OFFICIAL Item 5 City Council 3rd December 2020 City Administration Committee

Report by Councillor Susan Aitken, Leader of the Council and City Convener for Inclusive Economic Growth

Contact: Carol Connolly Ext: 6000

CITY DEAL CLYDE WATERFRONT AND WEST END INNOVATION QUARTER:

Purpose of Report:

To seek committee approval to award up to £1.2M of City Deal funding, including a grant to Barclays to support the development of the Tradeston area. The proposals include improvements to Tradeston Bridge and to existing public realm at Tradeston Quay. This report updates Members on the progress of the ‘Tradeston’ project and to seek approval to progress negotiations with the Third Parties concerned.

Recommendations:

It is recommended that Committee:

(1) approves City Deal funding of up to £1.2M to support the development of the Tradeston area, including a grant award to Barclays to support the renewal;

(2) authorise the Head of City Deal, DRS, on behalf of Glasgow City Council, to progress with commercial negotiations with the Barclays, to conclude terms of a Formal Agreement;

(3) authorise the Head of City Deal, DRS, on behalf of Glasgow City Council, to proceed on the delivery of the ‘Tradeston’ projects; and

(4) instruct the Chief Executive to submit a further report to City Administration Committee on the conclusion of the Formal Agreement.

Ward No(s): 5 Citywide:

Local member(s) advised: Yes X No consulted: Yes No X

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1.0 Background 1.1 The City Deal: Clyde Waterfront and West End Innovation Quarter (CWWEIQ) project shall deliver £113.9M capital investment to the area and shall regenerate the river corridor as a desirable urban quarter that attracts jobs, investment and contributes to regional economic growth.

1.2 Within the CWWEIQ budget, investment of approximately £50M has been allocated to address the ‘Access and Integrity of the Waterfront’. This funding will be used to unlock development potential at the city’s river edge, by addressing structural integrity, enhancing connectivity, and improving place quality and vibrancy at the river edge.

1.3 The Council is the owner of approximately 3,400 linear metres of quay wall within the CWWEIQ project area including virtually all of the north bank of the river between and the as well as the area adjoining the Riverside Museum. On the south bank the Council’s ownership extends from Glasgow Green to Tradeston.

1.4 Substantial sections of quay wall on both banks of the Clyde are not in Council ownership. The Council therefore considered a grant scheme to enable investment in quay walls areas that are owned by third parties within the project area, which extends from the Albert Bridge to the Riverside Museum.

1.5 In June 2018 the Council invited Expressions of Interest from third parties seeking funding for quay wall works or associated public realm works. Applicants were invited to provide details of their proposed project, outline how funded works would contribute to delivery of City Deal objectives and unlock opportunities of strategic economic importance.

1.6 On 27 September 2018 City Administration Committee approved a number projects that could be progressed to a grant application.

1.7 This report relates to the Expression of Interest (EOI) submitted by Drum Property Group, who sought investment up to the value of £1M towards public realm improvements in the Tradeston area.

2.0 Tradeston

2.1 Tradeston is located on the south-bank of the river immediately opposite the International Financial Services District (IFSD). Although located opposite the City Centre, Tradeston has suffered greatly from de-industrialisation resulting in a decline in its economic base and population loss.

2.2 The proposed City Deal investment will support a locale of regional economic importance via enhancement of place quality and connectivity at the City Centre waterfront.

2.3 Significantly, it is strategically planned to complement the 3.7 Hectare development site by Drum Property Group; a major mixed use development creating seven urban blocks. Assembling ‘Grade A’ office floor-space,

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residential units, a mix of local amenities and landscaped public spaces in a new urban setting.

https://www.glasgow.gov.uk/article/22916/Waterfront-site-in-Glasgow-to-be- sold-by-council-for-major-regeneration-project

Drum Development - Planning Permission in Principle

2.4 Principally, the new development includes the flagship Northern European headquarters for Barclays, known as ‘Barclays Glasgow Campus’. The 470,000 sq. ft. of prime, Grade A office space will support around 2,500 additional jobs, almost doubling Barclays current workforce in and making the bank one of Glasgow’s biggest commercial employers. Barclays also have an option to extend their campus by an additional 210,000 sq. ft., in a second phase of development at the site.

2.5 Overall, the Barclays tenure spans across four of the aforementioned development plots, with the first two office buildings (and separate crèche facility) due for completion and occupancy in 2021.

2.4 The private investment by Drum Property Group and Barclays is transforming the future prospects of the Tradeston locale. The City Deal funding will support this, help leverage additional investment and development activity into Glasgow and the City Region. The economic assessment within the City Deal business case for the waterfront highlights an overall economic output of £1,474.2M over a 25 year period, of which, the development at Tradeston forms a significant part.

2.5 Since the EOI approval in 2018, Council officers have entered into discussions with Drum Property Group and Barclays to develop the projects. Barclays, as anchor tenant taking occupancy in 2021, now lead on the grant application and the delivery of the projects, in partnership with the Council.

3.0 Project Interventions and Objectives

3.1 The project aims to improve place quality at the Tradeston waterfront, adjacent to the campus and address quality and safety on key routes to the campus. In this regard, it is the intention to deliver a programme of three interventions, to be led by the Council or by Barclays.

3.2 The Proposed Projects are:

i. Tradeston Bridge: Refurbishment of the existing bridge fabric and the installation of enhanced feature and project lighting; to celebrate the landmark route between the city centre and the Tradeston locale.

The Tradeston Bridge project has been identified as a priority of the three interventions, to be delivered timeously ahead of the opening of the new

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Barclays Glasgow Campus and the associated increased footfall along this existing river crossing.

The project shall be managed by Glasgow City Council and funded solely by City Deal investment. All works will be progressed under a single contract, scheduled between Early – Mid 2021.

ii. Tradeston Quay: Public Realm enhancement along the promenade to complement the changing urban landscape on the south bank.

It is intended that the project shall be delivered by Barclays, supported by City Deal funding identified in the Formal Agreement with the Council, which shall be reported to Committee at a future date.

iii. Tradeston Links (Railway Underpasses): Installation of enhanced feature lighting at three nearby railway underpasses which shall promote safe, legible routes for pedestrians and cyclists between local neighbourhoods and transport nodes.

The most appropriate route for project delivery shall be agreed between the Council and Barclays, in consultation with Network Rail as key stakeholder, and included as part of the Formal Agreement.

4.0 Funding

4.1 In scoping the projects outlined at Section 3.0 of this report it is expected that costs are likely to exceed the value of the City Deal grant allocation.

4.2 Barclays are committed to the broader development of the Tradeston area and wish to cement their role as significant land owner, employer and stakeholder in the Tradeston locale and the City Region.

4.3 Therefore, to support the projects, it is proposed to set the City Deal investment at, up to, a maximum of £1.2M. Barclays propose to match fund the City Deal investment by a further £1M of which brings the total funding available for this programme of interventions, to £2.2M.

4.4 A Full Business Case for the investment requires to be submitted in due course to the Glasgow City Region: City Deal Chief Executives Group for approval.

4.5 City Deal funding will be released on the basis of agreed project milestones. Monitoring and evaluation will also ensure that the project delivers the additional objectives in relation to GVA and inclusive economic growth.

5.0 Legal Agreements

5.1 The provision of funding will be subject to the parties entering into a detailed, legally binding agreement (Formal Agreement). By entering into the Formal

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Agreement, the parties will undertake to collaborate to achieve delivery of the ‘Proposed Projects’ (as set out above) and meet the City Deal Project Objectives. The Formal Agreement will set out each party’s level of financial commitment, rights, obligations and agreed deliverables in relation the ‘Proposed Projects’.

5.2 The terms of the Formal Agreement will be subject to Council approval.

5.3 In the interim, a Memorandum of Understanding (MoU) has established a statement of intent between the parties to fund, develop and deliver a programme of interventions and to enter into the Formal Agreement.

6.0 Policy and Resource Implications

Resource Implications:

Financial: The capital investment proposed in this report will be met through funds secured via Glasgow City Region City Deal and a Formal Agreement with a Third Party

Legal: Commercial negotiations will be subject to any legal advice from the Director of Governance and Solicitor to the Council, with specialist support procured as necessary.

Personnel: Works required to progress the matters outlined in this report will be addressed by existing Council staff resource with specialist support procured as necessary.

Procurement: All works and services will be procured in line with existing standing orders.

Council Strategic Plan: A Thriving Economy 2. Deliver the Glasgow City Region City Deal, supported by the Regional Economic Strategy 2017 to 2035 and its Action Plan.

3. Ensure the outcomes of these strategies and the City Deal benefit the city and the people of Glasgow by:

Regenerating key areas of the city such as Canal and North East (Sighthill), Collegelands and Barras, the West End Innovation Quarter and Govan/City Centre and looking at other areas for development.

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A Vibrant City 19. Develop a Historic Glasgow strategy and work with city region partners and others on the continued transformation of the and waterfront.

Equality and Socio- Economic Impacts:

Does the proposal No specific outcome. support the Council’s Equality Outcomes 2017-21

What are the No significant impact potential equality impacts as a result of this report?

Please highlight if No specific outcome. the policy/proposal will help address socio economic disadvantage.

Sustainability Impacts:

Environmental: Investment outlined in this report improve the quality of the public spaces on the river edge and encourage sustainable travel options by enhancing conditions for walking and cycling.

Social, including Investment outlined in this report wall will opportunities under improve the city centre waterfront and help Article 20 of the activate the river edge. European Public Procurement Directive:

Economic: Investment at this location will support the delivery of a site of regional economic importance on the south-bank of the river and will address barriers to economic growth within the river corridor.

Privacy and Data No data protection impacts identified. Protection impacts:

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7.0 Recommendations

7.1 It is recommended that Committee:

(1) approves City Deal funding of up to £1.2M to support the development of the Tradeston area, including a grant award to Barclays to support the renewal;

(2) authorise the Head of City Deal, DRS, on behalf of Glasgow City Council, to progress with commercial negotiations with the Barclays, to conclude terms of a Formal Agreement;

(3) authorise the Head of City Deal, DRS, on behalf of Glasgow City Council, to proceed on the delivery of the ‘Tradeston’ project; and

(4) instruct the Chief Executive of Glasgow City Council to submit a further report to City Administration Committee on the conclusion of the Formal Agreement.

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