Issue - decisions

10.1

The Executive Director, Place, submitted a report providing an update on the future direction of the Sheffield Olympic Legacy Park (SOLP), including future governance arrangements, role of wider stakeholders, funding, and options for a private sector development partner. An appendix showing a Plan for the Park was also circulated to Members at the meeting.

10.2

RESOLVED: That Cabinet;

(a)       notes the progress made at Sheffield Olympic Legacy Park (SOLP) to date;

(b)       confirms the expanded vision and geographical reach of an extended SOLP, as set out in the report and at Appendix 1 now circulated at this meeting;

(c)        approves the retainment of Legacy Park Limited (LPL) as the special purpose vehicle charged with driving forward delivery of SOLP on the basis and implications as set out in this report;

(d)       confirms the role and remit of LPL as set out in the report, including reporting arrangements;

(e)       approves up to £150,000 per annum for 3 years from the Council’s Corporate Investment Fund to cover underwriting risk in support of operations associated with SOLP;

(f)        in respect of the current financial year, approves the underwriting of up to £150k of current operating costs but work with LPL to move to a capped contribution of £80k by December;

(g)       approves the principle of a Memorandum of Understanding, as set out at section 2 of the report, designed to oversee the relationship between Sheffield City Council and LPL;

(h)       approves the negotiation with Scarborough International Property Limited as preferred development partner in order to drive forward the commercial development of SOLP, working in conjunction with Sheffield City Council and wider SOLP partners, with terms to be agreed by the Executive Director, Place in consultation with the Cabinet Member for Finance, Resources and Governance, Cabinet Member for Business and Investment, and Director of Legal and Governance; and

(i)         commissions LPL and City Council officers to produce annual reports on the impact of SOLP.

10.3

Reasons for Decision

10.3.1

In order to continue and expand the economic and social benefits to the city, it is recommended to confirm an expanded vision for SOLP, including retaining the special purpose vehicle LPL.

10.3.2

In order to ensure strong governance and democratic accountability, it is recommended that a Memorandum of Understanding is put in place to oversee the relationship between SCC and LPL.

10.3.3

In order to accelerate the commercial development of SOLP, it is recommended the Council negotiates with Scarborough International Property Limited as preferred development partner.

10.4

Alternatives Considered and Rejected

10.4.1

The main broad alternative options for the strategic direction of SOLP are as follows:-

Option

Analysis

SCC to withdraw from LPL and cease its involvement in SOLP

This would jeopardise SOLP’s success to date and represent a major loss to the city’s economic fortunes. As SOLP is on Council land, this is not only not a viable option, it would also damage the Council commercially and its reputation.

Not extend SOLP and cap the project at is current geographic extent.

As set out in this report, there is the opportunity and appetite from partners and to expand the impact of SOLP by increasing its size and reach.

End LPL as a stand-alone company and deliver SOLP in-house.

As set out in this report, this would not generate a significant saving to the Council as dedicated delivery capacity would still be needed, but it would risk a significant loss of momentum and effectiveness. On the understanding that the LPL will involve other partners, this report recommends continuing with LPL.

Transfer land and assets to LPL

This would mean SCC lose control of the decision making process. As set out in this report, it is essential that the Council seeks to recoup as much of the investment made to date in OLP as possible. LPL acting as the single point of contact for investment enquiries, but SCC retaining control of assets is felt to be the best way of achieving this.

It is unlikely to meet the legal requirements for achieving best consideration.

Pursue SOLP without an expanded set of partners

SOLP is a partnership of public and private sector bodies. No one institution could deliver the research and development, land, commercial and community elements of SOLP alone.

Do not appoint a private sector development partner

Would mean either no further expansion was likely or that the public sector would bear the up front development costs and risks.

Procure private sector development partner

Would mean lengthy process, delaying future development and potentially losing the only developer who has shown interest in developing SOLP future phases.

Would provide a competitive process if there were more bidders and allow the Council to have more control over development.

10.5

Any Interest Declared or Dispensation Granted

None

10.6

Reason for Exemption if Public/Press Excluded During Consideration

None

10.7

Respective Director Responsible for Implementation

Laraine Manley, Executive Director, Place.

10.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing.