Manchester City Council Item 16 Executive 14 March 2012 Manchester City Council Report for Resolution Report to: Executive – 14 March 2012 Subject: Partnership with Manchester City Football Club and East Manchester Report of: The Chief Executive, the City Treasurer, the Chief Executive of New East Manchester Ltd, the Strategic Director of Neighbourhood Services and the Strategic Director of Children’s Services Summary This report seeks approval to the Eastlands Community Plan that sets out a series of proposals building on the ambition of both the Eastlands Regeneration Framework and the 2008 – 2018 East Manchester Regeneration Framework to improve the quality of life outcomes for residents and strengthen the contribution East Manchester and its residents make to the City Region economy. The 16 th March 2011 Executive approved in principle a proposal to establish an “Eastlands Development Partnership” with Manchester City Football Club and its associated land holding and development companies to drive forward the comprehensive development of the now renamed Etihad Campus and its surrounding area. This report now sets out detailed proposals to the Executive to establish the various bodies that together make up the “Eastlands Development Partnership”. Recommendations The Executive is recommended to: 1. Approve the Eastlands Community Plan, that is appended to this Report; 2. Note that the proposals set out in Table 1 of the Eastlands Community Plan which require public sector support will be brought forward for Executive approval only when robust business cases and associated business plans have been developed to underpin the investment case, including where appropriate, evidence of private sector funding support; 3. Approve the proposal to bring forward a detailed Masterplan for the Beswick Community Hub and to note the intention to bring this plan to a future meeting of the Executive for endorsement prior to public consultation; 4. Note that the proposals for an East Manchester Sixth Form College are now being brought forward by the AGGS Academy Trust; Manchester City Council Item 16 Executive 14 March 2012 5. Note that no Commercial Plan for the Etihad Campus and surrounding area shall be finalised without the approval of the Executive. 6. Agree to the establishment of the ”TopCo” Strategic Board Limited, the ”JV” Development Company and the Eastlands Advisory Board on the terms set out in this report; 7. Nominate the Chief Executive and the Chief Executive of New East Manchester Limited as the first Directors of the “TopCo” Strategic Board Limited; 8. Appoint the Chief Executive, City Treasurer and the Chief Executive of New East Manchester representatives of the Council as shareholder in the ”TopCo” Strategic Board Limited pursuant to section 323 of the Companies Act 2006; 9. Nominate the Chief Executive and the City Treasurer as first Directors of the “JV” Development Company Limited; 10. Appoint the Chief Executive and City Treasurer to act as representatives of the Council as shareholder in the “JV” Development Company Limited pursuant to section 323 of the Companies Act 2006; 11. Authorise the Chief Executive in consultation with the Deputy Leader to establish the Eastlands Advisory Board and invite representatives from key stakeholders to participate in this arrangement; 12 Agree the provision of the function of the ”TopCo” Strategic Board Limited Company Secretary role shall be provided by the Council and authorise the City Solicitor to make the necessary arrangements to provide the Company Secretariat; 13 Taking into account information set out in a report on Part B of the agenda, agree the disposal of the Land known as “Collar Site” and shown edged red on the plan attached as Annex 2 to the ”JV” Development Company for market value; 14 Recommend that the Council agrees to the investment of that part of the capital receipt remaining after repayment of grant funding to be invested in the “JV” Development Company and agrees to increase the Capital Programme for this purpose by an amount to be determined by the City Treasurer; 15 Agree that the annual running costs of the “TopCo” Strategic Board Limited shall be met from the English Partnership (HCA) Reserve Account; 16 Authorise the Chief Executive, the City Treasurer and the City Solicitor in consultation with the Deputy Leader to conduct and conclude negotiations to give effect to the above resolutions; and 17 Authorise the City Solicitor to take all steps and complete all transactions expedient to give effect to the above resolutions. Manchester City Council Item 16 Executive 14 March 2012 18 Agree that giving effect to the above resolutions will promote the social, economic and environmental well being of Manchester. Wards Affected: Bradford and Ancoats & Clayton Community Strategy Spine Summary of the contribution to the strategy Performance of the economy of Proposals set out within the Eastlands Community the region and sub region Plan and the proposals to establish the “Eastlands Development Partnership” will provide the catalyst for further investment and employment in the area. Reaching full potential in The next generation of investment at the Etihad education and employment Campus and into adjoining areas will facilitate the creation of a substantial number of jobs in a range of employment sectors. The proposal within the Eastlands Community Plan for a new Sixth Form College will help to strengthen the education offer within East Manchester. Individual and collective self The Eastlands Community Plan will encourage esteem – mutual respect participation in sport which will enhance individual and collective self esteem. Neighbourhoods of Choice The proposed developments are aimed at establishing the Etihad Campus and the surrounding area as a global destination and as a major catalyst for driving forward and encouraging the retention of existing residents and attracting new working households to live in the wider East Manchester area. The Eastlands Regeneration Framework and the proposals within the Eastlands Community Plan, will provide the opportunity to deliver appropriate additional sports and community facilities which will help ensure surrounding communities can secure benefits from future investment into the Etihad Campus and the surrounding area. Full details are in the body of the report, along with any implications for: • Equal Opportunities Policy Manchester City Council Item 16 Executive 14 March 2012 • Risk Management • Legal Considerations Financial Consequences – Revenue The annual costs of providing the Secretariat function of “TopCo” Strategic Board Limited are estimated to be £50,000 per annum and will be met from the English Partnerships (HCA) Reserve Account. Financial Consequences – Capital The disposal of the Collar Site will result is a capital receipt. Details of the financial consequences of the disposal are set out in a report on Part B of the agenda. Contact Officers: Name: Sir Howard Bernstein Position: Chief Executive, Manchester City Council Telephone: 0161 234 3006 E-mail: [email protected] Name: Eddie Smith Position: Chief Executive, New East Manchester Ltd Telephone: 0161 223 1155 E-mail: [email protected] Name: Richard Paver Position: City Treasurer, Manchester City Council Telephone: 0161 234 3564 E-mail: [email protected] Name: Susan Orrell Position: City Solicitor Telephone: 0161 234 3087 E-mail: [email protected] Name: Eamonn O’Rourke Position: Head of Community and Cultural Services Telephone: 0161 953 2451 E-mail: e.o’[email protected] Name: Jenny Andrews Position: Deputy Director of Children's Services Telephone: 0161 234 3642 E-mail: [email protected] Background documents (available for public inspection): The following documents disclose important facts on which the report is based and Manchester City Council Item 16 Executive 14 March 2012 have been relied upon in preparing the report. Copies of the background documents are available up to 4 years after the date of the meeting. If you would like a copy please contact one of the contact officers above. • 2000 – 2010 East Manchester Strategic Regeneration Framework, Executive, March 2001 • Sportcity, Executive, 23 rd July, 2008 • A Strategic Partnership with Manchester City Football Club, Executive, 24 th March, 2010 • Eastlands, Executive, 16 th March, 2011 • Partnership with Manchester City Football Club and East Manchester, Executive, 13 th July, 2011 • Proposed City of Manchester (Corbett Street, Bradford) Compulsory Purchase Order 2011, Executive, 26 th October, 2011 • Indoor Leisure Review - Facility Strategy for Swimming Pools, Executive, 18 th January, 2012 Manchester City Council Item 16 Executive 14 March 2012 1.0 Introduction 1.1 On 12 th March 2010 Manchester City Council and New East Manchester Ltd (NEM) agreed a memorandum of understanding with Manchester City Football Club (MCFC) under which they agreed to work together to develop a transformational plan for East Manchester focused on the area around the Etihad Stadium (formerly the City of Manchester Stadium). 1.2 On 13th July 2011 the Executive approved the Eastlands Regeneration Framework following consultation with residents, business, landowners and other stakeholders. This Framework builds on the 2008 – 2018 East Manchester Strategic Regeneration Framework and sets out a future vision for the area around the Etihad Stadium that builds on the extensive and successful investment in sports facilities and neighbourhood regeneration undertaken