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Part a Report To: Cabinet Date of Meeting

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Part A Report to: Cabinet Date of meeting: 18 January 2021 Report author: Managing Director Title: Town Hall Quarter Summary As part of its ambitions to ensure Watford builds on its reputation as a thriving, diverse and creative town, Watford Borough Council has recognised the potential of the area around the Town Hall to deliver an exciting, major regeneration programme. The Town Hall Quarter (THQ) programme will transform the area, securing a thriving new quarter with new homes, employment and public space, which will be underpinned by a revitalised creative, cultural and heritage offer Since the initial development of the Watford High Street (North) Cultural Hub draft Masterplan in 2019, a number of critical factors have impacted and influenced the original programme. Our new forward looking and delivery focused Council Plan 2020-24 recognises the potential this project has to transform, not just the Town Hall area, but to provide a catalyst for new employment opportunities, a strengthened culture and heritage offer and to drive real change in the way the Council works and delivers services. Covid-19 has given impetus to this change, with the THQ programme now an important part of the town’s plans for renewal and rejuvenation. Through this significant transformation programme the Council is seeking to deliver the following outcomes: rejuvenate two of the town’s most important heritage buildings – the Town Hall and Watford Colosseum, securing the long-term future of these landmark buildings and exploring ways they can make a greater contribution to the town’s cultural, economic and business life, recognising the council will work in a more agile, flexible and efficient way, freeing up space for new and innovative uses for the Town Hall review and renew the town’s Museum and Heritage service, learning from the best, to secure an exciting, inventive and accessible offer for Watford that celebrates the town’s diverse history, bringing it to life for the community and visitors and exploring a new base for the service within this revitalised quarter enhance the town’s reputation as a regional centre for culture and the arts, making more creative uses of Watford Colosseum, so it provides a catalyst for a range of entertainment encouraging a varied programme mix from professional performances to community and up and coming artists create a vibrant and attractive new neighbourhood with well-designed homes, new work opportunities and welcoming public spaces for people to meet, spend time and relax, improving the linkage between the area and the rest of the town explore the development of a new innovation and incubation hub, which would enhance the town’s offer for business, providing inspiring, productive and connected working space and investment in kit for businesses, all to accelerate business growth, collaboration, learning and wellbeing reflect the Council’s drive to be commercially focused, generating positive returns on our investment so we can reinvest in the future of our town and in the services and facilities that local people value, whilst making better use of the land and buildings we own transform how the Council works as an organisation, including its office accommodation, so we are an outstanding and inspirational workplace that sets the standard as an enterprising, forward looking and supportive working environment and which our community recognises for excellent services and customer experience. The THQ programme, which will deliver the vision outlined above, comprises seven projects: Regeneration project – will deliver the housing and regeneration aspects of the programme Town Hall Development project – will focus on how best to refurbish and use the Town Hall asset Colosseum project – will oversee the refurbishment of this historic building and broaden its use for both Watford residents and cultural organisations Innovation and Incubation Hub project – will assess how best we can support acceleration of business growth locally. Museum and Heritage Service project – will re-imagine the Museum and Heritage service and develop a service fit for the future Culture project – will provide an assessment of requirements for Watford’s cultural organisations’ use of the Colosseum and shape the design investment proposals accordingly Transformational Change project – will review the way the council works and where it works. This report provides the rationale for the programme and explains in more detail the component projects of the programme which will help deliver the Council’s vision for the THQ and articulates their associated benefits and costs. Cabinet is asked to endorse the recommendations allowing officers to progress the programme and proceed to the next phase for each project and authorisation of £2.1m expenditure from existing capital budget allocations. Risks Nature of risk Consequence Suggested Control Response Risk Rating Measures (treat, tolerate, (combination terminate or of severity and transfer) likelihood) The effect of Reduced overall Manage programme Tolerate and Likelihood = 3 Covid-19 on the viability with economic cycle keep under Severity = 3 Economy review Use development Total risk = 9 partner expertise to If the scheme manage sale risk becomes unviable, then review development strategy Local Office accommodation Focus of programme is Treat by means Likelihood = 2 Government requirements for to reduce office of ensuring Severity = 2 Reorganisation Council could change requirements for council refurbished office staff and ensure space is Total risk = 4 refurbishment of Town commercially Hall provides office desirable by space suitable to a market wider market Procurement Unable to secure a Soft market testing has Treat: Use Likelihood = 2 development partner suggested that the commercial Severity = 3 scheme will be advisers to attractive to market ensure that Total risk = 6 project is attractive to potential tenderers Treat: Ensure that tender process is not overly onerous Development Joint venture means Choose highly Treat: Use Likelihood = 2 and that Council is exposed experienced joint procurement Severity = 4 Construction to significant venture partner and use process to ensure Risk development and their expertise to securing a Total risk =8 construction risk and manage risk suitable project causes financial Ensure that business development loss plan is risk assessed and partner frequently reviewed for extent of risk. Treat: maintain development strategy under continuous review Nature of risk Consequence Suggested Control Response Risk Rating Measures (treat, tolerate, (combination terminate or of severity and transfer) likelihood) Financial risk of Ultimately if the Soft market testing and Treat: Engage Likelihood = 2 the regeneration regeneration project external expert advice external advice Severity = 3 scheme not does not generate the has been sought and achieving its predicted return the confirms potential Total risk = 6 predicted return project may not be able projections. to cover all the projected costs Recommendations The recommendations for Cabinet are listed below with a reference to where the detail can be found in the main body of the report. The recommendations are to: 1. Agree the overall vision for the THQ (see section 9) 2. Agree the terms of reference for the Members Steering Group to oversee the THQ programme as set out in appendix A (see section 10) 3. Confirm that the preferred commercial delivery structure for the Town Hall Quarter regeneration project would be to enter into a joint venture limited liability partnership with a private sector development partner (see section 11.2) 4. Authorise officers to proceed with the procurement for the appointment of a development partner for the Regeneration project via a procurement process under the Public Contract Regulations using the competitive dialogue procedure delegating authority to the Mayor in consultation with the Member Steering Group and the Group Head of Place Shaping to approve the following elements of the procurement process namely: the project objectives, the selection criteria, the evaluation criteria and the short-list of tenderers selected to proceed to invitation to participate in the dialogue and following the procurement to seek Cabinet approval of the appointment of a joint venture partner (see section 11.2) 5. Agree to the Head of Property and Regeneration undertaking commercial negotiations with the landowners across the site to acquire their land interests and integrate those buildings and land into the proposals to undertake comprehensive development of the Town Hall Quarter site, and if terms are agreed to either enter option agreements or subject to Council approving expenditure of the necessary funding undertake those acquisitions (see section 11.3). 6. Authorise officers to proceed with the development of an Outline Business case and supporting design work for the redevelopment of the Town Hall and bring this back to Cabinet in Autumn 2021 or earlier if possible (see section 12). 7. Authorise officers to proceed with the development of an Outline Business case and supporting design work for the comprehensive refurbishment of the Colosseum and bring this back to Cabinet Autumn 2021 (see section 13). 8. Authorise officers to proceed with the development of a Strategic Business case for the development of an Innovation and Incubation Hub project and bring this back to Cabinet in Summer 2021 (see section 14). 9. Note the appointment of the Museum and Heritage Service Review Consultants
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