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View PDF in Full Window Item 6 (a) Glasgow and Clyde Valley City Deal 20th October 2015 Cabinet Report by Director of Programme Management Office Contact: Mandy MacDonald 0141 287 8503 Programme Management Office Evaluation Inverclyde Council Strategic Business Cases Purpose of Report: Inverclyde Council, as a Member Authority, has submitted the following Strategic Business Cases for consideration by Glasgow and Clyde Valley City Deal Cabinet:- Strategic Business Case – Inverkip Strategic Business Case – Ocean Terminal Both Business Cases were considered by the Chief Executives’ Group on 7th October when it was agreed to submit them to Cabinet for approval. Recommendations : It is proposed that the Cabinet agrees (1) to invite Inverclyde to proceed to develop the projects to the next stage of development through the preparation of Outline Business Cases, subject to them developing aspects of the Business Case to meet in full the business case criteria going forward; (2) to note that Inverclyde Council will continue to take cognisance of the emerging outcomes of the SAF and the detail of the Programme Business Case; and (3) to approve the funding required for each project as follows:- (a) Inverkip - £260,000 for design fees; and (b) Ocean Terminal - £800,000 for design fees. 1. Purpose : 1.1 Inverclyde, as a Member Authority, has submitted Strategic Business Cases for the following projects for consideration by Glasgow and Clyde Valley City Deal Cabinet:- Strategic Business Case – Inverkip Strategic Business Case – Ocean Terminal. These Business Cases were considered by the Chief Executives’ Group on 7th October 2015 when it was agreed that they should be submitted to Cabinet for approval 2. Background: 2.1 The Executive Summary for each project is attached as Appendices 1 and 2. These describe the strategic need for the projects, the options which have been considered to address the area’s development constraints and the outline of proposed solutions. 3 Programme Management Office Assessment 3.1 The projects have been reviewed against the business case criteria outlined within the Assurance Framework which aims to provide a level of technical checking, and to identify areas where further analysis or planning is required to develop the project to the next level of detail. These technical checks will be discussed with Inverclyde Council and will form the basis of development work going forward. 3.2 The Strategic Business Cases have also been assessed for “strategic fit” against the objectives of the City Deal. The projects are aligned with these objectives and the project outputs can be more fully defined at the Outline Business Case stage. 3.4 The Programme Business Case is in development in parallel with our appraisal of these projects. The outcomes of the SAF and Programme Business case process will further inform the development of these project business cases as they are developed to Outline Business Cases. 3.5 The SAF exercise is complete and the recommendations from this analysis will continue to be developed within the Programme Business Case. 3.6 Finance These Strategic Business Cases seek approval for monies to allow the projects to progress to the next stage of the business case process. The projects are seeking approval for City Deal funding of £260,000 to fund eligible expenditure for Inverkip and £800,000 for Ocean Terminal. 3.7 Legal The Member Authority should ensure close liaison and co-operation with the Legal and Procurement Support Group, and the Legal Sub Group in particular, to ensure that all outstanding legal issues are recognised and addressed appropriately at a Project and Programme level. 4 Recommendations 4.1 It is proposed that the Cabinet agrees (1) to invite Inverclyde to proceed to develop the projects to the next stage of development through the preparation of Outline Business Cases, subject to them developing aspects of the Business Case to meet in full the business case criteria going forward; (2) to note that Inverclyde Council will continue to take cognisance of the emerging outcomes of the SAF and the detail of the Programme Business Case; and (3) to approve the funding required for each project as follows:- (a) Inverkip - £260,000 for design fees; and (b) Ocean Terminal - £800,000 for design fees. APPENDIX 1 INVERCLYDE: Inverkip 1.0 Executive Summary Inverkip is an infrastructure and development project that addresses the restricted network and junction capacity on the A78 trunk road at four locations in and around Inverkip. It will release investment and secure the development of a Major Area of Change site identified within the Local Development Plan whilst also securing access and safety improvements benefiting the strategic network and transport and access at Wemyss Bay and Inverkip. Development of the former Inverkip Power Station site is currently constrained by significant cost abnormalities that impact adversely on the viability of development. The site will not achieve planning consent unless, to the satisfaction of Transport Scotland, the existing A78 roads infrastructure at and specifically the four highlighted existing junctions and merge/diverge slip roads are improved. The City Deal infrastructure project will act as a catalyst, through a developer agreement, for the current owner to remove the existing power station floor slab, make a feature of the existing Clyde jetty and build out the mixed use site over a fixed gestation period. This strategic business case seeks approval to incur design fees of £260,000 which will be incurred on the current and next financial year. 1.1 Strategic need for the project Inverclyde Council and its economic development partners within the Single Operating Plan are focused on delivering investment and development in the area that addresses: Economic disadvantage and inclusive growth within communities (National Regeneration Strategy 2011 / Inverclyde Single Operating Agreement 2014) Sustainable Economic Investment with strong focus on SME’s (Inverclyde Economic Regeneration Strategy (2014-2017) Regenerating Key Economic Sites and Communities (Inverclyde Economic Regeneration Strategy (2014-2017) Inverkip is identified as a Major Area of Change (LDP). Inverclyde Council has been seeking to facilitate investment at Inverkip through active economic engagement and positive land-use planning. These include: Mixed Use Development Zoning in the Local Plan 2006 Promotion of Major Area of Change in Local Development Plan 2014. Supporting and facilitating a Development Masterplan for brownfield land Developing clear partnership delivery arrangements with Riverside Inverclyde (Ri) Facilitating private/public sector dialogue on infrastructure and investment with: Transport Scotland / Major Landowners / Service and Utility Providers / Communities The Inverclyde Economic Development and Regeneration Single Operating Plan (2014-2017) identifies the areas strategic challenges and opportunities with specific reference to: Improving Economic Infrastructure (Section 3.5) focusing on: Developing key sites within the A8 Corridor and associated with the Clyde waterfront Increasing Inverclyde’s capacity to diversify the business base Regenerating Disadvantaged Areas (Section 3.6) focusing on: An area based, partnership approach to regeneration Addressing Population Decline (section 3.7) De-population is a major economic issue with a need to stabilise population Inverclyde Council has secured, through positive engagement, a masterplan to promote a high quality mixed use development and secure positive investment in a major brownfield site capable of securing significant regeneration benefits. 1.2 Options shortlisted The options appraisal outlined below sets out a range of potential options which have been identified and considered in developing the preferred option based on a Detailed Transportation Assessment (Atkins) and discussions with Transport Scotland / Transportation Services within Inverclyde Council. Options include: Do Nothing Retain existing arrangements with no further capacity or junction improvements and look to future Local Development Plan or alternative finance measures Transport Scotland / TIF / Infrastructure Fund to fund Traffic Signalised Junction with Speed Controls Promote a new traffic Signalised Junction together with associated A78 Speed Controls and/or other speed reducing measures on the Trunk Road New Roundabout Junction and Junction Improvement Preferred Option Promote a new roundabout Junction to Brueacre and Main Street with all associated traffic management measures together with pedestrian and cycle facilities to support enhancement for all transport modes and improve accessibility Re-align A78 & Create new Roundabout Promote wider upgrading including dual entry roundabouts to secure additional long term capacity and access. 1.3 Proposed solution The preferred option allows for four improvements involving new Roundabout Junction and Junction Improvement that meet all stakeholder needs and are capable of securing DRMB design standards and meeting approval of Transport Scotland. 1.4 Forecast cost Inverkip will be implemented and delivered by Inverclyde Council in partnership with wider stakeholders under a standard NEC Contract suitable for transport infrastructure work contracts. Inverclyde Council has the in-house expertise to project manage transportation projects of this scale and complexity and will appoint, with partners, a Design Team through competitive tender. The broad breakdown of capital costs are as follows: Inverkip North £900,000
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