For General Release

REPORT TO: CABINET - 18 November 2013

AGENDA ITEM: 8

SUBJECT: 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 ’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 as well as the public circulation areas and the public signage.

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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 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 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.

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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 health & safety issues resolved Replacement of all Mechanical & Electrical services that are beyond service life and replacement of components where improvements can be achieved without incurring unnecessary cost Enhancing the appearance of the building by revealing and enhancing its architectural qualities and addressing issues concerning dilapidation of components of cladding Acoustic performance of The Concert Hall enhanced and improved sound separation with The Arnhem Improved insulation to raise the thermal performance of the building to current standards Improvement of the toilet facilities

3.4 The current programme sees construction starting on site in November 2015, with some urgent requirements being undertaken in late 2013/early 2014 and 4

project completion in early 2018.

3.5 Ahead of the main construction programme has been the provision of a capital grant of £316k by the Council for the purchase and installation of a new audio system. The Council is also in the process of procuring a new Box Office and Customer Relationship Management system for circa £150k.

3.6 Further to this, the Props (Goods) lift is beyond its useful life and in need of replacement. This is estimated at a total cost of £210,000 and is being prioritised to be delivered by August 2014 as an urgent requirement.

3.7 The Council issued an OJEU notice in July 2012 (Contract no. 137/2012P&E) to procure the design team, construction manager and quantity surveyor for the project.

3.8 In November 2012, the procurement for these teams was paused whilst a review of the project was undertaken in light of pressures on the wider capital programme. This looked at a number of delivery options including the current project approach to be delivered by March 2018 with a phased approach of closure (Concert Hall and Ashcroft), which keeps the building open through the project and a Multiple phased approach over number of years to reduce the impact on the overall capital programme and the Council’s budgets.

3.9 Further to this, the borough is going to see unprecedented change over the next 5 years with a number of significant schemes and projects happening including the planned redevelopment of the Whitgift Centre, the Connected Croydon programme and a significant amount of new housing and office development in the centre of Croydon, as outlined in the 5 year delivery plan.

3.10 The opportunity to align the refurbishment project with the Whitgift Centre redevelopment is compelling as Croydon seeks to position itself as the growth centre in South London. There is a once in a lifetime opportunity to ensure that the synergies that the 2 schemes offer come together to significantly enhance the boroughs cultural and leisure offer.

3.11 Delivery in early 2018 will also address Fairfield Halls’ considerable Health andSafety issues in a building that is now over 50 years old by addressing items such as the lift replacement outlined in para. 3.6.

3.12 During the pause in the project and considering the above factors, the client team, Fairfield Halls and the Capital Delivery Hub have taken the opportunity to test and review the Project.

3.13 The original Project set a brief which was a refurbishment project with some enhancement to the building, in particular a new ‘Get In’ for productions through the back of the building to enable the programme to increase in all areas of the building through increased efficiencies, easier access, with quicker, cheaper and safer get-in.

3.14 An enhanced project brief has also been developed which will see additions that significantly improve the ability of the organisation to deliver a new 5

business plan. The enhanced project will: Further reduce Fairfield (Croydon) Ltd dependency on the Council for grant funding. Modernise the Arnhem Gallery to create a multi-purpose space which creates a studio type theatre whilst creating a significantly improved conference and entertainment space which will enable Fairfield Halls to increase their fundraising and sponsorship by offering a more attractive package for corporate entertainment and profile raising events. Complement the planned creation of the new ‘Get In’ by improving the concert hall stage with more modern stage equipment to and create a more flexible stage for a wider range of programming. Increase the height over the ‘back of house’ and provide modern stage equipment to in the Ashcroft Theatre. This will improve the efficiencies of the theatre. Provide for a prime dining space in the Terrace Bar, allowing for pre- concert dining, parties and other events and Christmas parties. This offer is a vital new element in creating a more attractive overall package for both leisure and corporate customers. Install high tech public advertising signage with lit electronic and digital signage together with the consideration of digital cinema projection.

3.15 The enhanced project will closer align the Fairfield Halls with the continuing regeneration of Croydon in line with the planned Whitgift Development, College Green development and the injection of new housing that the borough is expecting over the next 5 to 10 years.

3.16 Fairfield Halls have produced an outline business case for the enhanced project which outlines the business model and funding requirements through the construction works and years following completion of the works.

4. FAIRFIELD HALLS PROJECT DELIVERY OPTION

4.1 The preferred option is to progress the planning and design of the enhanced Fairfield halls project whilst also progressing the comprehensive College Green development to align the 2 schemes.

4.2 The College Green development, is part of the Fair Field masterplan, which was adopted earlier this year following an extensive and collaborative process, and includes Fairfield underground and multi-storey car park and Barclay Road Annex. The development has the capacity to deliver up to 600 new homes.

4.3 The London Development Panel (LDP) is being utilised to take the College Green development forward. The panel has been set up by the GLA to accelerate the release of public land for housing led development. The LDP consists of 25 panel members procured to provide the range of services and works necessary to deliver housing and associated infrastructure including community and commercial buildings.

4.4 In parallel to this, the project team will re-establish the existing procurement process for the Fairfield Halls project as outlined in para 3.7 to enable the design of the project to start by March 2014 and be delivered by early 2018. 6

4.5 The programme for all these options would also enable a phased approach in line with the Fairfield Halls business planning during the construction.

4.6 The Fairfield Halls project will be included in the parameters of the College Green development. This will enable the progress of the modernisation project in close partnership with the appointed developer to ensure an integrated approach, or its inclusion, depending on whether the development consortium has a strong proposal to include the modernisation of Fairfield Halls.

4.7 At the Concept design stage (Stage C), the project team will be in a position to undertake a strategic review of the 2 schemes and advise on the most appropriate delivery model. The development proposals and financial appraisals received from the development consortiums bidding for the College Green scheme through the London Development Panel framework will help inform the best approach for the Council.

4.8 The indicative timetable for option 4 is as follows:

Date Task

December 2013 Invitation to companies to revise Fairfield Halls project tenders 17 January 2014 Receipt of Fairfield Halls tenders 26 February 2014 Fairfield Halls Contract award to Corporate Services Committee 12 March 2014 Fairfield Halls Contract commencement 28 March 2014 College Green development – tender returns July 2014 Award of College Green development partner July/August 2014 Fairfield Halls concept design produced Sept 2014 Cabinet decision on preferred delivery model at Concept Design Stage C. Nov 2015 Fairfield Halls Capital works commencement Nov 2015 Start works to Concert Hall – Concert Hall closes Dec 2016 Complete Concert Hall – Concert Hall re-opens Nov 2016 Start works to Ashcroft Theatre – Theatre closes Jan 2017 Start works to Arnhem – Arnhem closes Sept 2017 Complete Arnhem – Arnhem re-opens Nov 2017 Complete works to Ashcroft Theatre March 2018 Fairfield Halls Refurbishment completion

4.9 The project team will report back to Cabinet by September 2014 at Concept Design stage C and at the point of procurement of the College green development partner to agree the preferred delivery option.

4.10 The preferred option will be managed by a dedicated Fairfield Halls project board, chaired by the Executive Director of Development and Environment.

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5. CONSULTATION

5.1 The enhanced project requirements have been drafted with Fairfield Halls to develop a scheme which closely meets their business requirements and business plan.

5.2 Further consultation will take place as part of the design phase of the project, with a comprehensive consultation being undertaken with both users and non- users to ensure the project is meeting the needs of communities in Croydon.

5.3 Funding will be set aside from the project budget to engage the community on the development of the project. This will see a number of communication mechanisms to deliver messages to the community. This will include information on hoardings and exhibitions showcasing the works and progress as well as the story of the building from the opening in 1962.

5.4 A communications strategy is being developed for the project.

6. FINANCIAL AND RISK ASSESSMENT CONSIDERATIONS

1 Revenue and Capital consequences of report recommendations

Current Year Medium Term Financial Strategy – 3 year forecast 2013/14 2014/15 2015/16 2016/17 £000 £000 £000 £000

Revenue Budget Expenditure Income Effect of Decision Expenditure Income Remaining budget

Capital 750 750 10000 15000 Budget Expenditure Effect of 664 576 Decision Expenditure Remaining 86 174 Budget

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2 The effect of the decision

The Cabinet approved in principle the five year budget of £27m supporting the current approved phased approach. This is designed to avoid any period of complete closure and to permit Fairfield Halls to continue to operate through the works. The recommendations in this report commit spend in this and next financial year that can be contained within the current budget. There will need to be some forward funding in this year but this can be managed within the capital programme already set. The enhanced project requires an additional £6.75m funding on top of the baseline capital funding of £27m. This includes: £3.75m that has been identified following updated condition surveys to achieve the original project brief, on-going construction industry inflation and minor revisions including increased carpet replacement, refurbished dividers in the Ashcroft and Arnhem, wheelchair positions in the Ashcroft and increased allowance for IT provision. £3m to achieve the significant enhancement included in the enhanced Project outlined in para.3.14.

It is predicted that the enhanced project will also see higher projected capital spend in the early years of the project – 2013/14 and 2014/15 and the programme is also extended to 2017/18. This will require re-profiling of the 5 year allocation as the draw-down is greater through the early years. An outline business case has been developed by Fairfield Halls to justify the additional spend for the enhanced project of the £33.75m. This indicates that the enhanced project will enable a significantly reduced grant from 2019/20. The preferred option is the enhanced Project. The decision will enable the enhanced project to procure the design team. This will cost circa £450k up to stage C June for the design team and Quantity Surveyor. The forecasted spend for 2013/14 and 2014/15 up to August 2014 will be £1,239,296. This includes £663,592 in 2013/14 and £575,704 in 2014/15 up to August 2014 when we reach the end of stage C design. This is shown in table in section 1 of the finance consideration section and includes all project work, the purchase of the props lift, box office and the design team/QS costs up to stage C. If option 4 is agreed in September 2014, assuming developer interest in the delivery of the comprehensive scheme, then the Council will consider what funding may be required for the modernisation, assuming some level of cross subsidy as gap funding to support the overall development. For the purposes of financial planning it is appropriate to reflect the costs associated with the enhanced project (Option 3 - £33.75m) as in the event of a standalone scheme this is the maximum capital funding exposure to the Council.

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3 Risks

If the project does not proceed the building will continue to fail and either the building will be forced to close or the Council will see a higher grant to cover the high maintenance/revenue costs to keep the building/business running Abortive costs if a development partner not found or they are reluctant to work with the design at stage C. The College Green project brief will be worded to ensure it is clear that they will need to work to the Stage C design, thus reducing abortive costs. The recommendations give the flexibility to deliver the project in a number of ways, again ensuring no abortive costs.

4 Options

The options are set out in paragraph 2.6.

5 Future savings/efficiencies

All options, apart from option1, will reduce Fairfield Hall’s dependency on the council revenue support. Any future decision on the scale of the scheme will have to be taken in the context of the choices required to deliver a balanced budget based on the known reduction in grant funding in 2015/16 and 2016/17 and also the additional funding that may be available to support this capital spend which may range from capital receipts to relevant section 106 contributions. The proposed sale of items from the Riesco collection which is estimated to raise £9.8 to 15.5 million has the potential to significantly improve the affordability of the scheme in the light of those challenges. Given the delivery of this scheme is discretionary for the council and has to compete against significant statutory demands on the Councils capital resources, principally from the unprecedented demand for school places, it would be less likely to proceed given the level of borrowing required without the majority of the proceeds from the Riesco sale.

6 Approved by: Richard Simpson, Director of Finance and Assets

7. COMMENTS OF THE COUNCIL SOLICITOR AND MONITORING OFFICER

7.1 The Council Solicitor comments that at present Fairfield (Croydon) Ltd has a Full Repairing and Insuring lease. The full terms of that lease, including the rental provisions, are not currently enforced by the Council.

7.2 State aid issues need to be considered whenever the Council decides to fund major investment works which will benefit an organisation. In this instance, to minimise any state aid risks associated with the proposals, the likely forward profile of capital investment grant and revenue grant support must be offset by the mutual benefits gained by the Council in the re-provision of a new lease. These benefits can be equated and balanced in a number of potential ways, such as a shorter lease period and different and more flexible termination terms. The object will be to demonstrate that the benefit of continued grant and capital investment is offset by the Council receiving consideration in the form of the cultural provision that the theatre provides by adhering to its business plan, 10

the shorter term arrangements and the ability to terminate in the absence of value for money. Regardless of state aid issues it is, in any event, in the Council’s interest to secure these conditions.

7.3 Fairfield (Croydon) Ltd is a registered charity and will only be able to surrender the lease with the consent of the Charity Commission which in turn will only consider granting this consent if it deems that the surrender, when coupled with the new arrangements, are in the best interests of the charity. The Charity Commission will need to take into account the present financial position of the Fairfield Halls, its ability to comply with the lease provisions and the position it would find itself in if the Council was to fully enforce the lease. The Fairfield Board itself will be made aware that from the Council perspective the legal basis for such investment can only be enshrined in the surrender and new arrangements as contained in this report.

7.4 It is noted earlier in this report that the proposed sale of items from the Riesco collection has the potential to significantly improve the affordability of the proposed refurbishment of the Fairfield Halls. On the 28th of October the Council was served with a claim for judicial review in respect of the proposed sale. The Council is strongly resisting this claim for judicial review and is advised by Queen’s Counsel that the claim has not been brought promptly as required by the Court Procedure Rules. Given that the intended date of the auction sale to dispose of the selected items is the 27th of November of this year, the Council is seeking to expedite the judicial review hearing so that it is heard prior to the 27th of November and might be dismissed. If this is successful and subject to any notification from the claimant of an intention to appeal the decision of the High Court, the sale of the 27th of November should be able to proceed. If the claim is not able to be heard or otherwise disposed of before the 27th of November, then there is a risk that the next auction sale opportunities that ensure the best return for the sale items will not occur before May 2014 or November 2014.

7.5 Approved by Sean Murphy, Principal Corporate Solicitor (Regeneration), on behalf of the Council Solicitor and Monitoring Officer

8. HUMAN RESOURCES IMPACT

8.1 There are no direct Human Resources implications in the report to consider.

8.2 Approved by: Adrian Prescod, HR Business Partner, on behalf of Interim Director of Workforce, Interim Chief Executive department

9. EQUALITIES IMPACT

9.1 An initial EqIA has been completed. A full EqIA will be prepared as part of the design phase of the project and will be monitored throughout the programme of works.

9.2 The initial EqIA highlighted that Fairfield Halls are a part of the Boroughs cultural infrastructure and without this remodelling the building will continue to deteriorate, putting the organisation at risk. This project could have a positive 11

impact on young people, which accounts for a large proportion of Fairfield audiences, in allowing them to continue to access events and programmes.

9.3 The project will allow the Fairfield Halls to continue to operate whilst the construction project is underway, and the Halls will continue to run programmes and hire to organisations and groups within the borough, which can benefit, BME groups, young people and older people.

9.4 As part of the refurbishment project, the new Box Office and CRM system will enable Fairfield Halls to capture demographic information so as to better target groups including young people and BME groups.

9.5 Access Requirement; in addition to Equality Act 2010 requirements within the Building Regulations, this project should seek to improve accessibility which is currently achieved by a series of ‘bolt on’ and compromise measures. Improvements required include: (i) access through the main entrance from the car parking outside (ii) step free access from the box office area to the grand foyer removing the need for the platform lift (iii) repair, upgrade the lifts to conform to BS 8300 standards (iv) more flexible seating in the by introducing removable seats (v) means of escape strategy for the evacuation of disabled people (vi) way-finding, lighting and signing to consider the choice of colour & materials to assist the sensory impaired and those with learning disabilities

9.6 Further to this an EqIA was undertaken in April 2011 for the approval of grant award to Fairfield Halls. This outlined the following: Further data is required on service users to get more detailed understanding of audiences, their demographic and their needs; Further engagement could be done to gather additional information/evidence for protected groups e.g. to see if they use the facility and gather their views.

10. ENVIRONMENTAL IMPACT

10.1 The Fair Field masterplan presents an excellent opportunity to create a truly integrated site-wide environmental strategy. The scale and mix of buildings allows centralised plant by linking complementary energy profiles. This project should be mindful of these wider aspirations as it offers potential for a wider energy strategy.

10.2 The Building Regulations will impact on the performance of the environmental services and new & renovated thermally exposed fabric, as well as to structural alterations, changes in layout and construction that affect loading, fire safety and accessibility.

10.3 The project is to achieve reduction in CO2 emissions to the requirements of the Building Regulations. Improved thermal performance and connection to CHP heat (if viable) will go further in saving CO2 than renewables. Note that the improvements on thermal performance should be taken into account for the purpose of calculation. 12

11. CRIME AND DISORDER REDUCTION IMPACT

11.1 There are no direct crime and disorder reduction impacts arising from the recommendations of this report.

12. REASONS FOR RECOMMENDATIONS/PROPOSED DECISION

12.1 The recommendations within this report are seen as the best way to deliver the Fairfield Halls capital project to deliver a building and operation that will bring real quality and lasting benefit to the borough over the next 50 years.

12.2 The preferred options will enable an enhanced project of refurbishment and upgrade to the building which will attract greater custom, more varied and larger programmes and cultural content, resulting in improved box office revenues in the years following completion. This will in turn reduce Fairfield Hall’s dependency on the council revenue support, enhance the role of Fairfield Halls in the continuing regeneration of Croydon and position FFH for the corporate market as well as the leisure market.

13. OPTIONS CONSIDERED AND REJECTED

13.1 As recorded in section 4 above, the following options have been considered for the Project: 1. Do nothing – Cease the project and continue maintenance regime to keep business going – This was rejected as it would lead to business closing through the high number of failures within the building and no refurbishment of 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 scheme as set out in option 3 whilst also progressing the comprehensive College Green scheme in parallel and determine the route to deliver the project at Concept Stage C and the procurement of the College Green Development Partner.

13.2 This report seeks agreement to Option 4.

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CONTACT OFFICERS:

Name: Jane Doyle Post title: Director Community and Support Services Telephone number: Ext. 65671 Name: Paul Spooner Post title: Interim Executive Director of Development & Environment Telephone number: Ext. 61325 Name: Ed McDermott Post title: Regeneration Manager Telephone number: Ext. 62228

Background documents: none

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Appendix 1 – Fairfield Halls Delivery Models - Draft

Option 1 – Do nothing: Option 2: Option 3: Option 4: Cease project and Current Approach – Enhanced project - Comprehensive College maintain current building £30.75m £33.75 Green Scheme Description Stop project and Continue with current Continue with current Procure design teams to continue maintenance procurement approach to procurement approach to commence in March regime to keep business be delivered over 2 be delivered over 2 2014 up to design stage going phases by early 2018 phases by early 2018 C Renovate building in Employ FFH professional Employ FFH professional Include option of parts on failures team for RIBA B to L team for RIBA B to L including FFH project and novation of design team into College Green development Financial No capital costs £30.75m £33.75m As option 1 but potential implications High to lever in additional maintenance/revenue funding through cross costs to keep the subsidy within wider building/business running College Green scheme Increased grant revenue Circa £450k design costs funding to support an and QS to stage C outdated facility Possibly no abortive design costs (circa £450k) for the procurement of design team - potential to novate to development team Quality/Design No restoration, nothing Arts & Culture specialist Arts & Culture specialist Design team procured implications for the audiences or professional team professional team through the OJEU are public. specifically selected for specifically selected for theatre specialists and Major failures will need to FFH, answers solely to FFH, answers solely to could be novated to

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Option 1 – Do nothing: Option 2: Option 3: Option 4: Cease project and Current Approach – Enhanced project - Comprehensive College maintain current building £30.75m £33.75 Green Scheme be capitalised Project Board & PM Project Board & PM College Green project team. If projects are progressed separately they will be closely aligned to ensure synergy. Programme Programme would cease Can start in January 2014 Can start in January 2014 Can start in January 2014 implications Cannot continue Design team start – Design team start – Commence procurement impetuity, March 2014 March 2014 through London Must have capatalised Construction commences Construction commences Development Panel – renovation fund, November 2015 November 2015 November 2014 No economy in scale of Completion early 2018 Completion early 2018 Design team start – works March 2014 Design commence Decision on delivery route – September 2014 Construction commences November 2015 Completion early 2018 Benefits No / limited capital Quick start (March 2014) Quick start (March 2014) Opportunity to review expenditure Address building failures Address building failures business case and FFH Modernisation of building business plan rather than refurbishment Close coordination with College Green Comprehensive scheme for the Fair Field area

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Option 1 – Do nothing: Option 2: Option 3: Option 4: Cease project and Current Approach – Enhanced project - Comprehensive College maintain current building £30.75m £33.75 Green Scheme FFH scheme can proceed on its own should no development partner be found Main risks Building failures Client User (Fairfield Client User (Fairfield Developers do not want Potential closures team) does not update team) does not produce to use design team Business cannot operate the business case a viable business case Governance in current building aligned to the agreed aligned to the agreed arrangement’s may not Inefficient approach to project project be agreed failure renovations Cultural offer watered Constitutional reforms down by other may fail commercial pressures of development Risk of abortive design costs (to stage C) should the development partner want to change or look at different design option. Implications Real risk of business Earlier start with more Earlier start with more Some comfort in for FFH failure due to state of assured role as client assured role as client commencing design building and no new end user end user stage. development May resist due to loss opportunities of control (as client end user). May see threat to charity/business status.

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