Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
The Committee considered the report on the current position with the delivery of Phase 2 of the Royal Arcade development scheme in Crewe and the options for the next steps.
Phase 1 of the redevelopment, comprising a new bus station and multi storey car park, were well advance and expected to be completed in Spring 2024. Phase 2 of the Royal Arcade scheme, comprising the proposed commercial elements, had been expected to commence following the completion of Phase 1. At the time of the development agreement being entered into in October 2020, this had been viable. However since that point, viability had been seriously impacted by the Covid pandemic, post Covid-construction cost and supply issues and other economic influences.
Four options had been identified for Phase 2 – details and appraisal of these options were set out in paragraphs 8 and 10 of the report. It was recommended that Option 4 be taken forward whilst continuing to explore funding alternative opportunities as proposed in Option 1 and reviewing options for longer-term development of the site (Option 3).
RESOLVED (unanimously): That the Committee
1 note the assessment of the current viability challenges of Phase 2 of the Crewe town centre Royal Arcade redevelopment scheme (‘Phase 2’).
2 establish a ‘member reference group’ for the purpose of further consultation with elected members and delegate responsibility, where necessary, to the Executive Director Place and the Director of Governance and Compliance to:
a) advance plans for meanwhile uses (Option 4) and undertake further assessment of options for ‘meanwhile’ uses for the site, including commissioning feasibility studies, etc.
b) procure/appoint third parties and/or enter into lease agreement(s) with parties for an initial period of up to five years for the operation and occupation of the site, with a Council option to extend; and
c) utilise the remaining budget in the Council’s Medium Term Financial Strategy already allocated to the Crewe Town Centre Regeneration Programme, and/or other Town Fund grant allocations, for the purposes of implementing the preferred option(s), including the procurement/purchase of any works, equipment, infrastructure and professional services.
d) continue to explore alternative funding opportunities for the scheme as proposed (Option 1) and review options for the longer-term development of the site (Option 3), including undertaking public consultation and viability assessment.
subject to the Budget Policy & Framework Procedure Rules and Finance Procedure Rules, set out in the Council’s Constitution; and
3 Delegate responsibility to the Executive Director Place and the Director of Governance and Compliance to, where necessary and at the appropriate time, terminate the Council’s development agreement with Peveril Securities Ltd and to take any decisions necessary related to this.
Publication date: 20/11/2023
Date of decision: 14/11/2023
Decided at meeting: 14/11/2023 - Economy and Growth Committee
Effective from: 25/11/2023