Decision details
Decision Maker: Corporate Director (Place & Wellbeing) & Deputy Chief Executive
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Purpose:
At their meeting in May 2021, Cabinet approved
the development of a Covered Market and Managed Workspace facility
at Jaywick Sands. Cabinet subsequently determined in October 2021
to outsource management of the building, with a direct award to the
Colchester Business Enterprise Agency (Colbea) by means of a
service contract and licence.
After a change of management at Colbea, the organisation had
subsequently informed the Council they were no longer in a position
to take on the licence agreement, which may have been driven by the
financial risk associated with the building. Colbea did however
remain content to enter into a service contract for a period of 7
months for an activation service to assist TDC in securing tenants
for the building and assist in developing a plan for the running of
the building. In order to increase their capacity to deliver at
pace however, Colbea will partner with HAT projects for additional
support.
Colbea also offered a further service once the 7 months activation
period has ended, which will consist of drawing on their specialist
expertise in this area to manage staff within the building, until
such a time as Council staff are fully trained and
self-sufficient.
Decision:
To enter into a service contract with Colbea
for a period of 7 months for an activation service to assist TDC in
securing tenants for the building and assist in developing a plan
for the running of the building.
To include an allowance for a further service once the 7 months
activation period has ended, which will consist of drawing on their
specialist expertise in this area to manage staff within the
building, until such a time as Council staff are fully trained and
self-sufficient.
Colbea currently hold the contract to provide the Council’s
Business Support Service and are committed to provide the support
needed to any future tenants in the Sunspot.
Cllr. Ivan Henderson, Portfolio Holder for Economic Growth,
Regeneration and Tourism has concurred with this decision being
made.
Alternative options considered:
Option 1.To run the building in-house only
(without external support). The Council currently has limited
expertise in specific elements of such a project and in particular
the letting of commercial workspace. It is considered that
supplementing the skills of the Council in facility management with
additional support, would ensure a successful outcome.
Option 2.Outsource activation (without ongoing support). To provide
Colbea and HAT projects with a service contract for the first 7
months only to activate the building and establish the first
tenants but omit the proposal for a reduced level of support until
such a time as the Council’s staff are fully trained. It is
considered that this option will not ensure the sustainable future
of the building
Option 3.Re-tender for an operations partner under the original or
new terms. Due to the current financial climate and increased
risks, it is highly likely that tenders would have increased since
the initial exercise. This would also delay the activation of the
building, when it is essential to progress without delay.
Publication date: 31/05/2023
Date of decision: 31/05/2023
Accompanying Documents: