EXECUTIVE BOARD

 

18TH NOVEMBER 2019

 

REDEVELOPMENT OF FORMER PROVISIONS MARKET LLANDEILO (THE OLD MARKET HALL)

Recommendations / key decisions required:

 

That Council agrees to commit an additional capital match funding sum over and above the original Executive Board approved sum (as detailed in Executive Summary) to enable the redevelopment of former provisions market project to proceed and draw down the external funding committed to the project from the joint ERDF and Welsh Government Funded ‘Building For The Future Project’.

That Council also agrees to acquire additional area of land to accommodate car parking requirements for the building.

 

Reasons:

 

The building has been vacant for many years and various proposals for its redevelopment have failed. The market has been well tested however all have been unsuccessful with the underlying cause being the higher cost to value of refurbishing this Grade II* listed building. An opportunity now exists for the Council to secure external funding provided that the Council can commit to providing sufficient match funding. If progressed, it is anticipated that this project will give rise to:

 

·         Creation of some 45 new jobs

·         Support for 17 SME’s  through creation of top quality business space providing  the base for local companies to develop

·         Refurbishment of a landmark building

·         It is anticipated that the project will act as a catalyst resulting in new businesses operating within the market town, creation of additional employment opportunities and attraction of more visitors.

 

Relevant scrutiny committee to be consulted: NO

Exec Board Decision Required                     YES

Council Decision Required                            NO    

 


 

 

EXECUTIVE BOARD MEMBER PORTFOLIO HOLDER:
Cllr. David Jenkins / Cllr Emlyn Dole

Directorate

Chief Executive’s

Name of Head of Service:

Jason Jones

Report Author:

Stuart Walters

Designations:

 

Head of Regeneration

 

Economic Development Manager

Tel Nos.

E Mail Addresses:

01267 242336

jajones@carmarthenshire.gov.uk

01269 590241

 

SWalters@carmarthenshire.gov.uk

 


EXECUTIVE SUMMARY

 

EXECUTIVE BOARD

18TH NOVEMBER 2019

 

 

REDEVELOPMENT OF FORMER PROVISIONS MARKET LLANDEILO (THE OLD MARKET HALL)


Background Information

 

A previous report on the project was brought forward and considered at Executive Board in November 2018. The recommendations approved at that Executive Board was that:

 

1.    The Council leads on the delivery of the redevelopment of the Old Market Hall, Llandeilo to provide new employment space.

2.    The Council actively seeks external funding to support the project delivery.

3.    The Council provides match funding as detailed in this report as stated below:

 

Heritage Lottery Fund                               - £2,000,000      (to be applied for)

Building for the future                                 -           £1,400,000      (bid submitted)

Carmarthenshire County Council                       -            £562,600         (Capital Funding*)

Total estimated cost                                    -            £3,962,600

 

*Capital funding from Economic Development’s Transformational Strategic Project Fund Allocation (2018-2023).

 

Current Position

 

The Council’s application for Welsh Government’s Building for the Future funding has been successful and an approval in principle letter for £1.4m of funding has been received.

Due to incompatible timelines, the Lottery Heritage Fund were not willing to consider an application for this project. As identified in the original Executive Board report further consideration will now need to be given to setting aside an additional £2m capital funding to enable the project to proceed.

 

Progress has been made with the scheme design and documentation is being prepared for a planning submission later this month.

 

The Council has had discussions with an adjoining landowner with a view to acquiring land as highlighted on attached land plan (annex 1) to enable the Council to deliver a suitable car parking provision to service the building (annex 2). The agreed heads of terms are set out in (annex 3) but key proposed terms are as follows:

 

·         Acquisition of land at no cost on the basis that the Council will provide additional parking spaces 12 -18 which would then be leased back for use the landowner on a shared basis.

·         Council to provide rear access and wall between car park & landowners premises.

 

 

It should be noted that the scheme can progress without this additional car parking. However the scheme as proposed provides better parking provision for the scheme and local area. The additional car park is estimated to cost circa £75,000 subject to tender returns. This is budgeted for in the funding package below.

 

Revised Project Costs & Funding Package

 

Building for the Future                               -           £1,400,000     

Carmarthenshire County Council                       -            £2,562,600         (Capital Funding*)

Total estimated cost                                    -            £3,962,600

 

*Capital funding of £2,562,600 will be funded by £250,000 allocation from 2019/20 Transformational Strategic fund, £1,321,592 council reserves that will replace funding for current schemes within 2019/20 to allow the use of the Economic Stimulus grant for the same amount to fund the other schemes. The remaining £991,008 will be used from slippages (reserves funding) from the current years Capital programme that will not be required until later within the 5 year capital programme.

 

Way Forward

 

A number of delivery options have previously been considered by Executive Board, when it was agreed that if the project is to be delivered then the Council needs to lead on this.  If the Council does not proceed as recommended below, then essential works will need to be undertaken to the building. The estimated cost of these essential works is in the region of £700k.  Carrying out essential repair works will not give rise to any of the economic benefits that will result from delivery of the full redevelopment scheme as proposed. On this basis, it is recommended that:

 

1.    The Council provides additional match funding as detailed in this report to enable delivery of the proposed comprehensive redevelopment scheme.

 

2.    That Council approves the acquisition of the additional land as per the terms set out in the draft heads of terms to accommodate building car parking requirements.

 

Report attached?

No. 
Annex 1, 2 & 3

Policy, Crime & Disorder and Equalities

 

Legal

Finance

ICT

Risk Management Issues

Staffing Implications

Physical Assets 

NONE

NONE

YES

YES

YES

YES

YES


Policy, Crime, Disorder & Equalities

The project supports Carmarthenshire County Council’s Transformations Strategy which identifies six key transformational projects, including the transformation of Rural Carmarthenshire, of which the Llandeilo Market Hall project is a key element. 

The proposed project is aligned to the principles of the Well-being of Future Generations Act (Wales) 2015 in terms of bringing this important asset back into sustainable use for the benefit of the local economy and future generations.

Vacant properties can have a negative effect on the locality and the longer they remain vacant the higher the risk of vandalism and safety issues arising. The proposed redevelopment will mitigate this risk.

 

Finance The council funding of £2,562,600 will be funded by £250,000 allocation from 2019/20 Transformational Strategic fund, £1,321,592 council reserves that will replace funding for current schemes within 2019/20 to allow the use of the Economic Stimulus grant for the same amount to fund the other schemes. The remaining £991,008 will be used from slippages (reserves funding) from the current years Capital programme that will not be required until later within the 5 year capital programme. The current 5 year Capital Programme will be re-profiled accordingly, as part of the budget process that will be approved by Full Council in March 2020, to reflect the above changes.

 

Risk Management

The building is in need of a comprehensive refurbishment and some repair works have been put on hold pending a scheme.

 

Staffing

The Council would employ one member of staff to manage the building. Income generated from the scheme is expected to cover the cost of this post.

 

Physical Assets

Retention and refurbishment of an existing asset, safeguarding of the Council’s investment in a landmark listed building.

The acquisition of land at nil cost  to extend the car park and create additional parking spaces.

 


CONSULTATIONS

 

 

I confirm that the appropriate consultations have taken in place and the outcomes are as detailed below

 

Signed:  Jason Jones                       Head of Regeneration                                                                                                           

 

1.      Scrutiny Committee

N/A

 

2.Local Member(s) 

Cllr Edward Thomas the Local member is supportive of the proposal.

 

3.Community / Town Council

None

 

4.Relevant Partners 

 

5.Staff Side Representatives and other Organisations 

None

 

 

Section 100D Local Government Act, 1972 – Access to Information

List of Background Papers used in the preparation of this report:

THESE ARE DETAILED BELOW    

Title of Document

 

File Ref No.

Locations that the papers are available for public inspection

 

 

N/A