Agenda item

6.1

The report is to set out options to agree the approach to completion and relocation of the shipping container development temporarily sited at the top of Fargate.

6.2

RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee:-

6.2.1

Approves the recommendations set out in Option 1 of the report of the Executive Director – Operational Services, as follows:

• To pause further work to complete the first-floor bar, balcony and lift access until an options appraisal can be developed setting out the choices for the future of the container development.

• To fund, from revenue, the operational costs required to continue operating the retail, food, screen and temporary bar on the ground floor until at least 1 January 2023.

• To support the current tenants with advice and guidance to continue trading in January or find alternate retail units in the city centre if desired.

• To bring forward a further paper for decision in January once an options appraisal has been produced with proposals on the use of the containers after removal from Fargate.

• In line with good reflective practice, a review is undertaken on the container project outlining learning for future projects.

6.3

Reasons for Decision

6.3.1

6.3.2

6.3.3

6.3.4

6.3.5

6.3.6

This approach will enable the current tenants to maximise the opportunities for sales due to the Christmas shopping period, and ensure they aren’t put at financial disadvantage from circumstances beyond their control. 

It allows time for discussion with tenants about the period after Christmas and enables the council to support them with advice regarding options to continue trading in January or in the search for new premises.

It will support the Christmas Market and permanent retail offer in Orchard Square and Fargate at the busiest trading period of the year.

It allows further work to be undertaken to develop full costs and timeline to complete the upper level and allow this to be assessed against proposal for the next site of the container, without committing to further expenditure at this stage.

The ambitions and outcomes expected at the outset of the project haven’t been realised. As well as acknowledging this fact we need to learn what went wrong and how to ensure the same mistakes aren’t made again. Recommending a review will support improvement in process and decision making in future.

Developing an options appraisal before committing to the next site of the project is part of the learning from the project so far. We will mitigate the risk of unforeseen delays and costs in the future site of the project by learning the lessons from the challenges at the Fargate site

6.4

Alternatives Considered and Rejected

6.4.1

6.4.2

Option 3: Continue with the operation of the ground floor and continue the build work to open the first floor bar and terrace with other contractors

This option would support the tenants in the lead up to and post-Christmas, as does the recommended proposal. It would enable the council to utilise its current contracts with construction contractors which would introduce more control over setting timescales and forecasting costs. It is unlikely that alternative contractors would be in place before Christmas. 

It also commits more capital costs without understanding the preferred option for moving sites, which will be presented in an options appraisal for decision in January.

6.4.3

Option 4: Cease operation of the ground floor and pause building work on the first floor while options for the next site are reviewed.

This would financially harm the independent small businesses trading from the first floor. It would negatively impact the footfall and vibrancy on Fargate in a key trading period for city centre retail. It would introduce further operational costs for the council as security barriers and patrols would be needed while the containers were still located at Fargate.

7.1

The Executive Director, Operational Services submitted a report concerning options to agree the approach to completion and relocation of the shipping container development which was temporarily sited at the top of Fargate.

7.2

The report set out the current position as regards the operation of the containers. The ground floor of the containers, comprising three food outlets, three retail units, two offices, a temporary bar, toilets and big screen was operating. However, the covered bar with seating on the first floor and the terracing with lift access had not yet been completed. There was outstanding information required to complete and operate the bar on the upper terracing to secure building safety and health and safety compliance.

The partial completion of the development, with no confirmed end date, and with relocation due in Spring meant there were a number of options that could be considered. 

7.3

RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee:-

7.3.1

Approves the recommendations set out in Option 1 of the report of the Executive Director – Operational Services, as follows:

·       To pause further work to complete the first-floor bar, balcony and lift access until an options appraisal can be developed setting out the choices for the future of the container development.

·       To fund, from revenue, the operational costs required to continue operating the retail, food, screen and temporary bar on the ground floor until at least 1 January 2023.

·       To support the current tenants with advice and guidance to continue trading in January or find alternate retail units in the city centre if desired.

·       To bring forward a further paper for decision in January once an options appraisal has been produced with proposals on the use of the containers after removal from Fargate

·       In line with good reflective practice, a review is undertaken on the container project outlining learning for future projects.

7.4

Reasons for Decision

7.4.1

This approach will enable the current tenants to maximise the opportunities for sales due to the Christmas shopping period, and ensure they aren’t put at financial disadvantage from circumstances beyond their control. 

7.4.2

It allows time for discussion with tenants about the period after Christmas and enables the council to support them with advice regarding options to continue trading in January or in the search for new premises.

7.4.3

It will support the Christmas Market and permanent retail offer in Orchard Square and Fargate at the busiest trading period of the year.

7.4.4

It allows further work to be undertaken to develop full costs and timeline to complete the upper level and allow this to be assessed against proposals for the next site of the container, without committing to further expenditure at this stage.

7.4.5

The ambitions and outcomes expected at the outset of the project haven’t been realised. As well as acknowledging this fact we need to learn what went wrong and how to ensure the same mistakes aren’t made again. Recommending a review will support improvement in process and decision making in future.

7.4.6

Developing an options appraisal before committing to the next site of the project is part of the learning from the project so far. We will mitigate the risk of unforeseen delays and costs in the future site of the project by learning the lessons from the challenges at the Fargate site

7.5

Alternatives Considered and Rejected

7.5.1

Option 2 : Continue with the operation of the ground floor and continue the build work to open the first floor bar and terrace with Steelyard.

This option would support the tenants in the lead up to and post-Christmas, as does the recommended proposal.  However as Steelyard currently cannot provide a confirmed timeline of completion or estimated cost, it introduces more uncertainly and cost risk for both the council and Steelyard. The council also have reduced assurance about deliverability.

7.5.2

Option 3: Continue with the operation of the ground floor and continue the build work to open the first floor bar and terrace with other contractors

This option would support the tenants in the lead up to and post-Christmas, as does the recommended proposal. It would enable the council to utilise its current contracts with construction contractors which would introduce more control over setting timescales and forecasting costs. It is unlikely that alternative contractors would be in place before Christmas. 

It also commits more capital costs without understanding the preferred option for moving sites, which will be presented in an options appraisal for decision in January.

7.5.3

Option 4: Cease operation of the ground floor and pause building work on the first floor while options for the next site are reviewed.

This would financially harm the independent small businesses trading from the first floor. It would negatively impact the footfall and vibrancy on Fargate in a key trading period for city centre retail. It would introduce further operational costs for the council as security barriers and patrols would be needed while the containers were still located at Fargate.

(Note: Prior to the consideration of this item of business, it was moved by Councillor Douglas Johnson, seconded by Councillor Paul Wood, that the item of business concerning Fargate shipping containers be deferred. On being put to the vote, the motion to defer the matter was lost. The result of the vote on the motion to defer the item was For – 3, Against – 4, Abstentions 0).