Issue - meetings

Report of Commercial Director

Purpose of report

To report on the progress to deliver the North West Bicester Eco Business Centre.

Recommendations

The meeting is recommended:

1.1      To note the progress to date and that the project is due to deliver the Business centre in Q2 2018 within the budget of £4.325m.

1.2      To agree in principle to the council operating the Business Centre.

1.3      To agree that in the absence of securing a retail tenant by the end of the calendar year for the vacant unit on the ground floor of Franklins House, it is in principle (subject to budget approval) fitted out to serve as a business incubation space and lettable offices for a period of up to 3-5 years.

Resolved

(1)          That the progress to date and the fact that the project is due to deliver the Business centre in Q2 2018 within the budget of £4.325m be noted.

(2)          That the operation of the Business Centre by the Council be agreed in principle.

(3)          That it be agreed that in the absence of securing a retail tenant by the end of the calendar year for the vacant unit on the ground floor of Franklins House, it is in principle (subject to budget approval) fitted out to serve as a business incubation space and lettable offices for a period of up to 3-5 years.

The Commercial Director submitted a report to report on the progress to deliver the North West Bicester Eco Business Centre.

Resolved

(1)          That the progress to date and the fact that the project is due to deliver the Business centre in Q2 2018 within the budget of £4.325m be noted.

(2)          That the operation of the Business Centre by the Council be agreed in principle.

(3)          That it be agreed that in the absence of securing a retail tenant by the end of the calendar year for the vacant unit on the ground floor of Franklins House, it is in principle (subject to budget approval) fitted out to serve as a business incubation space and lettable offices for a period of up to 3-5 years.

Reasons

The project to deliver the Eco Business Centre in North West Bicester is on track to have a completed centre, open for business in Q2 2018. By adopting the SCAPE procurement framework a fixed costs, design and build contract has been awarded with the fixed cost to be agreed at the end of the Detailed Design Stage (RIBA 4). Initial cost estimates based on the design concept put the cost within the available budget.

In line with the Councils commercial agenda the opportunity to run the centre and thereby maximize the return to the council whilst closely aligning it with the work of Economic Growth is seen as preferable to the original plan of building the centre and then appointing a third party to run it on the councils behalf.

In the absence of securing a retail tenant it is proposed that by changing the use of the vacant units on the ground floor of Franklins House economies of scale should be achieved to deliver the fit out by combining it with the Eco Business Centre project. The complimentary use of both sites will also allow operational benefits for both the council and users. Planning permission will be needed to change the use and £250k remains from the original Franklins House budget which can be used towards the fit out costs.

Alternative options

None – Update on an existing project