.

·      How the opportunity would be promoted. Advertising, press, social media, launch events.

·      Advice on the form of contract, highlighting key issues.

·      A timetable for procurement.

·      A stakeholder engagement strategy, and a framework for consultation and decision-making.

·      Presentations on the above, as necessary, to Members and / or senior officers.

·      Preparation of a Brief, scoring matrix and other necessary documentation.

·      Collation of documentation as necessary to furnish a data room.

·      Managing all aspects of the developer selection process.

·      Assessment of bids, including:

• Advice on developer appraisals, cost plans, proposed phasing. Credibility of each bid.

• Advice on design standards and fit with the masterplan.

(3)     authorises the Director of Regeneration & Growth to oversee the procurement of the professional team, approve the selection and enter into appointment contracts as necessary.

(4)     requests a further report before March 2023 covering the following:

4.1 Detailed legal advice setting out the advantages, risks and proposed mitigations of the preferred option.

4.2 A business case including a financial model showing the likely returns.

4.3 A development partner procurement strategy, including:

4.3.1 A timetable for procurement

4.3.2 A draft developer briefing document for approval

4.3.3 A stakeholder engagement strategy, and a framework for consultation and decision-making.

4.3.4 A request for approval to commence a development partner procurement process.