Issue - meetings

AGREED      that Cabinet:

a)            note the report;

b)             in accordance with approval from Newark Towns Board that the Council receives a further £990,000 (in addition to the £790,000 supported by Cabinet on 14 May 2024) of the Town Fund One grant towards Stodman Street Phase 1;

c)             subject to b) above, to delegate to the Director – Resources & Deputy Chief Executive in consultation with the Director - Planning & Growth authorisation to submit a Project Adjustment Form to Government seeking formal authorisation to re-allocate the £1.78m of previously allocated Newark Gateway/SiSCLog grant to the 32 Stodman Street Phase One project; and

d)             subject to approval of b) & c) above, to increase the budget in the Council’s Capital Programme to £12,880,000 financed by the additional grant allocation.

The Director of Planning & Growth was in attendance to present a report updating Members on the progression of the 32 Stodman Street Project and to seek consequential revisions to the capital programme. Cabinet heard that during the project issues had arisen, including utilities, contingency for new build and archaeology on the site, leading to an increase in costs. A request had been made to the Newark Towns Board which had approved an additional amount to cover the costs of £1.78m, which was recycled from the Towns Fund 1 Newark Gateway monies. The request was also supported by the Council’s Section 151 Officer.

The Cabinet welcomed the report and the progression on development of 32 Stodman Street. 

AGREED (unanimously) that Cabinet:

a)      note the report;

b)      In accordance with approval from Newark Towns Board that the Council receives a further £990,000 (in addition to the £790,000 supported by Cabinet on 14 May 2024) of the Town Fund One grant towards Stodman Street Phase 1;

c)       Subject to b) above, to delegate to the Director – Resources & Deputy Chief Executive in consultation with the Director - Planning & Growth authorisation to submit a Project Adjustment Form to Government seeking formal authorisation to re-allocate the £1.78m of previously allocated Newark Gateway/SiSCLog grant to the 32 Stodman Street Phase One project; and

d)      Subject to approval of b) & c) above, to increase the budget in the Council’s Capital Programme to £12,880,000 financed by the additional grant allocation.

Reasons for Decision:

The project directly aligns to the objectives within the Community Plan of:

1)    Increase the supply, choice & standard of housing,

2)    Raise people’s skills levels and create employment opportunities for them to fulfil their potential,

3)    Celebrate and invigorate community spirit, pride of place and sense of belonging.

The recommendations will ensure delivery of the project as set out in the approved, original full business case of March 2022.

Options considered:

There are two further options for a decision with this project;

1)      To use borrowing to fund the identified gap within the development cost. This option has been discounted as the level of borrowing used to date would mean the income generation from the development would be significantly below the total borrowing costs; or

2)      To not undertake the project. This option is not recommended as it will leave a partially developed site vacant within the town centre. This would also mean returning grant funding already received, and allocated to this project, to be returned to Government.