The Cabinet has decided to approve the development of a £18.75m Skills and Innovation Centre in Stowmarket, aiming to address skills gaps and stimulate economic growth.

URL: https://baberghmidsuffolk.moderngov.co.uk/ieDecisionDetails.aspx?ID=1054

Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose: Full Business Case consideration and decision gateway To approve and proceed to next decision gateway (exact recs TBC)

Content: Full Business Case consideration and decision gateway To approve and proceed to next decision gateway (exact recs TBC) It was RESOLVED: -   1.1           That Cabinet endorsed the Full Business Case (FBC) attached as Appendix A (confidential).    1.2           That Cabinet approved the full delivery of the project as outlined in the FBC for an approximate 35,690 sq ft. Skills and Innovation Centre on Gateway 14 at Stowmarket up to a maximum total cost envelope of £18.75m.   1.3           That Cabinet, if minded to approved recommendation 3.2, approved the recommended funding strategy detailed in Appendix D (confidential) as the Cabinet’s preferred method of delivering the project, SUBJECT TO the satisfactory completion of all related legal, financial, cost and valuation advice and contractual agreements, full access to Freeport seed fund capital payment and full access to the required level of Pot B retained business rates generated on the Gateway 14 site as part of Freeport agreements (as forecast in the recommended funding strategy attached as Appendix D - confidential).   1.4           That Cabinet delegated its authority for completion of all necessary matters and agreements pursuant to the approval of recommendation 3.3 to the Council’s Director for Economic Growth and Climate Change and Section 151 Officer/Director for Corporate Resources in consultation with the Leader of the Council. This requires that all ‘subject to’ elements within 3.3 are met.   1.5           That Cabinet authorised the forward funding of next stage technical design, planning and related preparatory works, up to a total value of £150k, from the Gateway 14 capital budget.                  ONWARD RECOMMENDATION TO COUNCIL   1.6      That Council approve the addition of this project to the Capital Programme as outlined in the recommended funding strategy including the virement of the Gateway 14 Capital budget of £10.75m and the use of  earmarked reserves or Pot B retained business rates to finance this.    REASON FOR DECISION To maximise the opportunities available to the Council to lead the development of a new unique facility which offers skills development, business support, entrepreneurship and innovation at Gateway 14 in Stowmarket. This local leadership opportunity arises from the Council’s economic growth and strategic asset management functions, Gateway 14 site investment, Freeport East designation and the Council’s active skills, education and innovation sector partnerships. This proposal seeks to meet the immediate and future skills needs of employers and workers in the local and wider sub-regional area and to address persistent skills gaps which will support transition towards a higher wage economy. It will provide bespoke services to address gaps in provision and add value to the regional economy with a particular focus on, but not limited to, growth of green skills, digital skills, environmental innovation and support for supply chains in the green economy. The proposal meets many Council, local partnership and government outcomes but also creates the conditions to stimulate some new and exciting partnerships which enhance opportunities for local communities and provides a regionally significant centre in Stowmarket and within the Freeport area. Alternative Options Considered and Rejected: 2.1          DO-NOTHING. Not Recommended. A ‘do-nothing’ approach will fail to explore an opportunity to deliver an innovative solution towards bridging long-term skills gaps (including green and digital skills) in the local and sub-regional area. It will also fail to contribute towards strategic priority outcomes across a range of corporate and local growth plans and policies. It will not deliver against Gateway 14 aims for the wider site or Freeport East ambitions for growing world-class innovation clusters. 2.2          WORK WITH PARTNERS AND SPECIALISTS TO SCOPE AND DESIGN A VIABLE DEVELOPMENT. Approved at Outline Business Case (OBC) stage. 2.3          TO APPROVE FULL BUSINESS CASE (FBC) AND PROGRESS WITH DETAILED TECHNICAL DESIGN, PLANNING, LEGAL AGREEMENTS FOR TRANSFER, DUE DILIGENCE, PREFERRED FUNDING MODEL AND FULL PROJECT DELIVERY. Recommended. To now take forward the project for full delivery. This project is scoped as a multiple-partner collaboration delivering shared benefits and outcomes. Significant work packages have now been completed in support of this option and its Full Business Case (FBC). The FBC contains sufficient information for Cabinet to make an informed decision on whether to proceed fully or not - subject to satisfactory completion of remaining assessments and due diligence. Appraisals will remain ongoing as part of a live business case and will respond to updated information (such as inflation costs, interest rate changes, operational costs and other forecasting/risk management) which would be reported through the governance structures outlined in the FBC. Commitment made now will help to secure the essential seed fund capital and Pot B retained business rates contributions via Freeport. 2.4          PROCEED ONLY UP TO PLANNING OUTCOME STAGE GATEWAY BEFORE MAKING A LATER FINAL DECISION TO INVEST / PROCEED TO ASSET CREATION. Not Recommended. This option would create risk from both the forward funding of technical design and planning costs and by the Council deferring its commitment to proceeding with the project, which could negatively impact access to the essential seed fund capital and Pot B business rates.   Any Declarations of Interests Declared: None Any Dispensation Granted: None    

Date of Decision: