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52-54 Lime Street (Scalpel) - S278 Highway Changes to Accommodate New Development (HTM 1234) Report Of: for Decision Director of the Built Environment

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Committees: Dates: Corporate Projects Board 13 April 2015 Projects Sub 06 May 2015 Subject: Public Gateway 1 & 2 Project Proposal: 52-54 Lime Street (Scalpel) - s278 Highway Changes to Accommodate New Development (HTM 1234) Report of: For Decision Director of the Built Environment Project Summary 1. Context The 52-54 Lime Street development (also known as the Scalpel) will be the new European headquarters of American insurance firm WR Berkley. It is located at the corner of Leadenhall Street and Lime Street, opposite Lloyds of London, in the Ward of Aldgate. Planning permission for the development was granted on 11 June 2013 and varied on 15 May 2014. This project relates to the Section 278 highway works that are necessary to integrate the development into the public highway and must be delivered in time for the building‟s practical completion (estimated November 2017). The s278 Agreement was concluded on 28 January 2015. In a wider context, Leadenhall Street forms part of the Strategic Road Network (SRN) as defined by the Traffic Management Act 2004. 2. Brief description The project involves highway changes to accommodate the of project new development as shown in Appendix 1. These include: (a) Improving footways at Leadenhall Street, Lime Street and Billiter Street; (b) Installing two communal utility chambers; (c) Upgrading the existing traffic management gate at Lime Street to a security-rated gate; and (d) Removal of redundant crossover and the provision of a new crossover at the loading bay entrance. 3. Consequences if If the project is not approved, the development will not project not integrate seamlessly with the highway surrounding it. approved Subsequently, the highway will not reflect the (high) quality of the new building or those of its neighbours such as Lloyd‟s of London, the Willis Building and the Leadenhall Building. This would also result in the City not being in compliance with the s278 Agreement. Version 5.1 - Feb 2015 4. Success criteria Enhancement of the street environment whilst maintaining the movement function of the street; Improved quality and consistency of surface materials in the local area with the introduction / extension / retention of appropriate paving treatments; Close coordination with other relevant programmes and projects. 5. Notable Any highway changes not directly attributable to the impact of exclusions the development. 6. Governance Spending Committee: Streets and Walkways Sub-Committee arrangements Senior Responsible Officer: Assistant Director (City Transportation) Project Board: No A Project Board is not recommended given the scale and nature of this project. Ward members will be informed of the details of any stakeholder engagements. Prioritisation 7. Link to Strategic 1. To support and promote „The City‟ as the world leader in Aims international finance and business services 8. Links to existing The development is within the Fenchurch and Monument Area strategies, Enhancement Strategy (approved by the Court of Common programmes and Council in 2013) and immediately adjacent to the Eastern City projects Cluster Strategy Area (approved in December 2010). 9. Project category 4a. Fully reimbursable 10. Project priority A. Essential Options Appraisal 11. Overview of The highway changes will largely be determined by the form of options the building, which already has planning permission. It is therefore unlikely that there will be alternative options to consider. Project Planning 12. Programme and Overall programme: Completion by the end of 2017 subject to key dates the development‟s construction programme. Key dates: 2015 Technical surveys, investigations, design, cost estimates Version 5.1 - Feb 2015 2017 Procurement of material and construction (estimated duration 3-months subject to traffic management approvals). Other works dates to coordinate: Pedestrian crossing improvements at the junction of Leadenhall Street, Lime Street and St Mary Axe (estimated 2017/18) Resurfacing of Leadenhall Street carriageway (estimated 2017/18) 13. Risk implications Overall project risk: Low Risk breakdown: Damage to reputation of the City of London from non- delivery or delayed delivery. Other known works not being coordinated logically. Other new developments in the area overlapping with this project thereby creating more coordination requirements (e.g. 40 Leadenhall Street also known as “Gotham City”). Securing statutory approvals from external parties such as Transport for London. 14. Stakeholders and Anticipated external stakeholders: consultees Developer of 52-54 Lime Street (WR Berkley and their agents) Owners / occupiers of adjacent buildings Transport for London Ward Members Internal stakeholders: City Transportation Highways Environmental Enhancement Access Team Chamberlains Resource Implications 15. Total estimated Likely cost range: cost 1. Under £250k 16. Funding strategy Choose 1: Choose 1: All funding fully guaranteed External - Funded wholly by contributions from external third parties Version 5.1 - Feb 2015 Funds/Sources of Funding Cost (£) s278 Funding Uncapped* Total Uncapped* *Uncapped provided it is directly attributable to the impact of the development 17. On-going A modest revenue implication of £2,628 to maintain the revenue improved footways for the first five years is estimated. This is implications being paid in full by the developer. 18. Investment None as the highway changes proposed are limited to those appraisal directly attributable to the development. 19. Procurement The design will be progressed in-house by the Highways team, strategy/Route to and construction will be undertaken by the City‟s Term Market Highway Contractor. External suppliers will be used for technical surveys and investigations such as topographical surveys, utility searches and radar surveys (if required). These will be procured in compliance with the City Procurement Regulations. 20. Legal None. implications 21. Corporate None. property implications 22. Traffic Leadenhall Street is part of the Strategic Road Network (SRN) implications hence approvals will need to be sought from Transport for London for any proposed highway changes. The design will take into consideration the projected increase in pedestrians expected with the growth of the Eastern City Cluster area and the future arrival of Crossrail. 23. Sustainability It is anticipated that all materials will be sustainably sourced and energy where possible and be suitably durable for the design life of the implications asset. 24. IS implications None. 25. Equality Impact An Equality Impact Assessment is not proposed as the Assessment proposed highway changes will not significantly alter how the existing highway functions. However, the Access Team will be consulted as part of the design process to ensure the final design is inclusive. Version 5.1 - Feb 2015 Recommended Course of Action 26. Next steps The next step is to complete technical surveys and investigations to inform the design process. Once completed, the initial design will be consulted with internal and external stakeholders before being finalised. Subsequently, cost estimates will be produced for inclusion in the next gateway report. 27. Approval track Approval track: 3. Light and next Next Gateway: Combined Gateways 4/5 Gateway 28. Resource requirements to Item Reason Funds/ Cost (£) reach next Source of Gateway Funding Staff costs Design, s278 (various) stakeholder funding engagement / liaison, project reporting: City £18,000 Transportation Highways £12,000 Fees Topo survey, s278 £10,000 utility searches, funding radar survey (if required) Total £40,000 As this project is fully externally funded and the highway changes are minimal, this report requests authority be delegated to the Director of the Built Environment in conjunction with the Chamberlain‟s Head of Finance for agreement of: (a) Any budget adjustments between elements of staff costs and fees; and (b) Any increases in costs as required to meet the needs of the project as provided for in the s278 Agreement. Version 5.1 - Feb 2015 Appendices Appendix 1 Drawing showing Proposed Highway Changes Contact Report Author Christine Wong Email Address [email protected] Telephone Number 020 7332 1511 Version 5.1 - Feb 2015 .
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