To receive a detailed update on the Towns Fund and Accelerated Funding Projects & review their status.
Minutes:
Dr Charles Jarvis, Head of Economic Development gave the board an update on the outcome of discussions with the TIP sub-group in respect of the operation and delivery risks for each of the ten projects. The Sub group had continued to review the projects following their submission and prompted by the current economic climate and high inflationary pressures they had asked Cheshire East Council to commission an independent review on how each of the projects were managing inflation and risks. Ekosgen and cost consultants Currie & Brown carried out the review.
The review identified that most projects had insufficient budget allocated to meet current and future inflationary pressures, and whilst some of these had identified mitigation measures such as seeking additional co-funding or value-engineering (i.e. descoping the scale/quality of the project), significant risks remain).
Three projects had been identified as facing ‘significant’ inflationary and delivery risks, Lyceum Powerhouse, Flag Lane Baths and Crewe Youth Zone. Following the completion of this external work the sub group had put forward its recommendations which were shared with the board which included:-
1) Crewe Town Board submits a request to the Department for Levelling Up, Housing and Communities (DLUHC), through Cheshire East Council as accountable body, to withdraw the Lyceum Powerhouse project from its programme and the funding is reallocated across other projects;
2) Further engagement with key stakeholders is undertaken, including with local councillors and the MP;
3) Crewe Town Board delegates a decision on the amount of funding to be reprofiled across the remaining programme to the Chair and Vice Chair of Crewe Town Board, in consultation with the Towns Fund Sub Group (TFSG);
4) The TFSG reports back to Crewe Town Board on progress with these actions;
5) The TFSG continues to provide regular updates on cost and delivery risks to Crewe Town Board.
Whilst the board expressed their disappointment that the Lyceum Powerhouse project be recommended for removal from the programme they understood that it was a difficult situation that people were facing with inflationary costs. The board acknowledged the due diligence undertaken and transparency in the TFSG reaching its recommendation and appreciated the significant amount of work done around the design and business case. There was a collective view that it was hoped that the project team would continue to actively work on the project and that it may come forward at a later date and under alternative funding streams.
It was agreed that should the recommendations be agreed by the board the sub group would put a paper together at its next meeting which would be circulated to the Board. The paper would set out the criteria for any redistribution of funds to support the best outcomes for each project.
Dr Kieran Mullen MP stated that he disagreed with the process, with specific regard to timescales and the presentation of information, which meant that he felt he was not in a position to make an informed decision at today’s meeting, and therefore abstained from the vote.
RESOLVED (by majority) That:
1. Crewe Town Board would submit a request to the Department for Levelling Up, Housing and Communities (DLUCH), through Cheshire East Council as the accountable body, to withdraw the Lyceum Powerhouse project from its programme and the funding is reallocated across other projects;
2. Crewe Town Board agree to delegate the decision on the amount of funding to be reprofiled across the remaining programme to the Chair and Vice Chair of Crewe Town Board, in consultation with the Towns Fund Sub-Group (TFSG).