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Fairfield Halls Project Cabinet Report Nov 13

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Fairfield Halls Project Cabinet Report Nov 13 For General Release REPORT TO: CABINET - 18 November 2013 AGENDA ITEM: 8 SUBJECT: Fairfield Halls Capital project position update and capital investment LEAD OFFICER: Paul Spooner, Interim Executive Director, Development & Environment Paul Greenhalgh, Executive Director, Children, Families & Learning CABINET MEMBER: Councillor Tim Pollard, Deputy Leader (Communications) & Cabinet Member for Children, Families and Learning Councillor Jason Perry, Cabinet Member for Planning, Regeneration and Transport WARDS: Fairfield, all CORPORATE PRIORITY/POLICY CONTEXT: Corporate Plan 2011/13 Objective 2 – Transforming the Council - Enable the development of cultural activities, including the refurbishment of Fairfield Halls Objective 5 – Compete as a Place – Progress proposals for the redevelopment of College Green Croydon’s Community Strategy 2010-2015 A Creative City - Transform Fairfield Halls through major investment in the refurbishment of the building and the delivery of a wider programme of arts, culture and events that fully reflects the diversity and aspirations of the borough. FINANCIAL IMPACT The Cabinet previously approved a five year budget of £27m for this project. Once the refurbishment is completed and with the combined effect of increased ticket sales and reduced building running costs, then the grant support is forecast to reduce to below the current level. Since setting the original budget in 2010/11 further requirements in the baseline capital cost of £3.75m have been identified. The paper highlights further work on enhanced client requirements which would require additional funding of circa £3m. This will deliver an upgraded modernised building rather than refurbishment of the core elements with additional enhancements to the Arnhem Gallery, Concert Hall and Ashcroft Theatre as well as the public circulation areas and the public signage. 1 An outline business case has been developed to justify any additional spend on top of the £27m which outlines that the enhanced project will enable a significantly reduced grant. The forecasted spend for year 2013/14 and up to July 2014 will be £1, 239,296. This includes £663,592 in 2013/14 and £575,704 in 2014/15 when stage C design is reached in August 2014. This includes all project work, the purchase of the props lift, box office and the design team/quantity surveyor costs. KEY DECISION REFERENCE NO.: 1257 This is a Key Decision as defined in the Council’s Constitution. The decision may be implemented from 1300 hours on the 5th working day after it is made, unless the decision is referred to the Scrutiny & Overview Committee by the requisite number of Councillors. The Leader of the Council has delegated to the Cabinet the power to make the decisions set out in the recommendations below: 1. RECOMMENDATIONS 1.1 To agree that the Council progresses the planning and design of the ’enhanced project’ up to Concept Design stage C to modernise and improve Fairfield Halls and deliver a scheme that will bring real quality and lasting benefits to the borough over the next 50 years subject to the agreement of the Fairfield (Croydon) Ltd to the new lease arrangements and the agreement of the Charity Commission. 1.2 To agree that in respect of the above, and subject to the sale of items from, the Riesco collection of Chinese ceramics proceeding, the intention is to allocate the proceeds of sale to the Fairfield Halls ‘enhanced project’ and other cultural provision within Croydon. 1.3 To delegate authority to the Executive Director of Children, Families & Learning, in consultation with the Council Solicitor to finalise and agree the surrender of the current lease and new lease arrangements with Fairfield (Croydon) Ltd. 1.4 To agree to align the enhanced project with the comprehensive development of the adjoining College Green area in line with the approved Fair Field masterplan and invite potential development partners, to be procured through the London Development Panel, to align their proposals with the modernisation of Fairfield Halls or to incorporate the modernisation of Fairfield Halls within their proposals. 1.5 To report back to Cabinet by September 2014 at the completion of Concept Design stage C and following the appointment of the College Green development partner to agree how the project will be delivered. 2. EXECUTIVE SUMMARY 2.1 The Fairfield Halls (the complex) has served Croydon as the principal cultural venue and community meeting place of the town for 50 years, and is used for many different national, regional and local events. The complex consists of the 2 Concert Hall, the Ashcroft Theatre and the Arnhem Gallery (multi-purpose function suite) and a range of smaller spaces and support facilities. 2.2 However, parts of the complex are showing their age and are in need of significant refurbishment and upgrading. The Council has committed, as part of the draft Capital Programme, to the refurbishment of Fairfield Halls. 2.3 The Capital Programme was recommended in draft by the Cabinet on February 2012 and approved by full Council on February 2012. It included an allocated budget for the overall project of £27 million over a 5 year period from 2012/13 to 2016/17. This reflected requirements and the planned programme of works at that time. 2.4 The enhanced project will build on the opportunities that the development of the Whitgift Centre and surrounding area and the wider regeneration of the town centre will bring to Croydon over the next 5 years. The complementary developments will offer the borough a once in a lifetime opportunity to significantly enhance the shopping and leisure offer and position Fairfield Halls as the cultural Hub in the borough for the next fifty years. 2.5 This report provides an update on the Project. In particular it highlights a review and testing of the Fairfield Halls project (the Project), the budget and options for the delivery of the design work. 2.6 A number of options have been considered: 1. Do nothing – Cease the project and continue maintenance regime to keep the Fairfield business going. This has been rejected as a feasible option as it would lead to the business closing through the high number of failures within the building and no refurbishment or modernisation to enable the business to continue. 2. £30.75m project option – Updated costs to deliver the current project. 3. £33.75m project option as a standalone project – Enhanced project delivering a scheme that will bring real quality and lasting benefit to the borough over the next 50 years. 4. Comprehensive College Green Development – Progress the delivery of the planning and design of the enhanced project as set out in option 3 whilst also progressing the comprehensive College Green scheme in parallel and determine the route to deliver the enhanced project at Concept Stage C and the procurement of the College Green Development Partner. 2.7 Option 4 will enable the commencement of the design work of the enhanced project up to Stage C, which will include outline proposals for structural and building services systems, outline specifications and a preliminary cost plan, with a view to reporting back to cabinet by September 2014 following procurement of the College green development partner to agree how the project will be delivered. It is also proposed that, subject to the sale of items from, the Riesco collection of Chinese ceramics proceeding, to allocate the proceeds of sale to the Fairfield Halls ‘enhanced project’ and other cultural provision within Croydon. 3 2.8 As part of the process, a development agreement with Fairfield (Croydon) Ltd (Fairfield) will be produced, which will include the agreed scope of works for the enhanced project and allow the Council to appropriate parts of the Premises to enable the works to be carried out efficiently and effectively. 2.9 The Council will be in discussion with Fairfield Halls in respect of the above and is presently in discussion with the Fairfield concerning the surrender of the existing lease and the grant of a shorter term lease. This will include break provisions that would enable the substantive future refurbishment of the Fairfield Halls and the wider development of the College Green area to take place. These discussions take into account a number of complex considerations including the Fairfield’s position as a charity and the obtaining of Charity Commission consent to any surrender of the Lease. 2.10 It is anticipated that the new lease agreement will be agreed with Fairfield Halls ‘in principle’ by February 2014, before the contract award and commencement of the design stage of the project. 2.11 This report seeks agreement to Option 4 and that the Executive Director of Children, Families & Learning be given delegated authority, in consultation with the Council Solicitor to finalise and agree the lease surrender and new lease arrangements with Fairfield. 3. FAIRFIELD HALLS MODERNISATION PROJECT 3.1 The refurbishment and modernisation of Fairfield Halls is included in the Council’s draft Capital Programme, with a budget of £27m being approved in principle for the overall project in 2011. 3.2 The mission statement for the project is to restore and upgrade Fairfield Halls as one of the country’s leading modern, fit for purpose entertainments and cultural centres, appealing to a wide range of customers and active community participation whilst celebrating the history and being sympathetic to the architectural qualities of the existing halls. 3.3 The technical requirements to meet the mission statement include: Major technical and
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