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MAIDSTONE BOROUGH COUNCIL
CABINET
10th September 2008
REPORT OF ASSISTANT DIRECTOR OF DEVELOPMENT AND COMMUNITY SERVICES
Report prepared by John Foster
1. Re-prioritisation of Growth Point funded expenditure
1.1 Issue for Decision
1.1.1 To consider projects that should be funded using the Council’s New Growth Point grant from Communities and Local Government (CLG).
1.2 Recommendation of the Assistant Director of Development and Community Services
1.2.1 That Cabinet endorse the projects included in the current Programme of Development listed in Appendix 1 and in this report and give delegated authority to the Deputy Chief Executive, in consultation with the Cabinet Member for Regeneration, to update the POD and resubmit it to CLG by the 1st October 2008.
1.2.2 That the revised project list detailed in Table 3 and Table 4 are approved to receive funding from the current Growth Point allocation and future funding requirements are considered as part of the budget strategy.
1.3 Reasons for Recommendation
1.4
Background
1.4.1 In December 2007 CLG announced grant awards to all New Growth Points and Growth Areas. Maidstone’s allocation is set out in Table 1 below.
Table 1
|
|
Allocation |
Indicative Allocation |
|
|
|
2008/09 |
2009/10 & 2010/11 |
Total |
|
Capital |
£1,616,144 |
£2,985,914 |
£4,602,059 |
|
Revenue |
£192,391 |
£285,947 |
£478,337 |
|
Total |
£1,808,535 |
£3,271,861 |
£5,080,396 |
.
1.4.2 CLG advise that Growth Point funding should be focused on delivering physical, social and cultural infrastructure projects to support the early delivery of housing as the main priority but also the creation of sustainable communities.
1.4.3 The grant does not have to be spent in the year it is allocated. Moreover CLG have stated that the grant is not ring fenced and not project specific. Which projects are funded is a matter to be decided locally. However it is necessary for the Council to submit a Programme of Development (POD) to CLG each year. This technical document sets out the vision and context for delivering growth, and includes a housing trajectory, investment plan, and a list of projects which are seen as key to implementing growth point aspirations and is significant in CLG funding decisions. A revised POD has to be submitted by the 1st October. Few changes are proposed since the POD was submitted a year ago and mainly feature updating project costs and timing. These projects, which have yet to be amended, are set out in Appendix 1.
1.4.4 On the 13th February 2008 Cabinet agreed a list of projects to receive Growth Point funding from the first year allocation, and these are listed in Table 2.
Table 2
|
Priority No. |
Project Name |
2008/9 capital |
2008/9 revenue |
|
1 |
Town Centre pedestrianisation and street scene enhancement |
£70,000 |
|
|
2 |
Langley Park Farm Park and Ride Site |
£1,546,144 |
|
|
3 |
Maidstone Integrated Water Strategy |
|
£40,000 |
|
4 |
Green Infrastructure Strategy |
|
£60,000 |
|
|
Economic Development Officer and staff to support infrastructure provision |
|
£92,391 |
|
Total |
|
£1,616,144 |
192,391 |
1.4.5 However since this decision the Cabinet has reconsidered these spending priorities, both capital and revenue.
1.4.6 Whilst Town Centre improvements and Park and Ride continue to be seen as key projects, the emphasis was changed to give greater priority to early implementation of some town centre enhancements, with Councils’ approach to Park and Ride being subject to a medium term review to ensure greater certainty on cost effective operation.
1.4.7 Moreover there is now a commitment to positively move forward key infrastructure projects which will allow implementation of the Core Strategy and realization of housing, environmental and regeneration ideals. Hence, in partnership with KCC, funding is committed to progressing preparatory work on All Saints Link Road and the South East Maidstone Strategic Link.
1.4.8 It is proposed that the £70,000 of design and consultation work already allocated to the Town Centre should lead immediately to implementation with a focus on the High Street. Consequently a capital allocation of £2 million has been added to this project. Clearly this is an estimate at this stage and actual costs will be clarified as the project develops through the design stages. It is estimated that £4million will be needed to complete the High Street and other sources of funding will need to be considered as part of the Council’s medium term financial strategy. New Growth Point funding previously allocated to fund the construction of the Langley Park Farm Park and Ride site will now be allocated to the Town Centre public realm improvement project. Following the review of Park and Ride any funding required for the development of the new site will be also considered as part of the medium term financial strategy.
1.4.9 New planning policy guidance has emphasized the need to produce a Green Infrastructure Strategy. However a great deal of work is already being carried out in this area within the Council. It is proposed therefore that only £10,000 needs to be allocated to this area of work.
1.4.10 Further to discussions with the Environment Agency, the water companies and building upon best practice elsewhere, it is still considered necessary to carrying out the Integrated Water Strategy. The Borough Council has been strongly advised by the Environment Agency to undertake this piece of work and this Agency reports to CLG on Maidstone’s New Growth Point progress.
1.4.11 A new staff structure is required to deliver growth. A decision on the number of staff required and skills needed is currently being considered.
1.4.12 It is also proposed this year to commission the design of the All Saints Link Road at a cost of approximately £200,000. £65,000 of which will be funded from existing MBC budgets and £25,000 from Kent County Council. When the implementation and costs are known and if there remains a business case for this project, it is the Council’s intention to progress with implementation. Estimated project costs at this stage exceed the available New Growth Point grant and therefore other sources of funding again will have to be identified and considered as part of the Council’s medium term Financial Strategy.
1.4.11 Maidstone Borough Council has been working with Kent County Council to create a traffic model for the Borough to enable the impact of growth to be understood on the road network. This work has recently been completed. The model has now made it clear that the South East Maidstone Strategic Link is essential if the South East Urban Extension proposed in the Core Strategy is to be deliverable. Ensuring that this road is deliverable requires design work to be carried out. A fee estimate of £300,000 has been supplied by Kent County Council to undertake a preliminary study to establish the feasibility of a proposed route, followed by a preliminary design to provide the necessary evidence base to support the Core Strategy. Growth Point will fund 50% of these costs spread over two years. Kent County Council has been asked to contribute the other 50%. Further costs will be incurred to achieve a detailed design and planning permission and can only be estimated at this stage. Estimated project costs at this stage exceed the available New Growth Point grant and therefore other sources of funding will have to be identified.
1.4.12 Tables 3 and 4 show a summary of the capital and revenue expenditure proposed.
Table 3 New Growth Point Capital Funding and Expenditure
|
Priority No. |
Project Name |
2008/9 |
2009-2011 |
Total Growth Point expenditure |
|
Total estimated Project costs |
|
1 |
Town Centre Public Realm project |
£70,000 |
2,000,000 |
£2,070,000 |
|
£4,000,000 |
|
2 |
All Saints Link Road and environs |
110,000 |
1,322,059 |
£1,432,059 |
|
£8,000,000 |
|
3 |
South East Maidstone Strategic Link (design and consultation element only) |
100,000 |
1,100,000 |
£1,100,000 |
|
£2,500,000 |
|
Total |
|
£180,000 |
£4,422,059 |
£4,602,059 |
|
£14,500,000 |
|
CLG funding profile |
|
£1,616,144 |
£2,985,914 |
£4,602,059 |
|
|
Table 4 New Growth Point Revenue funding and expenditure
|
Priority No. |
Project Name |
2008/9 |
2009 to 2011 |
Total all years |
|
|
Maidstone Integrated Water Strategy |
£40,000 |
- |
40,000 |
|
|
Green Infrastructure Strategy |
£10,000 |
- |
10,000 |
|
|
Staff to support growth and other delivery vehicle activity. |
£25,000 |
Staff structure to be confirmed
|
428,337 |
|
Total |
|
75,000 |
403,338 |
£478,337 |
|
CLG funding profile |
|
£192,391 |
£285,947 |
£478,337 |
1.5 Alternative Action and why not Recommended
1.5.1 The prioritisation of projects is necessary in the light of lower than expected grant award from CLG. Clear direction is needed to enable delivery of Council objectives and to demonstrate to CLG that Maidstone Borough Council has a coherent strategy for delivering growth. An alternative option could be to prioritise any of the other projects listed in Appendix 1. However this would not reflect the view of Cabinet.
1.6
Impact
on Corporate Objectives
1.6.1 The projects proposed in 2008-11 aim to support the achievement of the Council’s ambitions in respect of the delivery of an overall high quality of life to its citizens in line with the aim of creating sustainable communities.
1.7 Risk Management
|
Risk Description |
Likelihood |
Seriousness or Impact |
Mitigation Measures |
|
The Project Initiation Document identifies significant underground service obstacles resulting in higher than estimated capital costs for the Public Realm Improvement project |
C |
2 |
Early identification of underground services in the High Street should enable designs to come forward which are deliverable in budget.
|
|
A Growth Point team is needed to ensure growth is delivered, and delay in deciding a structure and officer roles could jeopardize delivery and future years Growth Point grant. |
C |
2 |
An early decision is needed on the delivery team structure. |
|
Capital resources are not identified to deliver and complete the projects listed in Table 3, potentially wasting grant funding on design and feasibility work. |
C |
3 |
Each project will achieve a desired objective with the existing identified funding, and each has clear break points that enable projects to be reviewed if resources are not available. |
(Likelihood: A = very high; B = high; C = significant; D = low; E = very low; F = almost impossible)
(Seriousness
or Impact: 1= catastrophic; 2 = critical; 3 = marginal; 4 = negligible)
1.7.1 In the event that anticipated funding for previously committed projects is not available it may be necessary to consider redirecting some growth point funding.
1.8 Other Implications
1.8.1
|
1. Financial
|
X |
|
2. Staffing
|
X |
|
3. Legal
|
X |
|
4. Social Inclusion
|
X |
|
5. Environmental/Sustainable Development
|
X |
|
6. Community Safety
|
|
|
7. Human Rights Act
|
|
|
8. Procurement
|
X |
1.8.2 Financial: The long term aim to improve the Town Centre public realm requires a master plan for the whole of the town centre. This will require a separate project and involve significant capital expenditure over a number of years to complete. If the All Saints Link road and associated environment improvements are to be implemented it will require significant capital expenditure not yet identified. Therefore this needs to be considered as part of the Council’s Medium Term Financial Strategy.
1.8.3 Staffing: The delivery of the growth programme will require a commitment across all Council services and possibly new ways of working to ensure successful implementation. Specific staffing requirements will need to be considered as part of the detailed projects.
1.8.4 Legal: Various legal agreements will be needed in the procurement process.
1.8.5 Social Inclusion: Ensuring that the benefits of growth are shared by parts of the community will be a priority.
1.8.6 Environmental/Sustainable Development: the creation of a sustainable community and more sustainable patterns of living are fundamental to Maidstone’s long term vision for the Borough, and will be reflected in all development proposals. Maintenance and enhancement of the Boroughs environment is an intrinsic part of the commitment to new development and infrastructure provision.
1.8.7 Procurement: There will be resource implications for the procurement team as there will be a need to procure services to deliver projects and the growth plan.
1.9 Background Documents
1.9.1
None
|
NO REPORT WILL BE ACCEPTED WITHOUT THIS BOX BEING COMPLETED
Is this a Key Decision? Yes No
If yes, when did it appear in the Forward Plan? September 2008
X
Reason for Urgency
|