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The Assistant Director, Place and Client Services, submitted a report a copy of which had been circulated to each Member.
Nick Chilvers addressed Cabinet pursuant to the provisions of paragraph 5(1) of the Meetings General Procedure Rules in respect of Holy Trinity Church, in particular how the £517,000 allocated would be spent. Clarity on the definition of Trinity Square and what the funding allocated for that would be spent on was also requested. The church had been neglected and the grounds needed maintenance, which it was anticipated could be provided relatively cheaply and be funded from the revenue budget. It should be the central focus for Christmas lighting and art could be hung on the railings. The Council often concentrated on major projects, but the public would welcome a number of smaller improvements.
Councillor Laws, Portfolio Holder for Economy, Business and Heritage thanked Mr Chilvers for his comments, which he supported. He was aiming to make the most of Holy Trinity Church and was excited by the Town Deal funding. The funding would be used to lever in further funding. The suggestion of using the railings to hang artwork was welcomed. There was an aim to reinstall lighting so it could be lit at night, and the long term aim was for Community 360 to occupy the building.
Councillor Coleman attended and with the consent of the Chair, addressed the Cabinet in respect of Youth Zones. He had introduced the concept of Youth Zones to the Council after visiting a Youth Zone in Barking, and the previous administration had supported the inclusion of the Youth Zone in the Town Deal bid Youth Zones brought many benefits to young people including physical and mental health and academic and careers support. They gave access to a wide range of sports and other pursuits and helped improve self-esteem. They also brought wider community benefits such as reduced anti-social behaviour and crime, improved academic and health outcomes and increased town centre footfall. Other towns had made the provision of a Youth Zone an absolute top priority. A site and funding were available but a car park was being prioritised instead. It was a concern that schemes that were the responsibility of Essex County Council Highways were being prioritised at the expense of the Youth Zone.
Councillor King attended and with the consent of the Chair, addressed the Cabinet to highlight the issues around the financing of a Youth Zone. The projected capital costs for a Youth Zone were £8.4 million of which half would be raised by Onsite. The Council’s commitment could be reduced through external funding such as the Town Deal, Youth Investment Fund or the Levelling Up fund. £1 million was already set aside in the capital programme. Therefore, the capital commitment was small compared to the Council’s overall borrowing. The revenue costs after taking account of Onsite’s contribution through fundraising was about £400K per annum. Therefore, a Youth Zone was affordable. The Youth Zone model had proved robust and sustainable through the pandemic.
Councillor Cory attended and with the consent of the Chair addressed the Cabinet and stressed the Council’s ability to lead and deliver ambitious policies and projects and that the Council should not be deterred from pursuing a Youth Zone because it was a Tier 2 authority. For too long there had been reduced investment in youth services and the consequences of this had been exacerbated by the Covid 19 pandemic. Key health partners supported the concept. If the Council did not go back to the Town Deal board to retain the £2.1 million allocation for a Youth Zone an opportunity to deliver the Youth Zone would be lost. He had outlined how he and partners would be prepared to support him on this issue.
Councillor Fox attended and with the consent of the Chair addressed the Cabinet to express concern about the allocation by the Town Deal Board of £500,000 for the former Essex County Hospital site. This site had received planning permission for redevelopment of 120 units of which only 4 were affordable, which was way below the Council ‘s policy. There was concern that this funding would just be absorbed by Essex County Council with no real benefit to Colchester.
Councillor Ellis, Portfolio Holder for Housing and Planning, responded that he shared the concerns and highlighted that this had been a complicated scheme on which there had been viability issues. He would be looking at the process of negotiations with developers and how his impacted on compliance with Council policies on affordable housing
Councillor Person attended and with the consent of the Chair addressed the Cabinet to welcome the statement that the aim of the Town Deal was to create safe and healthy communities. However, there nothing in the Town Deal funding for Berechurch, although indicators showed it was an area of high deprivation. Could the Leader of the Council explain how he intended to level up this deserving part of the town?
Councillor Dundas explained that there had been geographic criteria around the Town Deal funding. There would be further opportunities to secure external funding. The Council could bid through the Levelling Up fund. A bid had not been submitted this year as it as likely to be unsuccessful as Colchester had not identified as a Tier One Authority., and those were likely to be favoured in the first round. He would be happy to help areas that were not included in the Town Deal and to look at specific projects.
Councillor Scordis attended and with the consent of the Chair addressed the Cabinet to express concern about the amount of funding given the Town Deal Board to Essex County Council projects. It was disappointing that St Botolph’s was losing funding for regeneration. The area was very run down and in need of regeneration, and for those arriving at Colchester Town station it was the first area of Colchester they saw. The loss of funding for Livable Neighbourhoods for New Town was also regretted and it was a concern that £1million had identified for Jumbo, which was in private ownership. Safeguards needed to be put in place to protect any public investment in Jumbo. The Town Deal Board should be encouraged to reconsider their decisions on the funding allocations.
Councillor Dundas explained that Essex County Council had made a key contribution to the Town Deal bid, including considerable officer support. It was anticipated that section 106 funding would be made available to help fund regeneration of St Botolph’s. Councillor Laws explained that the funding for Jumbo would not be given to the private owner. Discussions had begun on the terms on which the owner may be prepared to sell. However, the funding was allocated in order to lever in further funding. This was a once in generation opportunity to secure and protect Jumbo and to find a way of securing public access to it.
Councillor Dundas introduced the report and responded to the Have Your Say comments raised about the Youth Zone. The Cabinet had had a tour of a Youth Zone and were very impressed by the concept and the administration had not abandoned the idea of securing a Youth Zone in Colchester. The Council needed to take into account the cost of the land to build a Youth zone. The ongoing revenue costs were significant. Most authorities which had built Youth Zones were tier one authorities, which meant it was a different magnitude of challenge for the Council to fund a Youth Zone. In reaching its decision the Town Deal Board had looked at the deliverability of the projects. There was concern that if funding was allocated to projects that could not be delivered quickly, then the funding would be lost. The previous administration had not found a site. Britannia car park had initially been identified and then withdrawn to secure car parking income and for heritage issues. Oher sites were being looked at but Onsite did not feel they were optimum. There was no identified, secured site enabling the project to proceed quickly if funding was available. Significant capital and revenue funding needed to be found. If the revenue funding allocated in the MTFF was proceeded with, other services would need to be cut. Youth provision was a County Council function and not a core Borough Council function, and any expenditure by the Council on a Youth Zone would need to be justified to residents on that basis. Also, existing youth services outside the town centre also needed funding and the diversion of funds to the town centre would need to be justified. If the Council were to proceed with a Youth Zone it would require cross party support and an understanding that it would require some difficult choices.
Councillor B. Oxford, Portfolio Holder for Communities, expressed concern about the provision of a Youth Zone in the town centre, rather than supporting youth provision in all wards, and the dangers of proceeding whilst there was still uncertainty over the costs and other sources of funding.
Councillor Ellis highlighted although the previous administration had been working on the Youth Zone, it had not been championed effectively and there was not widespread knowledge of it and the potential benefits. In view of the sums involved, there needed to be some cross-party work in raising the profile before final decisions were made. Councillor Dundas indicated he would also raise the benefits of Youth Zones with Essex County Council again.
RESOLVED that:-
(a) The final list of projects and their financial parameters (see paragraph 5.5 of the Assistant Director’s report) be noted, including noting those projects which are confirmed within the programme as ‘Fast Track’, and further noting those projects which will not be funded within the reduced Town Deal funding envelope.
(b) The approach to retaining all projects within the Town Investment Plan and seeking further future funding opportunities to enable these to progress later be noted.
(c) The principle that the work in remainder of 2021-2022 financial year to develop business cases for all projects is undertaken ‘at risk’ i.e., before the first payment from Government which is anticipated April 2022 be agreed; noting that the Council will gain further surety from Government in coming months; reducing risk as this work progresses through business case development.
(d) Colchester Borough Council’s ongoing commitment to the Town Deal Programme in the role of Accountable Body, including contributing to and overseeing the development of a suite of business cases that build on the project concepts that were submitted within the Town Investment Plan; throughout 2021-2022, and its ongoing role as secretariat to Town Deal Board, be agreed
REASONS
Approval to proceed to the next phase of the ‘We are Colchester’ programme including the development of business cases will enable the programme to draw down the funding from Government and move the projects into delivery. This programme will greatly boost Colchester’s opportunities to realise its economic development, place-making, inward investment, and regeneration ambitions now and on a long-term basis, through delivery of a specific programme of coherent, targeted interventions.
ALTERNATIVE OPTIONS
No alternative options have been presented to Cabinet. Town Deal is recognised as a once in a generation opportunity for Colchester, and there are no other current or anticipated sources of funding and investment of comparable size and scope. Some of the interventions included in the Town Investment Plan see Town Deal as the funder of last resort as they are unlikely to attract suitable investment from other sources; and cannot be funded within the Council’s resources, particularly in the light of the current financial situation arising from the Covid-19 pandemic.