BLACK COUNTRY EXECUTIVE JOINT COMMITTEE Wednesday 13

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

Wednesday 13 September 2017, 12.00pm

To Be Held at: Dudley Council House

DRAFT MINUTES

VOTING MEMBERS IN ATTENDANCE

Councillor Patrick Harley, Dudley MBC Jan Britton, Sandwell MBC Councillor Steve Eling, Sandwell MBC Paul Sheehan, Walsall MBC (Secretary) Councillor Sean Coughlan, Walsall MBC (Chair) Mark Taylor, Wolverhampton CC (sub) Councillor Roger Lawrence, Wolverhampton CC Sarah Middleton, The Black Country Consortium Ltd NON VOTING MEMBERS INVITED GUESTS Ninder Johal, Black Country LEP Board (sub) Alan Lunt, Dudley MBC Simon Neilson, Walsall MBC Tim Johnson, Wolverhampton CC

1. Apologies

Stewart Towe, Black Country LEP Board Keith Ireland, City of Wolverhampton Council Sarah Norman, Dudley

2. Notes of Previous Meeting held on 28 June 2017

17/0061 It was resolved that:

The notes of the meeting held on 28 June 2017 be confirmed as a true record.

3. Matters Arising from the notes of the previous meeting None.

4. Declarations of Interest None.

5. Local Government (Access to Information) Act, 1985 (as amended): To agree that the public be excluded from the private session during consideration of the agenda items indicated for the reasons shown on the agenda.

There are no items to be considered in private session.

Page 1 of 7

6. Black Country Local Growth Deal - Changes to the Growth Fund Programme - Updated Project Expenditure and Outputs Approval

Sarah Middleton presented the report and advised that the report details the current position of the Growth Deal Projects, reflecting all changes to the Programme (Funding and Outputs) which have been considered and approved by the LEP Board and Joint Committee throughout the year, plus some additional changes that have been reported since the last Joint Committee meeting on 28th June 2017.

The 2016/17 Growth Deal support approved by BEIS was £46.30m (£37.15m LGF, £8.8m LTB, and 0.35m Retained DfT). The Baseline grant award position for 2016/17 started at £48.80m, however, to address anticipated slippage as evidenced by projects throughout the first year of the programme (2015/16), and to ensure full utilisation of the £46.30m, the LEP Board approved over programming of £5m on the total Growth Deal Funding award, resulting in £51.3m of potential programmed spend in 2016/17.

Throughout the year a range of additional Pipeline projects have been brought forward for LEP and Joint Committee approval, resulting in an additional £22.54m of projects being funded, with £10.03m allocated in 2016/17 to maintain the level of potential programmed spend.

17/0062 It was resolved that the BCJC:

approves the updated expenditure and output profiles for the Growth Deal projects as set out in Attachment 1 of the report.

7. Black Country Local Growth Deal - Approval of Resources for Technical Advice Service

Simon Neilson presented the report and advised that the Technical Advice Service for the LEP’s Growth Deal programme is currently being provided by a specialist consultancy firm (Thomas Lister), funded through the Growth Deal. To ensure that we are receiving the most cost effective services that fully meets the requirements of the programme and complies with national and EU legislation (OJEU etc.), Walsall Council acting on behalf of the LEP is going to the market place through a competitive tendering process to procure the appropriate services for the remainder of the programme, through to 2021.

The services procured will be accessible by any of the four Black Country local authorities, as the specialist contractor will be accessible through a framework arrangement. Those accessing these services will be required to make payment in accordance with the terms and conditions agreed and the services accessed.

To ensure that the Technical Advice Service we are tendering for meets the requirements of the programme, the appropriate people assisted in the drafting of the tender document and scoping out the legal requirements, this included; The Black Country Place Group, the LEP’s Programme Office and the Accountable Body.

BCJC 13-9-17 Draft Minutes Page 2 of 7

17/0063 It was resolved that the BCJC:

2.1 approves the allocation of £616,000 to Walsall Council in its role as Accountable Body to support the Technical Advice Service and Legal Support costs for the Growth Deal as set out within the following table.

Details 2017/18 2018/19 2019/20 2020/21 Total LGF Specialist TA Support Costs £120,000* £125,000 £135,000 £120,000 £500,000

Legal Fees in Support £18,000 £30,000 £33,000 £35,000 £116,000

2.2 agree that the framework approach is utilised as part of the tendering process, so that all LEP programmes Accountable Bodies and the Programme Office have access to the appointed Technical Advice Service provider.

2.3 Support the appointment of specialist legal advice to assist the Accountable Body and Programme Office with the continued development of robust grant agreements.

8. Black Country Local Growth Deal – Refurbishment of 203-204 Wolverhampton Street, Dudley - Grant Agreement Approval

Tony Oakman referred to the report and advised that this is a request for grant support towards the £648,488 refurbishment of the 203/204 Wolverhampton Street in Dudley Town Centre Conservation Area. The project will deliver 342 sqm of refurbished commercial Floorspace (direct), safeguard 14 jobs (indirect), create 4 new jobs (indirect), and generate £460,000 of match funding from Dudley MBC and the Heritage Lottery Fund (direct). The refurbishment works will commence in the autumn of 2017 and complete during the spring of 2018. The property is classified as a ‘heritage asset’ as identified by the National Planning Policy Framework and is in very poor internal and external condition. The property is owned by Dudley MBC. After a lengthy marketing exercise, the Council has secured a forward sale of the refurbished building to a local recruitment company. The company requires new premises as their current lease within the town centre is due to expire in June 2018. Due to the limited supply of premises suitable for their business, they are considering relocation of their headquarters offices away from Dudley into Staffordshire, and Cannock is the preferred location. The Council therefore has the opportunity to retain 14 jobs within the town centre, create 4 new jobs, provide a business assist and deal with a long-term dilapidated building that blights this part of the Conservation Area. The Council can generate approximately £260,000 from the sale of the property and £200,000 of Heritage Lottery Grant to support the works. However, due to the excessive costs of the repairs, the Council has an approximate shortfall of £188,488 on the funding package.

BCJC 13-9-17 Draft Minutes Page 3 of 7

17/0064 It was resolved that the BCJC:

2.1 approves for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Dudley Council to the value of £145,947 to deliver the Local Growth Fund (LGF) funded elements of Refurbishment of 203- 204 Wolverhampton Street, Dudley project - with delivery to commence in the 2017/18 financial year.

2.2 This Grant Agreement is subject to the Contract conditions detailed in 3.6 of this report.

9. Black Country Local Growth Deal – Growing Priority Sectors – Individual Project Decision – Drywall Steel Sections Limited, Cradley Heath – Approval to Move to Contracting

Jan Britton referred to the report requesting £102,385 for a £372,310 project to fund the purchase of a Convertible Profile Steel Framing Machine. In summary, Drywall Steel Sections Limited is requesting a maximum grant of £102,385 to help implement a £372,310 project at an intervention rate of 27%. • Leverage £269,925 of Private Sector Funding • Create 14 new jobs (inc. 4 apprenticeships) by March 2019 at £7.3k per job and an average salary of £23.5k per annum.

17/0065 It was resolved that the BCJC:

2.1 approves Sandwell Council to move to contracting with Drywall Steel Sections Limited, for a funding allocation of £102,385 from the Growing Priority Sectors programme of works totalling £6.5m, to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors Drywall Steel Sections Limited project - with delivery to commence in the 2017/18 financial year.

10. Black Country Local Growth Deal – Growing Priority Sectors – Individual Project Decision – Strut Direct Ltd, Wednesbury – Approval to Move to Contracting

Jan Britton referred to the report requesting £94,262 for a £314,207 project to fund the purchase of an Injection Moulding Machine and a Rubber Vulcanising Machine.

In summary, Strut Direct Ltd is requesting a maximum grant of £94,262 to help implement a £314,207 project at an intervention rate of 30%. • Leverage £219,945 of Private Sector Funding • Create 10 new jobs by March 2022 at £9.4k per job and an average salary of £24k per annum.

17/0066 It was resolved that the BCJC:

2.1 approves Sandwell Council to move to contracting with Strut Direct Limited, for a funding allocation of £94,262 from the Growing Priority Sectors programme of works totalling £6.5m, to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors Strut Direct Ltd project - with delivery to commence in the 2017/18 financial year. BCJC 13-9-17 Draft Minutes Page 4 of 7

11. Black Country Local Growth Deal – Growing Priority Sectors – Individual Project Decision – Burcas Limited, Sandwell – Approval to Move to Contracting

Jan Britton referred to the report requesting £125,000 for a £510,000 project to fund the purchase of CNC machines with special milling and turning capacity.

In summary, Burcas Limited is requesting a maximum grant of £125,000 to help implement a £510,000 project • Leverage £385,000 of Private Sector Funding • Create 15 new jobs (inc 1 apprenticeship) by March 2022

17/0067 It was resolved that the BCJC:

2.1 approves Sandwell Council to move to contracting with Burcas Limited, for a funding allocation of £125,000 from the Growing Priority Sectors programme of works totalling £6.5m, to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors Burcas Limited project - with delivery to commence in the 2017/18 financial year.

12. Black Country Local Growth Deal – Growing Priority Sectors – Individual Project Decision – Interplas Coatings Limited, Dudley – Approval to Move to Contracting

Jan Britton referred to the report requesting £177,000 for a £885,000 project to support development and installation of a new UV line towards creating a world class coatings facility.

In summary: • Interplas Ltd is requesting a maximum grant of £177,000 to help implement a £885,000 project • Leverage £708,000 of Private Sector Funding • Create 15 new jobs by March 2022 • Confirmation of match funding to successfully deliver this project

17/0068 It was resolved that the BCJC:

2.1 approves Sandwell Council to move to contracting with Interplas Coatings Limited, for a funding allocation of £177,000 from the Growing Priority Sectors programme of works totalling £6.5m, to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors Interplas Coatings Limited project - with delivery to commence in the 2017/18 financial year.

13. Black Country Land and Property Investment Fund – Appointment of Accountable Body

Councillor Coughlan referred to the report and advised that a £53m facility to be made available to the Black Country LEP from 2017/18 be approved to deliver a remediation programme designed to deliver 1,600 houses, 1,800 jobs and 126,000 sqm of commercial floorspace. City of Wolverhampton Council are offering to act in the role of Accountable Body in line with their appropriate “accountable body” protocols which will be updated to reflect the requirements and processes of the Land & Property BCJC 13-9-17 Draft Minutes Page 5 of 7

Investment Fund.

17/0069 It was resolved that the BCJC:

2.1 approves the appointment of the City of Wolverhampton Council as Accountable Body for the Black Country Land and Property Investment Fund Programme on behalf of the BCLEP.

2.2 Notes that a future proposal will be submitted to the WMCA for a future bid of a minimum of £150m to support the BC wide Strategic Land & Property Investment Programme, subject to the success of the initial phase;

2.3 Notes that a member from the WMCA is to sit on the Funding Sub-Board of the Black Country LEP when Land & Property Investment Fund bids are being considered;

2.4 Notes the requirement for the WMCA branding to be displayed at the supported site;

2.5 Confirms the requirement for sites being supported to also display the BC LEP branding.

14. Black Country Land and Property Investment Fund – Commissioning Framework – Approval of the Commissioning Framework

Councillor Coughlan referred to the report that advises WMCA Board on 17th March 2017 Approved an initial £53m facility for the Black Country “Land Fund” bid, against a range of Indicative schemes that supported delivery of a high volume of priority Outputs. It also confirmed drawdown of the balance of £97m would be dependent on the successful achievement of priority Outputs resulting from the initial £53m facility which is operational between 2017- 2021.

The Black Country “Land Fund” bid indicated it would allocate its resources across the three high level Priority Development propositions:

I. Establishing High Value Manufacturing (HVM) Capital City II. Delivering Black Country Garden City III. Strategic Population Centres

These propositions have been translated into three main thematic priorities consistent with the above Priority Development Propositions.

• An articulated set of Eligibility criteria; • City of Wolverhampton as the Accountable Body for the Investment Fund; • Existing Growth Deal based PMO processes and criteria used for Evaluation will continue to underpin the consideration of future Scheme bids against the Investment Fund.

The Commissioning Framework (Attachment 1) was initially developed by the Black BCJC 13-9-17 Draft Minutes Page 6 of 7

Country Council Officer’s Place Group and supplemented by Wolverhampton and Dudley Officers and the PMO.

17/0070 It was resolved that the BCJC:

2.1 approves the Black Country Land and Property Investment Fund - Commissioning Framework.

2.2 notes that, simultaneously it will be necessary to take the Black Country Land & Property Investment Fund - Commissioning Framework through the various layers of Approval at the WMCA. This will provide assurance to WMCA members that the Black Country are clear in how they want to manage and apply the Fund and the Outputs they are targeting

15. Black Country Land and Property Investment Fund – Music Institute – Cable Plaza Site – Grant Agreement Approval

Tony Oakman referred to the report and advised that the Music Institute project includes the purchase and refurbishment of an existing building - Cable Plaza (currently owned by INTU and unoccupied for circa eight years), and the construction of new high quality student accommodation which has the potential to unlock an investment opportunity of approximately £37m. This application relates to the purchase and renovation of Cable Plaza. The facilities at the new centre will include teaching and rehearsal rooms, performance venue, recording and production studios, a radio station, lecture theatre, library, computer suite and cafeteria. A subsequent phase will see delivery of Student accommodation which will cost approximately £27m to construct and will deliver up to 600 units. Financial leverage for the student accommodation is likely to be significant, delivering substantial outputs in addition to skills, brownfield land development and employment. Funding will be sought through a private developer/management company. Delivery may start during 2018/19.

17/0071 Following the West Midlands combined Authority decision on Friday 8 September 2017 to amend its scope and range of investment to include property investment, it was resolved that the BCJC:

2.1 approves the Accountable Body for the Black Country Land and Property Investment Fund (City of Wolverhampton Council) to proceed to a Grant Agreement with BICMP Limited to the value of £7,159,551 to deliver the Land and Property Investment Fund funded elements of the Music Institute - Cable Plaza Site project - with delivery to commence in the 2017/18 financial year.

2.1 This Grant Agreement is subject to the Conditions detailed in 3.9 of this report.

BCJC 13-9-17 Draft Minutes Page 7 of 7

ITEM 6

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal HUB TO HOME TRANSPORT INNOVATION CENTRE AND TEST TRACK PROJECT: VERY LIGHT RAIL AND AUTONOMOUS TECHNOLOGIES (SEPB5)

Grant Agreement Approval Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approve the contracting and subsequent award of Grant Agreement for the Hub to Home Transport Innovation Centre and Test Track Project: Very Light Rail and Autonomous Technologies project from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 The project was endorsed in principle by the LEP Funding Sub-Group (FSG) on 7th September 2017 and subsequently endorsed at the meeting on the 3rd October 2017. The LEP Board endorsed in principle on the 18th September 2017 (decision ref: 97/17) and subsequently endorsed at the meeting on the 16th October 2017. The Working Group endorsed on the 19th October 2017 and the Advisory Board endorsed on 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approve the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Dudley Council to value of £18,494,243 to deliver the Local Growth Fund (LGF) funded elements of the Hub to Home Transport

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Innovation Centre and Test Track Project: Very Light Rail and Autonomous Technologies project - with delivery to commence in the 2017/18 financial year.

2.2 This project will be underwritten by Dudley Council.

3. REPORT DETAIL

3.1 A summary of the request for endorsement, contracting and subsequent award of Grant Agreement by the Accountable Body for the Growth Deal for the Hub to Home Transport Innovation Centre Test Track Project: Very Light Rail and Autonomous Technologies project (H2HTIC) is below.

Hub to Home Transport Innovation Centre Test Track Project: Very Light Rail and Autonomous Technologies - £883,254 funding in 2017/18, £10,947,271 in 2018/19 and £6,663,718 in 2019/20.

3.2 Approval is requested for funding to allow delivery of the VLR project.

3.3 Located at Castle Hill, Dudley, the H2HTIC project will be developed to help catalyse skills and supply chain development for advanced low carbon engineering, with a focus on the opportunities offered by light weight low cost railcars and Autonomous Pods for urban mobility.

To date this project has received the following funding:

• £300,000 for the completion of feasibility studies (BCLEP); • £132,000 of development funding (BCLEP/DMBC); and • £836,778 SEED funding to support time critical works (BCLEP).

3.4 This application is now seeking £18,494,243 towards a £24,966,862 project to support the development and completion of the Hub to Home Transport Innovation Centre, Test Track and purchase of key research/testing equipment. Although part of a broader £29,489,027 scheme which includes SME Incubation Units and a Vehicle Store, only funding for the construction of the 5,784 sqm Innovation Centre and 2,201m Test Track is being requested through this application.

The equipment costs will be funded via the ERDF application, which has been submitted to DCLG 8th September 2017 with an outcome anticipated in November. The remaining future phases will be undertaken subject to funding being secured. The outline was submitted on 8th September 2017 and will be discussed/approved at the ESIF Committee on 17th October 2017. Subject to approval, a full application will be submitted before Christmas and outcome expected March/April 2018.

Funding for this phase of the scheme consists of:

• £5,000,000 from ERDF;

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ITEM 6

• £1,472,620 of land value and associated fees (match funding from DMBC); and

• £18,494,243 (This excludes any feasibility, project development and SEED funding previously received) from the BCLEP.

3.5 Joint Committee members are asked to note that ERDF funding remains unsecured at this stage but it is understood that positive indications have been provided in respect of the £5m required to assist Phase 1 delivery and encouraging signs also in respect of the potential to secure further Phase 2 funding assistance.

In addition to the above, the applicant is also progressing a separate funding application for £4.33m from Transport for West Midlands (TfWM) to develop the retaining wall required for the H2HTIC and Wednesbury to Brierley Hill Metro projects to coexist, given their close proximity. The application for the retaining wall was considered by the WMCA’s Technical Appraisal Panel on 6th September 2017 and Investment Advisory Group on 2nd October 2017. The retaining wall element was approved at both meetings and a final endorsement by the WMCA Management Board was expected on 12th October 2017.

The works to be supported by BCLEP funding (£18,494,243) are:

• Construction of the 5,784 sqm Innovation Centre and fit out; • Construction of the 2,201 m test track; • Associated fees.

Based on the programme provided, the procurement of the appointment of a main contractor will commence during September 2017 with start of works on site proposed January 2018 and completion of the test track in March 2019. It is anticipated that the centre will commence operation in October 2019.

3.6 Should Joint Committee members endorse this application for funding, then it is recommended that detailed Heads of Terms be agreed in advance of legalities commencing, to include the following Conditions:

I.) Grant Funding to be in the maximum sum of £18,494,243; II.) DMBC to fully underwrite the grant; III.) The applicant to evidence that Phase 1 is fully funded (confirmation of ERDF or other means), prior to drawdown; IV.) An updated confirmed Programme and Project Cashflow to be provided.

4. FINANCIAL IMPLICATIONS

4.1 All the costs associated with this proposal form part of the LGF programme and will be covered by allocations from Government associated with this programme. This includes the use of any interest accrued by the Accountable Body to cover costs associated with the

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ITEM 6

delivery of Accountable Body functions, as approved by its (Walsall Council) Cabinet on the 29th October 2014.

5. LEGAL IMPLICATIONS

5.1 The appropriate Grant Agreement is in place and will be utilised by the Accountable Body (Walsall Council), and include all conditions passed onto the LEP by Government, together will all terms, conditions, performance measures and sanctions as required by the approvals/conditions received from Government or approved by the LEP Board or the Joint Committee.

5.2 See section 3.6 for recommended conditions to be included within the contract.

6. RISK MANAGEMENT

6.1 Risk is being managed through the on-going monitoring of individual projects and their ability to deliver the required spending profiles and outcomes for the programme as required or agreed with Government and set into place by the LEP Board and the Joint Committee.

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Meetings with stakeholder organisations over the past three years include:

Transport Design International, Prose, Unipart Rail, Trelleborg, Gordon Murray Designs, TRL, Ricardo, Future Railway, Rail Alliance, Network Rail, RSSB, London Underground, Atkins, Alstom Transport, Siemens, Colas Rail, First Group, Arriva, Northern, Go-Ahead, Department for Transport, Trampower, Centro, GKN Land Systems, Viva Rail, Vehicle Projects Inc., Woolley GMC, UKTram, Furrer and Frey, Future Cities Catapult, Transport Systems Catapult, University of Southampton, University of Birmingham, University of Huddersfield and University of Wolverhampton.

8.2 All the industrial companies above have supported the idea of a dedicated centre for VLR in the UK and we have received nothing but positive comments for the proposal. The proposed VLR research to be conducted in the Innovation Centre does not overlap with any other R&D currently being undertaken in the rail sector; for example, the Rail Alliance at Long Marston has a test track and research facilities but no plans for R&D in the VLR sector and is keen to support the centre at Dudley, seeing it as a welcome addition and complimentary to its own R&D in standard and light rail (See Project Demand back ground paper).

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ITEM 6

8.3 Having had discussions with a number of Train Operating Companies, the vision of completing the passengers journey home by linking Very Light Rail with autonomous pod vehicles is one which is shared. The scope covers vehicle operation from light rail cars, carrying up to 100 passengers per car, down in size to smaller pods, capable of transporting between 2 to 12 people close to the traveller’s front door. The DfT is particularly keen to see the ‘hub to home’ potential, offered by VLR in combination with autonomous pods, fully developed and exploited in the UK at the Centre.

8.4 Legal and Finance Officers at Dudley Council were consulted as part of the development of this report.

Background papers

The following supporting documents can be provided on request: i.) Hub to Home Transport Innovation Centre and Test Track Project: Very Light Rail and Autonomous Technologies (H2HTIC), bid proposal; ii.) Thomas Lister Independent Property Evaluation & Recommendation report; iii.) Business Plan for H2H Transport Innovation Centre; iv.) Economic Impact Assessment; v.) Copy of Location Plan; vi.) Copy of Site Layouts; vii.) VLR Project Demand.

Attachments

None.

Contact Officer & Author

Alan Lunt Mark Lavender Strategic Director, Place Joint Committee Programme Manager Dudley MBC Walsall Council Council House, Priory Road, Dudley, Civic Centre, Darwall Street, Walsall. DY1 1HF WS1 1TP Email: [email protected] Email: [email protected] Telephone: 01384 814148 Telephone: 01922 654772

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ITEM 7

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal VERY LIGHT RAIL SEED FUNDING (SEPB5) – CHANGE REQUEST

Approval to Amend Existing Grant Agreement

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approve the Accountable Body for the Growth Deal (Walsall Council) to amend the existing Grant Agreement for the Very Light Rail SEED Funding from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This Change Request was endorsed by the LEP Funding Sub Group (FSG) on the 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 107/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approve the Accountable Body for the Growth Deal (Walsall Council) to proceed to amending the existing Agreement with Dudley Council to the value of £188,963 to deliver the Local Growth Fund (LGF) funded elements of the VLR SEED Funding - with delivery to commence in the 2017/18 financial year.

2.2 This is a Change Request to move funding allocated from 2016/17 into 2017/18.

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ITEM 7

3. REPORT DETAIL

3.1 A summary of the request for amending the existing Grant Agreement by the Accountable Body for the Local Growth Deal (Walsall Council) is below.

Very Light Rail SEED Funding - transfer of £188,963 into 2017/18

3.2 The reason for this request is that, while these works were completed in 2016/17 (and therefore all invoices are dated during that period) there has been an overspend against the following agreed cost headings:

Site Investigation Works 18,674.73 Geotechnical Works 18,998.17 Design Fees 143,985.91 Access 6,690.70 BREEAM Excellence Compliance 614.00 Total Overspend 188,963.51

3.3 The predominant overspend has been due to “underestimating the amount of time required to undertake design works and changes to designs”. Whilst the project has overspent in some areas, there have been significant cost savings elsewhere, totalling £188,963.

The total project expenditure is therefore still within the approved grant award.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

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ITEM 7

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 The proposal has been through consultation with the PMO and Walsall Accountable Body.

8.2 Legal and Finance Officers at Dudley Council have been consulted as part of the development of this report.

Background papers

The following supporting documents can be provided on request:

• Very Light Rail SEED Funding, Change Request

• Appendix 1 – VLR SEED Claims Analysis

Attachments None.

Contact Officer & Author

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ITEM 8

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal DUDLEY COLLEGE - CONSTRUCTION APPRENTICESHIP TRAINING CENTRE – CHANGE REQUEST (SEPP27)

Approval to Amend Existing Grant Agreement Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approve amending the existing Grant Agreement for the Dudley College - Construction Apprenticeship Training Centre project from within the Local Growth Fund (LGF) Programme.

1.2 This Change Request was endorsed by the LEP Funding Sub Group (FSG) on 7th September 2017, the LEP Board on 18th September 2017, (LEP Board Minutes Ref: 108/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approve the Accountable Body for the Growth Deal (Walsall Council) to proceed to amending the existing Grant Agreement with Dudley College to the value of £92,753 to deliver the Local Growth Fund (LGF) funded elements of Dudley College - Construction Apprenticeship Training Centre project - with delivery to commence in the 2017/18 financial year.

2.2 This is a Change Request to move funding allocated from 2016/17 into 2017/18.

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ITEM 8

3. REPORT DETAIL

3.1 A summary of the request for amending the existing Grant Agreement by the Accountable Body for the Local Growth Deal (Walsall Council) is below.

Dudley College - Construction Apprenticeship Training Centre - transfer of £92,753 into 2017/18

3.2 Approval is requested to transfer £92,753 funding allocated for the Dudley College - Construction Apprenticeship Training Centre project, from 2016/17 financial year into 2017/18.

3.3 The reason for this request is that, while these works were completed in 2016/17 (and therefore all invoices are dated during that period) there has been an overspend against the maximum sum approved for “IT Equipment”:

Grant Total Transfer Expenditure Award Claimed Variance into 17/18 16/17 16/17 New IT 192,000 309,018 117,018 92,753 New Equipment 258,000 169,768 -88,232 0 Furniture 150,000 145,480 -4,520 0 TOTAL 600,000 624,265 24,265 92,753

3.4 Over the last three years Dudley College has developed its digital engineering capacity in order to address changes in the construction sector around Building Information Modelling following a Government report published in November 2012. The introduction of BIM into our training and collaborative nature of working digitally across the various disciplines in the construction team has had a significant change on the delivery of our training. In addition, the further embedding of learning technologies and the renewed importance of technology enhanced learning has raised the skills of learners across all construction programmes and encouraged independent learning.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

5.1 The appropriate Grant Agreement is in place and will be utilised by the Accountable Body (Walsall Council), and include all conditions passed onto the LEP by Government, together

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will all terms, conditions, performance measures and sanctions as required by the approvals/conditions received from Government or approved by the LEP Board or the Joint Committee.

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Since the original proposal was put together, the plans have been reviewed on the back of market intelligence. Having listened to the opinions of the learners, some changes have been made. As a result, an apprenticeship programme is now supported by an electronic portfolio which records evidence of learner’s progress, sets targets and tasks for achievements which is used and accessed by apprentices, employers and assessors simultaneously. These portfolios are often reviewed in class and workshops using the type of equipment that has been needed to be purchased. This shift in the use of ‘e’ enabled technology is crucial if apprentices are to be trained to operate in the modern methods of construction, and enable them to work in a smarter as well as more effective way.

8.2 Legal and Finance Officers at Dudley Council were consulted as part of the development of this report.

Background papers None.

Attachments None.

Contact Officer & Author Alan Lunt Mark Lavender Strategic Director, Place Joint Committee Programme Manager Dudley MBC Walsall Council Council House, Priory Road, Dudley, Civic Centre, Darwall Street, Walsall. DY1 1HF WS1 1TP Email: [email protected] Email: [email protected] Telephone: 01384 814148 Telephone: 01922 654772

BCJC – 22/11/17 Dudley College Construction Apprenticeship Training Centre (SEPP27) – Change Request Page 3 of 3

ITEM 9

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal GROWING PRIORITY SECTORS INDIVIDUAL PROJECT DECISION – R P TECHNOLOGY LIMITED (SEPB1) – KINGSWINFORD, DUDLEY

Grant Agreement Approval

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves the contracting and subsequent award of Grant Agreement for R P Technology Limited project, part of Growing Priority Sectors, from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This project was endorsed by the LEP Funding Sub Group (FSG) on the 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 117/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves Sandwell Council to move to contracting with R P Technology Limited for a funding allocation of £78,603 (from the Growing Priority Sectors programme of works totalling £6.5m), to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors R P Technology Limited project - with delivery to commence in the 2017/18 financial year.

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – R P Technology Limited Page 1 of 4

ITEM 9

3. REPORT DETAIL

3.1 A summary of the request for endorsement, contracting and subsequent award of Grant Agreement by the Accountable Body for the Growing Priority Sectors Programme (Sandwell Council) is below.

Growing Priority Sectors - R P Technology Limited - £78,603 in 2017/18

3.2 A request for £78,603 for a £274,950 project to fund the purchase of a new moulding and CNC machines.

3.3 “RP Technologies Ltd founded in 2005 by Brett Mitchell and Darren Withers. Previously Directors at local tool-making company with over 35 years’ experience in the industry. Since that time the company has continually invested in state of the art plant and equipment, new staff and continually upgraded premises. Now located at the above address in a 25,000 sq. ft. premises. In 2015 the company underwent a rebrand and name change to R P Technologies Ltd to reflect the scope of the company’s offerings.

R P Technologies has a strong history of investing in innovative machinery/equipment, people, training and have gone from 6 to 49 staff since its inception. Grant funding received in 2015 which comprised of £100,000 grant through the Greenbridge programme to assist with expansion to new premises. All spend and job creation of 10 new jobs was successful through the programme.

R P T is at the forefront of technology and innovation when it comes to low volume, high value tooling. Specialising in the manufacture of investment tools, injection mould tools, component manufacture, plastic mouldings and rapid tooling for a wide variety of industries, including:

• Automotive – Plastic Moulds, tools, interiors • Aerospace – Interiors, wax pattern dies • Medical – Knee joints, prosthetics

The directors have constantly reinvested profits in modern machinery and manufacturing technology, added to the investment into an experienced, highly skilled and a dedicated team, has led to repeated success in delivering projects on time and at a competitive price.

Further investment is now required to ensure that the business has the capacity together with the plant and equipment to enable RPT to remain at the forefront of their sector and maintain the strong reputation for excellence in design, quality, manufacture and delivery process, data management, integrated systems, giving a high level of efficiency together with the best possible value.”

3.4 The outputs are detailed below:

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – R P Technology Limited Page 2 of 4

ITEM 9

Direct / Outputs Metric 2017/18 2018 /19 2019/20 2020/21 2021/22 Total Indirect Employment – Jobs Created no. Direct 5 7 12 (FTE)

3.5 The Sub-Group considered an application by R P Technology Limited for £78,603 for a £274,950 project to fund the purchase of machinery. The application aimed to create 12 new jobs by March 2022, at £6,873 per job and an average salary of £29,200 per annum leveraging £196,347 of private sector funding.

Agreed that the LEP Board be recommended to approve the application for funding by R P Technology Ltd subject to the following conditions: -

a) That, subject to a successful bid for additional funding for the Growing Priority Sectors project, a maximum grant of £78,603 to help implement a £274,950 project; b) Leverage £196,347 of private sector funding; c) The creation of 12 new jobs by March 2022; d) Confirmation of match funding to successfully deliver the project; e) In the event of the bid for additional funding being unsuccessful the Project be awarded £50,000.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

5.2 See section 3.5 for recommended conditions.

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – R P Technology Limited Page 3 of 4

ITEM 9

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Colleagues from Sandwell Council’s Finance and Legal Services were consulted as part of the report to review any financial and state aid implications.

Background papers

The following background papers can be provided upon request:

• A profile of the application with the appraisers’ comments, scores and recommendations; and • Growing Priority Sectors Sub-Board paper, 7th September 2017.

Attachments

None.

Contact Officer & Author

Dr Alison Knight Mark Lavender Executive Director - Neighbourhoods Joint Committee Programme Manager Sandwell Council Walsall Council Freeth Street, Oldbury Civic Centre, Darwall Street, Walsall. B69 3DB WS1 1TP Email: [email protected] Email: [email protected] Telephone: 0121 569 5030 Telephone: 01922 654772

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – R P Technology Limited Page 4 of 4

ITEM 10

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal GROWING PRIORITY SECTORS INDIVIDUAL PROJECT DECISION – REPOSE FURNITURE LTD (SEPB1) – CRADLEY HEATH, SANDWELL

Grant Agreement Approval

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves for contracting and subsequent award of Grant Agreement for Repose Furniture Ltd project, part of Growing Priority Sectors, from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This project was endorsed by the LEP Funding Sub-Group (FSG) on the 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 116/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves Sandwell Council to move to contracting with Repose Furniture Ltd for a funding allocation of £62,614 (from the Growing Priority Sectors programme of works totalling £6.5m), to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors Repose Furniture Ltd project - with delivery to commence in the 2017/18 financial year.

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – Repose Furniture Limited Page 1 of 4

ITEM 10

3. REPORT DETAIL

3.1 A summary of the request for endorsement, contracting and subsequent award of Grant Agreement by the Accountable Body for the Growing Priority Sectors Programme (Sandwell Council) is below.

Growing Priority Sectors - Repose Furniture Ltd - £62,614 in 2017/18

3.2 A request for £62,614 for a £211,000 project to fund the purchase of a new computerised cutting system and install a new mezzanine floor.

3.3 “The project involves investing into latest machinery which will allow business to diversify into new products, reduce energy waste, flexibility in manufacturing process and efficiency in production. This will ensure safety for existing 47 jobs and create additional 7 new jobs.

The current manufacturing capacity is 150/160 units per week (depending upon specification). This needs to increase up to a minimum 340 units per week over the next 5 years.

The major process preventing expansion is the cutting function currently using a flatbed pro spin 2-man operation matching up fabrics and using knife cutters.

The purchase of the new computerised cutting system will match up fabrics automatically (electronically) and cut using computer automatic technology. This system will facilitate an increase in manufacturing of at least 100% and the ability to increase capacity further with add-ons to system (additional cutting bed etc.)

The project is to increase manufacturing capacity and introduce new designed products.

The business growth strategy is:

1. To increase our capacity in all operational areas to meet demand from our existing and targeted customer base. Particularly through our international distributors

2. To upgrade our current manual cutting process (a bottle neck within our manufacturing process) to a fully computerised cutting system – this will double our manufacturing capability.

The market opportunity is:

1. The business is a totally vertical manufacturing operation performing all functions. - measuring and taking orders, cutting and matching fabrics (manually) – manufacturing chair frames – upholstering and assembling chairs, they are the only UK business undertaking this full vertical capability, which on the orthopaedic chairs manufacturing is paramount in keeping lead-times down to 6 weeks (patient health is the reasons);

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – Repose Furniture Limited Page 2 of 4

ITEM 10

2. They have developed a number of international distributors particularly in countries which have underdeveloped markets and offer the business the opportunity to penetrate these countries – Canada, Saudi Arabia – Australia, New Zealand and Germany. This is a large part of their marketing strategy to increase sales”.

3.4 The outputs are detailed below:

Direct / Outputs Metric 2017/18 2018 /19 2019/20 2020/21 2021/22 Total Indirect Employment – Jobs Created no. Direct 4 3 7 (FTE)

3.5 The Sub-Group considered an application by Repose Furniture Ltd for £73,000 for a £246,000 project to fund the purchase of machinery. The application aimed to create 7 new jobs by March 2022, at £10,428 per job and an average salary of £17,000 per annum leveraging £173,000 of private sector funding.

Agreed that the LEP Board be recommended to approve the application for funding by Repose Furniture Ltd subject to the following conditions: -

a) That, subject to a successful bid for additional funding for the Growing Priority Sectors project, a maximum grant of £73,000 to help implement a £246,000 project; b) Leverage £173,000 of private sector funding; c) The creation of 7 new jobs by March 2022; d) Confirmation of match funding to successfully deliver the project; e) In the event of the bid for additional funding being unsuccessful the Project be awarded £50,000.

4. FINANCIAL IMPLICATIONS

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – Repose Furniture Limited Page 3 of 4

ITEM 10

5. LEGAL IMPLICATIONS

5.2 See section 3.5 for recommended conditions.

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Colleagues from Sandwell Council’s Finance and Legal Services were consulted as part of the report to review any financial and state aid implications.

Background papers

The following supporting documents can be provided on request: • A profile of the application with the appraisers’ comments, scores and recommendations; and • Growing Priority Sectors Sub-Board paper, 7th September 2017.

Attachments None.

Contact Officer & Author Dr Alison Knight Mark Lavender Executive Director - Neighbourhoods Joint Committee Programme Manager Sandwell Council Walsall Council Freeth Street, Oldbury Civic Centre, Darwall Street, Walsall. B69 3DB WS1 1TP Email: [email protected] Email: [email protected] Telephone: 0121 569 5030 Telephone: 01922 654772

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – Repose Furniture Limited Page 4 of 4

ITEM 11

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal GROWING PRIORITY SECTORS INDIVIDUAL PROJECT DECISION – MILLENNIUM PRESSED METAL LTD (SEPB1) WEST BROMWICH, SANDWELL

Grant Agreement Approval

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves the endorsement for contracting and subsequent award of Grant Agreement for Millennium Pressed Metal Ltd project, part of Growing Priority Sectors, from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This project was endorsed by the LEP Funding Sub Group (FSG) on the 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 115/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves Sandwell Council to move to contracting with Millennium Pressed Metal Ltd for a funding allocation of £70,000 (from the Growing Priority Sectors programme of works totalling £6.5m), to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors Millennium Pressed Metal Ltd project - with delivery to commence in the 2017/18 financial year.

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – Millennium Pressed Metal Limited Page 1 of 4

ITEM 11

3. REPORT DETAIL

3.1 A summary of the request for endorsement, contracting and subsequent award of Grant Agreement by the Accountable Body for the Growing Priority Sectors Programme (Sandwell Council) is below.

Growing Priority Sectors - Millennium Pressed Metal Ltd - £70,000 in 2017/18

3.2 A request for £70,000 for a £350,000 project to fund the purchase of a new sheet metal laser cutter and a new five axis CNC tube bending machine.

3.3 “The aim of this project is to diversify the production capability of our business with a view to securing new work from both our current customer base and new customers. The project will involve the purchase of a new sheer metal laser cutting machine and a new 5 axis CNC multi radius tube bending machine, which will in turn create 7 new jobs in our factory in West Bromwich.

Millennium as a business has doubled in size in the past 3 years and these growth plans will continue with this new diversification project.

The processes that the new machinery is capable of completing are currently sub- contracted out at a cost to our business of approx. £50k per annum. The lead times involved in receiving parts back are becoming more problematic. Therefore, we believe it would be much more advantageous to bring these processes in house.

We currently have enquiries from two customers for laser cutting and tube bending work worth approx. £800k.”

3.4 The outputs are detailed below:

Direct / Outputs Metric 2017/18 2018 /19 2019/20 2020/21 2021/22 Total Indirect Employment – Jobs no. Direct 6 1 7 Created (FTE)

3.5 The Sub-Group considered an application by Millennium Pressed Metal Ltd for £70,000 for a £350,000 project to fund the purchase of machinery. The application aimed to create 5 new jobs by March 2022, at £10,000 per job and an average salary of £25,000 per annum leveraging £280,000 of private sector funding.

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – Millennium Pressed Metal Limited Page 2 of 4

ITEM 11

Agreed that the LEP Board be recommended to approve the application for funding by Millennium Pressed Metal Ltd subject to the following conditions: -

a) That, subject to a successful bid for additional funding for the Growing Priority Sectors project, a maximum grant of £70,000 to help implement a £350,000 project; b) Leverage £280,000 of private sector funding; c) The creation of 7 new jobs by March 2022; d) Confirmation of match funding to successfully deliver the project; e) In the event of the bid for additional funding being unsuccessful the Project be awarded £50,000.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

5.2 See section 3.5 for recommended conditions.

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – Millennium Pressed Metal Limited Page 3 of 4

ITEM 11

8. CONSULTATION

8.1 Colleagues from Sandwell Council’s Finance and Legal Services were consulted as part of the report to review any financial and state aid implications.

Background papers

• A profile of the application with the appraisers’ comments, scores and recommendations; and • Growing Priority Sectors Sub-Board paper, 7th September 2017.

Attachments

None.

Contact Officer & Author

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – Millennium Pressed Metal Limited Page 4 of 4

ITEM 12

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal GROWING PRIORITY SECTORS INDIVIDUAL PROJECT DECISION – A&M EDM LTD (SEPB1) – SMETHWICK, SANDWELL

Grant Agreement Approval

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves the contracting and subsequent award of Grant Agreement for A&M EDM Ltd project, part of Growing Priority Sectors, from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This project was endorsed by the LEP Funding Sub Group (FSG) on 7th September 2017, LEP Board on 18th September 2017 (LEP Board Minutes Ref: 113/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves Sandwell Council to move to contracting with A&M EDM Ltd for a funding allocation of £58,000 (from the Growing Priority Sectors programme of works totalling £6.5m), to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors A&M EDM Ltd project - with delivery to commence in the 2017/18 financial year.

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – A&M EDM Limited Page 1 of 4

ITEM 12

3. REPORT DETAIL

3.1 A summary of the request for endorsement, contracting and subsequent award of Grant Agreement by the Accountable Body for the Growing Priority Sectors Programme (Sandwell Council) is below.

Growing Priority Sectors - A&M EDM Ltd - £58,000 in 2017/18

3.2 A request for £58,000 for a £385,000 project to fund the purchase of two wire eroding machines.

3.3 A GPS grant will bridge a funding gap enabling A&M EDM to seize an immediate growth opportunity to increase sales with a key customer creating 5 new jobs. A&M EDM Ltd proposes to purchase two new wire erosion machines in response to a customer (HS Marston Aerospace) need to increase production. A&M EDM Ltd has developed a good supplier relationship with HS Marston since 2010, working to support growth of their Neo heat exchangers for civil aviation. HS Marston’s orders from aircraft manufacturers have doubled in the past two years and rapid growth is projected in the next 5-10 years.

In addition to this growth, A&M EDM Ltd is now working on the production of advanced US Airforce heat exchangers under ITAR (International Traffic in Arms Regulations). Marston’s have moved this work from Mexico to the UK because of its complexity. The ITAR parts require advanced precision manufacturing and although smaller in quantity are worth greater value individually compared to Neo.

3.4 The outputs are detailed below:

Direct / Outputs Metric 2017/18 2018/19 2019/20 2020/21 2021/22 Total Indirect Employment – Jobs no. Direct 2 3 5 Created (FTE)

3.5 The Sub-Group considered an application by A&M EDM Ltd for £58,000 for a £385,000 project to fund the purchase of machinery. The application aimed to create 5 new jobs by March 2022, at £11,600 per job and an average salary of £25,600 per annum leveraging £327,000 of private sector funding.

The Sub-Group noted that the overall score was above the accepted standard of 50%, the application offered good value for money and an average salary above the Black Country average. In regard to issues of local displacement the Sub-Group were advised that this was not an issue. Agreed that the LEP Board be recommended to approve the application for funding by A&M EDM Ltd subject to the following conditions: -

a) That, subject to a successful bid for Additional Funding for the Growing Priority Sectors project, a maximum grant of £58,000 to help implement a £385,000 project; b) Leverage £327,000 of private sector funding;

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – A&M EDM Limited Page 2 of 4

ITEM 12

c) The creation of 5 new jobs by March 2022; d) Confirmation of match funding to successfully deliver the project. e) In the event of the bid for Additional Funding being unsuccessful the Project be awarded £50,000.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

5.2 See section 3.5 for recommended conditions.

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Colleagues from Sandwell Council’s Finance and Legal Services were consulted as part of the development of the report to review any financial and state aid implications.

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – A&M EDM Limited Page 3 of 4

ITEM 12

Background papers

The following background papers can be provided upon request:

• A profile of the application with the appraisers’ comments, scores and recommendations; and • Growing Priority Sectors Sub-Board paper, 7th September 2017.

Attachments

None.

Contact Officer & Author

BCJC – 22/11/17 Growing Priority Sectors Individual Project Decision – A&M EDM Limited Page 4 of 4

ITEM 13

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal GROWING PRIORITY SECTORS - ADDITIONAL FUNDING REQUEST (SEPB1)

Approval for Additional Funding

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves for the Accountable Body for the Growth Deal (Walsall Council) to amend the existing Grant Agreement with Sandwell Council to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors programme of works - with delivery to commence in the 2017/18 financial year.

1.2 This additional funding request was endorsed by the LEP Funding Sub-Group on the 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 114/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves the Accountable Body for the Growth Deal (Walsall Council) to proceed to amend the existing Agreement with Sandwell Council to include an additional funding allocation of £127,000 to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors programme of works - with delivery to commence in the 2017/18 financial year. This is an Additional Funding request for 2017/18.

BCJC – 22/11/17 Growing Priority Sectors – Additional Funding Page 1 of 3

ITEM 13

3. REPORT DETAIL

3.1 A summary of the request for amending the existing Grant Agreement by the Accountable Body for the Growth Deal (Walsall Council) is below.

Growing Priority Sectors – Additional Funding of £127,000 in 2017/18

3.2 Additional Funding is requested to specifically fund an application from Liberty Performance Steels Ltd which, if approved, will take the Growing Priority Sectors fund over its maximum grant award of £6.5m.

3.3 The £127,000 will fund the launch of a new division of company to producing high precision saw blades. A separate report regarding Liberty Performance Steels Ltd is provided.

3.4 Growing Priority Sectors Regional Growth Fund is a three year £6.5m Access to Finance project to strengthen the capacity of Black Country businesses to take advantage of new market opportunities. It provides Access to Finance to grow Priority Sectors via capital investment in plant, machinery & property. The project provides grants to businesses with growth projects that cannot find adequate finance. Businesses in the Black Country’s key sectors are prioritised. At the November 2015 meeting the LEP Board agreed an increase in the overall budget from £6m to £6.5m. The fund will close March 2018.

3.5 To date the LEP Board has approved 33 applications committing £6,190,397 of the fund leaving £309,603 unallocated. The fund has now received a further five applications, plus a project change request from an existing applicant, totalling £436,603 in grant requests all recommended for approval by the LEP Funding Sub Group. This creates a potential £127,000 shortfall.

3.6 One of the five new applications is from Liberty Performance Steels Ltd who are requesting £127,000 as part of a £1.27m project that will deliver 31 new jobs at an average salary of £31,000 per annum.

3.7 If this £127,000 request could be met through this Additional Funding Request then the other four applications and the project change request will be managed through the existing budget.

3.8 The following is a summary of the fund’s targets with a forecast based on the approval of all five new applications plus the project change request.

Output Target Current Forecast (end of programme) Jobs Created 600 699 Business Assists 30 38 Apprenticeship starts 35 54 Private Sector Match £19.5m £30.5m

BCJC – 22/11/17 Growing Priority Sectors – Additional Funding Page 2 of 3

ITEM 13

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Colleagues from Sandwell Council’s Finance and Legal Services were consulted as part of the report to review any financial and state aid implications.

Background papers The following supporting documents can be provided on request: • Growing Priority Sectors Sub-Board paper, September 2017.

Attachments None.

BCJC – 22/11/17 Growing Priority Sectors – Additional Funding Page 3 of 3

ITEM 14

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal GROWING PRIORITY SECTORS INDIVIDUAL PROJECT DECISION – LIBERTY PERFORMANCE STEELS LTD (SEPB1) – WEST BROMWICH, SANDWELL

Grant Agreement Approval

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves for contracting and subsequent award of Grant Agreement for Liberty Performance Steels Ltd project, part of Growing Priority Sectors, from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This additional funding request was endorsed by the LEP Funding Sub-Group (FSG) on the 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 114/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves Sandwell Council to move to contracting with Liberty Performance Steels Ltd for a funding allocation of £127,000 (from the Growing Priority Sectors programme of works totalling £6.627m), to deliver the Local Growth Fund (LGF) funded elements of the Growing Priority Sectors Liberty Performance Steels Ltd project - with delivery to commence in the 2017/18 financial year. This is subject to the approval of the request for Additional Funding for the Growing Priority Sectors programme.

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ITEM 14

3. REPORT DETAIL

3.1 A summary of the request for endorsement, contracting and subsequent award of Grant Agreement by the Accountable Body for the Growing Priority Sectors Programme (Sandwell Council) is below.

Growing Priority Sectors - Liberty Performance Steels Ltd - £127,000 in 2017/18

3.2 This request is for £127,000 to fund the launch of a new division of the company producing high precision saw blades.

3.3 Bandsaw Production –

“We will launch a new division of the company and become a saw maker. We aim to become one of the top four band saw makers globally. This strategy will take us from being a £15m turnover business to a £100m business within 5 years. The critical period is the next 12 months where we must invest in equipment, infrastructure and people to create the new business.

Rather than just replicating existing technology we have developed a new (patent pending) approach that allows us to innovate and to change the market structure. This involves high definition lasers and waterjet technology to cut the saw profile. This new process has significant technical and economic advantages to the conventional methods and will allow us to enter and disrupt the existing market. The approach is a game changer for the industry. The benefits of our new approach will improve yield by 10% and reduce working capital by 50%.”

3.4 The outputs are detailed below:

Direct / Outputs Metric 2017/18 2018/19 2019/20 2020/21 2021/22 Total Indirect Employment – Jobs no. Direct 10 15 6 31 Created (FTE)

3.5 The Sub-Group considered an application by Liberty Performance Steels Ltd for £127,000 to fund the purchase of machinery. The application aimed to create 31 new jobs by March 2022, at £4,096 per job and an above average salary of £31,900 per annum.

Agreed that the LEP Board be recommended to approve the application for funding by Liberty Performance Steels Ltd subject to the following conditions: -

BCJC – 22/11/17 Growing Priority Sectors Individual Project Approval – Liberty Performance Steels Limited Page 2 of 4

ITEM 14

a) That, subject to a successful bid for additional funding for the Growing Priority Sectors project, a maximum grant of £127,000 will be awarded; b) The creation of 31 new jobs by March 2022; c) Confirmation of match funding to successfully deliver the project; d) In the event of the bid for additional funding being unsuccessful the Project be awarded £79,603.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

5.2 See section 3.5 for recommended conditions.

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Colleagues from Sandwell Council’s Finance and Legal Services were consulted as part of the development of this report to review any financial and state aid implications.

BCJC – 22/11/17 Growing Priority Sectors Individual Project Approval – Liberty Performance Steels Limited Page 3 of 4

ITEM 14

Background papers

The following background papers can be provided upon request:

• A profile of the application with the appraisers’ comments, scores and recommendations; and • Growing Priority Sectors Sub-Board paper, 7th September 2017.

Attachments

None.

Contact Officer & Author

BCJC – 22/11/17 Growing Priority Sectors Individual Project Approval – Liberty Performance Steels Limited Page 4 of 4

ITEM15

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal ELITE CENTRE FOR MANUFACTURING SKILLS – ADDITIONAL FUNDING (SEPP1)

Approval to Amend Existing Grant Agreement Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approve amending the existing Grant Agreement for the Elite Centre for Manufacturing Skills (ECMS) project from within the Local Growth Fund (LGF) Programme.

1.2 This Additional Funding request was endorsed by the LEP Funding Sub-Group (FSG) on 8th June 2017 (ref 91/17 FSG Decisions), the LEP Board on 24th July 2017 (LEP Decisions ref: 69/17), the Working Group on the 19th of October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves the Accountable Body for the Growth Deal (Walsall Council) to proceed to amending the existing Grant Agreement with the University of Wolverhampton to the value of £506,400 to deliver the Local Growth Fund (LGF) funded elements of Elite Centre for Manufacturing Skills (ECMS) project - with delivery to commence in the 2017/18 financial year.

2.2 This request relates to an Additional Funding request in 2017/18.

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3. REPORT DETAIL

3.1 A summary of the request for amending the existing Grant Agreement by the Accountable Body for the Local Growth Deal (Walsall Council) is below.

Elite Centre for Manufacturing Skills (ECMS) - £506,400 in 2017/18

3.2 Endorsement is requested for additional funding to allow delivery of the Springfield Hub in the ECMS, which has encountered a range of additional costs which cannot be accommodated within the existing budget since the project budget contingency has already been allocated.

3.3 Despite undertaking invasive surveys prior to construction, the internal structures of this former stables/workshop building which is over 140 years old, have only been uncovered since construction has commenced exposing additional problems. In particular, significant additional work has been identified to address the poor state of the roof and supporting structures and the uneven flooring which has been exposed following the removal of internal walls.

3.4 The total cost of the work to be undertaken is £806,400. The £300,000 balance will be a contribution by the University of Wolverhampton.

3.5 The ECMS project will commence delivery of training programmes from September 2017 as previously planned however use will be made of temporary facilities in Dudley College until the Hub building is completed in December 2017 due to the additional work to be undertaken.

3.6 It is recommended that, if the project does not require the contingency fund element (at £33,000) of this additional grant award, then it be repaid to the Growth Deal fund.

3.7 According to the ECMS Principle, the initial apprenticeship outputs in the Full Business Case (FBC) had been derived from regional manufacturing outputs and growth prediction data for 2013-14. There has been significant growth in the Metals manufacturing sectors within the West Midlands since 2014 with exporting companies currently seeing exports surging since Q2 2016. This has supported the significant growth in apprenticeship vacancies advertised by the National Apprenticeship Service (NAS); the number of companies that are now paying and spending the apprenticeship levy on new apprenticeship opportunities is starting to impact on previous output assumptions for the ECMS. As the Manufacturing sector gains a greater awareness of the ECMS they have seen an increasing number of employers pledge to access the bespoke facilities at the ECMS.

3.8 As a result of the increased demand for the project and in support of the application for additional grant funding, the number of Apprenticeships to be offered by ECMS has been increased by 38 (10 by 2021). The original grant was to support the creation of 412 Apprenticeships within the Manufacturing and Casting Sector which equated to a cost per Apprentice of £19,660 (based on the grant funding alone). The request for an additional

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£506k grant, will generate an additional 38 Apprentices for a total cost of £8.6M and a reduced cost per Apprentice of £19,111 (based on the grant funding alone) which represents a significant increase in value for the programme

3.9 The revised profile is set out below:

17-18 18-19 19-20 20-21 21-22 22-23 Total Original - Apprenticeship starts 45 88 71 82 126 412 Revised - Apprenticeship starts 45 88 71 92 154 450 Original - Apprenticeship Completions 45 88 71 82 286 Revised -Apprenticeship Completions 45 88 71 92 154 450

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

5.2 See section 3.6 for recommended condition to be included within the contract.

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

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8. CONSULTATION

8.1 The proposal has been through consultation with the Programme Management Office as part of the project 2017/18 Q1 review.

8.2 Legal and Financial colleagues at City of Wolverhampton Council have been consulted as part of the development of this report.

Background papers

The following background papers can be provided upon request:

• Elite Centre for Manufacturing Skills - Additional Funding Request • ECMS Works Estimate

Attachments

None.

Contact Officer & Author

Tim Johnson Mark Lavender Strategic Director, Place Joint Committee Programme Manager City of Wolverhampton Council Walsall Council Civic Centre, St Peter’s Square, Civic Centre, Darwall Street, Walsall. Wolverhampton, WV1 1SH WS1 1TP Email: [email protected] Email: [email protected] Telephone: 01902 555400 Telephone: 01922 654772

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REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal CITY LEARNING QUARTER SITE INVESTIGATION

Grant Agreement Approval

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approve the contracting and subsequent award of Grant Agreement for the City Learning Quarter Site Investigation from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This Site Investigation was endorsed by the LEP Funding Sub-Group (FSG) on 4th July 2017, the LEP Board on 24th July 2017, the Working Group on the 20th July 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approve the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with the City of Wolverhampton Council to value of £120,000 to deliver the Local Growth Fund (LGF) funded elements of City Learning Quarter Site Investigation - with delivery to commence in the 2017/18 financial year.

2.2 This project will be underwritten by City of Wolverhampton Council.

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3. REPORT DETAIL

3.1 A summary of the request for the endorsement, contracting and subsequent award of Grant Agreement by the Accountable Body for the Local Growth Deal (Walsall Council) is below.

City Learning Quarter Site Investigation - £120,000 in 2017/18

3.2 The City Learning Quarter will create a learning hub of flexible spaces in Wolverhampton’s City Centre, meeting the future needs of the City’s key learning functions, enabling the City to improve skill levels in an easily accessible location for employers and residents, and adapt the City’s learning offer to national policy changes, such as the increased focus on Apprenticeships.

3.3 The relocation of the City of Wolverhampton College from its Paget Road site, together with a consolidated Adult Education offer and a transformation of the Central Library provides a rare opportunity to deliver modern, flexible and accessible spaces to support learning and civic participation for people of all ages and backgrounds. The majority of the site is within the ownership of CWC, with all critical elements to delivery being within CWC’s ownership. Acquisitions of other desired interests are on-going. In the event of control/ownership issues emerging, then it is considered CWC would have a likely strong case to promote a CPO to facilitate delivery of the wider vision.

3.4 This SI bid for Growth Deal support is the initial stage of a much wider multi-phase project, and constitutes a further drawdown against LGF earmarked funds for Wolverhampton College relocation.

3.5 The list of 23 identified SI studies together with additional works being undertaken by/on behalf of CWC, including risk management works, design, traffic and transport survey and market testing, will provide a full suite of information which will inform design and planning stages of the project.

3.6 There are no direct outputs, other than detailed knowledge in relation to 1.32 hectares of land and buildings. The applicant identifies the main project, which will be part of a later separate funding bid, to have potential to deliver in future 3,000 learners’ assisted, 1,200 new apprenticeships, 20 new jobs created and a further 48 safe-guarded. Housing (100+ new homes) is envisaged to be accommodated on the vacated college site at Paget Road as indirect outputs for the main later bid.

3.7 The Applicant is noted to be seeking a grant of £120,000 in relation to estimated survey costs of £194,000, to which additional Council expenditure in terms of traffic and transport surveys, design and risk management works are to be undertaken. Hence identified match funding of 38.14% for site investigations is specifically identified, but additional proven commitment (copy purchase order for £129,161 provided by way of evidence), demonstrates funding commitment which exceeds this level.

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3.8 It is therefore recommended that funding for site investigation works be considered to be offered to the Applicant subject to the following conditions:

I. Grant funding in the maximum sum of £120,000.

II. Funding to be drawn down at the rate of 61.86% against actual tendered costs in respect of each of the identified surveys, up to the individual respective identified estimated sum (in accord with the Schedule in the Deliverability section of the Evaluation Report).

III. Any cost savings derived from individual surveys and studies are non-transferrable.

4. FINANCIAL IMPLICATIONS

4.1 All the costs associated with this proposal form part of the LGF programme and will be covered by allocations from government associated with this programme. This includes the use of any interest accrued by the Accountable Body to cover costs associated with the delivery of Accountable Body functions, as approved by its (Walsall Council) Cabinet on the 29th October 2014.

4.2 See section 2.2 regarding underwriting.

5. LEGAL IMPLICATIONS

5.2 See section 3.8 regarding the recommended conditions to be included within the contract.

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

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8. CONSULTATION

8.1 The project is at pre-planning stage and the SI survey results will inform the application. However initial conversations with both Historic England and The Planning Authority have indicated that an overall planning application that contains sufficient detail with respect to the historic buildings will be required. The first step towards this will be a Conservation Assessment of the site by a qualified Landscape and Conservation architect and this is included in this project for site investigation and risk management works (to be funded by the City of Wolverhampton Council).

8.2 Legal and Finance Officers at City of Wolverhampton Council were consulted as part of the development of this report.

Background papers

• Copy of Site Plan.

The following supporting documents can be supplied on request:

• Wolverhampton City Learning Quarter SI bid • Thomas Lister Independent Property Evaluation & Recommendation report

Attachments

None.

Contact Officer & Author

BCJC – 22/11/17 City Learning Quarter - Site Investigation Page 4 of 4

ITEM 17

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal CITY NORTH GATEWAY PHASE 1 - M54 JUNCTION 2 TO SPRINGFIELD LANE (SEPP41)

Grant Agreement Approval

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves the contracting and subsequent award of Grant Agreement for the City North Gateway Phase 1 project from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This project was endorsed by the LEP Funding Sub-Group (FSG) on 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 103/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with the City of Wolverhampton Council to value of £6,371,000 to deliver the Local Growth Fund (LGF) funded elements of City North Gateway Phase 1 -– M54 Junction 2 to Springfield Lane scheme, with delivery to commence in the 2017/18 financial year.

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3. REPORT DETAIL

3.1 A summary of the request for endorsement, contracting and subsequent award of Grant Agreement by the Accountable Body for the City North Gateway Phase 1 project is below.

City North Gateway – Phase 1 - £2,368,000 funding in 2017/18 and £4,003,000 2018/19

3.2 Approval is requested for funding to allow the City North Gateway development.

3.3 This bid seeks approval to invest £6,371,000 of Growth Deal funding on highway, pedestrian and cycle infrastructure improvements to the A449 along the segment south of the M54 Junction 2 to Wobaston Road roundabout. The scheme has funding of £6.12m earmarked through our Growth Deal 3 allocation.

3.4 City North Gateway (Phase 1) is a highway infrastructure improvement scheme that will enhance capacity for all modes whilst removing pinch points, thus reducing congestion and subsequently making the i54 enterprise zone more accessible. The aim of the scheme is to play a contributing role in improving the connectivity of Wolverhampton and unlock key sites along the northern corridor for redevelopment, attracting investors to the area and i54. This scheme will also provide better connectivity to the proposed extension of the i54 (‘Western Extension’), attracting additional investors to this site.

3.5 Stafford Road is identified as part of the ‘Key Route Network’ that serves the main strategic demand flows of people and freight. It is also a proposed Strategic Cycle Route. The area is home to some of the highest quality employment areas in the Black Country, containing clusters of high technology and leading-edge manufacturing. This includes the i54 Wolverhampton North Enterprise Zone, which comprises of 98ha of land, already home to major employers, such as MOOG, Eurofins and Jaguar Land Rover, with the potential to generate thousands of skilled and semi-skilled jobs in key high technology sectors. There is currently a proposal to expand the enterprise zone through the i54 Western Extension, which would add 40ha of additional employment land. To maximise accessibility to the site and therefore attract large investors, the scheme is imperative to tackle the growing levels of congestion, which at present are constraining local movements and access to the motorway network.

3.6 A successful planning application for the i54 Western Extension would be unlikely without highway improvement in this area.

The direct outputs of the scheme include improvements to the local length of newly built roads (1.83km), total length of resurfaced roads (5.06km) and total length of new cycle ways (1.75km). Indirect outputs include increasing employment opportunities and new employments land space as referenced above. The economic appraisal undertaken shows that the Benefit to Cost ratio of the Proposed Option is 3.471, offering ‘High’ Value for Money.

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ITEM 17

3.7 Whilst the main scheme will be funded solely through the Growth Deal, City of Wolverhampton Council (CWC) will fund any cost overruns themselves. Match funding of £792k for the scheme has also been provided in the form of upfront design work, feasibility studies and infrastructure future proofing for the i54, all of which have been funded by CWC.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of writing.

8. CONSULTATION

8.1 The impact upon local businesses during construction and operational impact of the completed scheme has been tackled through public consultation. This consultation has been undertaken with all businesses affected and the final design has been amended to reflect operational constraints to existing occupiers. There is also a contractor liaison in place prior to and for the duration of the works

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ITEM 17

8.2 Legal and Finance Officers at City of Wolverhampton Council have been consulted as part of the development of this report.

Background papers

The following supporting documents can be provided on request:

• City North Gateway (Phase 1) Bid proposal • Scheme Drawings

Attachments

City North Gateway Phase 1 Map

Contact Officer & Author

Stuart Everton BC Director of Transport City of Wolverhampton Council Civic Centre, St Peter’s Square, Wolverhampton, WV1 1SH Email:[email protected] Telephone: 01902 554097

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ITEM 17

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REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal SPRINGFIELD CAMPUS REMEDIATION - SITE INVESTIGATION (SEPPL111)

Grant Agreement Approval Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Advisory Board recommends to the Joint Committee the approval for contracting and subsequent award of a Grant Agreement for the Springfield Campus Remediation - Site Investigation project from within the Local Growth Fund (LGF) Programme.

1.2 This project was endorsed by the LEP Funding Sub Group (FSG) on the 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 98/17), endorsed by the Working Group on the 19th of October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with the University of Wolverhampton to the value of £83,195 to deliver the Local Growth Fund (LGF) funded elements of Springfield Campus Remediation - Site Investigation project - with delivery to commence in the 2017/18 financial year.

2.2 This Site Investigation funding is to be underwritten via a clawback arrangement with the bidder the University of Wolverhampton.

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ITEM 18

3. REPORT DETAIL

3.1 A summary of the request for endorsement, contracting and subsequent award of a Grant Agreement by the Accountable Body for the Growth Deal (Walsall Council) is below.

Springfield Campus Remediation - Site Investigation - £83,195 in 2017/18

3.2 Approval is requested for funding to allow site investigation of the Springfield Campus.

3.3 The applicant is noted to be seeking a grant of £118,850 in relation to survey costs. On the basis that 30% match funding is now required, it is recommended that a maximum total grant of £83,195 might be offered (as set out in the Initial Assessment Report provided by Thomas Lister).

3.4 Quotes for the SI have been obtained and the associated cost has been considered reasonable in VFM terms. The ability to bring forward serviced and remediated sites for future employment/education development as part of the wider campus has a strong strategic fit at local, Black County and Combined Authority levels.

3.5 It is therefore recommended that funding for site investigation works be considered to be offered to the Applicant subject to the following conditions:

I. Grant funding approved is in the maximum sum of £83,195;

II. Funding to be drawn down at the rate of 70% against the actual cost of the SI (including VAT), up to the maximum sum.

4. FINANCIAL IMPLICATIONS

4.2 See section 2.2 for underwriting agreement.

5. LEGAL IMPLICATIONS

5.1 The appropriate Grant Agreements are in place and will be utilised by the Accountable Body (Walsall Council), and include all conditions passed onto the LEP by Government, together will all terms, conditions, performance measures and sanctions as required by the approvals/conditions received from Government or approved by the LEP Board or the Joint Committee.

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ITEM 18

5.2 See section 3.5 for recommended condition to be included within the contract.

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Specific directorates within the University, with responsibility for key infrastructure and development, have been consulted extensively on requirements to ensure long term and sufficient capacity of the Springfield Campus which this Project will support by creating a sustainable infrastructure that facilitates future development phases.

8.2 City of Wolverhampton Council has been consulted in its capacity as a statutory undertaker and the local authority responsible for planning and development at this site.

8.3 Further discussion and negotiations will be required with statutory providers, subject to funding approval, ahead of the work programme commencing. Additionally, occupiers of Springfield (WMCUTC and ECMS) will be consulted and kept informed of project progress and notified should any potential delays or disruptions arise.

8.4 Finance and Legal Officers at City of Wolverhampton Council have been consulted as part of the development of this report.

Background papers The following background papers can be provided upon request: • Thomas Lister Independent Property Evaluation & Recommendation report • Copy of Site Plan

Attachments None.

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ITEM 18

Contact Officer & Author

BCJC – 22/11/17 Springfield Campus Remediation – Site Investigation (SEPPL111) Page 4 of 4

ITEM 19

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

BLACK COUNTRY GROWTH HUB - ADDITIONAL FUNDING

Grant Agreement Approval

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request the Black Country Executive Joint Committee (BCJC) to approve receipt of £328,000 of additional funding from the Department of Business, Energy and Industrial Strategy for the Black Country Growth Fund for 2017/18 to be received by Walsall Council and managed on its behalf by City of Wolverhampton Council.

2. RECOMMENDATIONS

The Joint Committee:

2.1 Approves the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with City of Wolverhampton Council for £328,000 to deliver the Black Country Growth Hub Funding within the 2017/18 financial year.

2.2 To approve City of Wolverhampton Council to manage the funding on behalf of Walsall Council.

3. REPORT DETAIL

3.1 Growth Hubs were established in April 2015 by the Department of Business, Energy and Industrial Strategy (BEIS) in each Local Enterprise Partnership area, following a successful

BCJC – 22/11/17 Black Country Growth Hub – Additional Funding Page 1 of 3

ITEM 19

pilot in 2014. Growth Hubs are local public/private sector partnerships which join up national and local business support so it is easy for businesses to find the help they need.

3.2 Following an announcement in the 2015 Budget by the Chancellor of the Exchequer, further funding was allocated to Growth Hubs for two years from April 2016. Walsall Council received grant funding of £328,000 from BEIS to operate the Black Country Growth Hub in 2016/17. The Black Country Growth Hub is a partnership made up of Dudley Council, Sandwell Council, Walsall Council, City of Wolverhampton Council, the Black Country Chamber, the Black Country Consortium and the University of Wolverhampton.

3.3 The City of Wolverhampton Council has managed the budget on behalf of Walsall Council through the Black Country Growth Hub Strategic Board, administered by the Head of the Black Country Growth Hub, employed by the City of Wolverhampton Council.

3.4 In March 2017, Walsall Council received confirmation from BEIS of £328,000 of funding to operate the Black Country Growth Hub from 1st April 2017 to 31st March 2018.

4. FINANCIAL IMPLICATIONS

4.1 Financial arrangements are already in place at City of Wolverhampton Council following the successful implementation of the project in 2016/17.

5. LEGAL IMPLICATIONS

5.1 Subject to the appropriate legal agreements being entered between the Accountable Body and the Grant Recipient, there are no legal implications to the continuation of the project in 2017/18 following its successful implementation in 2016/17.

6. RISK MANAGEMENT

6.1 The principal risk is the requirement to repay grant funding to BEIS following non- compliance with the requirements of the grant letter to Walsall Council. City of Wolverhampton Council has grant funding agreements in place with the University of Wolverhampton and the Black Country Consortium to deliver these requirements.

6.2 Scrutiny of the performance of partners against requirements set out in the grant funding agreements is undertaken by the Black Country Growth Hub Strategic Board that meets monthly. The Strategic Director, Place from City of Wolverhampton Council attends the board meetings.

6.3 The Black Country Growth Hub continues to successfully meet the requirements of the BEIS grant letter.

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7. EQUALITY IMPLICATIONS

7.1 The Black Country Growth Hub’s mission is to provide guidance and support to all individuals seeking to start a new business, as well as employees of any existing business free of charge.

7.2 Business-facing officers operating across Black Country Growth Hub partners are from a variety of ethnic backgrounds.

7.3 The separate partners of the Black Country Growth Hub each have their own equality policies in place, covering officers’ conduct and approach to inclusive engagement.

8. CONSULTATION

8.1 The following officers have been consulted in the preparation of this report:

Emma Shinton, Finance, City of Wolverhampton Council Lorraine Moses-Copeman, Solicitor, City of Wolverhampton Council

Background Papers

None.

Attachments

I. Grant offer letter from BEIS to Walsall Council, March 2017

Contact Officer & Author

BCJC – 22/11/17 Black Country Growth Hub – Additional Funding Page 3 of 3

Restricted - Commercial

ITEM 19

1 Victoria Street London SW1H 0ET

T: +44 (0) 20 7215 1419 E: www.BEIS.gov.uk/contact www.BEIS.gov.uk

Mr James Walsh Section 151 Officer Walsall Metropolitan Borough Council Civic Centre Darwall Street Walsall WS1 1RG

6th March 2017

Dear Mr Walsh

GROWTH HUB FUNDING TO LOCAL ENTERPRISE PARTNERSHIPS IN 2017-2018

1. I am pleased to inform you that, subject to the terms and conditions of this Grant Offer Letter, the Secretary of State for Business, Energy and Industrial Strategy ("BEIS") is prepared to pay Walsall Metropolitan Borough Council (the “Accountable Body”) £328,000 (three hundred and twenty-eight thousand pounds only) in accordance with the proposal contained at Schedule 3 for the period from 1 April 2017 to 31 March 2018 under Section 11 of the Industrial Development Act 1982.

2. The Grant is specifically for the giving of advice to business by Black Country LEP by supporting the further development of growth hubs, aligned to Government’s objective to simplify access to support for businesses (“the Project”). The Project approach and deliverables are set out in accordance with the detailed proposal submitted to the Department for Business, Energy and Industrial Strategy ("the Department") contained in Schedule 3.

Conditions of the Offer

3. This offer is conditional on BEIS receiving by 11.59 pm on 27th March 2017 the Grant offer acceptance (attached at annex A) duly signed by the Accountable Body and where legally required, state aid clearance from the European Commission. If this condition is not met, the grant offer will lapse automatically.

Financial

4. The Grant will be for up to 100% of the net eligible costs up to £328,000 for the period 1st April 2017 to 31st March 2018. Claims can be made quarterly in advance on submission by the Accountable Body of a statement of monies to be expended by the Accountable Body on the Project in the next quarter and with confirmation of monies expended in the previous quarter. Claims will only be accepted from and signed by the Accountable Body using the Schedule 1 claim form which forms part of this Grant Offer Letter. Any overpayment of the Grant, whether disclosed by a report or otherwise, must be refunded forthwith to BEIS on its first demand or upon the Accountable Body becoming aware that Grant has been overpaid, whichever first occurs.

5. Unless BEIS otherwise agrees, the dates that claims should reach BEIS by are no later than 10th April 2017 (Quarter 1); 14th July 2017 (Quarter 2); 6th October 2017 (Quarter 3) and 8th January 2018 (Quarter 4) to allow advance payments to be released promptly. Claims in Quarter 2, 3 and 4 must also be supported by copies of 2 sample invoices (which clearly demonstrate the type of expenditure or services acquired) for expenditure incurred in the previous quarter. These will form validation of spend on the project as set out in Schedule 3. BEIS reserves the right to request further supporting documentation and exercise this request as deemed appropriate, with evidence of spend for review being identified by BEIS.

6. In addition please provide the following reports:

a) A six monthly report to BEIS by16 October 2017 which should cover the following:

(i) Progress made against the project deliverables as set out in Schedule 3, including evidence of net expenditure for the purpose of delivering this project using the template provided by BEIS. (ii) If applicable, any change in the nature or scale of the Project including an assessment of any change in the prospects of technical success. (iii) If applicable, any change in the ownership of or beneficial interest in any asset provided for the Project. (iv) A breakdown of the full current financial position of the Project.

b) A final report as described in the attached Schedule 3 to BEIS by the 25th May 2018.

7. Confirmation is required that in the course of the Project, the Accountable Body has expended the sums in respect of which claims are made and that all goods and services were received by the Accountable Body by 31st March 2018 and paid for by 25th May 2018. For this purpose a report from an accountant must follow the final claim for the Grant and be submitted to BEIS by no later than the 25th May 2018. The accountant’s report must be submitted in Annex B format and prepared by a professionally qualified member of the Accountable Body’s own audit team. This person, if asked, must be able to provide a written statement declaring their independence. In exceptional circumstances and with written consent from BEIS, the Accountable Body may use an independent accountant outside of their organisation who is qualified under the terms of Section 1211 of the Companies Acts 2006, to prepare and submit the report.

8. BEIS may also require an additional report relating to the Grant, from the Accountable Bodies internal audit team or an independent accountant, to be submitted in exceptional circumstances including, but not limited to:-

(i) Termination of the Project; (ii) A claim disclosing expenditure substantially lower or greater than was anticipated for the period in question; (iii) A claim being made which covers an unusually long period or relates mainly to monies expended in a previous financial year; (iv) A change in the accounting reference date or accounting practice of the Accountable Body.

9. BEIS shall be under no obligation to make any payment on claims for the Grant received after 26 January 2018 and there will be a general presumption against paying claims for the Grant received after this date, unless BEIS has previously agreed in writing to an extension.

10. Once a fully documented claim has been received, the relevant part of the Grant will normally be posted, or the claim rejected, within 30 days, unless it is necessary for BEIS to seek further information to support the claim.

Changes affecting the Project

11. BEIS may vary or withhold any or all of the payments and/or require repayment of Grant already paid to the Accountable Body together with interest from the date of payment, if BEIS is required to do so as a result of a decision by the European Commission or as a result of any obligation arising under EU law. BEIS shall be under no obligation to pay the Grant, and/or Grant already paid may become repayable, in whole or in part, if in the absolute discretion of BEIS:

(i) it considers that the future of the Project is in jeopardy;

(ii) it considers that progress towards completion of the Project is unsatisfactory or if the part of the Project funded by the Grant is not completed by 31 March 2018 or BEIS considers there is no longer any reasonable prospect of the part of the Project funded by the Grant being completed by that date;

(iii) there is a change in the nature or scale of the Project which BEIS considers is substantial;

(iv) an asset, the cost of which has been included in the net eligible costs, is not used for the purpose of the Project or otherwise not in accordance with the detailed proposal submitted to the Department contained in Schedule 3;

(v) the Accountable Body does not comply with or observe any condition of this Grant Offer Letter;

(vi) within the period commencing on the date specified in paragraph 3 and ending 5 years after the date on which the final payment of Grant is made, the LEP becomes the subject of a proposal for a voluntary arrangement or has a petition for Administration Order or a petition for a winding-up Order brought against it or passes a resolution for a winding-up or makes any composition, arrangement, conveyance or assignment for the benefit of its creditors, or purports to do so, or if a receiver or any other person is appointed in respect of its undertaking or of all or any of its property or if the LEP does or suffers anything substantially equivalent to any of the foregoing.

12. The Accountable Body shall inform BEIS promptly in writing of any cessation of work on the Project and of any event or circumstance likely to affect significantly the satisfactory completion of the Project.

13. The Accountable Body must inform BEIS in writing if any of the events referred to in para. 11 above take place or of any underspend of the funding amount.

General

14. In relation to the Grant, BEIS and its representatives and advisers shall have the right to inspect the Project at any time and from time to time and to require such further information to be supplied as it or they see fit. Such further information may include but is not limited to information concerning the financial position of the Accountable Body. In addition BEIS and its representatives and advisers shall have the right to call meetings with the Accountable Body if necessary.

15. BEIS shall be entitled to withhold payment and/or claim repayment of the Grant under this letter to the extent of the amount of any grant or other payment which has been received, or is, in the opinion of BEIS, likely to be received, from any public authority and which BEIS considers is payable towards the Project. For the purposes of this paragraph "public authority" includes any of the European Communities or their Institutions, any government department, research council, local authority, or body wholly or partly supported by public funds or charitable contributions. The terms of this paragraph do not apply to grant or other payment whose availability has been disclosed by the Accountable Body to BEIS before the date of this letter and which has been taken into account in making this offer.

16. Notwithstanding the provision of paragraph 15, BEIS may:

(i) withhold payment of the Grant and/or reclaim any part of the Grant paid to the extent necessary to ensure that any assistance given under this offer letter taken together with any other assistance which, in the opinion of BEIS, has been or is likely to be received towards the Project is within the aid limits laid down by the European Communities;

(ii) withhold or reclaim part of the Grant if required to do so by a decision of the Commission of the European Communities;

17. No amendment to the terms of this Grant Offer Letter will be effective unless and until agreed in writing by BEIS.

18 Nothing in this Grant Offer Letter and the Schedules to it shall prevent BEIS from disclosing any information whether or not relating to the Project which BEIS in our absolute discretion consider that we are required to disclose in order to comply with the Freedom of Information Act 2000 or any other statutory requirements.

19. BEIS normally publishes the amount of grant offered with the name of the Accountable Body concerned and a brief description of the project. By accepting this offer, you are indicating your agreement to BEIS publishing the offer of the Grant.

20. We may be obliged to give the European Commission information on this offer. You may be required to co-operate with BEIS in the provision of such information.

21. The use of grant funding by the Accountable Body for beneficiaries must comply with Articles 107 and 108 of the Treaty on the Functioning of the European Union. The Accountable Body must ensure that if an exemption is relied upon, the relevant requirements of the exemption are met, and that the use of the exemption is properly recorded and documented.

Acceptance of Grant Offer Letter

22. Acceptance of this Grant Offer Letter constitutes agreement in full to the conditions set out in this letter. This Grant Offer Letter and the schedules to it constitute the entire agreement and the understanding between BEIS and the Accountable Body with respect to all matters which are referred to and shall supersede any previous arrangement(s) between the Accountable Body and BEIS in relation to the matters referred to in this Grant Offer Letter. This Grant Offer Letter shall be governed by and construed in accordance with the law of England and Wales, and the parties irrevocably submit to the jurisdiction of the English and Welsh courts, and your address for the service of any notice is as above.

23. The Grant Offer Letter should be accepted by the Section 151 Officer for the Accountable Body by signing and returning the acceptance form Annex A to Miss Karen L Hopwood, BEIS, 5th Floor, 1 Victoria Street, London, SW1H OET. This form must be with BEIS by11.59 pm on #XX March 2017. Please also provide details of the Accountable Body’s project manager who will run the day to day management of this project and Grant Offer Letter and the main Project Manager within the LEP who will handle the day to day running of this project.

24. The Financial Project Officer for the Department will be Miss Karen L Hopwood, BEIS, 5th floor, 1 Victoria Street, London, SW1H OET. Email: [email protected]. If you have any queries relating to the running of the project and technical details in the Schedule 3 form please contact Karen Leigh on email: [email protected] or telephone 020 7215 1419.

Yours sincerely

Jacqui Ward Deputy Director Cities and Local Growth Unit Departmentment for Business, Energy and Industrial Strategy

Annex A

GROWTH HUB FUNDING 2017-2018 GRANT OFFER ACCEPTANCE

I confirm for and on its behalf that Walsall Metropolitan Borough Council agrees the terms and conditions set out in the offer letter 6th March 2017.

Signed: ………………………………………………………...

Name: ………………………………………………………….

Position: ……………………………………………………….

Date: …………………………………………………………...

ANNEX A (contd….)

GROWTH HUB FUNDING TO LOCAL ENTERPRISE PARTNERSHIPS IN 2017-2018

PROJECT MANAGER’S DETAILS

The person nominated to act as Project Manager for the Accountable Body* and who will manage the day to day running of this grant offer is:

Name of Project Manager

Name of Accountable Body Walsall Metropolitan Borough Council

Office Address

Tel No:

Email address:

The person nominated to act as Project Manager for the LEP* and who will manage the day to day running of this grant offer is:

Name of Project Manager Keren Jones

Office Address City Economy Service Director City of Wolverhampton Council Civic Centre St. Peter’s Square Wolverhampton WV1 1SH

Tel No: 01902 55 4739

Email address: [email protected]

Name of Growth Hub Delivery Body City of Wolverhampton Council

*Please be advised that the names and contact details will be used by BEIS for communications, including group circulations, directly relevant to this project and the terms offer letter.

Annex B

[To be completed on headed paper of the independent accountant at the end of the Project]

[Insert Date]

1. I/We have examined the enclosed claim submitted by Walsall Metropolitan Borough Council (the Accountable Body) on behalf of Black Country LEP. I/We have examined the records of the Accountable Body as necessary and obtained such explanations and carried out such tests as I/we consider necessary.

2. I/We report that in my/our opinion, subject to any reservations set out in my/our accompanying letter dated [insert date]

(i) The claim and previously submitted claims for payment are in accordance with the BEIS offer letter dated [insert date of issue] including the schedules thereto;

(ii) The Accountable Body has expended (as defined in Schedule 1 and claim form to the Grant Offer Letter) monies to cover those eligible costs incurred and defrayed during the period from to related to the project described in the offer letter amounting to:-

£ Accountable Body Labour

Other labour

Overheads

Materials

Input VAT

Output VAT

Capital Equipment

Sub-contracts

TOTAL

*Please differentiate between capital equipment purchased specifically for the Project and capital items that the Accountable Body has already acquired or constructed.

(iii) None of the costs were incurred before 1 April 2017

(iv) Overheads included in the expenditure are:-

(a) in respect of the Accountable Bodies own labour;

(b) not calculated to include any profit;

(d) not in excess of overhead rates applicable to similar work carried out by the Accountable Body;

(v) The totals at (ii) above exclude Output Value Added Tax and interest and service charges arising from hire purchase, leasing and credit arrangements;

(vi) The totals at (ii) above exclude any addition for profit by the Accountable Body and profit earned by any company in the Accountable Bodies group (as defined in Schedule 1 and claim form) as a result of work relevant to the Project undertaken by the Accountable body or sub-contracted to such company by the Accountable Body.

(vii) The Accountable Body has maintained adequate records to enable me/us to report on this claim for payment of grant.

I/We certify that except for the grants mentioned above or specified in my/our accompanying letter dated no grants from any public authority as defined in paragraph 15 of the Grant Offer Letter have been received or are receivable by the Accountable Body in respect of the Project.

[Signature]

[Name]

[Position]

[insert any additional contact details not on headed paper]

SCHEDULE 1 AND CLAIM FORM

Walsall Metropolitan Borough Council

GROWTH HUB 2017/2018 DETAILS OF PROJECT DELIVERABLES AND CLAIM FORM

Claimant Information

Accountable Body Walsall Metropolitan Borough Council Funding Period 1st April 2017 to 31st March 2018 Project Manager Mark Lavender Office Address The Civic Centre, 2nd Floor, Zone 2L, Darwall St, Walsall. Email Address [email protected] Contact phone number 01922 654772 Name of Growth Hub Black Country Growth Hub Principle Growth Hub Delivery Body Wolverhampton City Council Name of LEP Black Country LEP

PROJECT ACTIVITY INFORMATION Period of Claim Items and services required (to Costings (detail cost of each type of meet any locally agreed targets item or service purchased) £ such as number and nature of assists) Quarter 1 Growth Hub operations £22,500 Growth Hub management £19562.50 April 2017 to June Intelligence – CRM, reporting £10,687.50 2017 Marketing & engagement £11,250 Supply chain development £18,000 Total £82,000 TOTAL AMOUNT BEING DRAWNDOWN FOR QUARTER 1 £ 82,000

PROJECT ACTIVITY INFORMATION Period of Claim Items and services required (to Costings (detail cost of each type of meet any locally agreed targets item or service purchased) £ such as number and nature of assists) Quarter 2 Growth Hub operations £22,500 Growth Hub management £19562.50 July 2017 to Sept 2017 Intelligence – CRM, reporting £10,687.50 Marketing & engagement £11,250 Supply chain development £18,000 Total: £82,000 £ CLAIM INFORMATION This claim details *TOTAL BEING DRAWDOWN FOR £ QUARTER 2 ORIGINAL ESTIMATED AMOUNT £ 82,000 QUARTER 2

VARIANCE £ Overall grant position TOTAL SPEND TO DATE £ TOTAL FUNDING REMAINING TO £ BE CLAIMED Comments:

*Evidence of type of spend: Please provide 2 examples invoices paid by the final recipient of the money which clearly demonstrate the type of expenditure or services acquired to support the contract together with proof of payment such as a general ledger print out.

PROJECT ACTIVITY INFORMATION Period of Claim Items and services required (to Costings (detail cost of each type of meet any locally agreed targets item or service purchased) £ such as number and nature of assists) Quarter 3 Growth Hub operations £22,500 Growth Hub management £19562.50 April 2017 to June Intelligence – CRM, reporting £10,687.50 2017 Marketing & engagement £11,250 Supply chain development £18,000 Total: £82,000 £ CLAIM INFORMATION This claim details *TOTAL BEING DRAWDOWN FOR £ QUARTER 3 ORIGINAL ESTIMATED AMOUNT £ 82,000 QUARTER 3 VARIANCE £ Overall grant position TOTAL SPEND TO DATE £ TOTAL FUNDING REMAINING TO £ BE CLAIMED Comments:

£ CLAIM INFORMATION This claim details TOTAL BEING DRAWDOWN FOR £ QUARTER 4 ORIGINAL ESTIMATED AMOUNT £82,000 QUARTER 4 VARIANCE £ Overall grant position TOTAL SPEND TO DATE £ TOTAL FUNDING REMAINING TO £ BE CLAIMED Comments:

I certify that:

(i) This claim covers satisfactorily delivered activities;

(ii) Expenditure has been incurred by the Accountable Body1;

(iii) No part of this claim has been included on a previous claim or will be included on a subsequent claim to the Secretary of State;

(iv) There are no sources of funding for these activities of which the Secretary of State has not been given notice in writing;

(v) No part of this claim has been or will be paid by any other Accountable Body or by any public authority as defined in the Grant Offer Letter have been received or are receivable by the Accountable Body in respect of the Project.

TOTALAMOUNT BEING CLAIMED £ SIGNED BY REPRESENTATIVE AND EMPLOYEE OF ACCOUNTABLE BODY

PRINT NAME IN FULL POSITION ACCOUNTABLE BODY DATE

Please send an electronic copy of this claim to [email protected]. If you wish to send a hard copy of this form it should be sent to Miss Karen L Hopwood, BIS, 5th Floor, 1 Victoria Street, London, SW1H OET.

1 “Incurred,” means a legal commitment to pay.

Walsall Metropolitan Borough Council

Schedule 3

STRATEGIC CONTEXT

The UK Government is determined to promote strong, sustainable and balanced growth across the whole country. Growth Hubs contribute to this by coordinating and simplifying the local business support landscape, which is why they remain and integral part of the Government’s ambition to rebalance the economy, harness agglomeration effects, and drive local growth and productivity. Government has identified a central role for Growth Hubs, established by Local Enterprise Partnerships (LEPs), to simplify and coordinate access to business support in local areas, and ensure that all national and local offers of support are effectively joined up for business.

Growth Hubs will continue to provide in each LEP area a single access point for impartial and trusted support, bringing together national and local schemes into a single offer so businesses get everything they need in one place. This will include both public and private sector support, for example that offered by Local Authorities, Universities, Chambers of Commerce, Enterprise Agencies, and the wider private and public sectors.

The Secretary of State for Business, Energy and Industrial Strategy (BEIS) will therefore make grant funding available to Black Country LEP to deliver the following schedule of work in 2017-18, which reflects the Government's belief that the people who know best how to assist businesses, are business people themselves, and that they embrace the ambitions set down in the Industrial Strategy Green Paper to identify and support those businesses with the potential to grow and scale-up.

The refreshed principles of funding set out in this schedule provide a framework which will enable LEPs to further build capability and capacity in their Growth Hubs to achieve best value, whilst giving LEPs the flexibility they need to meet local economic priorities as set out in Strategic Economic Plans. The LEP will be monitored by BEIS for delivery against the schedule of work on a bi-annual basis and end of year basis.

SCHEDULE OF WORK

As part of the wider offer for Growth Deals, Government is providing revenue funding to LEPs in 2017- 18. This schedule of work will enable LEPs to meet the Governments principles attached to funding for their Growth Hubs, which are as follows:

Local Strategic Partnerships

Principle 1 - Providing strategic co-ordination and building inclusive partnerships with local stakeholders, the private sector and government.

LEPs should sustain and further develop their Growth Hubs through the establishment of strong strategic partnerships and working links between all of the institutions involved in providing support and advice to help businesses start, scale-up and grow in their area.

This will include ensuring that all key local bodies involved in business support (which will typically include the LEP, local authorities, business bodies such as local Chambers of Commerce and the Federation of Small Business (FSB), universities, business schools, enterprise agencies, the Productivity Council, private sector and government) are engaged in discussions and involved as partners in the ongoing development and/or delivery of the Growth Hub and include delivery of local economic priorities as set out in Strategic Economic Plans.

1. What approach will the LEP through its Growth Hub take locally to continue to develop strong, inclusive strategic partnerships across the LEP area and what plans are/will be put in place to ensure that any local conflicts (where they exist) are overcome?

To monitor the performance of the Growth Hub, and provide a channel for the strategic direction aligned to the BC LEP, a Project Delivery Board was established in June. This monitors the performance of the Growth Hub and provides a forum to look at challenges and opportunities, emerging from the activities being delivered on the ground.

The Delivery Board will invite external partners across the LEP area, and also across neighbouring LEPs, to discuss particular themes (taken from the Black Country SEP, the West Midlands SEP and the Industrial Strategy) such as encouraging and support new businesses or innovation, examine how they are currently delivered, and look at closer ways of working and streamlining promotion and cross- referral.

The Delivery Board reports to a Strategic Growth Hub Board, whose membership comprises senior representatives from partners of the Hub. The Delivery Board provides highlight reports on the performance, to raise any risks and present future policy and opportunities. Alongside this, the Strategy Board is responsible for developing the wider strategy for the development of the business support ecosystem.

This is then reported to the Black Country LEP Competitiveness Board, to scrutinise the performance and delivery activities of the Hub from a business perspective, and the Local Authority Heads of Regeneration to scrutinise from a public sector perspective. These vehicles will offer a place to overcome any local conflicts.

2. What opportunities will be explored by the LEP to support cross boundary working with other LEPs, Growth Hubs and strategic partners to ensure value for money (e.g. cluster working; joint projects and sharing resources)? Where possible, stating how these will support Industrial Strategy key sectors.

The Black Country LEP is already working closely with Greater Birmingham and Solihull LEP and Coventry and Warwickshire LEP and agreed the following broad principles:

 The three Growth Hubs to continue to offer services, and develop new ones, that meet the distinct needs of the local LEP area  Collaborate where it makes sense to do so and where it will result in improved outcomes and/or better value for money  A key focus of collaboration should be the areas defined in the WMCA SEP  Collaboration could range from sharing best practice to offering specialist services on behalf of all three LEPs. The approach will depend on the sector / policy area.  Resource implications will need to be considered when looking at opportunities for collaboration.

The following specific actions have been agreed:

 Explore benefits of mapping local providers and provision  Develop a framework of existing Growth Hub specialisms  Hold a series of sessions with Growth Hub staff to share intelligence and best practice

Activity already underway includes joint development of www.hvmcity.co.uk, the BIM WM framework a range of responses to the opportunities created by investment in HS2. This has involved jointly attending trade shows relating to shared key sectors (automotive and advanced manufacturing, for example) in the region and sharing costs and resources.

Following the development of the www.hvmcity.co.uk platform, we will soon be in a position to more actively promote it and its benefits to suppliers, service providers and contractors in the three LEP areas. This offers scope for sharing marketing budgets and co-ordinating marketing activity to expand reach and avoid duplication.

Governance

Principle 2 - Maintaining robust governance arrangements to oversee Growth Hub activity and ensure ongoing alignment with the LEPs Strategic Economic Plan.

The LEP must continue to have clear and inclusive Growth Hub governance arrangements in place under the oversight of the LEP with appropriate representation from across the public and private sector, and ensure ongoing alignment with the LEPs Strategic Economic Plan and the refreshed LEP Assurance Framework.

3. Please provide details of the reporting lines and organisations involved in the governance of the Growth Hub as set down in the newly refreshed LEP Assurance Framework (November 2016), including the link to the nominated small business member representative on the LEP Board.

The Delivery Board reports to a Strategic Growth Hub Board, whose membership comprises senior representatives from partners of the Hub. The Board is chaired by a small business representative from board of the Black Country LEP, who also sits on the LEP Competitiveness Board.

The Delivery Board provides highlight reports on the performance, to raise any risks and present future policy and opportunities. Alongside this, the Strategy Board is responsible for developing the wider strategy for the development of the business support ecosystem.

This is then reported to the LEP Competitiveness Board, to scrutinise the performance and delivery activities of the Hub from a business perspective, and the Local Authority Heads of Regeneration to scrutinise from a public sector perspective.

4. What systems have/will be put in place to ensure that those organisations involved in the governance of the Growth Hub are free from any ‘conflict of interests?

Board members are all subject to the Members’ Code of Conduct, adopted by Walsall Metropolitan Borough Council as Accountable Body on 18th June 2014. This covers keeping a register of interest and sensitive interests, as well as measures for the disclosure of interests at meetings.

Where there are any interests declared that are considered to be relevant to an agenda item, members are asked to leave the meeting for the duration of the discussion.

Operational decisions are taken collaboratively by the BCGH Delivery Board and partners are subject to a collaboration and data sharing agreement.

Local Growth Planning / Scale-Ups

Principle 3 – Developing a strategic approach to local business growth to enable ambitious businesses to maximise their growth potential and scale-up.

Growth Hubs have a role to play in identifying and targeting those businesses, with the potential to scale up with support (inspiring, motivating and encouraging), those already scaling up, linking them the right services to make that scale-up process successful and provide sustained impact; and those, who have experienced a scale up phase and are looking to consolidate, or enter a new growth period in the broadest possible context.

The LEP through its Growth Hub should therefore develop proposals (linked to the LEP Strategic Economic Plan) setting out how it will identify and target businesses with growth potential and the ability to scale up, in line with the definitions set down in the ‘common metrics and evaluation framework’ which states:

Total number of businesses that have received ‘Medium’ and ‘High’ Intensity support that, have the potential grow, or can be classified as a ‘Scale-Up Business’ using the definition provided below:

• Minimum of 10 employees at the start of the engagement. • Achieved minimum £500k turnover in last year (operating for at least 3 years). • Potential/aspiration to grow turnover and/or profit by a minimum of 20% (per annum) over a 3 year period

And/or (depending on local economic priorities):

Total number of businesses that have received ‘Medium’ and ‘High’ intensity support, that have the potential to grow, or can be classified as ‘Scale-Up Business’ using the definition provided below:

• Minimum of 5 employees at the start of the engagement • Achieved minimum £250k turnover in last year • Potential/aspiration to grow turnover and/or profit by a minimum of 50% over a 3 year period

Growth Hubs are asked to share their proposals (e.g. Scale-Up Plans) with the Scale-Up Taskforce (via BEIS) by the 31st July 2017.

In addition, where appropriate, the Growth Hub should seek a co-ordinated approach to identifying, targeting and supporting scale-up businesses which should be linked to its wider business support offer, which may include through local as well as pan LEP collaboration e.g. Midlands Engine and Northern Powerhouse.

5. How will the LEP through its Growth Hub approach the scale-up challenge and what plans will be put in place to (i) identify and target scale-up businesses; and (ii) identify and target those businesses who will significantly achieve greater current levels of growth and productivity?

The Black Country Growth Hub has secured match funding through the European Structural Investment Funds for the AIM in the Black Country project, with Wolverhampton City Council acting as accountable body. This provides funding for business navigators to work for up to 3 hours with SME businesses trading for more than one year and guide them to appropriate business support available identified after an initial diagnostic and preparation of a growth plan. This diagnostic will enable businesses with turnover growth of more than 20% year on year over three years to be identified for more intensive support over 12 hours.

The programme funds the delivery of expert masterclasses to these scale-up businesses in small groups based on common needs identified through the diagnostics.

The target audience for AIM are SMEs on the Black Country LEP’s Strategic Business list and other tools such as Sandwell Council’s fastest growing 50 companies (both compiled using turnover data from MINT), the Scale Up Institute and London Stock Exchange’s 1000 Businesses to Inspire. The Black Country Growth Hub also has data collated from a unified expression of interest form it has been using since 2014 (and previously through the Black Country LEP). This asks for three years of turnover data, allowing fast-growing companies to be identified.

6. Does the LEP through its Growth Hub have any plans to target priority sectors? If yes, please specify what these sectors will be and how these fit with the Strategic Economic Plan and/or Government’s Industrial Strategy?

Five “transformational” sectors have been identified in the Black Country Strategic Economic Plan to drive change in the Black Country. They are:  Advanced manufacturing including food and drink  Transport technologies including aerospace  Building technologies  Environmental technologies  Business services

The Black Country has a strong research and development and innovation infrastructure which is closely aligned to the needs of local businesses.

Despite the Black Country’s strengths and potential, forecasts suggest that on current trends the output gap between the Black Country and the rest of the UK will widen between now and 2030 if the ambitions of the Black Country Strategic Economic Plan are not delivered in full. The productivity gap is attributable to the large number of low value companies in low growth sectors, the low business birth and survival rates in some areas, and the comparatively high number and proportion of residents with low skills and in many cases no formal qualifications.

The Black Country Growth Hub has collected supply chain data through its www.hvmcity.co.uk investment, procurement and supply chain development platform, as well as researched supply chains of every manufacturing company on its database (by interrogating company websites or asking them directly). This enables us to target businesses both by SIC code (by class as well as nature of business) and also by supply chain (categorised using the headings on the Exporting is Great website).

This will enable us to better target the promotion of www.hvmcity.co.uk when it launches in April 2017 to ensure a wide take-up in transformational sectors.

The BCGH is currently exploring ways of working with HMRC in order to receive data on fast-growing companies. HMRC has been working with five Growth Hubs on pilot studies, and the BCGH is keen to adopt the lessons learned and best practice.

Delivery

Principle 4 - Offer a triage, diagnostic and signposting service that joins up national and local business support (public and private), simplifying the support on offer for businesses.

The Growth Hub must actively identify business needs and simplify access to appropriate business support services available in their area, including provided by the Growth Hub delivering triage, diagnostic and signposting for all businesses design to enable them to start up and grow.

Through ongoing business support mapping, the Growth Hub should seek to identify those schemes and programmes that are specifically targeting scale-up businesses. This will help businesses to understand what support would help them most and connect them to that support quickly and seamlessly.

This service is likely to be provided through a range of different channels, for example a website; telephone helpline (local and/or national); face-to-face advisers (specialists and/or sector focussed); account management and the delivery of business to business network and events – and must always provide a consistent level of information to business.

To ensure ‘value for money’ and avoid ‘duplication’ Growth Hubs should make best use of existing national assets, such as content and tools from GOV.UK (Business Support); GREAT.GOV (Export Support); and the Business Support Helpline (access available at no cost upon request from BEIS).

7. What typology/delivery model of Growth Hub will be used by the LEP to deliver triage and diagnostic services whilst ensuring that any ‘intensive support’ is targeted at those businesses with the greatest potential to grow and scale-up?

The vision for the Growth Hub and its supporting ecosystem is to provide an excellent, joined up and cohesive business support system that makes a significant contribution to closing the productivity gap with the national average by 2033.

The core components of the BCGH delivery model are:

 A first point of contact for all businesses, providing information on business support and undertaking a basic diagnostic followed by brokerage to the most appropriate providers to meet a business’s specific needs. The service is not reliant on a physical base and can be accessed by telephone or website, as well as through face to face meetings. The Growth Hub will have visibility through its existing partners.

 A common approach to business diagnostic: At the centre of the revised approach, is the focus on the customer. This means that when an individual business comes in to contact with a core partner of the Growth Hub they will receive the same high quality service, regardless of their point of contact. To help embed this practice for all core officers in the field, partners have agreed a common diagnostic which will be used by client managers to assess and capture the individual needs of each business.

 After a suitable period, the client manager will get back in touch with the enquirer to establish whether the support was successful, and to ask for feedback on changes it has made to the business. Where unsuccessful, further referrals are made to alternatives where necessary or relevant.

 Light touch promotion of the BCGH brand, complementing local and organisational partner brands.   Alignment of resources making use of each partners established routes to markets. The BCGH will co-ordinate marketing, events and stimulate innovation e.g. HVM City procurement tool.

 A central depositary for knowledge and information through management of a knowledge bank.

Sustainability

Principle 5 - Ensuring plans for Growth Hubs are deliverable and sustainable beyond March 2018 when the current round of Government funding ends, ensuring that core services continue to remain free to business at first point of contact.

The LEP must develop robust plans that will ensure that the Growth Hub continues to build capability and capacity in order that is becomes sustainable by beyond March 2018 when the current round of Government funding comes to an end.

The LEP will also ensure that the Growth Hub core services remain impartial and free to business (at first point of contact) whilst not restricting innovation and revenue generation (adding value but not duplicating existing local or national services or competing with or crowding out the private sector).

8. What are the LEPs plans for ensuring the Growth Hub is financially self-sustainable after March 2018 when the current round of Government funding end? Ensuring that the Growth Hubs core service remains free to business (at first point of contact) whilst not restricting innovation and revenue generation (adding value but not duplicating existing local or national services or crowding out the private sector?

The Black Country Growth Hub is using current Government funding to establish appropriate infrastructure to co-ordinate marketing, streamline referrals and evaluate performance, and embed partnership working. During this period, it hopes that the added value it demonstrates will result in a series of income streams to replace the government funding from BEIS from April 2018.

These are:

 Direct partner contributions, whether in kind or in cash, towards the core costs. This could involve devolved funding through the West Midlands Combined Authority for more collaborative working with GBS and C&W Growth Hubs. It could also involve contributions from partners outside the core BCGH members, such as FSB.  ESIF grant funding and partner contributions for the AIM in the Black Country that continues until 2019.  Sponsorship of www.hvmcity.co.uk and charges for services (although the tool will be free to use)  Commercial income through www.hvmcity.co.uk such as events or training

9. If the LEP is unable to ensure that the Growth Hub becomes financially self-sustainable beyond March 2018, what plans are in place to exit business support in the absence of further core funding from Government? Please confirm, how much of the 2017-18 funding allocations would be spent on delivering an exit strategy and at what point would this activity need to commence?

As each partner organisation has committed match funding to the AIM in the Black Country project to secure an ESIF grant, with an agreement signed by DCLG until 2019, there are no plans to exit

business support in the absence of further core funding from government. As the Black Country Growth Hub works on a collaborative basis with partners delivering client management activity, these managers will remain in place until at least 2019.

It is expected that www.hvmcity.co.uk grows it will act more and more as a portal for facilitating business support identified through an initial diagnostic and review between suppliers and service providers registered on the site. The growth of HVM City will be a part of the exit strategy for the current government funding.

Reporting and Simplification

Principle 6 – Applying the common metrics and evaluation framework to produce high-level impact data in bi-annual and end of year reporting and provide BEIS unrestricted access to firm level data for the purpose of research and analysis.

The LEP must commit its Growth Hub to using common metrics and evaluation approaches as set out in the refreshed framework to measure levels of business engagement, performance, customer satisfaction and impact and in order to present high-level data as part of the bi-annual reporting process.

This will include each LEP commissioning an end of year evaluation of the impact of the Growth Hub and publication of the results in an Annual Review of Growth Hub performance which will be shared with BEIS by the 25th May 2018.

Note: In terms of business support simplification, LEPs are no longer required to publish a separate simplification report but retain the need to continue to build on simplification work previously undertaken, and provide progress updates within Bi-Annual and Annual Reports.

10. What plans will be put in place by the LEP to ensure that a formal evaluation of the impact of the Growth Hub is conducted at end of 2017-18? What form will the evaluation take, and does it involve working with any of the primary research organisations e.g. What Works Centre or Behavioural Insights Team?

A small budget will be reserved to commission an evaluation of the impact of the Black Country Growth Hub to start in January 2018 and report by March 2018. It will follow on from the initial review of the Black Country Growth Hub undertaken by Regeneris in 2016.

It is expected to involve interviews with a small sample of businesses of various sizes that have contacted the Black Country Growth Hub in order to assess the change between the point at which they contacted the Hub and the time of the research. It will also assess change within partners to understand the impact of the Hub on working practises around business engagement.

11. What data capture and data sharing systems will the LEP ensure is in place to allow the Growth Hub to share firm level business data with BEIS for research and evaluation purposes? Please confirm the arrangements that are/will be put in place.

A collaboration and data sharing agreement is being developed by partners of the Black Country Growth Hub. This will allow the sharing of firm-level business data with BEIS.

Currently there is a single Customer Relationship Management System used by the University of Wolverhampton as the provider of the BCGH enquiries line. Other partners use their own separate CRMS. Partners have not been able to agree a timetable to merge into a single CRMS, so it has been agreed to explore the potential of exporting data between the different CRMS to consolidate data. Until that system is available, monthly consolidation between partners is under way to allow new enquiries and new activity to be collated when reporting to BEIS.

12. Does the LEP propose to set the Growth Hub any locally agreed performance targets (e.g. business assists, jobs created)? If the answer is yes, please provide details.

The Black Country Growth Hub will be providing regular programme and performance monitoring to the different layers of governance. It will also be capturing and reporting on intelligence which will help to shape the direction of the Hub, and inform partners and other support agencies about future programmes and commissions.

There are no locally agreed performance targets. However, each of the boards will expect to see regular and sustained improvements in indicators around reach and coverage and the impact of the support on individual business performance (turnover or employee numbers for example).

Note: If you have any additional material that you think would further illustrate the typology and impact of your Growth Hub please attach these listing what you are sending with your covering email. This could include info-graphics, diagrams and flow charts or case studies. Other information could include quotes from businesses you have assisted, any innovative activity or collaborative activity with intermediaries.

ITEM 20

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal ACCESSING GROWTH - WESTSIDE LINK DEVELOPMENT (SEPPL44)

Approval to Amend Existing Grant Agreement

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves the endorsement, contracting and subsequent award of Grant Agreement for the Accessing Growth - Westside Link Development project from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This project was endorsed by the LEP Funding Sub-Group (FSG) on the 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 102/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves the Accountable Body for the Growth Deal (Walsall Council) to amend the existing Grant Agreement with the City of Wolverhampton Council to value of £155,000 to deliver the Local Growth Fund (LGF) funded elements of the Accessing Growth - Westside Link Development project - with delivery to commence in the 2017/18 financial year.

2.2 This development funding is to be underwritten by City of Wolverhampton Council.

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3. REPORT DETAIL

3.1 A summary of the request for amendment to Grant Agreement by the Accountable Body (Walsall Council) for the Westside Link Development project is below.

Accessing Growth - Westside Link Development - £55,000 funding in 2017/18 and £100,000 2018/19

3.2 Approval is requested for funding to allow delivery of the Westside Link project.

3.3 The Westside development programme is a £55 million leisure-led mixed use scheme in the heart of Wolverhampton City centre. Urban & Civic, appointed developer, have identified the need for improvement and investment in streets and spaces connecting the development area with the City core to enhance the pedestrian connectivity and create economic uplift. Victoria Street and the surrounding streets of Salop Street, School Street and Skinner Street have quickly been identified as key linkages where such improvements would need to take place. This area is now referred to as Westside Link as it immediately adjoins the Westside development area and the City core. The area is currently heavily car dominated within significant pedestrian severance and unattractive walking routes.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

6. RISK MANAGEMENT

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6.2 Westside Link is designed to ensure that the major leisure-led scheme at Westside is integrated into the fabric of the City core by providing high-quality, pedestrian friendly public realm that supports the investment of existing and new businesses in the City centre. It is therefore imperative that the scheme dovetails both physically and in terms of delivery programme with the Westside regeneration. This risk is being managed through close dialogue with the developers for Westside.

6.3 Further risk relates to the construction of the project and associated impacts to businesses and people accessing the City centre. The assembled project team has been selected based on their experience in successfully delivering comparable schemes across the UK. Key to their brief is close engagement with key stakeholders, including the business community, to ensure disruption is minimised.

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 The City of Wolverhampton Council has recently adopted its Connected Places Strategy which includes an ambitious delivery plan to recast the City Centre offer to support a growing economy. The strategy recognises the need to enhance the public realm and open spaces within the City and to improve pedestrian and cyclist connectivity within and around the City centre encompassing the emerging regeneration schemes and the City centre core. The Connected Places Strategy has undergone detailed consultation both within City of Wolverhampton Council and with external stakeholders. One of the key implementation priorities for the Strategy is improving the connections between Westside and the core of the City centre. The Strategy was adopted by Cabinet on 26 April 2017. These actions have also been identified as critical factors for achieving quality regeneration and delivering the growth and opportunity outlined within the City Centre Area Action Plan (adopted 21 September 2016).

8.2 Initial concept design work has been undertaken. These concept designs have been used to consult with senior politicians and stakeholders and considerable positive feedback has been received. As such City of Wolverhampton Council would like to continue to the next phase of design and consultation to identify a major investment scheme for the transformation of the ‘Westside Link’ – and are looking for development funding from the LEP to match against internal budgets to bring the ambitious plan forward.

8.3 Legal and Finance Officers at City of Wolverhampton Council were consulted as part of the development of this report.

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Background papers

The following supporting documents can be provided on request: i. Westside Link, Bid proposal ii. Scheme Drawings (enclosed within bid proposal) iii. Westside development - Map

Attachments

Westside Link – scheme location

Contact Officer & Author

Stuart Everton Black Country Director of Transport City of Wolverhampton Council Civic Centre, St Peter’s Square, Wolverhampton, WV1 1SH Email: [email protected] Telephone: 01922 554097

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Westside Link – scheme location

ITEM 21

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal ACCESSING GROWTH - CITY NORTH AND CITY EAST GATEWAY MAJOR DEVELOPMENT SCHEME - ADDITIONAL FUNDING REQUEST (SEPPL44)

Approval to Amend Existing Grant Agreement

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves the Accountable Body for the Growth Deal (Walsall Council) to amend the existing Grant Agreement for the Accessing Growth - City North and City East Gateway Major Scheme Development project from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This Additional Funding request was endorsed by the LEP Funding Sub-Group on the 7th September 2017, endorsed by the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 104/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves the Accountable Body for the Growth Deal (Walsall Council) to amend the existing Grant Agreement with the City of Wolverhampton Council to the value of £420,000 to deliver the Local Growth Fund (LGF) funded elements of the Accessing Growth - City North and City East Gateway Major Scheme Development project - with delivery to commence in the 2017/18 financial year.

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2.2 This development funding is to be underwritten by City of Wolverhampton Council.

3. REPORT DETAIL

3.1 A summary of the request for amendment to Grant Agreement by the Accountable Body for the Local Growth Deal (Walsall Council) is below.

Accessing Growth - City North and City East Gateway Major Scheme Development - £200,000 Additional Funding in 2017/18 and £220,000 in 2018/19.

3.2 Approval is requested for funding to allow delivery of the Accessing Growth - City North and City East Gateway, which has encountered a range of additional costs which cannot be accommodated within the existing budget.

3.3 The City of Wolverhampton Council (CWC) has ambitious regeneration plans, for which a fit for purpose transport network is essential. In supporting economic growth and housing delivery for the City and wider Black Country, CWC are developing major transportation proposals for the City North Gateway (A449 Stafford Road – City Centre to i54) and City East Gateway (A454 Willenhall Road – Wolverhampton to Walsall). Significant progress in developing these proposals has already been made, previously supported by the LEP, but further investment is required to present a robust business case for the next phases of major transport improvement for the City.

3.4 The initial tranche of development funding awarded for 2016/17 has enabled CWC to commission a model to evaluate the current and future impacts on the transport network. This second tranche of funding will enable CWC to build upon previous development work; using the model to accurately identify potential scheme options and develop Full Business Cases to bring forward major capital scheme investments.

3.5 It is programmed that the Outline Business Case (OBC) for the A454 Phases 1 & 2 schemes will be submitted by March 2018 with the A449 OBC following within the following 3 months.

4. FINANCIAL IMPLICATIONS

4.2 See section 2.2 for underwriting agreement.

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5. LEGAL IMPLICATIONS

6. RISK MANAGEMENT

6.2 The key risks to the delivery of this project are;

Resources; A Project Manager has been appointed by CWC and the appointment is considered to be sustainable for the project duration. External consultants are being used for the modelling work. The organisations being used are on Framework contracts with sufficient duration remaining in the contract term to see the projects through. Those organisations are also large enough that they should be able to continue to provide the required support even allowing for normal staff turnover. The first phase of this project has been delivered in accordance with the agreed programme.

Other key deliverables; In addition to the work supported by this funding the Council through the project manager is also undertaking a programme of preparatory works to get the identified scheme to a position where construction can be commenced as soon as appropriate funding is established. That is unlikely to be within the current LGF framework period.

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Transport infrastructure investment is a critical enabler for economic growth and this development work will identify and support future implementation of critical infrastructure projects. It will support local policies and objectives identified within the City Centre Area Action Plans; Policy CC6 – provide effective, efficient transport network making the city centre accessible to all, thus encouraging investment and regeneration. Within Bilston Corridor Area Action Plan Willenhall Road is identified as set for public transport

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improvements and highway improvements, and within the Stafford Road Area Action Plan there are corridor improvements identified as essential.

8.2 Legal and Finance Officers at City of Wolverhampton Council have been consulted as part of the development of this report.

Background papers

The following supporting documents can be provided on request:

• City North and City East Gateway – Major Scheme Development, Bid proposal

Attachments

None.

Contact Officer & Author

Stuart Everton Black Country Director of Transport City of Wolverhampton Council Civic Centre, St Peter’s Square, Wolverhampton, WV1 1SH Email: [email protected] Telephone: 01922 554097

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ITEM 22

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal ACCESSING GROWTH - SPRINGFIELD CAMPUS INTERCHANGE PHASE 2 (SEPPL44)

Approval to Amend Existing Grant Agreement

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves the endorsement, contracting and subsequent award of Grant Agreement for the Springfield Campus Interchange Phase 2 project from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This project was endorsed by the LEP Funding Sub-Group (FSG) on the 7th September 2017, the LEP Board on the 18th September 2017 (LEP Board Minutes Ref: 99/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves the Accountable Body for the Growth Deal (Walsall Council) to amend the existing Grant Agreement with the City of Wolverhampton Council to value of £550,000 to deliver the Local Growth Fund (LGF) funded elements of the Accessing Growth - Springfield Campus Interchange Phase 2 project - with delivery to commence in the 2017/18 financial year.

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3. REPORT DETAIL

3.1 A summary of the request to amend the Grant Agreement by the Accountable Body for the Growth Deal for the Springfield Campus Interchange Phase 2 project is below.

Accessing Growth - Springfield Campus Interchange Phase 2 - £550,000 in 2017/18

3.2 Approval is requested for funding to allow delivery of the Springfield Campus Interchange.

3.3 The Springfield Campus programme is a multi-million-pound redevelopment to the east of Wolverhampton City centre within the Canal Side Quarter. The aim of this connectivity project is to substantially enhance access from the Wolverhampton Interchange and from the north of the City to the new campus, particularly by sustainable modes of travel. This will enable students from the wider area to access the new learning opportunity. The project will considerably revitalize this part of the City centre.

3.4 In particular, it is proposed that the pedestrian environment between the Campus and the rail and bus stations (Interchange area) and the northern Cannock Road and canal be considerably improved to ensure a safer and more attractive public realm for students to move through.

3.5 Phase 1, now complete and received LEP funding in 2016/17, covered the area from Cambridge Street (outside the main entrance to the campus), along Grimstone Street, to the Victoria Halls development and has been fully implemented.

3.6 Phase 2, for which £550,000 of LEP funding is requested, consists of Wednesfield Road improvements, crossing facilities, Cambridge Street improvements and Cannock Road crossing facilities with connections to existing walking and cycle routes including the recently refurbished canal towpath.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

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6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 The City of Wolverhampton Council (CWC) has recently adopted its Connected Places Strategy which includes an ambitious delivery plan to recast the City Centre offer to support a growing economy. The Connected Places Strategy has undergone detailed consultation both within CWC and with external stakeholders. One of the key implementation priorities for the Strategy is improving the linkages to the new facilities at Springfield Campus. The Strategy was adopted by Cabinet on 26 April 2017. The strategy recognises the need to enhance the public realm and open spaces within the City and to improve pedestrian and cyclist connectivity within and around the City centre encompassing the emerging regeneration schemes and the City centre core. These actions have also been identified as critical factors for achieving quality regeneration and delivering the growth and opportunity outlined within the City Centre Area Action Plan (adopted 21 September 2016).

8.2 Legal and Finance Officers at City of Wolverhampton Council were consulted as part of the development of this report.

Background papers The following supporting documents can be provided on request: • Springfield Campus Interchange Phase 2, Bid proposal • Scheme Drawings (enclosed within bid proposal)

Attachments The following supporting documents are supplied for consideration: • Accessing Growth Springfield Campus Interchange Phase 2 - Map

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Contact Officer & Author

Stuart Everton Black Country Director of Transport City of Wolverhampton Council Civic Centre, St Peter’s Square, Wolverhampton, WV1 1SH Email: [email protected] Telephone: 01922 554097

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ITEM 23

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal FUNDING PROPOSAL FOR MANAGEMENT AND ADMINISTRATION FUNCTIONS

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approve funding the Management and Administration functions of the Black Country Growth Deal from 2018/19 to 2020/21.

1.2 This recommendation was endorsed by the LEP Funding Sub-Group (FSG) on 4th October 2017, the LEP Board on 16th October 2017, the Working Group on the 19th October 2017 and the Advisory Board via email on the 13th November 2017.

2. RECOMMENDATIONS

That the Joint Committee:

2.1 Approve the following capital allocations to be awarded to Walsall Council in relation to the Management and Administration functions of the Growth Deal in the Black Country:

(a) £543,000 for LEP Programme Management functions (to be awarded to the Black Country Consortium Ltd); (b) £300,000 for the Black Country Transport Director (to be awarded to the City of Wolverhampton Council); and (c) £525,000 for the Accountable Body function (to be awarded to Walsall Council). (d) Authorise Walsall Council in its’ role as Accountable Body for the Growth Deal to enter into the appropriate Grant Agreements to administer these funds.

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ITEM 23

2.2 Notes that the funding awards will cover financial years 2018/19, 2019/20 and 2020/21 as set out in table 3.

3. REPORT DETAIL

3.1 On the 25th January 2016, the LEP Board agreed to ‘top slice’ Growth Deal Grant funding to fund the programme management and administration as well as providing capacity funding to support development of the pipeline. On the 9th March 2016 the BCJC approved a top slice allocation of £5,267,000, and in September 2016 widened its scope to include all funding streams to maximise potential for success by the BC LEP in achieving its strategic objectives and outcomes.

3.2 A summary of the actual expenditure (2015/16 and 2016/17) and forecast expenditure (2017/18) against the £5,267,000 top slice is detailed below:

2015/16 2016/17 2017/18 Total

APPROVED / SPEND TO DATE LEP Programme Management 263,049 300,572 362,000 925,621 Joint Committee Expenditure - Walsall 126,223 195,661 175,000 496,884 Total M&A 389,272 539,188 675,000 1,603,460

LA Programme Work & Development - Dudley 142,889 249,866 250,000 642,755 LA Programme Work & Development - Sandwell 25,364 5,707 250,000 281,071 LA Programme Work & Development - Walsall 69,995 250,000 250,000 569,995 LA Programme Work & Development - 179,215 250,000 250,000 679,215 Wolverhampton Black Country Transport expenditure - 213,042 214,715 250,000 677,757 Wolverhampton Total Development Capacity 630,505 970,288 1,250,000 2,850,793

Grand Total 1,019,777 1,509,476 1,925,000 4,454,253 Table 1 – Summary of M&A and Pipeline Development Costs

3.3 On 24th July 2017 the LEP Board approved an additional £616,000 toward professional services to be top sliced against the Growth Deal. Walsall Council in its role as Accountable Body will procure the required professional services detailed below using a competitive tendering process to ensure value for money. These services include Technical Advice Service (formerly undertaken by Thomas Lister) and Legal Advice to support the contracting elements of the Growth Deal programme.

2017/18 2018/19 2019/20 2020/21 Total

APPROVED TO DATE Legal Support 18,000 30,000 33,000 35,000 116,000 Technical Assistance 120,000 125,000 135,000 120,000 500,000 Total Technical/Legal 138,000 155,000 168,000 155,000 616,000 Table 2 – Summary of Technical and Legal Support costs

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3.4 There is no funding in place to support the Management and Administration (M&A) costs of the programme beyond 2017/18. The PMO are therefore recommending a proposal to fund the M&A costs from 2018/19 – 2020/21. The funding proposal is a blend of capital and revenue resource and will support the costs of the PMO, Walsall Accountable Body and the BC Transport Director as set out below:

Total 2017/1 2018/1 2019/2 2020/2 2021/2 Grand 2018/19 8 9 0 1 2 Total onwards ADDITIONAL

FUNDING REQUEST LEP Programme 181,00 181,00 181,00 Capital 543,000 543,000 Management 0 0 0 175,00 175,00 175,00 Walsall Acc Body Capital 525,000 525,000 0 0 0 100,00 100,00 100,00 Transport Director Capital 300,000 300,000 0 0 0 Total M&A – Capital 456,00 456,00 456,00 1,368,00 1,368,00 ask from LGF 0 0 0 0 0 0 0 Programme

122,19 129,37 137,75 155,36 137,65 Walsall Acc Body Revenue 560,154 682,346 2 9 7 6 2 Total M&A – Residue costs to be funded 122,19 129,37 137,75 155,36 137,65 560,154 682,346* from LGF interest 2 9 7 6 2 accrued

122,19 585,37 593,75 611,36 137,65 1,928,15 2,050,34 Grand Total 2 9 7 6 2 4 6 Table 3 – Proposal to fund the M&A costs to 2021+ *In the event that Accountable Body M&A costs exceed this figure the excess will also be funded from the LGF interest, reports setting this out will be taken to future LEP Board and BC Executive Joint Committee meetings.

3.5 The source of revenue funding comes from the interest accrued on the capital grant awarded by DCLG each year. Walsall Council have provided the following projection of interest on the Growth Deal:

Interest Accrued & Projected £000 Interest up to 31/03/2017 £652 Thomas Lister Spend incurred & anticipated -£100 Total Interest balance held £552

Projected additional interest up to 31/03/2021 £ 562 Balance of Interest earned & projected £1, 114

3.6 It is to be noted that the annual costs of delivering the Accountable Body services have increased from the original £175,000 per annum identified hence why provisions have been identified through a capital top slice of the programme as well as funding a proportion of these costs via revenue interest. As a direct result of the additional roles and

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ITEM 23

responsibilities required by Government to administer and assure compliance with the National Assurance Framework.

The Accountable Body is responsible for a range of activities including the Governance Arrangements associated with the LGF/City Deal and Combined Authority funding through the Joint Committee and associated supporting groups. Together with the administration, due diligence, contracting, payment, claims and auditing of the Growth Deal programme itself.

In November 2016 an updated National Assurance Framework was published by Government in response to a report by the Committee of Public Accounts; reflecting “current policy and current expectations of LEP’s in relation to accountability, transparency and value for money”. As a result the LEP’s Assurance framework is being strengthened to take on board the requirements of the National Assurance Framework leading to additional responsibilities, including the need to ensure compliance across all parties associated with the programme. They will also be required to assist in wrapping up the programme and produce the final return details for Government.

3.7 By only charging a proportion of the Accountable Body costs against the revenue interest, i.e. £682,000 against the projected £1.114m, it will create a pool of revenue funding that can be used by the LEP and partners for other priorities. This approach is recommended, as revenue funding available to the LEP is limited.

3.8 It is to be noted that the annual charge against the Growth Deal for the PMO have reduced as it has been agreed that 50% of PMO costs will be charged to Land and Property Investment Fund (LPIF). The LEP Board approved the M&A funding proposal for the LPIF programme at the July 2017 Board meeting.

3.9 Whilst there is also no capacity funding in place to support development of the pipeline beyond 2017/18, the PMO recognise that there is a further work required to understand the impact of pipeline development/capacity funding support on bringing forward scheme delivery. A review will be undertaken and results reported back to the LEP FSG to inform future funding for this activity.

4. FINANCIAL IMPLICATIONS

4.1 All the costs associated with this proposal form part of the Growth Deal funding award.

4.2 Whilst the Accountable Body will look to capitalise these costs, calls may be made against the interest accrued against the Growth Deal to fund costs incurred that are unable to be capitalised, e.g. professional services fees incurred appraising a project that does not receive approval to proceed by the Joint Committee, then the revenue interest will provide a mechanism for any abortive costs to be recovered.

4.3 For the LPIF the Black Country Consortium and City of Wolverhampton Council will also be required to identify revenue funding to under-write claimed costs for the PMO and the Black

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Country Transport Director respectively whereby time is attributed to non-capital project activity. These costs would then need to be funded by the employing entity.

4.4 All costs will be monitored on an on-going basis by the PMO and the Accountable Body (Walsall Council) and regular updates provided to the LEP Funding Sub-Group.

5. LEGAL IMPLICATIONS

5.1 Formal agreements will be required to be set into place with all grantees.

6. RISK MANAGEMENT

6.1 The principle risks relates to our collective abilities to effectively manage the Growth Deal programme to ensure successful delivery of targeted outputs and in year spend allocations are achieved. This proposal will release programme resources to the Black Country Consortium PMO, Walsall Council Accountable Body and the Transport Directorate enabling them to create and fund dedicated teams capable of meeting these responsibilities.

7. EQUALITY IMPLICATIONS

None at the time of drafting.

8. CONSULTATION

8.1 Legal and Finance services at Walsall Council were consulted with as part of the development of this report.

Background papers  Joint Committee report 7th September 2016 – Black Country Local Growth Deal - Approval of Resources for Programme Management, Development & Support (A copy can be provided on request)

Attachments None.

Contact Officer & Author

Simon Neilson Mark Lavender Executive Director, Economy and Environment Joint Committee Programme Manager Walsall Council Walsall Council Civic Centre, Darwall Street, Walsall Civic Centre, Darwall Street, Walsall. WS1 1TP WS1 1TP Email: [email protected] Email: [email protected] Telephone: 01922 652004 Telephone: 01922 654772

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ITEM 24

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal WALSALL COLLEGE DIGITAL ENGINEERING & CONSTRUCTION EXPANSION (SEPP103)

Grant Agreement Approval Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approve the contracting and subsequent award of Grant Agreement for the Walsall College Digital Engineering & Construction expansion project from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This project was endorsed by the LEP Funding Sub Group (FSG) on 7th September 2017, LEP Board on 18th September 2017 (LEP Board Minutes Ref: 101/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approve the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Walsall College to value of £984,000 to deliver the Local Growth Fund (LGF) funded elements of Walsall College - Digital Engineering & Construction expansion project - with delivery to commence in the 2017/18 financial year.

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3. REPORT DETAIL

3.1 A summary of the request for endorsement, contracting and subsequent award of Grant Agreement by the Accountable Body for the Growth Deal (Walsall Council) for the Walsall College Digital Engineering & Construction project is below.

Walsall College Digital Engineering & Construction - £500,000 funding in 2017/18 and £484,000 in 2018/19

3.2 Approval is requested for funding to allow delivery of the Walsall College Digital Engineering & Construction project.

3.3 The project will enable the expansion of Walsall College provision of full time, part time and apprenticeships within key sectors of Engineering and Construction. Employer and learner demand for training in these sectors has risen sharply in recent years and, whilst the College and the LEP have invested in new equipment to help meet the demand, it is clear from both research and current demand for courses at the College that numbers of employers and learners requiring skills training in these sectors continues to rise. All indicators are that this growth will be sustained.

3.4 This project will involve purchasing of new equipment and provide facilities the College does not currently have within their Engineering and Construction department, further offering outstanding quality and up to date service that will bridge the gap between supply and demand for Engineering, Electronics and Construction skills at a range of levels for the benefit of young people, unemployed adults and employers in Walsall and the wider Black Country.

3.5 Specifically, LEP funding will be expended upon building refurbishment works at 21 Portland Street, a building already purchased by the College for the purposes of this project, fit out and furniture, purchase and transfer of machinery, IT data connections together with Green Lane Plumbing workshop modifications. The development will result in a standalone Engineering facility providing the specialist focus and facility that these key sectors demand. As a result of the new specialist facility, space will be created within the College’s existing Green Lane facility, which can then be utilised to expand Construction delivery, in turn creating a Construction specific facility that is much needed.

3.6 As this is application is related to an educational project, whereby the property will not be disposed, a traditional gap funding approach is not appropriate. As such the full £948k is sought. As the grant intervention rate is high, at 68%, the Applicant has been requested to confirm whether funding in whole or in part might work in the form of loan as opposed to grant. The response was negative, in that grant is required as “College funding is extremely tight”. Their view is that skills outputs generated and forecast GVA of £9m over 5 years will provide the LEP with a healthy return on investment and ought to substantiate the grant.

The bid anticipates delivery of additional Outputs as set out below:

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Outputs Metric 2017/18 2018/19 2019/20 2020/21 2021/22 Total Direct Skills – Learners assisted no. 84 116 118 124 124 566 Skills – Apprenticeships Starts No. 122 132 142 136 163 695 Skills – Apprenticeships Completed no. 0 0 92 99 107 298

4. FINANCIAL IMPLICATIONS

4.1 All the costs associated with this proposal form part of the LGF programme and will be covered by allocations from Government associated with this programme.

4.2 In the event that the scheme does not complete and outputs are not achieved, but grant has been paid to the applicant, the Accountable Body reserves the right to clawback grant back from the applicant. This will be covered by provisions in the Grant Agreement relating to clawback, plus additional security will need to be provided by the applicant, in the form of a legal charge, performance bond or charge over bank account.

4.3 The form of security and financial vetting of the applicant will form part of the due diligence process, prior to signing of the grant agreement.

5. LEGAL IMPLICATIONS

5.2 In the event that funding is approved in the total sum of £984,000 sought, then it is recommended that this be offered to the Applicant subject to the following conditionality:

I. Funding to be in the maximum sum of £984,000. II. Funding in the maximum sum of £580,000 to be drawn down against the cost of construction works in relation to 21 Portland Street. III. Funding in respect of all other elements to be in accord with evidenced costs and in respect of equipment and machinery, subject to prior agreement as to the schedule of required purchases. IV. A first legal charge to be entered against title in 21 Portland St, or alternatively a charge over bank account to be put in place, to be removed upon confirmation of identified outputs having been achieved. V. Key identified project milestones to be met: • Works to commence on site by December 2017; • Practical Completion of construction works by July 2018; • Capital Expenditure Completed by September 2018. VI. Any cost overruns to be entirely at the applicant’s risk.

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6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 As part of the work undertaken to produce the Initial Project Outline, stakeholder consultation has been undertaken with employer partners who are currently receiving training provision from Walsall College. These employer partners have been consulted on their views in regard to the potential for the College to offer increased capacity and additional pathways within the Engineering and Construction curriculum. Employers with whom the College is currently working, namely MacNeillies, Staffordshire Fabrications and Feldman Fabrications, have advised the College that they would welcome the opportunity to be able to train their staff in these subject areas through the College.

8.2 Legal and Finance officers at Walsall Council were consulted as part of the development of this report.

Background papers

The following supporting documents can be provided on request: i.) Walsall College Digital, Engineering and Construction Expansion, Bid proposal ii.) Thomas Lister Independent Property Evaluation & Recommendation report iii.) Equipment Listing

Attachments None.

Contact Officer & Author Simon Neilson Mark Lavender Executive Director, Economy and Environment Joint Committee Programme Manager Walsall Council Walsall Council Civic Centre, Darwall Street, Walsall Civic Centre, Darwall Street, Walsall. WS1 1TP WS1 1TP Email: [email protected] Email: [email protected] Telephone: 01922 652004 Telephone: 01922 654772

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ITEM 25

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal MILL LANE BRIDGE & ALDRIDGE AQUEDUCT GRIP 3 STUDY - ADDITIONAL FUNDING REQUEST (SEPPL17)

Approval to Amend Existing Agreement

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approve amending the existing Agreement for the Mill Lane Bridge & Aldridge Aqueduct GRIP 3 Study project from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This Additional Funding request was endorsed by the LEP Funding Sub-Group (FSG) on the 7th September 2017, the LEP Board on the 18th September 2017 (LEP Board Minutes Ref: 105/17), the Working Group on the 19th October 2017 and Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves the Accountable Body for the Growth Deal (Walsall Council) to proceed to amending the existing Agreement with Walsall Council to increase the grant allocation by £70,000 (to a total grant of £190,000) to deliver the Pre-Allocated Local Growth Fund (LTB) funded elements (originally allocated to the Aldridge Station scheme) of the Mill Lane Bridge & Aldridge Aqueduct GRIP 3 Study development project - with delivery to commence in the 2017/18 financial year.

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2.3 This request for additional funding is to be underwritten by Walsall Council.

3. REPORT DETAIL

3.1 A summary of the request for amending the existing Agreement by the Accountable Body for the Growth Deal (Walsall Council) is below.

Mill Lane Bridge & Aldridge Aqueduct GRIP 3 Study - £70,000 Additional Funding in 2017/18

3.2 Approval is requested for Additional Funding to allow further investigation into the Aldridge station studies, which has encountered a range of additional costs which cannot be accommodated within the existing budget.

3.3 The Walsall to Aldridge rail corridor is part of the Sutton Park line and currently operates as a freight-only line. The proposed ‘GRIP 3 studies’ (which will determine single, costed design options) for the two most challenging structures that require reconstruction on this route, will significantly advance the business case for the electrification of the Walsall to Aldridge section of the line; re-instatement of a half-hourly passenger service; and the creation of a new rail station in Aldridge Town Centre. The rail service will ultimately connect Aldridge with Walsall Town Centre, Birmingham City Centre and the proposed HS2 stations, and will allow local people access to jobs in the region via the rail network reducing congestion on the local road network.

3.4 To date the LEP Board have approved £120,000 for the development study to commence during 2017/18.

3.5 Additional Funding is requested as the cost of the study is higher than initially anticipated. This is a very specialised study which is not undertaken frequently and therefore the original funding request was based on estimates. The tendered quotation from Network Rail states the cost of the study is £70,000 higher than initially estimated making the funding request from the LEP £190,000 instead of the initial £120,000.

4. FINANCIAL IMPLICATIONS

4.1 All the costs associated with this proposal form part of the LGF programme and will be covered by allocations from Government associated with this programme.

4.2 As the grant is for development funding and is potentially abortive if the project does not go ahead, there is a risk that this expenditure may not meet the conditions for capitalisation under International Accounting Standard 16 and therefore becomes ineligible for Local Growth Fund.

4.3 Walsall Council will underwrite spend via the existing provisions in the Collaboration Agreement, as this falls under Walsall’s geographical area. This would be a revenue cost to Walsall Council.

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4.4 The Full Business Case for the implementation of the scheme will be undertaken once the development work is completed. It is anticipated the scheme will be funded either through the Local Growth Fund, West Midlands Combined Authority funds or Department for Transport funding.

5. LEGAL IMPLICATIONS

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 The proposal has been through consultation with the PMO and the BC Transport Director as part of the project 2017/18 Q1 review.

8.2 Officers within Walsall Council’s Finance and Legal teams have also been consulted as part of the development of this report.

Background papers

The following supporting documents can be provided on request:

• Mill Lane Bridge & Aldridge Aqueduct GRIP 3 Study, Additional Funding Request

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Attachments

None.

Contact Officer & Author

Simon Neilson Mark Lavender Executive Director, Economy & Environment Joint Committee Programme Manager Walsall Council Walsall Council Civic Centre, Darwall Street, Walsall Civic Centre, Darwall Street, Walsall. WS1 1TP WS1 1TP Email: [email protected] Email: [email protected] Telephone: 01922 652004 Telephone: 01922 654772

Stuart Everton Black Country Director of Transport City of Wolverhampton Council Civic Centre, St Peter’s Square, Wolverhampton, WV1 1SH Email: [email protected] Telephone: 01922 554097

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ITEM 26

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Local Growth Deal FORMER WILLENHALL ST WORKS SITE INVESTIGATION (SEPPL77)

Approval to Amend Existing Grant Agreement

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approve the Accountable Body for the Growth Deal (Walsall Council) to amend the existing Grant Agreement for the Former Willenhall ST Works Site Investigation project from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This change request was endorsed by the LEP Funding Sub Group (FSG) on the 7th September 2017, the LEP Board on 18th September 2017 (LEP Board Minutes Ref: 106/17), the Working Group on the 19th October 2017 and the Advisory Board on the 9th November 2017.

2. RECOMMENDATIONS

That the Joint Committee:

2.1 Approves the Accountable Body for the Growth Deal (Walsall Council) to proceed to amending the existing Grant Agreement with the Midland Land Portfolio Limited to the value of £8,085 to deliver the Local Growth Fund (LGF) funded elements of Former Willenhall ST Works Site Investigation project - with delivery to commence in the 2017/18 financial year.

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2.2 This is a Change Request to move funding allocated from 2017/18 into 2018/19.

3. REPORT DETAIL

3.1 A summary of the request for amending the existing Grant Agreement by the Accountable Body for the Local Growth Deal (Walsall Council) is below.

Former Willenhall ST works Site Investigation - transfer of £8,085 into 2018/19

3.2 The reason for this Change Request is due to a requirement that some of the environmental surveys must take place at a specific time of year as they are weather/temperature dependant. The appointed contractor was not able to undertake these works during the 2017 survey period as originally planned and will therefore need to commence in Spring 2018.

4. FINANCIAL IMPLICATIONS

5. LEGAL IMPLICATIONS

5.1 A Grant Agreement will be utilised by the Accountable Body (Walsall Council), and include all conditions passed onto the LEP by Government, together will all terms, conditions, performance measures and sanctions as required by the approvals/conditions received from Government or approved by the LEP Board or the Joint Committee.

6. RISK MANAGEMENT

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7. EQUALITY IMPLICATIONS

7.1 None

8. CONSULTATION

8.1 Walsall Council officers from Legal and Finance have been consulted as part of the development of this report.

Background papers

The following supporting documents can be provided on request:

• Former Willenhall ST Works Site Investigation, Change Request

Attachments None.

Contact Officer & Author

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ITEM 27

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 November 2017

Black Country Local Growth Deal ADVANCED MANUFACTURING TRAINING CENTRE LTD, ALDRIDGE – ADDITIONAL FUNDING (SEPP30)

Approval to Amend Existing Grant Agreement

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Joint Committee approve the Accountable Body for the Growth Deal (Walsall Council) to amend the existing Grant Agreement for the Advanced Manufacturing Training Centre Ltd project from within the Local Growth Fund (LGF) Programme - with delivery to commence in the 2017/18 financial year.

1.2 This Additional Funding request was endorsed by the LEP Funding Sub Group on the 7th September 2017, LEP Board on 18th September 2017 (LEP Board Minutes Ref: 111/17),Working Group on 19th October 2017and the Advisory Board on 9th November 2017.

2. RECOMMENDATIONS

2.1 That the Joint Committee approves the Accountable Body for the Growth Deal (Walsall Council) to proceed to amending the existing Agreement with Advanced Manufacturing Training Centre Ltd to increase the value of the grant by £223,000 to deliver the Local Growth Fund (LGF) funded elements of the Advanced Manufacturing Training Centre Ltd - with delivery to commence in the 2017/18 financial year.

2.2 This relates to an Additional Funding Request in 2017/18.

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3. REPORT DETAIL

3.1 A summary of the request for amending the existing Grant Agreement by the Accountable Body for the Local Growth Deal (Walsall Council) is below.

Advanced Manufacturing Training Centre Ltd - £223,000 Additional Funding in 2017/18

3.2 This additional funding request from Advanced Manufacturing Training Centre Ltd (AMTC) is seeking a £223,000 contribution towards additional equipment necessary to enable AMTC to deliver their apprenticeship training programmes to the required trailblazer apprenticeship standard.

3.3 The additional funding is being requested for the following reasons:

I.) The trailblazer apprenticeship standards are ever evolving and some of the new standards recently released have highlighted the need for further equipment in order to develop and deliver programmes to our outstanding quality levels;

II.) Upon further market research of AMTC’s key customer base it was highlighted that further skills and competency gaps exist which are critical to their sustainability and growth. An open forum event was held at the AMTC on the 23rd of August 2017 which allowed face to face interaction with AMTC’s technical engineers to explore further what skills infrastructure is needed. The qualitative data was collected and analysed leading AMTC to develop a strategy to build programmes needed by the market place.

3.4 The project is currently at the facility build stage in preparation to install the advanced technologies to start delivering on the new trailblazer apprenticeship and industry growth programmes. The first cohort of apprentices were due to start on the 4th September and a further intake in October 2017.

AMTC have confirmed that, if this additional funding request were to be approved, there will be no delay to the original year one outputs quoted in the business case.

The following additional outputs will be delivered as a result of this funding:

Output Metric 2017/18 2018/19 2019/20 2020/21 Total

Businesses no. 10 15 20 25 70 3.5 Assisted Skills - no. 10 20 20 20 70 Apprenticeships Employment – no. 1 1 1 1 4 Jobs Created (FTE)

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AMTC can offer £210,021 in match against this additional funding request. The intervention rate has increased slightly from 33% to 37%. However, the Business Assists are newly identified outputs.

4. FINANCIAL IMPLICATIONS

4.1 All the costs associated with this proposal form part of the LGF programme and will be covered by allocations from government associated with this programme.

4.2 As with all Growth Deal grants, in the event that the scheme does not complete and outputs are not achieved, but grant has been paid to the applicant, the Accountable Body reserves the right to clawback grant back from the applicant. This will be covered by provisions in the Grant Agreement relating to clawback, plus additional security will need to be provided by the applicant to cover the additional grant value.

5. LEGAL IMPLICATIONS

5.2 The security arrangements in place have also been updated to include the equipment to be purchased with this additional grant.

6. RISK MANAGEMENT

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Legal and Financial services at Walsall Council were consulted with as part of the development of this report.

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8.2 Data has been collected and analysed which has led to AMTC to develop a strategy to build programmes needed by the market place. Upon further market research of AMTC’s key customer base, further skills and competency gaps exist which are critical to sustainability and growth. Interaction with AMTC’s technical teams has taken place to explore further what skills infrastructure is needed.

Background papers The following supporting documents can be provided on request: i. AMTC, Additional Funding Request ii. Appendix 1 – Equipment Breakdown

Attachments None.

Contact Officer & Author

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ITEM 28

REPORT OF THE CITY DEAL, GROWTH DEAL AND COMBINED AUTHORITY ADVISORY BOARD

BLACK COUNTRY EXECUTIVE JOINT COMMITTEE

22 NOVEMBER 2017

Black Country Land and Property Investment Fund FUNDING PROPOSAL FOR MANAGEMENT AND ADMINISTRATION FUNCTIONS

Key Decision: Yes Forward Plan: Yes

1. PURPOSE OF REPORT

1.1 To request that the Black Country Executive Joint Committee (BCJC) approves funding the Management and Administration functions of the Black Country Land and Property Investment Fund (LPIF).

1.2 This recommendation was endorsed by the LEP Funding Sub-Group (FSG) on 4th July 2017, the LEP Board on 24th July 2017 (Decision Notice ref 80/17), the Working Group on 19th October 2017 and the Advisory Board via email on the 13th November 2017.

2. RECOMMENDATIONS

That the Joint Committee:

2.1 Approve a capital allocation of Land and Property Investment Fund (LPIF) funding to be granted to City of Wolverhampton Council (acting in its role as Accountable Body to the LPIF programme);

2.2 Approve the proposal for the Management and Administration functions of the Black Country Land and Property Investment Fund.

2.3 Approve that the administrative costs of supporting effective programme development delivery and ongoing monitoring of schemes be funded through the Land and Property

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Investment Fund are recovered through a top slice of the total fund (as set out in Appendix 1).

2.4 Notes the approval received from West Midlands Combined Authority (WMCA) that the underwriting of these costs be provided via the revenue funding awarded to the WMCA, in the event that costs incurred are unable to be capitalised.

3. REPORT DETAIL

3.1 The Black Country Land and Property Investment Fund (LPIF), proposed by the Black Country LEP (BCLEP), seeks to invest in projects which support the re-use of brownfield land and buildings and the delivery of supporting infrastructure.

3.2 The LPIF is a grant funding programme.

3.3 The West Midlands region has a range of publicly operated funds designed to support economic development. This includes funds which are intended as loan/recycling finance. Grant funding is designed as a last resort and where awards are made, these should be on a minimum necessary basis.

3.4 The fund has been created as a £200M loan, which the WMCA Authority is allocating a proportion to Finance Birmingham £50M and the remainder to the BCLEP, £150M.

3.5 The WMCA Board on 17th March 2017 approved that the initial tranche of £53m be made available to the BCLEP from 2017/18 to deliver a remediation programme designed to deliver 1,600 houses, 1,800 jobs and 126,000 sqm of commercial floorspace.

3.6 The City of Wolverhampton Council will act as Accountable Body for both the £50m allocated to Finance Birmingham for the WMCA Brownfield Land and Property Development Fund, the “Fund” as well as the initial £53m allocated to the BCLEP for the Black Country Land and Property Investment Fund. It is proposed that the costs of the Accountable Body administrative functions are recovered through a top slice of the grant (as detailed in Appendix 1).

3.7 Finance Birmingham will act as fund manager for the WMCA £50m fund, the costs of which will be recovered through their WMCA management fee. The Black Country Consortium PMO will manage the BCLEP £53m fund. It is proposed that the costs of the PMO are recovered through a top slice of the grant (as detailed in Appendix 1).

3.8 The costs of the LPIF Accountable Body administrative functions and the PMO would need to be capitalised to enable financing through capital monies, the model suggested would be that the function of administering these funds enables the development of capital programmes and therefore generates or increases the value of an existing asset and so is eligible as capital. Therefore, allowing the full cost to be recovered in advance of allocating funding to schemes and eliminating any risk associated with a fee based approach which could result in a shortfall of income against the administrative function costs.

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3.9 Details of the respective roles of the Accountable Body and the PMO, as well as the associated costs, are included in the funding proposal document (Appendix 1). The funding proposal document also includes an options appraisal, the recommended option being Option 3 as reflected in the above recommendations.

4. FINANCIAL IMPLICATIONS

4.1 The costs associated with this proposal, outlined below and in Appendix 1, will form part of the initial draw down of the Land and Property Investment Fund facility provided by West Midlands Combined Authority with the indicative values for the top slice as proposed:

Total Annual Administrative functions £0 £0 Accountable Body (to include Finance support, Project delivery QS, 700 175 Admin support) Professional Property advisors 200 50 Commercial legal advisors – Contract draft 200 50 State Aid Legal advice 40 10 Financial status appraisals & due diligence 40 10 Evaluation 50 12.5 Total 1,230 308 SEP Delivery Director, PMO Manager, PMO Analyst x3 764 191 Grand Total 1,994 499

4.2 Whilst the Accountable Body will look to capitalise these costs, it has been approved by the WMCA Board that underwriting would be provided via revenue funding awarded to the WMCA. In the circumstance that costs incurred are unable to be capitalised, e.g. professional services fees incurred appraising a project that does not receive approval to proceed by the “Board”, then this revenue funding stream will provide a mechanism for any abortive costs to be recovered.

4.3 WMCA and City of Wolverhampton Council Finance leads are currently working to agree the precise mechanism for reimbursement of these costs.

5. LEGAL IMPLICATIONS

5.1 The City of Wolverhampton Council will seek the appropriate legal advice and input as is necessary in delivery of its role as Accountable Body for the fund and will report on such costs incurred.

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6. RISK MANAGEMENT

6.1 The key risk associated with such funding is the inability to respond with suitable projects delivering the required outcomes to the benefit of the Black Country and the wider West Midlands region, within required timescales. Establishing the Accountable Body / Managing authority to work collaboratively with the Programme Management Office is a key step in managing and mitigating this risk.

7. EQUALITY IMPLICATIONS

7.1 None at the time of drafting.

8. CONSULTATION

8.1 Legal and financial services at City of Wolverhampton Council have been consulted in the development of this report.

8.2 The funding proposal was approved by the WMCA Board on 8th September 2017.

Background papers

 Report and Minutes of the WMCA Board meeting held on 17th March 2017. (A copy can be provided on request)

Attachments

Appendix 1 - Proposal for funding of administrative functions to support the Black Country Land and Property Investment Fund

Contact Officer & Author

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Black Country LEP

Black Country Land and Property Investment Fund

[Previously referred to as the WMCA / BCLEP Land Fund)

Proposal for funding of administrative functions to support the Black Country Land and Property Investment Fund

July 2017 v1.0 Background

The Black Country Land and Property Investment Fund, (the Investment Fund) proposed by the Black Country LEP (BCLEP), seeks to invest in projects which support the re-use of brownfield land and buildings and the delivery of supporting infrastructure.

The Investment Fund is predominantly a grant funding programme.

The West Midlands region has a range of publicly operated funds designed to support economic development. This includes funds which are intended as loan/recycling finance. Grant funding is designed as a last resort and where awards are made, these should be on a minimum necessary basis.

The fund has been created as a £200M loan, which the WMCA Authority is allocating a proportion to Finance Birmingham £50M and the remainder to the BCLEP.

Administration and Governance arrangements for the Investment Fund

The role of City of Wolverhampton Accountable Body

The BC LEP Board has been asked to endorse the request of City of Wolverhampton (CWC) to become the Accountable Body for the Black Country Land and Property Investment Fund.

The Wolverhampton Accountable Body will:

 Provide the Treasury Management functions to obtain and manage funding facilitated WMCA to enable delivery of Approved Schemes  Ensure full Due Diligence processes are in place to validate Bidders and scheme bids, focused on the use of a set of Frameworks providing expert professional suppliers who will deliver:  Professional Property scheme evaluations  Financial evaluations of the Bidder’s ability to deliver the Scheme  Professional evaluations of the Company’s trading status  Expert Property based proposed Heads of Terms for each Scheme  Commercial Legal expertise to Draft Theme specific Contracts  Professional QS or Property Surveyor validation of Scheme grant claims  Legal State aid advice to each proposed scheme.  Manage the contractual relationship between BC LEP Investment Fund and each of the contracted projects.  Provide the Secretariat function for the Fund administration, delivering submissions relating to the Investment Fund to the Joint Committee  Administer a best practice processes consistent with a Compliance Framework which delivers both effective Financial Control and appropriate Management Risk  Manage Claims Payment system for the Fund consistent with effective Financial Control and linked to each of the Compliance processes deployed.  Account for the effective financial administration and performance of the Investment Fund on a regular basis to the BC LEP, utilising its own internal audit, accountancy and treasury management systems to delivery that role.

The Wolverhampton Accountable Body will ensure conflicts of interest for all types of Professional Service providers are not allowed to arise. For example: Professional Property suppliers may not hold more than one of the following roles in relation to bids for Grant support:  Development of Schemes and Preparation of Scheme Bids  Appraisal of Scheme bids, & recommendations to the Funding Sub Group  Verification of Grant Claims from bidders

It is estimated that the annual cost of delivering the Accountable body services will be in the region of £175,000, this cost will increase in line with inflation each year and may be subject to further increase or decrease depending on the demands of the accountable body role. In addition to the Accountable body costs there will be a requirement to cover professional advisor fees incurred as part of appraising each bid, the required professional services detailed below will be procured using a competitive tendering process to ensure value for money. A breakdown of all costs per year will be submitted to the LEP board retrospectively for agreement and sign off, any known increase to costs above those proposed here will be submitted in advance to the LEP for approval. Regular reports will also be submitted to the LEP board to confirm expenditure on these services supporting the administration of the scheme.

This Accountable Body and Professional Services costs will be made up as detailed:

Total Annual Administrative functions £0 £0 Accountable Body (to include Finance support, 700 175 Project delivery QS, Admin support) Professional Property advisors 200 50 Commercial legal advisors – Contract draft 200 50 State Aid Legal advice 40 10 Financial status appraisals & due diligence 40 10 Evaluation 50 12.5 Total 1,230 308

These figures are based on the number of project bids anticipated to come forward against the initial tranche of £53m awarded during the first 4 years (17/18 – 20/21). These estimates are subject to change and will be reviewed regularly as the programme matures. All professional advice will be procured and costs based on invoices paid, ensuring value for money and transparency.

It is to be noted that the City of Wolverhampton Council will act as Accountable Body for both the £50m allocated to Finance Birmingham for the WMCA Brownfield Land and Property Development Fund, the “Fund” as well as the initial £53m allocated to the BCLEP for the Black Country Land and Property Investment Fund, the “Investment Fund”. The Accountable Body costs included in the table above (£175k p/a) are inclusive of both funds.

The role of BC LEP Programme Management Office

The Programme Management Office (PMO) provides the decision support behind successful programme management. It is responsible for supporting the programme governance, project processes and day to day management of the Programme, informing the oversight and governance of the programme by the LEP Board, Joint Committee and the relevant sub-committees. It provides information to the Black Country LEP Board advising them of the progress of projects against plan, conflicting priorities and programme risks. It will scrutinise and challenge Project submissions against the SEP and recommend accordingly. The Programme Office’s objective is to ensure that the Black Country LEP fully utilises the opportunities the Investment Fund offers in delivering outputs consistent with both Black Country and the wider WMCA SEP priorities, at the earliest opportunity.

The PMO will be responsible for production of the monthly management dashboard information required for the BC LEP Board, the BC Joint Committee as well as the WMCA.

It is estimated that the annual cost of delivering the PMO services will be in the region of £191,000 per annum, again it is expected that this cost will increase in line with inflation each year, anything beyond this will be explained and agreed.

This cost will be made up as detailed:

Total Annual PMO £000 £000 SEP Delivery Director, PMO Manager, 764 191 PMO Analyst x3, Total 764 191

The costs of the PMO are currently funded through a top slicing mechanism of the Growth Deal. Approval is only in place to fund the PMO through to the end of 2017/18. It is suggested that the PMO could continue to be funded wholly through the Growth Deal or alternatively the costs could be split between the two operating funds, being the Local Growth Deal and the Land Remediation Fund on a 50:50 share (£191k across each programme); this being the preferred option.

BCC Ltd will cashflow the costs of the PMO and submit monthly claims to Wolverhampton Accountable Body to recharge the costs against the programme to the value of £191k per annum.

A total funding requirement for the administration of this fund is estimated to be £308 CWC accountable body functions plus up to £191,000 PMO costs. Up to £499,000 per annum.

Funding of Accountable Body, Administrative Functions and the PMO

Consideration needs to be given to the possible funding options to ensure the costs are fully recovered. As the fund has been created through a loan and borrowing can only be for capital purposes, suggested options are proposed below:

Option 1

It is proposed applicants are charged fees to apply for money from the fund. Generating a revenue income which could cover some costs.

Finance Birmingham currently operate a fee based approach for applicants, therefore this could be in line with their approach.

Application fee £1,000

Delivery fee – payable if project is approved 5% value of application

Monitoring fee 0.5% value of application

Fees would be added to the total costs of any proposed scheme and could be claimed as an element of the applicants bid. An initial application fee would be payable in advance of approval and therefore at risk by the applicant to the investment fund until the scheme was approved. Following this it is proposed that a 5% delivery fee is paid and a 0.5% monitoring fee, however it should be recognised that not all schemes will proceed to delivery and therefore these fees would not be collected.

This option facilitates recovery of costs of the administration functions of the fund, as given above. Enabling the costs to be covered as an aspect of each proposed scheme.

Alternatively, part recovery of costs could be considered through an element of a fee charging based approach. For example, monitoring fees could be charged, to assist cost recovery of the accountable body monitoring a programme an agreed level of fee could be charged based on the value of the funding applied for, as suggested above or a fee determined on the number of site visits a scheme would require. This would help reduce the impact of funding the accountable body functions directly from the fund itself.

The risk associated with this fee based option is the amount of fees charged may not cover the full costs of the administrative functions. Proposing fees to applicants may also be a deterrent to using the fund particularly for marginal projects that may not be approved, using a monitoring fee only to partially recover costs would obviously be less of a deterrent. Administering this option would also be more onerous.

Option 2

An alternative is that the WMCA authority pay a management fee to CWC to fund the Accountable body and associated costs. This could be done through an additional payment alongside the loan repayments however this option requires further discussion and agreement with the WMCA. There would also be a requirement to review how the PMO costs are funded going forward

Option 3

It is proposed the administrative costs of supporting effective programme development delivery and ongoing monitoring of schemes funded through the Investment Fund monies are recovered through a top slice of the total fund.

In effect these costs would need to be capitalised to enable financing through capital monies, the model suggested would be that the function of administering these funds enables the development of capital programmes and therefore generates or increases the value of an existing asset and so is eligible as capital. Therefore, allowing the full cost to be recovered in advance of allocating funding to schemes and eliminating any risk associated with the fee based approach which could result in a shortfall of income against the administrative function costs. This option would require agreement from the Accountable Body’s external auditors.

It is proposed that the underwriting of these costs would be provided via the gain share awarded to the WMCA.

In the circumstance that costs incurred are unable to be capitalised, e.g. professional services fees incurred appraising a project that does not receive approval to proceed by the “Board”, then the revenue gain share will provide a mechanism for any abortive costs to be recovered.

Recommendation

It is recommended that the most straight forward option subject to approval by CWC external auditors is to top slice the funding and classify the costs of supporting the fund as capital, supporting the delivery of capital schemes.

Also to note that costs are proposed and as such subject to change, particularly over the first year, updates will be provided to confirm the level of cost being incurred in delivery of the programme funding.