North Yorkshire Council

 

Corporate Director Resources

 

17th June 2024

 

Release of YNY Combined Authority Gainshare – Priority Projects

 

Report of the Corporate Director Community Development

 

 

 

1.0     PURPOSE OF REPORT

 

1.1     To request approval from the Corporate Director Resources following consultation with the Executive Member for Finance, the Executive Member for Open to Business, the Executive Member for Culture, Arts and Housing and the Executive Member for Highways and Transportation to authorise submission of the North Yorkshire projects to the York and North Yorkshire Combined Authority (YNYCA), in response to the recent release of gainshare funding towards the delivery of capital schemes and the development of business cases for pipeline projects.

 

2.0     BACKGROUND          

 

2.1     The initial £9m of gainshare from the devolution deal for York and North Yorkshire is being made available by the newly formed YNY Combined Authority (CA). Around half of this is needed to fund the mayoral election and establishing the CA.

 

2.2     Of the remaining circa £4.5m, £1m is being allocated to fund the development of business cases for pipeline regeneration schemes, split equally between York and NYC. This is to help ensure that a range of projects are bid-ready. Funds are available now, via a short application process and allocation is delegated to senior CA officers.  

 

2.3     The remaining £3.5 / £4m (exact amount to be confirmed) is being made available to contribute to the delivery of major regeneration projects in Y&NY, to be split roughly 50/50 between York and NYC. A detailed business case will be required to be submitted for each bid, reflecting the former YNY LEP assurance framework.  The details of the application process were shared with the Council on 15 March.

 

2.4     Most suitable projects will have a business case already prepared, such as the Transforming Cities Fund schemes, and it is expected that this will be used to populate the business case to the CA. Projects should be close to implementation, with no major obstacles to delivery. NYC and City of York can each bid for several projects. Bids of around £500k (up to maximum of £700k) will get a lighter touch appraisal than 1 or 2 larger bids and so this approach is preferred.

 

3.0     IDENTIFICATION OF NORTH YORKSHIRE PRIORTY PROJECTS AND BIDS

 

3.1     In discussion with the Portfolio Holder and other senior members, officers have taken a pragmatic approach to identifying ‘oven ready’ projects to form the North Yorkshire submission.

 

3.2     Major regeneration projects from across NY have been assessed, with involvement from Economic Development, Regeneration, Highways, Planning, and Housing. Projects have been discounted if:

·         they can be delivered by other funds (e.g. Towns Fund)

·         there are significant obstacles and delay to their delivery

·         they create unbudgeted costs for NYC

 

3.3     Based on these criteria, it is recommended to support the submission of funding bids for four projects to the CA:

 

Improvement of the Selby station building – to accompany the Transforming Cities Fund scheme -- in partnership with Network Rail / Trans Pennine Express – £700k

Works to accompany the Harrogate Station Gateway TCF scheme (signals and junction works and enhancements to Station Square and Queen Victoria statue) – £500k

Scarborough Boat Lift and associated works – £700k

Electric Vehicle charging in Northallerton / Bedale / Stokesley / Thirsk / Easingwold / Gt Ayton - £200k

         

3.4       Details of the four projects, including costs, strategic fit, timescales, outputs and risks are reproduced at Appendix A. The projects in Scarborough, Selby and Harrogate each involve a bid for £500,000 or above, and as such require a key decision.

    

            Proposed bids to the CA for the development of business cases (£500k total fund)

 

3.5       There are a range of pipeline economic and regeneration projects across North Yorkshire, with new projects arising from the NY Economic Growth Strategy and a wide variety of existing schemes from former District Councils. Officers are reviewing these projects, including their fit with the Council Plan, Economic Growth Strategy and emerging CA economic framework, in advance of reporting to the Executive regarding priority schemes.

 

3.6       To assess which schemes should be submitted to the CA for some of the £500k fund for the development of business cases, officers have reviewed the pipeline regeneration projects in terms of:

§  Can the cost of this project be met from elsewhere?

§  Does the project have potential for a future MCA bid?

§  Does the project require additional development within NYC ahead of commissioning external work?

§  Can the proposed development work proceed quickly (e.g. within 6 months)?

 

3.7       On this basis, it is recommended that bids are submitted to the CA for the following pipeline projects:

 

GAINSHARE DEVELOPMENT FUND

Wyvern Link Road

Andrew Laycock

Finalise outstanding feasibility information to allow an implementation solution to be agreed for road link. Funding in capital programme for delivery.

£90,000

Abbey Quarter, Selby

Sarah Fenwick

Extend TCF transformation from station to town centre / Abbey area. Full design and community engagement, to include HAZ sites (Back Micklegate / Micklegate) and the 2 NYC-owned commercial sites adjoining the Station Square.

£150,000

Scarborough Regeneration Sites (Brunswick Cinema and Former Argos)

Helen Jackson

Contribution to masterplan led by developers to incorporate NYC land as part of a whole site solution, and further investigation of the Brunswick project development options.

£100,000

Accelerating Housing Delivery

Hannah

Heinemann

Feasibility and development work to bring forward housing sites to deliver 200 units.

£80,000

Ripon Connectivity

Louise Anne Neale

Feasibility, design and options appraisal / business case model for:

· A flagship mobility hub at Ripon bus station, with expanded facilities

· Priority pedestrian links and active travel corridors

£80,000

             

4.0     LEGAL IMPLICATIONS

 

4.1     If these funding bids are successful the Council will be required to enter into a funding agreement with the MCA. The implications of this, together with any significant legal implications of proceeding with the four delivery projects, will be set out when the appropriate permission is sought to accept the funding.

 

4.2     At this stage, the main risks linked to each of the four delivery projects, including any legal matters, are set out in Appendix A.

 

5.0     FINANCIAL IMPLICATIONS

 

5.1     Further details of financial implications are set out in Appendix A.

 

5.2     It is proposed to fund the Boat Lift project through three different funding sources, subject to the success of grant funding applications:

·                UK Seafood Fund - £500k

·                MCA Gainshare funding – up to £700k

·                North Yorkshire Council capital requirement - £553k or more, depending on how much grant is secured.

 

5.3     If successful, it is expected that the project will be delivered in the 24/25 and 25/26 financial years. Once delivered, ongoing maintenance costs would be met from revenue. As the business case is still being developed, costs and income associated with this project are not yet quantified. The full details of the business case will be included when the decision is taken about whether to accept the funding (should this bid be successful). If the Council is not successful in attracting the external funding of £1.2m, the business case for the whole project would no longer be viable and therefore the project would be unlikely to go ahead.

 

5.4     None of the other three proposed delivery projects has significant financial implications for NYC but specific details about costings, including any match funding and revenue implications outside of agreed budgets, will be set out when the appropriate permission is sought to accept the funding.

 

6.0     REASON FOR RECOMMENDATIONS

 

6.1     The recommendations will secure additional external funding to bring forward significant regeneration proposals in North Yorkshire and accelerate the development of a pipeline of future schemes to help meet local and regional objectives.

 

 

 

 

 

 

 7.

RECOMMENDATIONS    

 

 

i)              To request approval from the Corporate Director Resources following consultation with the Executive Member for Finance, the Executive Member for Open to Business, the Executive Member for Culture, Arts and Housing and the Executive Member for Highways and Transportation that the:

a.    projects identified in paragraph 3.3 above and in Appendix A, are submitted to the YNYCA (York and North Yorkshire Combined Authority) for funding in line with their invitation to bid for gainshare monies.

b.    that the proposals for project development funding set out in paragraph 3.7 above, are submitted to the YNYCA for funding in line with their invitation to bid for gainshare monies.

 

 

ii)             To note that if applications are successful, a decision on whether to accept the funding will be taken in line with the Council’s governance procedures.

 

 

      APPENDICES:

 

      Appendix A – YNY CA – Proposed NYC Projects for Gainshare Delivery Funding – June 2024

       

 

Nic Harne

Corporate Director – Community Development

County Hall

Northallerton

 

Report Author – Julian Rudd