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Capital Project Business Case Strood Civic Centre Flood Mitigation Works

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Capital Project Business Case Strood Civic Centre Flood Mitigation Works Capital Project Business Case Strood Civic Centre Flood Mitigation Works The template This document provides the business case template for projects seeking funding which is made available through the South East Local Enterprise Partnership. It is therefore designed to satisfy all SELEP governance processes, approvals by the Strategic Board, the Accountability Board and also the early requirements of the Independent Technical Evaluation process where applied. It is also designed to be applicable across all funding streams made available by Government through SELEP. It should be filled in by the scheme promoter – defined as the final beneficiary of funding. In most cases, this is the local authority; but in some cases the local authority acts as Accountable Body for a private sector final beneficiary. In those circumstances, the private sector beneficiary would complete this application and the SELEP team would be on hand, with local partners in the federated boards, to support the promoter. Please note that this template should be completed in accordance with the guidelines laid down in the HM Treasury’s Green Book. https://www.gov.uk/government/publications/the-green-book-appraisal-and-evaluation- in-central-governent As described below, there are likely to be two phases of completion of this template. The first, an ‘outline business case’ stage, should see the promoter include as much information as would be appropriate for submission though SELEP to Government calls for projects where the amount awarded to the project is not yet known. If successful, the second stage of filling this template in would be informed by clarity around funding and would therefore South East LEP Capital Project Business Case Page 1 of 124 require a fully completed business case, inclusive of the economic appraisal which is sought below. At this juncture, the business case would therefore dovetail with SELEP’s Independent Technical Evaluation process and be taken forward to funding and delivery. South East LEP Capital Project Business Case Page 2 of 124 The process This document forms the initial SELEP part of a normal project development process. The four steps in the process are defined below in simplified terms as they relate specifically to the LGF process. Note – this does not illustrate background work undertaken locally, such as evidence base development, baselining and local management of the project pool and reflects the working reality of submitting funding bids to Government. •Consideration of long list of projects, submitted with a short strategic level business case •Sifting/shortlisting process, with projects either discounted, sent back for further Local Board development, directed to other funding routes such as SEFUND, or agreed for submission to Decision SELEP •Pipeline of locally assessed projects submitted to SELEP Board for information, with projects supported by outline business cases - i.e., partial completion of this template •Pipeline prioritised locally, using top-level common framework SELEP •Locally prioritised lists submitted by SELEP to Government when agreed •Full business case, using this template together with appropriate annexes, developed when funding decision made. •FBC taken through ITE gate process SELEP ITE •Funding devolved to lead delivery partner when it is available and ITE steps are completed •Lead delivery partner to commence internal project management, governance and reporting, ensuring exception reporting mechanism back to SELEP Accountability Board and working Funding & arrangements with SELEP Capital Programme Manager. Delivery In the form that follows: Applicants for funding for non-transport projects should complete the blue sections only Applicants for funding for transport projects should complete both the blue and the orange sections Version control Document ID Strood LGF Final 211217 Version Final Author Janet Elliott Document status SELEP Gate 02 Review Authorised by Tomasz Kozlowski Date authorised 08 February 2018 South East LEP Capital Project Business Case Page 3 of 124 1. PROJECT SUMMARY 1.1. Project name Strood Civic Centre Flood Mitigation Works 1.2. Project type Flood defence works enabling mixed use regeneration development 1.3. Location (inc. Civic Centre postal Strood address and ME2 4AU postcode) 1.4. Local Medway authority area 1.5. Description Medway Council has identified the 3.4ha brownfield Civic Centre as a target mixed (max 300 use regeneration site to meet the high demand for housing, and to contribute words) towards our aspirations to become a Waterfront University City by 2035. This site is within the emerging Medway Local Plan. The site is currently at considerable risk of river tidal and surface water flooding and requires protection works before it can be redeveloped. It is currently used as a car park. Once protected, i.e. raised above forecast flood levels, it will be transformed into an area of prime, high quality residential lead mixed use development with potential for premium housing, offering fantastic views of Rochester Castle and Rochester Cathedral and access to the River Medway (figure 1 below). Figure 1: View from the Civic Centre site Flood mitigation works will enable a feasible, flood resilient, mixed use regeneration site. Due to residual flood risks, ground floor space can be used for commercial premises, complementing the nearby Innovation Studios Strood as a satellite of Innovation Centre Medway. Regeneration of the site will provide employment land, targeted at SMEs, encouraging local cafes, restaurants and independent retailers, enabling job creation and innovation through sector clustering. Above the ground floor will be multi-storey apartments, in keeping with quality architecture of waterfront developments in Medway including Chatham Waters, and Rochester Riverside on the opposite banks of the River Medway. This will enable 564 units of housing depending on density. The combination of the construction of flood defences, housing development and commercial use will create an estimated 1033 jobs. South East LEP Capital Project Business Case Page 4 of 124 The overall development will make a significant contribution towards increasing employment in the area, supporting the objective of adding to the housing stock to accommodate the increasing population level and helping Medway’s Regeneration Strategy for the area. In addition, the mixed use development will encourage a vibrant environment where people will enjoy living and socialising and which will grow the local economy. 1.6. Lead Medway Council applicant 1.7. Total project £112,000,000 gross development value of the proposed housing development value £92,000,000 project cost 1.8. SELEP funding £3,500,000 Local Growth Fund round three request, including type (e.g. LGF, GPF etc.) 1.9. Rationale for Medway suffers from relatively high levels of unemployment; it also has an SELEP request increasing population level. The brownfield site at the Civic Centre in Strood has been identified as a site that, if developed, will generate 902 direct and 131 indirect jobs, deliver 564 units of housing, depending on density, and attract £86m of private sector investment. However, the site suffers from the risk of flooding and needs significant investment in a flood defence scheme. For that reason Medway Council is applying for £3.5m of LGF funding to invest in the flood defence for the site and therefore act as a catalyst for the development. The scheme supports a number of local policy objectives, such as the Local Development Plan, the Regeneration Strategy, Medway’s Cycling Action Plan 2016/18, skills and training, physical activity and public health, as well as opportunities for housing, local employment and apprenticeships, that will support initiatives already delivered via Employ Medway and the Medway Apprentice Scheme. The Civic Centre site is situated within the Thames Gateway economic development area. This area is identified by the Government as a key area for growth in which the focus is upon ensuring sustainable and well-integrated communities. The development of the Civic Centre site will build upon current and previous investment in Strood as part of a wider quality improvement of land use along the River Medway, contributing to the Medway Regeneration Strategy aspiration of a Waterfront University City by 2035. The inclusion of footpaths and a river walk around the perimeter of the site, which will link to existing cycle paths will support Medway’s Cycling Action Plan 2016/18. Implementing the action plan will facilitate greater participation in cycling by residents, visitors to Medway and those commuting into Medway for work to lead healthier, more active lifestyles, together with contributing to delivering growth and tackling environmental issues. Historic data demonstrates a 17% increase in cycle journeys on Medway’s cycle network between 2009 and 2014. This growth in is likely to be an outcome of a combination of measures delivered to enable people to feel more confident and safer and an increased number of cycle routes linking more areas with key destinations. South East LEP Capital Project Business Case Page 5 of 124 The South East LEP (SELEP) Strategic Economic Plan (SEP) cites Strood Civic Centre re-development as a prospective project. This is alongside complementary prospective and realised projects at Temple Waterfront, Strood town centre and Strood train station, Rochester Riverside, the new and relocated Rochester train station and the new 321 space multi-storey car park
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