Agenda item

To discuss and input into the following Full Business Cases included within Tranche 3, including any changes in scope: -

 

·       Smethwick Albion Family in the Park

·       Smethwick Grove Lane Regeneration

·       West Bromwich Town Hall Quarter

·       Smethwick Ron Davis Centre Expansion

·       Smethwick Rolfe Street Canalside Regeneration

·       Smethwick Midland Met Learning Campus

·       Rowley Regis Education Hub

·       Rowley Regis Canal Network Connectivitiy

Smethwick Midland Met Learning Campus

 

Austin Bell, Sandwell and West Birmingham NHS Trust, provided an update on the Midland Met Learning Campus project. The project is progressing at pace and the team are now at RIBA Stage 2. Austin shared a number of conceptual design visuals to Superboard.

 

The Memorandum of Understanding (MoU) between partner organisations is close to being fully signed off and there have been positive meetings with the WMCA to drive the project forward.

 

The first draft of the FBC is expected imminently and the project is therefore in line to achieve the Towns Fund assurance submission date.

 

Austin outlined a number of risks and issues with the project. There is, given the conceptual nature of the scheme, a large contingency which should help with the issues around super-inflation of material costs.

 

Question raised by Tony McGovern, SMBC, around how the procurement process for the project will drive local community wealth.

 

Austin assured that local procurement metrics will be intrinsic to the procurement process and that work has been undertaken with Karen Richards, SMBC, to evaluate and understand the outcomes in terms of social value. A social value plan has been developed to sit alongside the project.

 

Question raised by Josh Singh, SMBC, around the environmental credentials.

 

Austin advises that the project is aiming for BREEAM outstanding and to be net carbon zero. Additionally, the project team are looking to reuse bricks from the City Hospital demolition where possible.

 

Action: Austin Bell to share the recently received sustainability report with the Towns Fund PMO for circulation. This will promote best practice in the borough.

Jenna Langford asked Austin to liaise with her Business Growth team to understand opportunities for local procurement. There is possibly the option to organise a meet the buyer event or distribute additional information to contractors to assist in this.

 

Action: PMO to arrange follow up meet between Austin and SMBC Business Growth to discuss opportunities.

 

 

Smethwick Albion Family in the Park

The Chair introduced Rob Lake from the Albion Foundation to provide an update on this project.

 

Rob advised Superboard that the project is now adopting a two-stage approach with a change in scope to certain elements of the project.

 

Rob advised on the revised outcomes including upgrades to the existing Regis Academy, improvements to Lewisham Park, new changing rooms and multi-use games area, all subject to further consultation.

 

Cost estimates were received yesterday and there is currently an identified funding gap. Quantity surveyor and architect are going back to revise design proposals to understand where efficiencies can be made.

 

There is an ongoing issue with regards payment of VAT which was not included in the original proposal. This also presents a budgetary challenge.

 

Mott Macdonald are now, as per the changes to assurance, supporting The Albion Foundation with the development of the FBC.

 

Question raised by Tony McGovern around the VAT implications.

 

Jenna Langford advised that SMBC Finance Dept have gone out to procure some specialist VAT advice to support the process as this is an issue with other projects also. PMO are also in discussions with DLUHC advisors on this topic.

 

 

Smethwick Grove Lane Regeneration

 

Clinton Felicio provided an overview of the Smethwick Grove Lane

Regeneration Project.

 

Project team have engaged with agents dealing with the Cranford St site. A red book valuation has been completed and negotiations are underway.

 

The FBC is progressing with Mott MacDonald and SMBC are working closely with consultants to complete this.

 

Indicative demolition costs have been received and SMBC are in the process of procuring desk top site investigations.

 

Clinton provided Superboard with an overview of the local board views to date, in addition to a summary of the consultation that has occurred on the project to date. Further consultation will be undertaken as part of the Area Framework and Grove Lane Masterplan.

 

 

Remaining projects in tranche 3a were invited to provide short overview of their projects.

 

West Bromwich Town Hall Quarter

 

Mark Evans, SMBC, advised that the first draft of the FBC has been received from Mott MacDonald. This paints a positive picture and the benefit-cost-ratio is well above where is needs to be, which demonstrates good value for money.

 

Continuing to work with the design team to develop the proposals. Although the scope has now been revised down to the phase 1 development (Restoration and Renovation) only, due to the super-inflation of material costs.

 

Mark provided an overview of the key risks and consultation that has been undertaken to date.

 

Question raised by Sandeep Shingadia about external review of FBCs to ensure they are most likely to succeed on submission.

Jenna Langford advised that this aspect of external review is already being picked up by Mott MacDonald as external consultants in the development of FBCs. The councils Strategic Investment Unit (SIU) are also providing local assurance.

 

 

Smethwick Ron Davis Centre Expansion

 

Erroll Blackwood, SMBC, provided overview of the Ron Davis Centre project. Project seeks a two classroom addition to the existing premises.

 

Due to rising material costs, a modular build is being proposed which will mitigate against price rises.

 

Mott MacDonald are now also reviewing this FBC in line with new assurance processes.

 

 

Smethwick Rolfe Street Canalside Regeneration

 

Clinton Felicio provided update on the project.

 

Recently received conditions survey is being assessed to identify which buildings can potentially remain in situ. Desktop site investigation has now been completed and the initial costs of the demolition have been received.

 

Team are continued to work on a development brief for the site.

FBC is progressing with Mott MacDonald and the team are working closely with them.

 

Consultation is ongoing as per the Area Framework and Masterplan.

 

Next steps are to continue to engage with occupiers, further scope the demolition works and progress the FBC in line with revised timescales.

 

 

Rowley Regis College

Alan Reynolds, SMBC, provided an update in the absence of Sandwell College project officers.

Concept designs have been developed and these were shared with Superboard.

 

Similarly, to others the FBC is now being developed by Mott MacDonald so the team are working with them to proceed. Motts have raised concerns about the level of contingency, in light of inflated material costs, and will work to identify potential efficiencies. The VAT issue highlighted previous is also applicable to this project.

 

Question raised by Chris Hinson around DLUHC’s view on the impact of inflation of material costs and the impact on projects. Will additional monies be made available?

 

Jenna Langford advised that Central Government have yet to take an official position. The PMO do have regular meeting with government advisors and they are aware of this issue. It is, however, at this point best to assume that no further monies will be made available to deal with this issue.

 

Rowley Regis Canal Network Connectivity

 

James Dennison, Canal and River Trust, provided an overview of progress on the project.

 

Cost increases have also impacted the project which is now estimated overbudget. However, current estimates are based on initial information and are therefore worst-case scenarios. CRT are working to provide further details that will potentially help to reduce estimates and are in the process of utilising SMBC frameworks to enable wider quote reach.

 

Draft FBC has been appraised by both SIU and Motts and the feedback is broadly positive to date. CRT will continue to work up the FBC in preparation for submission to SMBC.

 

Proposed start date of Feb 2023 as there are a number of practical factors preventing delivery towards the end of 2022.

 

 

Superboard were invited to ask questions about the remaining projects in tranche 3b or 3c as an exception. No questions forthcoming.