GREATER & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

Present: Mike Lyons (ML) – Connectivity Director, GBSLEP (Interim Chair) Michelle Nutt (MN) – Assistant Area Director, WM&SW, CLGU Louise Brook-Smith (LBS) – Development & Strategic Planning Advisor, Arcadis Alison Jarrett (AJ) – Assistant Director, Development and Commercial, Birmingham Patrick Hanlon (PH) – GBSLEP Representative City Council, (Accountable Body Representative) Ian Miller (IM) – Chief Executive, Wyre Forest District Council Phil Edwards (PE) – Assistant Director, Perry Wardle (PW) – Assistant Director Economy & Infrastructure, Solihull Apologies: Metropolitan Borough Council Paul Faulkner (PF) – Chief Executive, Greater Birmingham Chambers of Commerce Roger Mendonça (RM) – Chief Operating Officer, Growth Company Tony McGovern (TM) – Managing Director, Cannock Chase District Council Mary Morrisey (MM) – Director Economy & Infrastructure, Solihull Metropolitan Borough Council

In Attendance: Kerry Billington (KB) – Consultant Programme Manager, GBSLEP Ed Watson (EW) – Interim Chief Executive, GBSLEP Christian Cadwallader (CC) – Consultant Programme Manager, GBSLEP Kate Shaw (KS) – Chief Operating Officer, GBSLEP Krystalla Michael (KrM) – Head of PMO, GBSLEP Saboor Arif (SA) – Project Champion, GBSLEP Greg Raybould (GR) – Project Support Officer, GBSLEP

Guest Attendance: Lesley Holt (LH)- Head of Communications and Stakeholder Engagement, West Richard Brown (RB) – Programme Consultant, Smithfield, Birmingham City Council Midlands 5G (Item 4 only) (Item 11a only) Kevin Hegerty (KH) – 5G Application Accelerator Lead, West Midlands 5G (Item 4 only) Suchvinder Naga (SN) – Programme Consultant, Smithfield, Birmingham City Michel Sabatier (MS) – Business Development Director, West Midlands 5G (Item 4 only) Council (Item 11a only)

Minutes and Decisions: # Agenda Item Minutes Decisions & Actions

The Chair welcomed everyone to the meeting of the Programme Delivery Board (PDB). Welcome and 1 Circulate Investment Paper to absent Board apologies Apologies were noted as above. Members for written approval, as investment decisions not quorate.

Page 1 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

# Agenda Item Minutes Decisions & Actions

It was noted that, in accordance with the Assurance Framework, three private sector representatives were required for investment decisions to be quorate. For the investment decisions on Creative Content Hub and Curzon Station Public Realm Change Request quorate decisions would not be possible due to declared interests. Therefore, these two investment decisions will be subject to a written communication of approval from the absentee PDB members acting as private sector representatives.

Post Meeting Note: Approvals were submitted from Paul Faulkner and Roger Mendonça.

No declarations of interest. 2 Declarations of Interest

Decisions The decisions and actions of the PDB meeting that took place on 03 February 3 and actions 2021 were agreed. of previous meeting

Presentation The team from West Midlands 5G (WM5G) delivered a presentation covering the acceleration programme roll out, progress and success to date and future opportunities for collaboration going forward. The presentation was well received by the Board and opened for questions. 4 The presenters were questioned regarding work and relationship with the West Midlands Growth Company going forward. It was noted that with the government’s £250 million 5G Supply Chain Diversification Strategy, there are plenty of opportunities to attract manufacturers and investment into the region. The chair wished WM5G luck for the forthcoming year and noted that there would be significant interest in 5G going forward. Page 2 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

# Agenda Item Minutes Decisions & Actions

LGF The LGF programme update was presented to PDB, there was no major GBSLEP PDB Members: Programme changes in performance from the 03 February update. 1. Noted the Local Growth Fund (LGF) 2020-21 Update It was noted a 20/21 Q1 actual adjustment had been made to take account of an latest spend and remaining financial profile adjustment agreed with BCC in the Unlocking Stalled Housing programme. compared to the projected spend target; and Outputs are still on track to be achieved in full and there are no further risks of 5 major delays to other projects going beyond the 31 March deadline apart from 2. Noted the proposed use of ‘freedoms and Public Realm. flexibilities’ available to BCC to manage GBSLEP budgets between capital programmes to ensure It was noted there are pictures in the papers to highlight the progress of various projects to members. full spend of the LGF programme award by the 31 March 2021.

Getting An update was provided on the Getting Building Fund and the two GBSLEP GBSLEP PDB Members noted: Building Fund projects Precision Health Technology Accelerator and University Station. It was Update noted both projects were very close to having both grant agreements signed. 1. Noted the progress of the Getting Building Projects were progressing with Local Growth Fund spend. Fund Programme and financial performance for

2020/21 to date; and Underspend on the PHTA project will be managed using the programmes 6 ‘freedom and flexibilities’ granted to the Accountable Body, to ensure that the 2. Noted the progress of the projects allocated to grant awarded to 31 March 2021 will be paid by that date. the Getting Building Fund (GBF) against the GBSLEP allocation. It was noted by PDB that, there may be some scrutiny going forward given the timeframes that these projects were given by central government.

Page 3 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

# Agenda Item Minutes Decisions & Actions

Progress was presented to PDB on the performance of the DfT returned funding. LGF GBSLEP PDB Members: It was noted the LEP had received formal notification from BEIS on the rollover Additional of £3.556 million into the first quarter of 21/22. The status of grant agreements 1. Noted progress of the £21.851m Local Growth Funding (DfT) were referred to table 1, to give PDB visibility of where the projects are in the Fund (Department for Transport Returned) grant Update process. A further table was also noted which gives an indication on the projects funding and approval of projects; and

requesting to carry money over into 21/22, however this has yet to be finalised. 2. Noted the approval by BEIS to roll over circa. £3.56m of the funding to 30 June 2021 and the PDB noted that only £2.36 million had been claimed to date, with circa £15 mitigation measures being implemented by the million to spend by the end of the month. PDB asked about the confidence levels Programme Delivery Team. in delivery and if there was a plan B for the spend. It was noted in response, the

7 team are expecting this month claims for most of the £5 million from the Road Scheme and claims of £2.5 million for the Enterprise Wharf scheme which accounts for nearly half of the amount. It was further noted that the LEP are in constant contact with each of the project sponsors and doing everything they can to push projects through the process. It was also highlighted the LEP have a further two weeks past the 31 March deadline to get Q4 claims to BCC.

It was noted that the plan B is to utilise the use of the programme freedoms and flexibilities granted to the Accountable Body, but the LEP are hopeful this will not

be required, or if so to be kept to a minimum

Levelling Up The budget announcement today (03 March) will give the LEP far more clarity on 8 Fund what funding will become available and what the process will look like to access this funding and any requirements that may bring, alongside timescales.

Page 4 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

# Agenda Item Minutes Decisions & Actions

Enterprise The EZ Programme status and project updates was presented to PDB. It was The GBSLEP PDB Members: noted that the initial business case (IBC) for Paradise Phase Three had been Zone Update 1. Noted the Enterprise Zone Programme Project received and was undergoing Independent Technical Evaluation, with an FBC Q3 Updates; and due the end of April or early May 2021. A change request for additional funding for Smithfield is a later agenda item to be discussed and the LEP have also 2. Noted the Enterprise Zone Capital Programme received the draft OBC for the enabling works. An OBC has also been received Financial Update. for , which is not currently in the Enterprise Zone investment programme.

The three-year forecast has increased to a five-year forecast to give greater visibility of the programme going forward. The overall status remains Amber due to the potential impact of Covid on commercial/business rates income, but this is 9 continually being assessed. Action Reference 29 - BCC and GBSLEP to There were questions around the location of Martineau Galleries and whether discuss governance arrangements for projects the uplift in business rates would be retained. This was confirmed to be the that are not within the EZ Investment Plan. case. There were concerns raised that Martineau Galleries was not included in the current EZ Investment Plan and therefore it cannot apply for EZ funding at this time. Further discussions between BCC and GBSLEP are required to address this concern. PDB noted the impact the Enterprise Zone had made in the city centre and Action Reference 30 – Investigate the viability of suggested it would be great to set up a Board Meeting in one of the LEP funded holding a meeting at one of the LEP funded projects if the government guidelines allow. capital projects.

Investment a) Digbeth High Street GBSLEP PDB Members: Reports The Investment Paper was summarised to Board. It was noted, overwhelming 1. Recommended the investment to GBSLEP 10 support was afforded to the Outline Business. The project has a strong BCR and Board of £15,720,000 (fifteen million seven this phase of the overall works is to ready the city for the Commonwealth Games hundred and twenty thousand pounds) of in 2022. The circa £16 million is due to be spent in 2021/22 and is a huge Enterprise Zone Funding (EZF) capital grant Page 5 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

# Agenda Item Minutes Decisions & Actions

catalyst for the growth in Digbeth leading to much needed new investment in the towards the delivery of the £17,512,000 Digbeth area. Public Realm Phase One (DPRP) project. There were questions asked around the standard period assessment around a project like this. It was noted it is dependent on the type of scheme being

assessed. The 60-year assessment period was also tested at 30 years which reduced the BCR to 2.4.

There were also questions around the public realm being built ahead of the , and the need for the realm to be dug up to lay the tracks. It was noted in response that there will be no abortive work carried out in this phase, the tracks would be laid within the public realm however would not be operational.

b) Hometel Murdoch and Pitman The Investment Paper was summarised to PDB highlighting that the project has 2. Approved the Full Business Case and note the been through the Strategic fit Assessment achieving a ‘B’. The project capital investment request of £1,700,000 capital demonstrates a BCR of 1.7 which represents medium value for money. It was funding from GBSLEP to MP Devco Limited for noted there was no headroom currently within the LGF programme to support the delivery of the Hometel M&P project. the £1.7million grant requested, however the project would sit in the LEP’s 3. Noted that the GBSLEP does not have pipeline in the light of any future funding becoming available. sufficient headroom in the Local Growth Fund to It was also noted any grants would contain full claw back conditions. It was approve the requested £1,700,000 capital noted by board these would be important given that demand would hopefully investment at this time and the project will remain bounce back strongly. on the GBSLEP Programme Pipeline. This request for funding will be considered along with There were questions from PDB around our pipeline of projects. It was noted in other funding requests that the GBSLEP may response the LEP have five/six projects we can put forward with a degree of have at that time once details of future funding certainty to deliver outputs in a short timescale. are known. The prioritisation of such requests will be dependent on the provisions attached to any

Page 6 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

# Agenda Item Minutes Decisions & Actions

available funding and in accordance with the It was requested that the pipeline of projects come to the PDB meeting. It was GBSLEP Assurance Framework. stated in response the LEP have in essence two pipelines those with that we can push through the system and are ‘shovel ready’, and those for a longer-term 4. Noted that if GBSLEP grant funding is available prospectus. in the future to support this scheme, that any grant would be subject to clawback conditions

such that the grant is repayable if the return on the development in future years is greater than is currently forecast in the development appraisal submitted as part of the FBC.

NB: Written approval received by board members to achieve Quorum.

Action Reference 31 – Bring pipeline of projects to the next PDB meeting for visibility.

Change a) Birmingham Smithfield GBSLEP board members: Requests The Change Request was introduced to PDB by stating the strategic importance of this project to the LEP and BCC. The Change Request was summarised a) Approved the increase in project development highlighting that additional resources had been expended for the project to get to funding, £0.975m a level of certainty and programming within the programme. £1.2 million has 11 been requested with £330,000 to be funded from BCC and £975,000 from the NB: Written approval received by board members to achieve EZ. Quorum.

Colleagues from BCC joined the meeting to provide more context and clarity on the reasons for the Change Request. It was noted the project had hoped it would have completed the legal process by 2019, however this was not the case. Then followed discussions around hosting the Commonwealth Games in 2022 and Page 7 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

# Agenda Item Minutes Decisions & Actions

contracts could not be entered which put the council at risk. It was also accepted Action reference 32 – Investigate if there is a that an underestimation of resources had played a significant part in getting the requirement for the Change Request to be taken programme to this position. The team on Smithfield are working to tackle issues to main board for approval. as quickly as possible and hoped this was clear in the on-going communication with the LEP.

It was noted the management process now in place is much more robust and the relationship has improved tenfold thanks to the people around the table.

Although the Change Request had come in retrospective of funds being defrayed, BCC had been in discussions with the LEP prior to the submission. Lessons have also been learnt around estimation and the need to stress test

project costs.

Several members of PDB noted the improvement of the working relationship and praised both sides for this. However, it was important to re-double efforts to stay truly aligned and on top of project development costs. It was hoped that this would be the final request to complete this stage of the programme, and it was confirmed it would be.

The Chair stated that reassurance was given on the validity of the spend and that a professional team should remain in place to deal with the challenges going forward. It was also hoped the relationship would continue as it is, and the roadmap should be progressed further with a robust forward plan to identify project development costs. Information sharing should not only remain high between teams, but also clear information should be fed through to Board.

b) Grand The change Request was summarised to PDB highlighting that the last payment of the grant is tied to the opening of hotel with the other two conditions met.

Page 8 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

# Agenda Item Minutes Decisions & Actions

Practical completion was achieved in October 2020 and the hotel was now fully b) Approved change in timescale for delivery of functional to a very high standard. The change request is to ask for an extension outputs and outcomes. to two of the outputs and to the uncoupling of the last payment with the opening. A full roadmap to opening had been shared with the LEP. NB: Written approval received by board members to achieve Quorum. It was noted by board the hotel had complied with all conditions of the agreement and through no fault of their own had not been able to open, with the current Government restrictions in place to respond to Covid. It was noted it would be a great addition to the city.

c) The Townscape Heritage Project c) Approved change in financial profile and The change request was summarised to board highlighting a change in financial delivery dates of outputs. profile and delivery of outputs. It was noted there is no alternative source of NB: Written approval received by board members to achieve funding available and if not approved which would have an impact on the project Quorum. budgets, impacting on its ability to deliver the project outputs and outcomes.

d) d) Exempt from Publication Under Section 12A of the Local Government Exempt from Publication Under Section Act 1972. 12A of the Local Government Act 1972

NB: Written approval received by board members to achieve Quorum. Action Reference 33 – To work with Board Members to define loan arrangements terms and conditions. This is to be circulated to PDB once terms have been agreed.

Page 9 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

# Agenda Item Minutes Decisions & Actions

GBSLEP board members recommend to Accountable The extension of Accountable body duties to 31 March 2022 was discussed and Body agreed. It was noted that BCC cabinet approval of this was also required and AJ GBSLEP Board to approve the continuation of Protocol informed PDB that would be taken to the April 2021 meeting. Birmingham City Council (BCC) to be the 12 Accountable Body for all existing and new capital funds in 2021/22.

It was asked of board to note the contents of an EZ email requesting to disband This was noted by PDB. the EZ Sub management subgroup and set up a task/finish group on the EZ

13 AOB Investment Plan refresh.

Open Actions: Action Meeting Agenda Item Agreed Action Assigned Completion Status No Date to Date 18 07-10-20 7a - EZ Programme Organise a presentation to be included with the CC Following Open Update & Financial Interim Business Case for Paradise Phase 3. Submission Principles

21 11-11-20 4 - HS2 Presentation Demonstrate how residential projects are funded CC Following Open (On-going) through projects which are invested through EZ but Submission have no set returns through business rates. of related project 6 - LGF Additional Attach RAG status and provide project status on 26 03-02- KB 03-03-2021 Closed – Included in DfT Funding (DfT) Update the DfT returned funding projects. 2021 paper for 03 March Meeting.

Page 10 of 11

GREATER BIRMINGHAM & SOLIHULL LOCAL ENTERPRISE PARTNERSHIP Programme Delivery Board – Decisions & Actions Wednesday 03 March 2021, 09:30 – 11:30

By ZOOM (online meeting)

Action Meeting Agenda Item Agreed Action Assigned Completion Status No Date to Date 27 03-02- 7 – Levelling up Fund Gather intelligence and certainty levels around all EW 31-03-2021 Open 2021 proposed funding streams coming forward.

28 03-02- 8 – AOB Develop a communication plan for the LGF Saboor 31-03-2021 Open 2021 Programme to include the early and more recent Arif programme achievements. BCC and GBSLEP to discuss governance 29 03-03- 8 – Enterprise Zone CC 31-03-2021 Open arrangements for projects that are not within the EZ 2021 Investment Plan. 30 03-03- PDB Venue Investigate the viability of holding a meeting at one KB 31-03-2021 Open 2021 of the capital projects.

31 03-03- 10 - Investment Reports Bring pipeline of projects to Board for visibility. KB 31-03-2021 Open 2021 Birmingham Smithfield - Investigate if there is a 32 03-03- 11 - Change Requests CC 03-03-2021 Closed – On the agenda requirement for the Change Request to be taken to 2021 for Board Meeting 25 GBSLEP Board for approval. March.

To work with Board Members to confirm loan 33 03-03- 11 - Change Requests CC 31-03-21 Open arrangements terms and conditions. 2021

Page 11 of 11