Decision details

Decision Maker: Corporate Director (Economy & Place)

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: