The Council has decided to approve VINCI UK Developments Ltd as the preferred development partner for the redevelopment of Northgate Future Phases in Chester.

URL: https://cmttpublic.cheshirewestandchester.gov.uk/ieDecisionDetails.aspx?ID=1987

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: Cabinet considered the report of the Director of Economy and Housing which sought approval for VINCI UK Developments Ltd to be the Council’s preferred development partner for the redevelopment of Northgate Future Phases in Chester. The report also sought officer delegated authority to enter into a Pre-Development Agreement (PDA) with VINCI UK Developments Ltd. The recommendation was on the basis that delivery would be subcontracted by VINCI UK Developments Ltd to a Joint Venture between VINCI UK Developments Ltd and ION Property Developments Ltd.  The report highlighted the process that had been followed to make the recommendation, the works that will be undertaken under the PDA and the expected costs and risks to proceed.   Members noted Chester’s rich history and heritage, Roman ancestry and the many plaudits awarded to it.  Members were also reminded of Northgate Phase 1 and the extent of significant developments including moving the bus interchange, Chester Market and Barclays Bank, the success of Storyhouse, the reopening of the Town Hall for weddings and many more examples which were all important parts of the whole picture to enhance people’s experience around the town hall square and beyond.  Members noted and welcomed this important next step to deliver a residential city centre offer and increase the number of residents, and therefore footfall, by delivering 400+ high quality, low carbon homes, of which 30% will be affordable, in the heart of Chester city centre.   Councillor Nathan Pardoe, Cabinet Member for Inclusive Economy, Regeneration and Digital Transformation, led the discussion on the item as proposer and the item was seconded by Councillor Adam Langan, Cabinet Member for Children and Young People.   Visiting Members:  Councillors Katrina Kerr and Richard Beacham spoke in relation to the item.   Cabinet members welcomed the report and the proposals for residential development as part of Northgate Future Phases and acknowledged the importance of the Northgate Joint Member Working Group throughout the various stages of developments.  It was noted that the Group had been updated throughout the procurement process and had been able to provide scrutiny on the procurement route and the recommendations made in the report.  Members of the Working Group and all officers involved were thanked for their hard work and dedication over the years in relation to this major regeneration project.   Whilst Members noted the information provided in the confidential Appendix 2, they confirmed they did not need to discuss its contents and there was therefore no requirement to move the meeting into Part B private.   DECIDED:    That   1)            VINCI UK Developments Ltd be approved as the Council’s preferred development partner for the redevelopment of Northgate Future Phases in Chester; 2)            the Director of Economy and Housing, in consultation with the Chief Operating Officer and the Cabinet Member for Inclusive Economy, Regeneration and Digital Transformation, be delegated authority to agree and enter into a Pre Development Agreement with VINCI UK Developments Ltd; and 3)            whilst VINCI UK Developments Ltd will be the party that the Council will contract with to ensure that the Council can make an award in full compliance with the terms and conditions of the PAGABO Developer Led Framework, delivery will effectively be sub-contracted to a Joint Venture between VINCI UK Developments Ltd and ION Property Developments Ltd. This arrangement, which has VINCI UK Developments Ltd as the contracting party and the joint venture as its delivery partner, is referred to as VINCI/ ION and will involve a formal sub-contract between VINCI UK Developments Ltd and VINCI/ ION (as approved by the Council in accordance with the PAGABO Developer Led Framework Terms and Conditions).   Reason for Decision   As set out in section 3 of the report, paragraphs 3.1 to 3.4.   Alternative Options   The other option is to not move forward with the recommendation to select VINCI UK Developments Ltd as the Council’s preferred development partner and enter into a PDA with them. After investing in the procurement framework process this could cause reputational risk to the Council and disappointment to many stakeholders across the city who wish to see progress on the Northgate Future Phases project building on the success of Phase 1.  Therefore, it is recommended that the Council proceeds with the approach outlined in this report.

Date of Decision: July 9, 2025