Stevenage Central Regeneration - 23rd May 2018

Stevenage Central Regeneration
23rd May 2018

About Stevenage

                  • A town of
                    85,000 – and a
                    town with
                    heart

                  • 20 mins from
                    London

                  • A hub for major
                    businesses and
                    a centre for
                    growth

Major business and infrastructure

Regeneration led by Stevenage First

                             Stevenage
                              Borough
                              Council

        Local                                   Chamber
     Enterprise
     Partnership                              of Commerce

             Hertfordshire
                                         Homes
               County
                                         England
               Council

A framework for Stevenage Central
                         • Six regeneration
                           opportunity areas
                           over 25 years

                         • 3,600 new homes

                         • Enhanced leisure,
                           theatre, culture,
                           public realm,
                           transport

                         • New public services
                           hub

                         • A great place to live

                         • New employment
                           opportunities

Regeneration is happening

How LEP funding has already helped

SG1 Overview
               • 6 hectares

               • £350m development

               • New homes

               • New retail, including
                 F&B quarter

               • Modern public realm

               • 21st century library,
                 health services, registry
                 office

               • Working with
                 commercial advisors to
                 maximise outputs

SG1 Masterplan

Scheme highlights – Boulevard & Hub

Scheme highlights – Hub

Objectives of Stevenage GD1

Drive forward regeneration of SG1
   • Speed up delivery of SG1 by carrying out land assembly
   • Undertaking thorough assessments of site area to de-risk
      delivery of site
    • Increase attractiveness of scheme by carrying out early public
      realm interventions
Prepare future development sites
   • Design development of leisure and theatre site in order to bring
      forwards next phase of Stevenage Central

What GD1 has been spent

•   SG1 technical studies - £290,658
•   Airbus STEM centre - £1,039,000
•   Site assembly - £1,178,794
•   Public realm - £404,509.48

Maximising impact of GD1

SBC conducted wider profiling of all Growth Deal funding, following in principle
allocation of GD3 funding in February 2017.

2017/18 and 2018/19 profiling was based upon estimates ahead of SBC
completing the procurement of a partner for the SG1 scheme. Since
appointing Mace (February 2018) we have updated the expected phasing of
SG1 and develop delivery plans based on this.

We have been in conversation with the LEP over the best use of GD1
allocation to ensure that it is aligned with the current programme, highlighting
risk areas and alternatives – particularly during 2018/2019.

We are now working through a development agreement with Mace with the aim
of having this completed and a planning application submitted by the end of the
year.

Current GD1 profile
• Objective - Drive forward regeneration of SG1
    Project                                    18/19        19/20
                          Project Name
    Number                                   forecast     forecast
              Stevenage SG1 Land Assembly
              - Paddy Power
 LEP0107
              - Swingate House & Plaza VP    £3,400,000   £2,600,000
 & LEP0107A
              - Garages
              - Mecca

 LEP0108      Stevenage SG1 Public Realm     £1,470,000   £1,500,000

• Objective – Prepare future development sites
    Project                                    18/19        19/20
                          Project Name
    Number                                   forecast     forecast

 LEP0109      Stevenage Leisure Relocation    £700,000     £600,000

GD1 spend risks
Acquisition
•   Offers have been made to private land owners to secure early vacant possession.
    Negotiations are ongoing.
•   Risk that if negotiations do not reach suitable conclusion within timeframe, further
    steps would need to be taken post-Planning submission. This could include CPO and
    could delay GD1 spend beyond current timeframe.
•   Plan B is to opt for alternative site assembly options within SG1 red line to enable
    timely expenditure.
Leisure / theatre
•   Assessments of functional requirements have been completed by SBC match
    funding. Feasibility work is now completed leisure and is underway for theatre, to
    inform decisions on delivery options with expectation that delivery could be
    achievable in 2019/2020.
Public realm
•   Early delivery of one scheme in place in 2018/19. SBC and Mace are working on an
    option to deliver public realm schemes, subject to agreement of DA to enable wider
    scheme to deliver in 2019/20.

GD1 spend risk mitigation options
• SBC has increased capacity of the regeneration team, supporting teams
   (planning, estates), external property and legal advice (Burges Salmon and
   Cushman & Wakefield)

• We have made proposals to move some spend into 2019/2020 to reflect the
   revised SG1 programme

• If we experience delay in delivering agreed sites, we would pursue
   alternative site acquisitions in SG1 area, which would also match Mace
   phasing requirements. This could include other public sector land options
   and we propose indicating these as alternative back up sites, linked to
   agreed review points for the acquisition workstream

• A further option could be to forward fund other infrastructure elements of
   SG1 development eg site prep and demolition in line with objectives for use
   of GD1.

Current GD3 summary

• Approved GD3 funding Feb 17 (subject to new governance)
   • Bus interchange - £8m
   • Land assembly
      • Magistrates court - £3m
      • Parking deck - £2m
      • Marshgate - £5m
   • Highway infrastructure improvements- £1m

• SBC spending £200k in 2018/19 at own risk to progress the
  scheme ahead of GD3 funding