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MAIDSTONE BOROUGH COUNCIL
CABINET
22 DECEMBER 2010
REPORT OF THE ASSISTANT DIRECTOR OF ENVIRONMENT AND REGULATORY SERVICES
Report prepared by Jason Taylor
1. MOTE PARK REGENERATION PROJECT
1.1 Issue for Decision
1.1.1 To consider the approval of financial issues regarding the Mote Park Regeneration Project.
1.2
Recommendation
of the Assistant Director of Environment and Regulatory Services
1.2.1
That
Cabinet approves the allocation of capital funds, £524,802, to enable the implementation
of the Mote Park Regeneration project.
1.3 Reasons for Recommendation
1.3.1
The
Council applied for funding towards the Mote Park Regeneration Project to the
Parks for People Scheme, which is jointly administered by the National Heritage
Memorial Fund and the Big Lottery Fund (HLF), in September 2009. The Stage 1
application was approved and funding provided to progress to the detailed stage
procedure.
1.3.2
After
significant consultation with local people, Friends of Mote Park and other
stakeholders the Stage 2 application was produced and submitted in June 2010.
This Stage 2 bid was assessed by the HLF and on 30th September 2010 a grant of
£1, 867,000 was awarded to the Council towards the total cost of £2,505,752 for
the restoration and site wide improvements in Mote Park.
1.3.3
Initial
forestry works are programmed to begin in Mote Park in January 2011, with the
main tendered works beginning in April 2011, taking around 12 months to
complete.
1.3.4
The
details of how this project will be funded are as follows:
Heritage Lottery Funding £ 1,867,000
Section 106 Funding £ 100,000
Volunteer Funding (in kind) £ 13,950
MBC Capital Requirement £ 524,802
Total Phase 3 Project Cost £2,505,752
1.3.5
Section
106 funding to the value of £100,000 will come from developer contributions
that qualify to be used towards the Mote Park Regeneration Project, over the
next 15 months. The allocation of these funds to this project would need to be
approved by the Cabinet Member for Leisure and Culture.
1.3.6
There
will be an increase in revenue funding for Mote Park over the next 10 years totaling
£40,500. This is a result of the mechanical sweeping of new paths and increased
tree maintenance work and will be funded from within existing parks budgets.
1.3.7
The
detailed offer from the HLF requires that the Council accept the offer within
21 days of receipt. The contract was signed by the Cabinet Member for Leisure
and Culture on 15th November 2010. The cabinet member has also
agreed, subject to Cabinet’s agreement to release the funding, to the preparation
and issuing of tenders for the works associated with the scheme. The results of
the tenders will be reported to the Cabinet Member in due course.
1.3.8
However,
this offer is different to previous HLF grants in that it requires the Council
to confirm that its financial contribution, throughout the term of the project,
is available within 28 days of the signing of the agreement and hence, the
request to Cabinet to release the capital funding to implement the scheme. This
confirmation needs to be received by HLF before permission to start work on the
project will be granted.
1.3.9 Following a press release by the HLF on 4th November 2010, entitled “Heritage Lottery Fund brings in new measures to help applicants in tough times”, officers met with the HLF officers for further guidance and to discuss the possibility of reducing the Council’s match funding requirement. The HLF confirmed that it would require a new application which would have to be entirely re-evaluated in competition with other new applications. Following this meeting and further discussion with the HLF officers, it is considered that the risk of losing the £1.86million grant offered by HLF, if this course of action is pursued, is too high.
1.3.10 By agreement the HLF has not signed and released the contact whilst the further discussions have taken place. However it is now appropriate for the contract to be completed and the capital monies released.
1.4 Alternative Action and why not Recommended
1.4.1 Alternative action could be to not release the capital funding to the Mote Park Regeneration Project, this is not recommended as there is high possibility that it would result in the HLF withdrawing their offer and the project would be unable to progress.
1.4.2 It would be possible to make an application for further grant following changes to the HLF funding criteria. However this process could put the whole project at risk and is not considered appropriate.
1.5 Impact on Corporate Objectives
1.5.1
Key
objectives as published in the Maidstone Borough Council Strategic Plan 2009-12
which the regeneration of Mote Park will have a positive impact on include:
1.5.2
“Enhance
Biodiversity in Maidstone and improve the natural environment”
1.5.3
“Improve
parks and green spaces through the green spaces strategy action plan and play
area strategy”
1.5.4
“increase
the number of people (especially young people) involved in positive activities,
particularly in disadvantaged areas”
1.5.5
“Promote
effective partnerships working with the voluntary and community sectors”
1.5.6
“Promote
equal opportunities. Encourage greater community involvement and improve social
inclusion in the borough”
1.6
Risk
Management
1.6.1
If
capital funding is not approved for the project there is a very high risk that
the HLF will withdraw their offer of funding and the project could not progress.
1.6.2
If
the Council was to delay at this late stage there is a risk that this could
greatly affect the chances of future Lottery funding and impact on the
reputation of the Council.
1.6.3
Allocation
of Section 106 Developer Contributions towards the project would need to be
approved by The Cabinet Member for Leisure and Culture by way of a Cabinet
Member Report. A decision could be made to allocate the available funds to
other green space initiatives but Mote Park is the flagship Park in the borough
and is identified as a Corporate Objective in the Strategic Plan 2009-12.
1.6.4
If
Cabinet were to approve the release of funding for this scheme it will not,
alone, risk the viability of the capital programme but it will place
an extra burden upon the remaining uncommitted schemes in the programme. This
would include future private sector housing grant aid and the High Street
regeneration project.
1.6.5 In conclusion, although releasing £524,802 towards the Mote Park Regeneration Project will increase the pressure on the council’s overall capital programme, it is believed that the risk of entering into this agreement is very small.
1.7
Other
Implications
1.7.1
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1. Financial
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X |
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2. Staffing
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X |
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3. Legal
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X |
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4. Equality Impact Needs Assessment
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5. Environmental/Sustainable Development
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6. Community Safety
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7. Human Rights Act
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8. Procurement
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X |
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9. Asset Management
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1.7.2
Financial
-
The council’s contribution from the Capital Programme to the overall project
implementation cost of £2,505,752 is £524,802 (21%) and therefore a significant
external contribution has been secured. However, these are challenging
financial times and the capital contribution will need to be funded from the
Council’s overall capital programme.
1.7.3
In
order to complete the currently approved capital programme for 2010/11 to
2012/13 the Council will require additional capital receipts and/or prudential
borrowing. There is a need for resources totalling £7.4 million over
the years 2011/12 and 2012/13 that are not currently held by the Council.
1.7.4 Cabinet, in their capital planning, have assumed £3.8 million will be received from asset sales leaving a requirement for a further £3.7 million. Additional asset sales or prudential borrowing will be required to provide the required £3.7 million. Alternatively the programme could be reduced to the level of available funding by deleting or deferring uncommitted schemes.
1.7.5
Staffing – Two
posts (Mote Park Project Officer and Mote Park Audience Development Officer)
are funded by the project.
1.7.6
Legal
– Legal
Services would be required to review the chosen tender and to produce a
contract.
1.7.7 Procurement – The tender documentation is currently being prepared and agreed with the Procurement section. Returned tenders would need to be assessed when returned.
1.8
Relevant
Documents
1.8.1 Appendices
None
1.8.2
Background
Documents
Record of Cabinet Decision “Mote Park Regeneration Scheme and its funding through a lottery bid” - 12th September 2008
The Mote Park
Improvement Project Stage 1 and 2 submissions to the HLF Parks for People
Scheme.
Report to Cabinet
Member for Leisure and Culture regarding the agreement to sign the HLF
agreement.
Maidstone Borough
Council Strategic Plan 2009-12.
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IS THIS A KEY DECISION REPORT?
Yes No
If yes, when did it first appear in the Forward Plan?
11th October 2010 …………………………………………………………………………………………………………………………..
This is a Key
Decision because: The Council contribution will be over £250,000. The cost to
the council is actually £525,074 of the overall project cost of 2,505,752
…………………………………………………………………………………………………………………………….
Wards/Parishes affected: Shepway North
……………………………………………………………………………………………………………………………..
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How to Comment Should you have any comments on the issue that is
being considered please contact either the relevant Officer or the Member
of the Executive who will be taking the decision. Cllr Richard Ash Cabinet
Member for Leisure and Culture Telephone:
01622 730151 E-mail:
RichardAsh@maidstone.gov.uk Jason Taylor Parks
and Leisure Manager Telephone:
01622 602753 E-mail:
JasonTaylor@maidstone.gov.uk