Agenda item

The Executive Member for Regeneration and the Director for Regeneration and Culture submitted a report for the Executive’s consideration. The purpose of the report was to set out proposals for the future development of Middlehaven and the steps required to take it forward.

 

The different investments and developments emerging at Middlehaven had the opportunity to make a significant difference to the area, and to the economy, but needed to be planned in a coherent way. There was a danger of different schemes competing with each other, infrastructure requirements falling between the boundaries of different schemes, and the phasing of activity working against what the wider market could accommodate.

 

There was therefore a need to have a clear, up-to-date strategic masterplan for developing Middlehaven, and for capitalising on the financial opportunities currently available.

 

It was also necessary for the Council to work closely with the relevant development partner to be able to put the strategic masterplan into practice and ensure that the available funding opportunities were not missed.

 

The submitted report set out how the Council proposed to work in partnership with a strategic partner to develop the masterplan for Middlehaven, develop the necessary site infrastructure and move into the delivery phase on multiple projects.

 

The Council had worked closely with a company called BGEGI on the Boho X project, following its appointment as Development Manager on the scheme in 2019. BCEGI was an international property developer and construction company, specialising in bringing projects to fruition through strategic partnerships and investment. Operating in 27 countries, BCEGI was currently leading on billion pound projects such as Airport City and Middlewood Locks in Manchester.

 

BCEGI was originally procured via the NEPO503 Neutral Vendor Managed Service for Specialist Professional Services (NEPRO3) framework and there was the ability to extend that engagement beyond Boho X and into wider work at Middlehaven.

 

It was proposed that via the NEPRO 3 Framework, BCEGI be formally procured as the strategic partner for Middlesbrough Council.

 

The boundary of the area proposed for the arrangement with BCEGI had been identified in Appendix I of the submitted report.

 

The masterplan would be used to guide investment decisions, prioritise projects and manage timelines for utilising external funding. It was intended that BCEGI would develop the masterplan, in conjunction with Council staff, to ensure that the transport infrastructure, public realm and heritage assets were built into it.

 

The Council had secured access to a number of funds, for a range of projects across Middlehaven.

 

A discussion ensued and Members expressed concern with regard to recommendation C, which referenced the reallocation of £3.9m of TVCA and Council resources being freed up from the Boho X budget into the wider development of Middlehaven, with a further £1.5m returned to the Council’s Capital Programme. Members were in agreement that, prior to approving that allocation of such funding, further work/discussion was required to identify funding sources.

 

In response to a Member’s comment querying whether the non-approval of recommendation C would impact on recommendation G (allocating up to £538,000 from the former Boho X funding to the stabilisation of the Captain Cook Pub), the Director Regeneration and Culture advised that alternative funding sources would be explored with the Director of Finance to ensure delivery.

 

Members were in agreement that approval should be granted for all of the proposed recommendations, with the exception of C. The Mayor abstained from voting on the report due to his non-pecuniary interest, which had been declared at the beginning of the meeting.

 

ORDERED

 

That the following be approved:

 

a)     the appointment of BCEGI via NEPRO3 Framework as the Council’s strategic partner at Middlehaven;

b)     the development of a masterplan to be brought back to Executive for endorsement;

d)     ring-fencing the income generated from Boho X to supporting the wider development of Middlehaven;

e)     accepting the Brownfield Housing Fund offer of £7.9m from TVCA, subject to final sign off by the Director of Finance;

f)      commencing the infrastructure works identified through the Brownfield Housing Fund;

g)     committing up to £538,000 funding to the stabilisation of the Captain Cook Pub.

 

REASONS

 

The redevelopment of Middlehaven was key to the future economic growth of the town. The funding package identified to deliver the Council’s aspirations at Middlehaven was starting to come to fruition, but needed to be applied to a coherent strategy and phasing plan and delivered in partnership with an organisation that was capable of taking it forward.