Manchester City Council Item 5 Communities and Neighbourhoods Overview and Scrutiny Committee 7 February 2012

Manchester City Council Report for Resolution

Report to: Communities and Neighbourhoods Overview and Scrutiny Committee – 7 February 2012

Subject: First Street Cultural Facility

Report of: Deputy Chief Executive, Neighbourhoods

Summary

To provide an update on the progress made on the development of the First Street Cultural Facility project.

Recommendations

1. Note the progress that has been made in developing the design for the Cultural Facility to incorporate the functional requirements of a merged Cornerhouse and Library Theatre Company (LTC).

2. Note the intention for the merger of LTC and Cornerhouse to be completed by 31st March 2012, and will be the subject of a report to Personnel Sub-Committee in February.

3. Note that a Planning Application is being submitted before the end of January 2012, to be determined in April 2012.

Wards Affected:

All Wards

Contact Officers:

Name: Vicky Rosin Position: Deputy Chief Executive, Neighbourhoods Telephone: 0161 234 4051 E-mail: [email protected]

Name: Fran Toms Position: Head of Culture Telephone: 0161 234 4256 E-mail: [email protected]

7 Manchester City Council Item 5 Communities and Neighbourhoods Overview and Scrutiny Committee 7 February 2012

Background documents (available for public inspection):

The following documents disclose important facts on which the report is based and have been relied upon in preparing the report. Copies of the background documents are available up to 4 years after the date of the meeting. If you would like a copy please contact one of the contact officers above.

Report to Executive Committee, 24th November 2010 - First Street: Proposed Cultural Facility

Relocation Options Appraisal for Library Theatre Company June 2009 Ekosgen

8 Manchester City Council Item 5 Communities and Neighbourhoods Overview and Scrutiny Committee 7 February 2012

1.0 Introduction

1.1 On the 24th November 2010, the Executive Committee agreed to fund the development of a new cultural centre. This exciting new building will become home to Cornerhouse and The Library Theatre Company, two of Manchester’s key cultural organisations, who will be merging in April 2012 to create an entirely new, production based multi-artform organisation. The new facility will be constructed on First Street, to the North of the site closest to the railway arches.

2.0 Design and Development Progress

2.1 GMAC is currently working with consultees to refine the outline artistic proposition for the merged organisation that will operate from this new building. By 2014 it will be an international contemporary multi-artform organisation, producing and presenting excellent world-class work, an engine- room for creative adventure, artistic excellence, and audience engagement for the people of Manchester, the North and the UK. GMAC will play a leading national role in innovation, risk taking and digital audience engagement through integrated, interdisciplinary and open practice working with visual art, theatre, art publications and artists’ moving-image/film and will be recognised as entrepreneurial and a model collaborator.

2.2 Creating an under one roof ‘art factory’ will provide a unique opportunity in the UK to develop creative practice across and within the wide range of artforms it covers. Commissioning new work will bring together visual artists with theatre practitioners, filmmakers with musicians and dramatists, writers with visual artists etc. Cornerhouse brings high level expertise and a track record in digital content production and distribution that would play a crucial role in such new relationships with artists and also in audience engagement. This project creates an opportunity to create a centre of excellence for the creation and distribution of audience focused digital content for the visual and performing arts. This will establish Manchester as a leading producer of cross platform, cross artform digital work and as a place that develops artists, producers and technicians capable of working with emerging practice.

2.3 By creating this venue for GMAC the outcomes anticipated are:

 increasing attendance - by creating a high profile open and welcoming destination and high quality environment to see art  increasing engagement – by creating purpose built, high quality engagement spaces that support the organisation’s commitment to innovative engagement work  improving high quality artistic output – by creating high quality production facilities and a highly creative environment building on our pioneering open approach  improve business sustainability – by creating additional trading capacity to maximise income generation  increasing efficiency – by creating a building that is efficient to staff and that minimises utilities consumption

9 Manchester City Council Item 5 Communities and Neighbourhoods Overview and Scrutiny Committee 7 February 2012

 increasing digital engagement – by creating a building that is designed to be digitally enabled from the outset to enable national digital networking

2.4 It is proposed that the new venue will include a 500 seat drama theatre, 150 seat flexible second theatre space, 550m2 double height gallery space, 5 cinema screens, education spaces, digital production and broadcast facilities, café bar, restaurant, offices and other ancillary spaces consistent with a production centre.

2.5 Following an OJEU Notice in February 2011, a full design team, led by Mecanoo Architects, has been appointed. The team also includes two practices with presences in Manchester - Buro Happold, who are multi- disciplinary engineers, and quantity surveyors and design manager Davis Langdon (AECOM), plus Dutch theatre planners Theatreadvies bv. Wates Construction has also been appointed via a mini competition (from the North West Construction Hub High Value Framework) as the Constructor partner for the new cultural facility. A full delivery team is now in place to deliver the new building.

2.6 A functional brief for the new facility of approximately 6,500 sq m has been agreed and the design progressed to RIBA Stage C.

2.7 A communication strategy group has been established, with representation from LTC, MCC and ASK. Cornerhouse are in the process of recruiting an agency to develop a branding strategy for the new organisation in the context of hoarding strategy for the whole of First Street North. This will lead to the naming of the new facility in September 2012, following wide consultation.

3.0 Library Theatre Development

3.1 In 2007, MCC commissioned a report which explored the most beneficial governance arrangements for LTC. In summary, the report concluded that there would be significant benefits derived for both MCC and LTC in transferring the company from direct local authority control to charitable trust status. The principal benefits being the capacity that LTC would have as an independent charity to leverage external funding and the opportunity to develop a distinct brand and shape education and community provision in the City. The principle was agreed that pursuing alternative governance arrangements would be beneficial to MCC and LTC, but that the appropriate time to proceed with this would depend on the permanent home to be identified for the company following its vacation from Central Library.

3.2 Members will be aware that following a number of feasibility studies into alternative homes for LTC, several sites in the City were considered and for various reasons were discounted. When the opportunity arose for LTC to relocate to a new home on the First St site, in partnership with Cornerhouse, this presented the opportunity to revisit the discussion around governance.

3.3 As the Cornerhouse operates via an existing charitable trust; Greater Manchester Arts Centre Ltd (GMAC), the option was identified for LTC to

10 Manchester City Council Item 5 Communities and Neighbourhoods Overview and Scrutiny Committee 7 February 2012

transfer out of the Council into GMAC. City Solicitors, along with GMAC’s legal advisors, have been working through the practical issues in order to execute this transfer, which would allow the companies to rebrand as a single organisation in the new First St facility.

4. 0 Update on the Merger process

4.1 The LTC moved out of the Central Library basement in June 2009 and is currently presenting from the Lowry Quays Theatre three times a year and continuing to rehearse at the Zion Centre. In order to aid the smooth transition of the two organisations, LTC staff have now relocated to Cornerhouse offices. This co-location is key to both organisations understanding the working processes of each other in order to be able to effectively merge by April 1st 2012.

4.2 The proposed timeline for the LTC to merge with Cornerhouse would be for the transfer (in terms of assets, funding, and employees) to completed by 1st April 2012. In order for the transfer to complete within this timescale, consultation would need to commence as soon as possible with LTC staff who could potentially be affected under TUPE regulations. This will be reported to Personnel Sub-Committee in February 2012.

4.3 A Project Board has been established to oversee the Merger, and works alongside the Steering Group set up to deliver the capital project. The Merger Project Board is chaired by the Director of Cornerhouse, with representatives from LTC and Cornerhouse. The Board reports to the GMAC Board and the Cultural Facility Steering Group which is chaired by the Deputy Chief Executive, Neighbourhoods.

4.4 Workstreams have been established to progress the Merger, and these workstreams includes Legal/Governance, Artistic/Education Strategy, Finance/Business Planning, People, Audiences, Marketing / Communication / Operations. Each workstream has developed a workplan which identifies the key Milestones.

4.5 Colleagues from Cornerhouse and LTC have undertaken research visits to theatres, galleries, cinemas and arts centres in the UK, USA, Canada and Holland. The research visits proved very valuable and highlight the fact that the GMAC project is a unique project that has not been replicated anywhere else. The overall trips were funded from a revenue grant secured from the Arts Council England (ACE).

4.6 Critical to the success of the merger is the re-organisation of GMAC Board to reflect the nature of the organisation. GMAC are now in the process of recruiting a new Chair of Trustees for the new organisation who will work with Cornerhouse CEO, senior management teams of both organisations and key stakeholders to review the skills needs of the GMAC Board given the wider remit. It will then re-new its membership whilst maintaining the high quality of governance as acknowledged by the Charities Commission. Appointment of the chair is due to be confirmed in February.

11 Manchester City Council Item 5 Communities and Neighbourhoods Overview and Scrutiny Committee 7 February 2012

4.7 .As part of the previous approval of the scheme in November 2010, a business model was developed, following analysis of the current LTC and Cornerhouse operating models, on the basis of a mature steady state business. This has been supported by preliminary audience research to look at trading assumptions, and is being vigorously examined to ensure the design of the building reflects the importance of delivering spaces that will optimise earned income.

5.0 Next Steps

5.1 It is expected that RIBA Stage C design will be completed and signed off in early February 2012. The project team continue to work to develop the design of the building in line with the functional space requirements to ensure that the scheme is deliverable within the capital funding available.

5.2 All schemes within the First Street North will submit a Planning Application at the end of January in order to ensure a start on site towards the end of the year. It is essential that all components including the hotels, multi-storey car park, public realm and retail units are delivered to a similar timescale in order to create a new vibrant destination for this part of the City Centre.

5.3 A public consultation strategy has been agreed and a successful exhibition of the proposals for the cultural facility and the rest of FSN development plot was showcased at an event held on the 11th – 13th January. A good attendance was recorded from the event. A separate design presentation was given to CABE (Design Council) on the 10th January 2012 and very positive feedback was received.

5.4 Detailed design will commence in February and it is anticipated that enabling works will start on site in October 2012 with main contract commencing in January 2013. It is anticipated that the cultural facility will open in the Summer 2014.

5.5 The future of the existing Cornerhouse site is subject to a separate development plan, and is currently being looked at by Corridor Manchester as part of the wider regeneration plans for the Oxford Road Corridor.

12