Agenda item

To note progress of the Officer investigations into the opportunity to bring forward the Milton Road element of the Dovercourt scheme from the Capital Regeneration Project funding, and to agree the demolition of Milton Road car park, and to agree drawdown of Capital Regeneration grant funding to progress this work.

RESOLVED that Cabinet –

a)     agrees, subject to the full level of required funding being allocated, to the demolition of the Milton Road, Dovercourt car park;

b)     agrees, subject to the full level of required funding being allocated, to the demolition of the dangerous structure at 20 Victoria Street, Dovercourt;

c)      although subject to the decision set out within report item A.9 elsewhere on the agenda, agrees to allocate the additional identified sum of £250,000 to increase the overall budget to £3,798,751;

d)     subject to a) to c) above, agrees to draw down a budget of £0.450m from within the overall sum of £3,798,751 to progress demolition and associated works; and

e)    subject to (a) to (d) above, agrees that an external contractor will be commissioned to undertake the demolition works in accordance with the Council’s Procurement Procedure Rules.

Cabinet considered a report of the Economic Growth, Regeneration & Tourism Portfolio Holder (A.5), which noted the progress of the Officer investigations into the opportunity to bring forward the Milton Road element of the Dovercourt scheme from the Capital Regeneration Project funding, and which sought Cabinet’s agreement to the demolition of Milton Road car park and 20 Victoria Street, Dovercourt and also its agreement to the drawdown of Capital Regeneration grant funding complemented by £250,000 to progress this work.

Capital Regeneration Project Funding

It was reported that, on 23 June 2023, Cabinet had considered a report titled ‘Clacton Civic Quarter Levelling Up Fund (LUF) Bid, Dovercourt Town Centre Improvement Corridor Capital Regeneration Project (CRP) Bid’. This report had recommended approval of the Heads of Terms for two funding agreements to be developed between Tendring District Council (TDC) and Essex County Council (ECC).

It was further reported that, on 6 October 2023, Cabinet had considered a report titled ‘Levelling Up Fund and Capital Regeneration Projects - Progressing the Projects to Planning Permission’. This report had recommended drawing down a further £1,898,421 from the remaining match funding of £2,041,460, to cover professional fees for all stages of the project.

It was also reported that, on 19 April 2024, Cabinet had considered a report titled ‘Financial Performance Report 2023/24 - General Update at the end of December 2023’ and had agreed to determine the mix of funding from the Council’s own approved contribution and the money made available by the Government to support both the LUF Scheme in Clacton and the CRP Scheme in Dovercourt, within financial parameters previously agreed and until the next significant project milestones were reported to Cabinet.

Dovercourt Town Centre Improvement Corridor Change Request and Homes in Dovercourt scheme

Cabinet recalled that, on 7 February 2024, the Council had submitted a change request to Government in relation to the delivery of the Dovercourt Town Centre Improvement Corridor CRP scheme. This change request sought to allow the Council to relocate the housing element of the scheme. At time of the bid submission, the housing element had been planned to be sited at the location of Milton Road car park, however the change request had suggested the relocation of the housing element to the two derelict sites at Victoria Street, Dovercourt, and the demolition of the existing structure at Milton Road car park, with the subsequent reinstatement of ground level car parking. Cabinet had agreed the acquisition of those sites on 17 June 2022, and the Council had completed the acquisition on 8 February 2024. On 7 May 2024, Government had advised the Council that the change request had been approved.

Following the approval of the change request, on 24 May 2024, Cabinet had requested that Officers investigated the opportunity to bring forward the Milton Road element of the Dovercourt scheme.

Cabinet was made aware that the change request brought with it additional pressure on the project budget as the scheme now included the regeneration / development of two sites rather than one under the original proposals. It was also worth highlighting that there was likely to be additional financial pressure due to the two brown field sites at Victoria Street including the former site of the Victoria Hotel, whose ground condition had not yet been assessed. Experience of the Orwell Place carpark development was that there was the potential for extensive ground contamination in Dovercourt. Furthermore it required works to take place on three sites rather than one, with works still required to replace the two-level Milton Road carpark with a flat carpark. 

As a result the Portfolio Holder had considered it was prudent to assign additional funding to the project to bolster the contingency and create a ‘risk pot’ that could be drawn down, if required, to tackle unforeseen issues with the development, including but not limited to, ground conditions and cost inflation.

With the above in mind, as set out within report item A.9 elsewhere on the agenda, it was proposed to set aside £0.250m to complement the existing CRP funding and support the emerging changes to the project.

Members were informed that on 7 June 2024 an Officer Decision had been made to progress operational issues relating to the clearance of the sites at Milton Road and Victoria Street, including site clearance of rubbish and overgrowth, making safe the sites for access, carrying out initial surveys (topographic and utilities) at the Victoria Street sites, and party wall matters.

Cabinet was advised that this Portfolio Holder report set out the benefits to bringing forward the Milton Road and 20 Victoria Street demolitions, along with the anticipated costings, and requested a drawdown of the awarded Ministry of Housing, Communities and Local Government (MHCLG, formerly DLUHC) grant funding, to progress the demolition by an external contractor procured following a procurement exercise conducted under the Council’s procurement procedure rules, which would be complemented by the creation of the proposed ‘risk pot’ mentioned above.

Members were reminded that the Milton Road Carpark, which comprised 35 spaces on a ground and upper floor, was beyond its useful life and had been closed since the opening of the Orwell Road Carpark and events space opposite in September 2023.   However, demand remained for additional parking in Dovercourt, in particular on market days (Friday), and when Orwell Place was used as an events space, which was up to 14 times a year. The design of the future carpark at Milton Road was currently underway, with consultation taking place in July and August 2024 on potential designs.

Cabinet further recalled that the building at 20 Victoria Street was derelict, fire damaged, and beyond repair and so for the project to progress with the development of new properties, it was required to be demolished.

It was noted that the proposed demolition of the existing structures could be completed without planning permission, and which could therefore be undertaken ahead of the rest of the project that was in the design stage. Following the determination of planning permission for the full project in early 2025, the tender for the main construction works would be let, followed by award and then construction.

The Portfolio Holder believed that bringing forward the demolition to Summer / Autumn 2024 had the following potential benefits:-

·      cost certainty now rather than potential inflationary pressures later;

·      the release of any unused risk allowance to be included in the overall development budget;

·      the reputational advantage of undertaking works committed which would increase site safety and security for the public and neighbours;

·      a better informed subsequent design, as any unknown risks via demolition would have been resolved prior to the start of the main works and so it would de-risk the project’s delivery

Cabinet was cognisant however, as with all construction projects that there were risks, most notably that the tender price came in ahead of cost estimations, which could require a review of the overall project, leading to a potential requirement for redesign or value engineering, and so an impact on the overall project timeline.

Cabinet, being of the opinion, that:-

(1)    carrying out the demolition of the existing car park on the Milton Road site, as well as removing the fire damaged structure at 20 Victoria Street, would ensure the sites were ready for development in time for commencement of the main works, and allow the sites to be made safe. Demolition would also allow the lower level of Milton Road car park to be brought back into use while detailed design and planning submissions were developed;

(2)    those enabling works would also de-risk the site in terms of safety for the public, as well as financially for the programme, since the cost inflation risk would be reduced by delivering this aspect of the works early;

(3)    the proposals would also allow the lower level of Milton Road car park to be brought back into use sooner, which would provide additional parking for Dovercourt Town Centre, and support for events at Orwell Place; and

(4)    the proposed allocation of the additional £250,000 from Council funds as proposed within report item A.9 elsewhere on the agenda, would enable the creation of a budget / risk pot, given the additional uncertainties associated with the Victoria Road sites and the re-provision of parking spaces at Milton Road;

It was moved by Councillor I J Henderson, seconded by Councillor Bush and:-

RESOLVED that Cabinet –

a)     agrees, subject to the full level of required funding being allocated, to the demolition of the Milton Road, Dovercourt car park;

b)     agrees, subject to the full level of required funding being allocated, to the demolition of the dangerous structure at 20 Victoria Street, Dovercourt;

c)      although subject to the decision set out within report item A.9 elsewhere on the agenda, agrees to allocate the additional identified sum of £250,000 to increase the overall budget to £3,798,751;

d)     subject to a) to c) above, agrees to draw down a budget of £0.450m from within the overall sum of £3,798,751 to progress demolition and associated works; and

e)    subject to (a) to (d) above, agrees that an external contractor will be commissioned to undertake the demolition works in accordance with the Council’s Procurement Procedure Rules.