AGENDA 4 th June pm at Exhibition Room, Innovation Centre, York Science Park, University of York.

Transcription

1 York North Yorkshire & East Riding Local Enterprise Partnership Infrastructure Programme Board AGENDA 4 th June pm at Exhibition Room, Innovation Centre, York Science Park, University of York. Venue details and directions If you are using a satellite navigation system the postcode is YO10 5DG Welcome and Introductions 1. Remit of the Board refresh of roles and responsibilities. 2. Infrastructure Plan overview including agreed Growth Deal update, context and Programme performance 3. Specific Project Reports with Recommendations:- a. Catterick Improvements b. Skipton Flood Alleviation c. Newlands Bridge d. North Northallerton e. Selby Olympia Park f. Middle Deepdale, Scarborough 4. Schedule for Future Meetings 2.00pm 17 th September 2015 at Exhibition Room, Innovation Centre, University of York Science Park. 2.00pm 3 rd December 2015 at Da Vinci Suite, Catalyst, University of York Heslington East Campus 2.00pm tbd March 2016 at Da Vinci Suite, Catalyst, University of York Heslington East Campus 2.00pm 9 th June 2016 at Da Vinci Suite, Catalyst, University of York, Heslington East Campus

2 ITEM 1 York North Yorkshire & East Riding Local Enterprise Partnership Infrastructure Programme Board BOARD MEETING: 4 th June 2015 REPORT PRESENTED BY: Andrew Leeming TITLE OF PAPER: Remit of the Board Purpose of the Report 1.0 To set out the remit of this LEP Infrastructure Programme Board, in terms of:- How it fits with the overall LEP Governance; Its roles and responsibilities; and Membership. LEP Governance 2.0 The LEP Governance is set out in the agreed Assurance Framework. This provides a framework for strong and transparent governance in the delivery of all Government funding flowing through The York, North Yorkshire and East Riding Local Enterprise Partnership. 2.1 The purpose of the LEP Assurance Framework is to support the developing confidence in delegating funding from central budgets and programmes via a single pot mechanism. It has to be viewed in the context of the Accountability Systems Statements for both Local Government and the Local Growth Fund which provide assurance to the Departmental Accounting Officer and to Parliament, for how Local Growth Funds and wider funding routed through Local Government are allocated, and that there are robust local systems in place which ensure resources are spent with regularity, propriety, and value for money. 2.2 As part of the Assurance Framework the role and remit for this Infrastructure Board is set. The key elements of this are set out below. 2.3 The York North Yorkshire East Riding LEP Board will provide overall leadership and guide key decisions and are responsible for ensuring overall delivery of the Growth Deal and other funding programmes rooted through the LEP, including the balance between themes/programmes and strategic review. The LEP Board however delegates all decisions on individual projects to the relevant Programme Board. 2.4 The YNYER LEP Programme Boards will prioritise and approve individual investment at a programme level and will ensure delivery in accordance with the Strategic Economic Plan. Each Programme Board will be chaired by a full YNYER LEP Board Member.

3 ITEM Each of the YNYER LEP Programme Boards will be responsible for the following Strategic Priorities, they will report directly to the LEP Board on performance against the objectives set out in the SEP and the direction given by the LEP Board :- Table 1: Programme Board Responsibilities Programme Board Strategic Economic Plan Priority Responsibilities Business Growth 1. Successful, profitable SMEs Programme Board 2. A Global leader in food, agri-tech and bio-renewables Skills & Employability 3. Inspired people Programme Board Infrastructure 4. Successful, distinctive places Programme Board 5. A well connected economy 2.6 The YNYER LEP Infrastructure Programme Board has the following membership:- Infrastructure Programme Board Table 2: York, North Yorkshire and East Riding Local Enterprise Partnership Infrastructure Programme Board Name Organisation David Dickson (Chair) YNERLEP Cllr Peter Wilkinson Hambleton District Council Cllr Rebecca Burnett Harrogate Borough Council Cllr Yvonne Peacock Richmondshire District Council Cllr Linda Cowling Ryedale District Council Cllr Derek Bastiman Scarborough Borough Council Cllr Mark Crane Selby District Council Cllr Chris Metcalfe North Yorkshire County Council Cllr Ian Gillies City of York Council Cllr Jane Evison East Riding of Yorkshire Council Cllr Richard Foster Craven District Council Andrew Scott North York Moors & Yorkshire Dales National Park Authority 2.7 The Infrastructure Programme Board will provide the strategic leadership, approval and performance management of the Infrastructure Programme (SEP Priorities 4 and 5) Our Strategic Economic Plan Priorities 3.0 Set out below are the Strategic Economic Plan priorities that are the responsibility of this Infrastructure Board. The successful delivery of the Local Growth Funding provides an ability to begin to address these objectives.

4 ITEM 1 Recommendations To note this paper setting out the context and remit of this Infrastructure Board. That formal Terms of Reference for this Board be drafted and circulated to the Board prior to the next meeting. These to be considered and agreed at the September 2015 Infrastructure Board.

5 ITEM 2 York North Yorkshire & East Riding Local Enterprise Partnership Infrastructure Programme Board BOARD MEETING: 4 th June 2015 REPORT PRESENTED BY: Andrew Leeming TITLE OF PAPER: Infrastructure Plan Overview, Progress and performance 1.0 Purpose of the Report 1.1 To provide the LEP Infrastructure Programme Board:- An overview of the Infrastructure Plan within the context of the LEPs Strategic Economic Plan and agreed Growth Deal; To set out the progress to date on its delivery and performance. This will highlight progress made towards the delivery of projects, any potential risks to delivery and any actions needed to ensure the programme is delivered successfully. More detailed reports on the individual projects are included as item Overview - Local Growth Funding 2.1 The Local Growth Deal for York, North Yorkshire and East Riding totals 122.2m made up of the Round 1 July announcement of 110.1m (2015 to 2021) for 14 projects, together with the Round 2 January Announcement of 12.1m (2016 to 2021) for 4 projects. 2.2 The following table sets out the quarterly profile of the Local Growth Funding split by funding type. Table 1: Local Growth Fund Profile q1 q2 q3 q Total LGF HCA Investment LGF (pre committed/df T retained) Total This Local Growth Funding provides financial investment for a range of projects within 3 Investment Plans:- Business Growth Plan this includes capital investment in the agri-tech and bio economy sector and is overseen by the Business Growth Programme Board;

6 Skills Capital Plan which includes capital investment in FE and skills infrastructure and is overseen by the Skills Programme Board; and ITEM 2 Infrastructure Plan which includes investment in site and transport infrastructure that enables housing and employment growth in the LEP area and is the responsibility of this Programme Board. 2.4 Table 2 below sets out the agreed funding to these 3 Plans and the funding allocated to each. Table 2: Local Growth Fund Profile by Plan Future years Total Business Growth Plan Skills Capital Plan Infrastructure Plan 28.4 ( 19m pre committed) Total Flexibility of budget The Growth Deal funding is managed across the whole programme and so although it has some flexibility across headings it has little or no flexibility between years and between the LGF and LGF pre-committed or DfT retained. Any flexibility across projects will need the agreement of the Governments Local Growth Team. This lack of flexibility is a cause for concern and the ability to manage the overall programme, particularly across financial years, is being discussed further with the Governments Local Growth Team. This Board, although having an oversight of the total Infrastructure budget, has the responsibility to deliver 9.4m of Local Growth Funding in 2015/16. This is currently allocated to the following projects:- Table 3: 2015/16 Local Growth Funding allocated to Infrastructure Plan projects Housing and Employment Growth Site at Selby. Housing and employment growth at Northallerton. Growth at Catterick Garrison. Housing growth at Scarborough. Major Employment Growth in Skipton. Skipton flood alleviation scheme Newlands Bridge Drax-M62 Project Sponsor 2015/16 Allocation m Keepmoat 2.40 Hambleton District Council Richmondshire District Council Scarborough Borough Council Environment Agency 1.00 East Riding of Yorkshire Council 1.50

7 3.0 Progress Tracker ITEM The table below provides a summary of the programme tracker detailing the progress towards delivery of each of the projects for which we have been awarded Local Growth Funding. This table focuses on projects that spend in 15/16 A separate Annex Programme Tracker - provides a more detailed project level progress review. 3.2 Delivery Risk 3.3 The biggest risk to delivering to profile in 2015/16 is that; The majority of spend will be in Q3 and Q4 this makes managing potential slippage and delays challenging, with back up projects requiring a lead in time of up to 4 months to enable scheduling for delivery; and The three large strategic site projects have some significant hurdles to cross before they can start all of which puts their first year spend at risk. Table 4: Delivery Risk scenarios and mitigations Scenario Worst Case Mid case Best case All of the 3 major strategic sites projects fail to deliver within 2015/16. Some minor slippage within the 3 strategic site projects. All projects deliver to time and spend to profile in 2015/16 m at risk 5.7m 1m 0m Likelihood very low chance High chance Mid chance Mitigation Deadlines and milestones set for any outstanding issues. One to one meetings with project sponsor. Reserve projects which include year 2 projects brought forward being investigated to take up slippage. Same as worst case scenario, although this level of slippage can more easily be taken up by alternative projects. Although this is beginning to look unlikely it still remains the aim of the programme. Impact Potential loss of future years funding. Reputational damage for the LEP and local partners. Potential loss of future years funding. Retain a good reputation for delivering programme. Puts us in a good position to ask for more. 3.4 To begin to mitigate against any potential slippage in the 2015/16 year of the programme the following projects that currently do not have funding allocated for 2015/16 are being evaluated in terms of their potential to be accelerated. Malton Agri-Business Park

8 ITEM 2 A round 2 Local growth Fund project. The project development is on track with the potential for an October start on site. Funding is currently unavailable from the Local Growth Fund until 2016/17. Full Business Case has been submitted and some minor revisions and is currently being appraised. Green Rated A1/A59 Junction & Improvements to A1079 These are improvements to the A1/A59 junction and dualling of part of the A1079 through East Riding. Both these schemes have submitted full business cases which are being assessed and are on track for delivery in future years. There is a potential to accelerate the start date of the A1/A59 junction improvements into 2015/16 however a decision to proceed on this basis is needed within the next month. Green rated Enhance the reliability of the existing road network This includes two road maintenance packages for North Yorkshire and East Riding which are being dealt with as retained schemes with Department for Transport, both are programmed to start in 2016/17 and are currently working up full business cases. Both are Green rated

9 15/16 Spend m Future years m Stage 1 Business Case Development Stage 2 Appraisal and Due diligence Stage 3 Infrastructure Board Stage 4 Funding agreement issued Stage 5 Start project Stage 6 Construction Stage 7 project completion Overall Risk rating ITEM 2 Table 5 : Summary of Progress for all 2015/16 Project starts Selby Sept 2015 October 2015 Northallerton July 2015 August 2015 Sept 2015 October 2015 Jan 2016 Jan 2016 Catterick June 2015 June 2015 Aug 2015 Mar 2018 Mar 2017 Mar 2016 Comments In the Apprasial phase. Appraisal and due diligence is being carried out by the Homes and Communities Agency. Developer now in place. Some concerns over potential delays with works on site now due to start early 2016, putting 15/16 spend at risk. A declining Amber rating. Project officer now appointed by Hambleton District Council. Project now progressing well with site agreements almost finalised. Full Planning application for the road and outline planning for housing to be submitted end May. Final business case due end July. Given planning not yet in place, rated red. Project has moved on significantly. Scheme designs for the junctions have been completed and a full business case has been submitted, the works are all on track to start and be completed within Green rating project good to go. Middle Deepdale June 2015 tbd July 2015 July 2015 Mar 2016 This project is primarily infrastructure investment to unlock a major housing scheme at Middle Deepdale, south of Scarborough town. The full business case has been through assessment and due diligence but further clarification and assessment is required on the

10 ITEM 2 Skipton June 2015 June 2015 June 2015 Newlands Bridge June 2015 June 2015 July 2015 Dec 2016 Mar 2016 viability in terms of potential for loan rather than grant, and two outstanding issues to resolve - further clarification regarding state aid compliance and further highways appraisal works. The project is ready to go on satisfactory completion of these but major decision to be made on viability for grant. Amber flagged due to outstanding issues. A round 2 Local Growth Fund investment. This supports flood alleviation, as part of the employment and housing growth potential for Skipton. This Environment Agency project is ready to start and will involve an 18 month build to completion. Full Business Case has been assessed and has completed its final due diligence checks. Although this is part of the expanded Growth Fund to start in 16/17 this project is in a position to take up the 1m Harrogate College underspend in 15/16. Green flagged with no outstanding issues. Newlands Bridge is the link between M62 and Drax. The project has submitted a full Business Case which has been assessed. Works to start in 2015/16. All is on track with no outstanding issues. Green flagged.

11 ITEM Performance Monitoring 4.1 We have been working with BIS to agree a wide range of metrics, outputs and outcomes against which to measure performance. We are in the process of finalising actual targets, however in summary the metrics are; Core metrics for all investments Project Specific Metrics Inputs Transport Expenditure (YNYER LGF input over full period) Outputs Other Funding Total length of resurfaced roads In-kind resources provided Total length of newly built roads Outcomes (by March 21) Infrastructure improved (e.g. junction/bridge) Jobs connected to the intervention Outcomes (by march 21) Commercial floorspace constructed Housing unit starts Housing units completed Housing/employment sites unlocked Follow on investment at site Land, Property and Flood Protection Outputs Area of site reclaimed, (re)developed or assembled Utilities installed Outcomes (by March 21) Housing units Follow on investment at site Commercial floorspace refurbished Commercial floorspace occupied Skills Capital Outputs New build training/learning floorspace Refurbished training/learning facilities Floorspace rationalised Outcomes (by March 21) Additional learners Apprenticeship starts Summary The Infrastructure Programme Board has the responsibility for delivering 9.4m of Local Growth Fund investment in 2015/16. Overall delivery for 15/16 is progressing well and under Item 3 of this agenda the Board are requested to agree the first tranch of funding of 3.7m to those projects that have satisfactory Business Cases and are ready to start. There is, however the potential for between 1-2m at medium risk of slipping into future years.

12 ITEM 2 Options are being prepared to plan for this potential slippage and a formal decision on this will be determined no later than mid September By mid August 2015 all outstanding business plans and information must be received by the LEP from the project sponsors. Recommendation LEP Infrastructure Board to:- Note the progress to date in the development of the Growth Deal infrastructure projects. Recognise the potential financial spend risk in 2015/16 and the plans to mitigate this risk. Receive further reports on performance and options for variations in the programme if required.

13 Annex 1 Project Tracker This is also available as a separate excel spreadsheet York, North Yorkshire and East Riding Local Growth Fund - Progress Tracker. LEP Infrastructure Board 4th June 2015 INFRASTRUCTURE PROGRAMME Project Name Stage Lead On track to LGF 2015/16 spend in ( m) 2015/16 LGF future years ( m) Investment On track to Other On track to spend in Investment in be in place future years place Total investment ( m) Full Business Case Business Case Development Business Case Funding agreement on Track Funding agreement on track Start date Project Delivery start on track Completion date on track completion on track Risk Management Risk Management Risk rating Notes Overall Project Rating 2015/16 starts Housing and Employment Growth Appraisal Site at Selby. and due dilligence Three Swans Property Management Ltd 2.4 R 5.6 A Confirmed in principle A 32.0 Outstanding issues to resolve on Business Case (inc. highways). Cash flow and repayment schedule to be agreed. A Target October 2015 A Jan-16 R Aug-17 A Project start date delayed -some planning and other agreements to resolve. These are the main risks to timeframe. Medium Needs review in terms of spend profile in 2015/16 due to late start. A Housing and employment growth at Northallerton. Business Case Development Hambleton District Council 1.0 R 5.0 G To be confirmed. Linked to potential CIL A 12.0 Revised Business Case requested, revised Business Case submitted 25th March Needs further revisions deadline of end July for final business case. R Target October 2015 R Jan-16 R Oct-17 A Planning permission still needed expected Sept More detailed business case required with full costings. High Project management now in place. Revised Business Plan required. But awaiting planning. R Growth at Catterick Garrison. Funding Agreement Richmondshire District Council 1.2 G 0.0 n/a None n/a 1.2 Business Case submitted G Target July 2015 G Jul-15 G Dec-15 G Slight delay in development of business case but no significant issues and low risk development Low Low risk project. Potential for further 400k for enhanced works if funding became available. G Housing growth at Scarborough. Appraisal and due dilligence Scarborough Borough Council 2.3 A 0 n/a HCA in principle A 17.3 Outstanding issues to resolve on Business Case (inc. highways and state aid). Viability model to clarify regarding need for grant or loan. A Target July 2015 R Jul-15 G Mar-16 G Project on track but outstanding highways and state aid issues to resolve. Also viability report needs clarification as potential for loan. Medium Needs outstanding issues resolved from Scarborough BC and viability to be agreed. A Major Employment Growth in Skipton. Skipton flood alleviation scheme Funding Agreement Environment Agency 1.0 G 0.2 G All confirmed G 13.8 Full Business Case currently in appraisal. Most checks undertaken and no issues. G Draft issued pending agreement by Board G Apr-15 G Oct-16 G Initial works started. Project on track with no significant issues Low Impact of works will enable the unlocking of further development land at Skipton. G Newlands Bridge Drax-M62 Funding Agreement East Riding of Yorkshire Council 1.50 G 0.0 n/a All confirmed G 2.9 Full Business Case submitted - in appraisal, no significant issues. G Target June 2015 G Jun-15 G Mar-16 G Project on track. No significant issues. Low Funding ageement being drafted G Future Year starts Malton Agri Business Park Business Case Development Ryedale District Council 0 n/a 2.1 G All confirmed G 2.5 Full buisness case being revised. Appraisal to be carried out August 2015 G Provisional offer - July 2015 Full approval Oct 2015 G Oct-15 G Mar-17 G Project on track. Some outstanding issues to resolve, primarily highways, but later years project. Low LGF Expansion project. Potential could start in October if Funds became available. G Harrogate A1/A59 Junction Appraisal and due dilligence North Yorkshire County Council/Highwa ys Agency 0 n/a 0.8 G All confirmed G 1.09 Full Business case submitted - currently in apprasial G Provisonal offer - July 2015 Full offer target 2016 G Apr-17 G Mar-18 G Project on track and ready to go once funding avaialble.no significant project risks. Low Could be brought forward if funding became available. G Major Upgrading of the A1079 (Dualling Barmby Moor to Wilberfoss) Appraisal and due dilligence East Riding of Yorkshire Council 0 n/a 8 G All confirmed G 17.9 Full Business case submitted - currently in apprasial G Provisonal offer - July 2015 Full offer target 2016 G Apr-18 G tbd G Business Case development on track. No significant project risks Low Future years scheme. Still need to profle. G Pre-committed or retained DfT Projects Bedale By Pass Construction North Yorkshire County Council 15.5 G 2.9 G All confirmed G 34.6 pre committed - dealt with direct with DfT G Direct with DfT n/a Mar-15 G Oct-16 G Project started Low Contracted directly with DfT G Improvements to the York - Harroagte - Leeds Rail Line. Precommited funding North Yorkshire County Council 0 n/a 9.6 G All confirmed G 9.6 pre committed - dealt with direct with DfT G Direct with DfT n/a Apr-17 G Mar-18 G Project on track - direct with DfT Low pre committed through LTB G Maintain category 4 Roads serving North Yorkshire Growth Towns Business North Yorkshire case County Council development 0.00 n/a 24.0 G All confirmed G 48.0 Full Business cases being prepared for DfT - due sept G Direct with DfT n/a Apr-16 G Mar-21 G Direct with Dft Low Retained DfT transport project G East Riding Road Maintenance Scheme Business East Riding of case Yorkshire development Council 0.00 n/a 16.7 G All confirmed G 23.9 Full Business cases being prepared for DfT - due sept G Direct with DfT n/a Apr-16 G Mar-21 G Direct with Dft Low Retained DfT transport project G 13

14 ITEM3 York North Yorkshire & East Riding Local Enterprise Partnership Infrastructure Programme Board BOARD MEETING: 4 th June 2015 REPORT PRESENTED BY: Andrew Leeming TITLE OF PAPER: Project reports Purpose of the Report To consider the following project specific reports: a. Catterick Improvements b. Skipton Flood Alleviation c. Newlands Bridge d. North Northallerton e. Selby Olympia Park f. Middle Deepdale, Scarborough Summary of recommendations Catterick Improvements Recommendations Approve 1.2m Local Growth Funding subject to:- Clarification of: o the costs and funding, only 1.2m was agreed in the Growth Deal the applicant has requested either 1.264m or 1.640m o State aid compliance; and o Agreed responsibilities between RDC and NYCC. Skipton Flood Alleviation Newlands Bridge North Northallerton Selby Olympia Park Middle Deepdale, Scarborough Approve 1.2m Local Growth Funding Approve 1.5m Local Growth Funding subject to: o Outstanding issues set out in the report No decision required report to note Decision to be made at the next Board in September 2015 No decision required report to note Decision to be made at the next Board in September 2015 No decision required In order to make a decision prior to the next Board meeting, it is proposed that a further report be presented and considered by the LEP Board s LGF Sub-Group, which will make a recommendation via to members of this Infrastructure Board. 14

15 ITEM3a Local Growth Fund Project Report Report for Local Enterprise Partnership Infrastructure Board 4 th June 2015 Project Name: Catterick Garrison A6136 Junction Improvements Project Reference Number: YNYER Project Sponsor: Richmondshire District Council Joint Scheme promoter North Yorkshire County Council Project Location: Catterick Garrison Local Authority Area: Richmondshire District Overall Recommendation: Approve 1.2m Local Growth Funding 1.2m for 2015/16 Approve subject to the following Clarification of: o the costs and funding, only 1.2m was agreed in the Growth Deal the applicant has requested either 1.264m or 1.640m o State aid compliance; and o Agreed responsibilities between RDC and NYCC. Comments That option 1 funding of 1.64m is agreed provisionally pending further funds becoming available within the overall Growth Fund programme. This would have to be considered as part of any variation to the whole programme. Project Summary/Description: To improve the accessibility of Catterick Garrison Town Centre through a package of road junction improvements along the A6136. This will secure the housing and employment growth opportunities centred on the Catterick Garrison Town Centre and ensure its success, strengthening modern Catterick Garrison / historic Richmond as the District Centre. This in turn will provide job opportunities for the wider rural area. The strengthened road access will be complementary to the upgraded A1 motorway. NOTE: The project business case refers to Options 1 and 2 throughout, with Option 1 clearly being their current preferred option, and Option 2 seemingly being the one that has been given the go-ahead to submit the business case. Investment Sought: Option1: 1,640,040 Option 2: 1,264,545 (the provisional approval in the Growth Deal was for 1,200,000 only) Total Project Funding: Option 1: 1,702,039 Option 2: 1,326,544 Leverage Ratio: Option 1: 1 : Option 2: 1 :

16 ITEM3a List Outputs:- 3 junctions upgraded in 2015/16 13 construction jobs created in 2015/16 Comments: These are the direct outputs. The main benefit of this project however is the potential outcomes/impacts. Jobs created 2,615 Hectares of land unlocked for development - 59 Homes delivered 1,716 Any variation since Growth Deal approval. Growth Deal approval in principle of 1.2m. Full business case requests either m or 1.64m Comments: The current Growth Deal allocation to this project is fixed at 1.2m. Clarification is therefore required in terms of whether the project can still be delivered at this level. The higher option will be considered but only if further funds become available within the programme as a whole. Overall Assessment Strategic Economic Financial Legal Management Overall Risk Assessment Medium Low 16

17 ITEM3a Business Case Assessment Strategic Fit (Assessment of the extent to which it will support the delivery of LEP objectives) Overall Assessment Strengths The project contributes to the Strategic Economic Plan priority 4 Distinctive and successful place. Catterick/Richmond is identified as a growth town within the SEP and this project will help to unlock housing and employment growth in Catterick. The junction improvement measures support several of the Richmondshire District Council s strategic objectives for local economic growth. These are contained in its adopted Local Plan Core Strategy (LPCS), which has been found sound at examination (PINs, October 2014). The project also supports North Yorkshire County Council s local highway objectives set out in its Local Transport plan Weaknesses Strong strategic fit no weaknesses Considerations: No further considerations Economic Impact and Value for Money Overall Assessment Strengths: The preferred project seeks to remove the significant development constraint of junction capacity on the A6136. Timely implementation of this project will release sufficient land to encourage investment in a range of economic and housing projects to meet long term development targets. The economic benefits are: o Increased retention of local spend in the district o Construction related jobs o Primary and secondary job creation through new investment o Long term job retention of current investments (eg Catterick Garrison Town Centre) WebTag BCR modelling has been undertaken on the various options the results provide a very high BCR for even the low cost options. Very robust analysis providing a high vfm outcome. Weaknesses: The project will enable the future housing and employment growth in the area but not directly build the houses the impact/outcome is therefore reliant on externalities beyond the control of the project applicant. Considerations: Higher impact and BCR would be obtained with the additional funding. This provides justification for the higher rate of grant, if the Programme has further Funds available. Full technical report on BCR and VfM was annexed to the full business case and is available. Financial Analysis Overall Assessment Strengths: Scheme costs have been derived from NYCC cost estimates and benchmarked 17

18 ITEM3a against other schemes of this nature, previously undertaken and delivered by NYCC. Detailed costs provided for both options. These have been checked and validated. The costs are based on standard 2015 QS rates which are compiled from database of national construction costs. Preliminary design workshops have examined the detail of each item. A contingency and an optimism bias have been included for the unknowns. Weaknesses: Preference if possible to undertake more expensive option. Considerations: In both Options, the project applicant has identified a further 803,544 of developer contribution leverage that has already been spent in , on other junction improvements (First Avenue and Colburn Lane) that don t form part of the package of improvements detailed in this application. Whilst this is relevant information and complementary to this project, it should not form part of a funding package of a project that is yet to be approved. Legal and State Aid Compliance Overall Assessment Medium Strengths: Not likely to be subject to state aid as highway scheme Weaknesses: No formal state aid check undertaken currently underway Considerations: Clarification of state aid is required Organisational Delivery Capacity Overall Assessment Strengths: North Yorkshire County Council and Richmondshire District Council will jointly deliver this project. This partnership brings together strategic development and transportation ambition to realise economic growth potential in the north western area of the County and support national defence strategy. High deliverability within funding timeframe. North Yorkshire County Council is the Local Highway Authority and directly manages the local highway network including the junctions requiring upgrades. It has a long history of delivering major highway works to DFT s stringent standards in addition to delivering its own programme of works, which are similar in nature to those proposed. The Council s Transport and Development team will manage the delivery of the improvement schemes. This team has significant experience in managing and delivering third party funded highway improvements. Weaknesses: No issues as long as arrangements between RDC and NYCC are in place. 18

19 ITEM3a Considerations: No considerations Project Risk Overall Assessment Low Strengths: Full risk register provided - there are few significant potential risks with the project. All permissions and agreements in place Weaknesses: Main risk is potential delays due to unforeseen circumstances during construction or changes to funding. Mitigation is in place regarding these. Clarification regarding responsibilities for overruns required. Considerations: Clarification of responsibilities as this is a joint scheme. 19

20 ITEM3b Local Growth Fund Project Report Report for Local Enterprise Partnership Infrastructure Board 4 th June 2015 Project Name: Major Employment Growth in Skipton - Flood Alleviation Scheme Project Reference Number: YNYER LGF2.3 Overall Recommendation: Approve 1.2m Local Growth Funding 1m for 2015/16 0.2m for 2016/17 Approve Project Sponsor: Environment Agency Project Location: Skipton Local Authority Area: Craven District Conditions/comments: To bring all the Local Growth Funding forward to 2015/16 if there is any underspend in the overall Programme. Project Summary/Description: The purpose of the project is to generate economic activity and promote job creation by enabling the development of land for employment. The project will achieve this by addressing the flood risk issue that at present constrains the development of 8.05 hectares of land located to the west of Skipton town centre. Consultation carried out for the emerging Craven Local Plan has revealed that the current lack of employment land is constraining the growth and modernisation aspirations of local businesses. The project will address this by increasing the provision of new employment land and enabling these businesses to grow, innovate and create jobs. Land supply evidence indicates that the site represents the best available location to meet the District s future employment land needs as it is large enough to meet projected needs; it is generally flat and therefore suitable for larger floor plate developments, and is located adjacent the A629 bypass in the southern West Yorkshire connected part of Craven where a pent up demand for business land and premises is identified. The project is required to enable off-site flood mitigation works to be carried out. The work involves the creation of two upstream water storage areas and the construction of a number of minor floodwalls within the town centre. The result of which will be to: - change the land from being functional floodplain to being available for commercial and industrial use - safeguard the vitality of the town centre, including the 165 business located within the core retail centre - protect the transport network, including the arterial roads and the Leeds to Skipton railway line - maintain provision of key health and emergency services - protect 378 residential properties currently at high risk of flooding The project will provide the foundation for new investment within Skipton and surrounding area, ensuring sufficient land is available to allow businesses to expand and adapt to modern business practices. The Employment Land Review (2008) recommended that flood mitigation measures in the Skipton area were critical, not only in relation to provision of new employment land but also for new housing development. 20

21 ITEM3b Investment Sought: 1,200,000 over two years starting 2015/ /16-1m 2016/17-0.2m Total Project Funding: 13,800,000 Leverage Ratio: 1:11 List Outputs:- Private sector investment to the value of 24.5million Creation of 500 indirect jobs Unlock 8.05 hectares of land for employment development Provide capacity for 24,898 square metres of new commercial floorspace to be developed Protect 165 existing businesses and 378 residential properties from the risk of flooding Any variation since Growth Deal approval. Growth Deal Expansion Project. No variation from the original business case submitted in October 2014 and agreed in January Comments: The construction of the flood alleviation project will have significant impact in the Skipton area and result in the outputs set out. Comments: This project formed part of the larger Skipton Employment Zone project that was in the agreed Growth Deal Implementation Plan. The Flood alleviation project was submitted as part of the expanded Growth Deal submission agreed in January Overall Assessment Strategic Economic Financial Legal Management Overall Risk Assessment Low 21

22 ITEM3b Business Case Assessment Strategic Fit (Assessment of the extent to which it will support the delivery of LEP objectives) Overall Assessment Strengths The project contributes to the delivery of the Strategic Economic Plan (SEP) for York, North Yorkshire and East Riding by enabling businesses to grow and prosper. The project, which will unlock major growth opportunities in Skipton fits with Priority 4 (Successful and Distinctive Places). The project supports the objectives of the emerging Craven Local Plan by: o providing sufficient and suitable employment land to enable businesses to grow and enhance their productivity o address and mitigate flood risk as a barrier to local economic growth The project is part of the Governments National Infrastructure Programme Weaknesses No weaknesses Considerations: Strong strategic fit no considerations Economic Impact and Value for Money Overall Assessment Strengths: Very high impact and good value for money The economic benefit of the flood mitigation work in terms of cash damages avoided over the lifetime of the scheme is 57.4million. Compared to the cost of 13.8million, this gives a benefit/cost ratio of 7.95 or a return of 7.95 for every 1.00 invested in the project. Weaknesses: The project will enable further land to be opened up for employment but what happens subsequently is dependent on other factors. Considerations: value for money and economic impact provided - No considerations Financial Analysis Overall Assessment Applicant s Financial Standing - Strengths: Applicant s Financial Standing - Weaknesses: All matched funding agreed and confirmed from the following:- o FDGiA o Govt. Growth Fund o North Yorkshire County Council o Craven District Council o Yorkshire Water Services All costs tendered and checked. Contingencies and ability to cover any potential overruns covered. No weaknesses identified 22

23 ITEM3b Considerations: Finances and funding all satisfactory no considerations Legal and State Aid Compliance Overall Assessment Strengths: State Aid assessment undertaken by NYCC legal concluding that the LGF funding does not constitute state aid Weaknesses: No weaknesses Considerations: State aid and legal checks all done no other legal issues considerations Organisational Delivery Capacity Overall Assessment Strengths: Project all tendered and contracted so all ready to start some prelim work already underway so highly confident of delivery within the timeframe The Environment Agency has a long history of delivering flood risk management projects. Within the Environment Agency, the project is to be delivered by the National Capital Programme Management Service (ncpms). The team is responsible for the delivery of projects typically worth in excessive of 100million annually. This team has the appropriate technical expertise, knowledge, resource and history to deliver a project of this type and size. Planning all in place Weaknesses: 18month build programme so some potential (although low) that the project could encounter delays and potential overruns, mitigations are in place to minimise these. Considerations: Control and management systems in place no considerations. Project Risk Overall Assessment Low Strengths: A full risk assessment has been undertaken on the scheme. This identified the key risks and mitigation measures. Weaknesses: There are risks to construction schedules due to weather, access arrangements etc. the full business case identifies mitigation measures and potential contingencies to cover any cost overruns. Considerations: Satisfactory risk assessment in place - No considerations 23

24 ITEM3c To insert Newlands Bridge. 24

25 ITEM3d Local Growth Fund Project Progress Report Report for Local Enterprise Partnership Infrastructure Board 4 th June 2015 Project Name: North Northallerton Development Area Link Road & Bridge Project Reference Number: YNYER LGF1.8 Project Sponsor: Hambleton District Council Project Location: Northallerton Local Authority Area: Hambleton District Council Summary of Progress: Defer to September Board Awaiting full worked up business plan. Recommendation: That a robust business plan is resubmitted to the LEP by end of July 2015 subsequently for this to be appraised and presented back to this Infrastructure Board for consideration and decision at its September meeting. Project Summary/Description: The project involves the delivery of a new northern relief road in Northallerton. The road will create a link between Darlington Road and Stokesley road importantly incorporating a bridge crossing the Brompton beck and rail line to Middlesbrough. The key objective is to create a new strategic vehicular route across the northern part of the town unencumbered by level crossings. This will provide choice to commercial and private drivers wishing either to move around Northallerton, or between Northallerton and other locations, without being delayed by the level crossings. The crossings are currently a major constraint on traffic flows with the Low Gates crossing at the north end of the high street being closed for a minimum of 20 minutes per hour and Network Rail has plans to increase freight movements along this line. This is a major constraint to local business growth. A second objective is to add capacity to the local road network. Traffic modelling has highlighted significant constraints in the road network and limited scope to increase traffic movements that would allow for housing or employment growth. The addition of the northern relief road would add capacity to the network to enable a level of growth within the town sufficient to meet the needs of the current Local Development Framework plan period A further aim is to open up land for development to serve a range of need for the town. The route would enable North Northallerton Development Area (NNDA), the largest allocation in the Hambleton Local Development Framework to be opened up for development. This site has the potential to deliver around 1,080 homes, 8.5 Ha employment land and 15 Ha recreational land. It is a key strategic housing and employment site for the area and is highlighted as a priority in the North Yorkshire Housing Strategy and Local Investment Plan. Other service needs of the town will be accommodated within this development area too. The primary school provision at the north of the town is reaching its capacity and the current school sites have physical constraints to their 25

26 ITEM3d expansion. A new primary school will form part of the NNDA. The need for accommodation for people requiring additional care and support, such as people with learning disabilities and older people, is being explored and provision will be made if a need is identified. Investment Sought: 5m 1m in 2015/16 4m in 2016/17 Total Project Funding: 12m (estimate still to be confirmed) Leverage Ratio: 1:2 Key progress to date: Since the inclusion of this project within the agreed Local Growth Fund in July 2014, a substantial amount of work has been undertaken to get this project ready for delivery. This has involved joint meetings between Hambleton DC, NYCC, Developer consortium, HCA and Network Rail. Progress has been made but there are still some outstanding issues that need to be addressed. An initial business case was submitted and subsequently has been revised however there are a number of outstanding issues that need to be clarified and resolved in order to provide a robust case that can been appropriately appraised and recommended to this Infrastructure Board for funding. The main concerns throughout the development stage of this project is timing. Over the past 6 months a vast amount of progress has been made in terms of getting the scheme to this stage but in terms of 2015/16 profiled spend it is very tight, especially as the planning application is still to be determined and specific scheme details, including costs have not yet been available to assess. This project therefore continues to be red flagged for spend in 2015/16. Key Issues, risks to address and mitigation: The key issues highlighted include:- No detailed costings are currently available. Full detailed costs for road and bridge will be available by end of May and the estimated costs are now around 10m. Having full detailed costs is potentially one of the biggest gaps currently in assessing the project. Planning is still to be determined; this will be submitted on 29th May 2015 to be determined by 15th Oct Level of affordable housing in the viability report is 15% this is much lower than the HDC policy of 40% although discussions are on-going with the HCA, developers and Hambleton DC to agree an acceptable level. Ultimately this will affect the viability assessment Full detailed designs for the road and bridge are being drawn up and will be available during the planning process. Match funding needs clarification this includes how any potential overruns will be covered. State aid advice is currently being sought although there doesn t appear to be any issues. Relevant delivery agreements and clear delivery organogram required be finalised. Early clarification is required in terms of build schedules and draw down of funding. There is a risk that any delay in stating on site could slip the funding profile and also the current schedules indicate that the project will be completed beyond the funding period. 26

27 ITEM3d The next critical date is the end of May when the planning application is due to be submitted. This should include much of the info required for the business case. (An update regarding the submission of Planning will be provided at the meeting) Regular meetings between the LEP and Hambleton DC are scheduled over the coming months this will enable the development of the full business case. The full business case will be submitted to the LEP by the end of July. The LEP will appraise this during August for a decision at this Board in September On condition that we have a satisfactory business plan and with the agreement of this Board, the funding agreement will be issued once planning is approved hopefully by mid-october. 27

28 ITEM3e Local Growth Fund Project Progress Report Report for Local Enterprise Partnership Infrastructure Board 4 th June 2015 Project Name: Olympia Park Housing Development, Selby Project Reference Number: YNYER LGF 1.7 Project Sponsor: BOCM Pauls & Three Swans / Keepmoat Project Location: Selby Local Authority Area: Selby District Project Summary/Description: Summary of Progress: Recommendation: A recommendation for this project is not possible in advance of addressing the outstanding matters detailed in this report. However, is it expected that these matters will be sufficiently progressed to provide a positive recommendation to the 17 September 2015 Infrastructure Board, however this may need to be a conditional offer. Olympia Park is the only Strategic Site for residential and employment use identified in Selby District Council s Core Strategy Local Plan and is one of the key housing growth opportunities in this LEP area. It will deliver a high quality mix of housing and employment land on a brownfield site, close to Selby town centre. Public sector funding has been sought towards the costs of delivering upfront abnormal infrastructure (with a total in excess of 30m) which must be completed at the start of the scheme to enable delivery of the wider development. These include an access road from the A63, a new bridge over the Leeds-Hull railway line, highways works (including raising Barlby Road), utilities costs, site remediation and preparation. The scheme will also radically improve the image of the town as the approach to Selby town centre is currently blighted by this former industrial site. The LGF award via this LEP relates to the residential part of the development, which will deliver 844 family and assisted living houses with associated retail and leisure facilities, plus a school and allotments, creating 112 permanent FTE jobs and 1296 total annual construction jobs across the delivery phase of the whole scheme. The site will also provide for wide range of housing and include provision for older people - a key priority in North Yorkshire - through an Extra Care scheme, as well as new housing suitable for families and emerging households. The Olympia Park residential scheme has been worked up over 10 years and is, ultimately, a viable scheme. However, recoverable investment is required due to the significant level of abnormal upfront infrastructure works that must be delivered in order to open up the site for development. In addition to the award of 8.4m of recoverable LGF via this LEP (with 2.4m in 2015/16, and 5.6m in future years) towards infrastructure costs, 3.46m of LGF (Housing Infrastructure) loan was also awarded to the project, via the HCA, to assist with funding of the new bridge and other highway 28

29 ITEM3e infrastructure works to access this strategic site. The LGF funding via the LEP and HCA will enable the developer to use monies released by this to accelerate delivery of the housing (including the affordable housing commitment) and associated retail and community facilities by an estimated three years. As well as providing new housing, Olympia Park is a major mixed-use site and will also deliver 23 hectares of employment space. The development of the site will also create new and future employment growth in the town and sub region, ultimately supporting 2000 new jobs. Implementation of the Olympia Park scheme is a shared priority for this LEP and for Leeds City Region LEP, which has approved 4.8m of Growing Places funding towards highways infrastructure to provide access to the employment land from the A63 and to fund related remediation works. Investment Sought: 8m ( 2.4m in 15/16 and 5.6m future years) Total Project Funding: 112m Leverage Ratio: 1:14 Key progress to date: Three Swans Property Management Ltd currently have overall responsibility for delivery of the Olympia Park scheme on land owned by BOCM PAULS Ltd and are acting on their behalf. All of the funding via the three funding partners is being provided as a loan on commercial terms so there are no state aid issues. Legal, property and financial due diligence tests are progressing satisfactorily, with all issues raised thus far being addressed. In October 2014, the three public bodies (YNYER LEP, LCR LEP and the HCA) involved with funding the Olympia Park scheme made a decision to come together as a Funding Team and effectively operate the assessment of the three funding awards (Local Growth Fund, LGF Housing Infrastructure and Growing Places) as if there were one funding stream, one set of outputs and one funding organisation. Led by the HCA (given its extensive skills and experience in the funding of housing projects), the Funding Team has since then conducted all negations with the applicants as a single body. Due diligence costs are shared three-ways. Within the last two months Keepmoat has been appointed as lead developer by BOCM Pauls, with negotiations ongoing with a second housing developer who would act as partner to Keepmoat. These discussions are expected to be lead to a formal agreement within the next 2 months and this will deliver between 60 and 72 units in total per annum from the site. A resolution to grant planning consent (subject to s106 agreement) was given in January 2014 for infrastructure, site preparation, housing, retail units and public house and development of a primary schools, leisure and community facilities. The S106 is not yet signed and has been the subject of recent negotiation following the involvement of Keepmoat - however it is expected to be signed within the next few weeks. The initial timetable for submission of the reserved matters planning application and approval and the subsequent start on site has slipped for a variety of reasons over the last 8 months and a start on site is not now programmed until March A legal agreement with Network Rail is in the final stages of approval for the bridge over the rail line. Negotiations are ongoing with London and Continental Railways, which owns a strip of land affected by the new bridge and a significant sum has been set aside in the landowners returns to 29

30 ITEM3e address this overage issue; however, until finalised, this remains a potential risk to the project. As requested, the scheme sponsors have provided a technical report on the appraisal of value for money from the proposal for new access roads/junctions serving the site. This document is based on the appraisal principles defined in DfT technical guidance, applied in a proportionate manner to a project of this scale. The work provides an assessment of value-for-money supported by evidence of technical modelling and appraisal processes. Following review of this document, it is considered that the proposal offers good value for money to the LEP, by effectively addressing access and congestion issues that would otherwise arise from the wider development. The following considerations arise from review of the technical appraisal, which help to reinforce the assessment of this project; 1) Confirmation that the scale of traffic flows modelled is consistent with the current proposals for scale of housing development at Olympia Park 2) Confirmation that the junction configurations modelled are consistent with the proposed highway changes agreed as part of the planning applications 3) Confirmation that the basis for scheme cost estimates used in the appraisal is robust and costs are affordable 4) Explanation why Optimism Bias has been applied at only 10%, typically designs at this stage of development would have OB at 44% 5) Verification that the models used for appraisal validate adequately with reference to appropriate recent traffic survey data. Whilst appropriate clarifications on these issues would provide further certainty, the evidence to date indicates that the transport schemes will provide good value for money to the LEP. The Benefit Cost Ratio is estimated to be 2.5 (high value for money). The commuted sum for maintenance of the bridge and embankments has been agreed with NYCC, ahead of bridge and highway design details. Key Issues, risks to address and mitigation: Reserved matters planning permission is required for this development to start on site. An application, covering both the detail of the proposed housing and the road / bridge and other aspects of infrastructure, is now expected to be submitted to Selby DC in October / November 2015, with a view to a January 2016 approval (NB NYCC will be formally consulted on the highway aspects of the application and are a critical consultee in the approval process). Related S278 agreements with NYCC will be required to implement the new bridge and highway works. Only when the reserved matters approval has been granted and the S278 agreement is finalised with NYCC will Keepmoat and their partner developer fully commit to the Olympia Park scheme and sign up to the land deal with BOCM Pauls and the funding agreements with the LEPs and HCA. Negotiations are ongoing between the landowners / developers and the Funding Team re cashflows and the timing of both drawdown of funding and repayments, together with the interest charge to be levied. Updated cashflows are expected in early June and the Funding Team has agreed the broad principles around the timing and general amounts to be drawn down and repaid, subject to progress made by the applicants. The LGF allocation from this LEP for 2015/16 is proposed to be released ahead of the allocations from LCR and the HCA. Negotiations re the start date for work on site continue, with there being potential for slippage 30

31 ITEM3e linked to any delays to the planning process or the S278 agreement re the highway works. The HCA, which had funding awarded on the basis of a 2015/16 spend has now notified BIS that no funding is expected on the progress within this financial year however, the HCA funding must be utilised during 2016/17. However, given the attendant risks to the future years funding allocation for this project via this LEP (this is not secured unless the 15/16 allocation is utilised), strong pressure has been maintained to ensure that the 2.4m of LGF from YNYER for 2015/16 is released before the end of March 2016 even if this requires a conditional funding agreement (e.g. to require the works to start on site within xx days of the agreement). Further progress on the negotiations regarding drawdown and other financial details will be reported at the September 2015 infrastructure Board, when it is anticipated that a conditional funding agreement will be recommended. 31

32 ITEM3f Local Growth Fund Project Progress Report Report for Local Enterprise Partnership Infrastructure Board 4 th June 2015 Project Name: Middle Deepdale Housing Development, Scarborough Summary of Progress: Amber Project Reference Number: YNYER LGF 1.10 Project Sponsor: Scarborough Borough Council Project Location: Scarborough (Eastfield) Local Authority Area: Scarborough Borough Council Recommendation: A recommendation for this project is not possible in advance of addressing the outstanding matters detailed in this report. However, it remains the ambition of the LEP and the applicant to determine the project asap to allow development to commence on site in August / September In order to make a recommendation, the following outstanding issues must be satisfactorily addressed: Business case and cashflows (and whether these justify grant or recoverable LGF) Safeguards over delivery of the link road and bridge and potential state aid issues Analysis of the land transaction for HA1 and approach taken to overcome initial state aid concerns, plus corresponding update of the business plan Highways information Once the above matters are addressed, an updated report will be presented to the LEP Board s LGF Sub-Group, which will make a recommendation via to members of the Infrastructure Board. This will allow approval of this project ahead of the September 2015 meeting of the Infrastructure Board. Project Summary/Description: The Middle Deepdale development project is situated across two housing land allocations around three miles south of the centre of Scarborough and immediately north of the village of Eastfield. The land was originally allocated for housing development in the 1999 Scarborough Local Plan under policies HA1 (land to the west of the Deepdale Valley) and HA2 (land to the east). The status of these allocations is protected in the emerging Local Plan. Beyond the development of HA1 and HA2, SBC is in the process of allocating a further 90 acres on land to the immediate north and west which will provide for a further 1,100 homes (HA6, HA7, HA8). The development will deliver 1,350 new mixed-tenure homes (up to 20% affordable) across a total of 37.2 ha (92 acres) on sites HA1 and HA2. Once fully developed out, the development will also 32