To receive updates from Richard Walters, Head of Service, Major Projects.
Minutes:
The Board received an update from Richard Walters, Head of Service, Major Projects. A copy of the presentation slides are attached to the minutes.
Maltings Regeneration Update:
· In terms of the wider maltings regeneration project, since the pandemic, plans to make purchases has been on hold.
· The previous scheme was reliant on the developer securing buyers for the gym and hotel. With the delivery of that scheme on hold we have had to think again about the wider approach.
· Beyond library block, the council continues with a plan to deliver a regeneration with the benefits that we are seeking.
· Timing conditions on the £6m Local Growth Fund (LGF) Grant required it to be spent by March 2021. Prior to pandemic there were plans to use £4m on a new library and the remainder on the River Corridor Scheme, now named the River Park Scheme.
· Working with partners and LEEP continues.
· Secured funding from Environment Agency of £11m and plans to deliver flood mitigation works.
· Resumed discussions with landowners, over the summer.
· Paper due to be considered by Cabinet in November.
· The market was still in a volatile state, we would need to take careful independent advice.
· The economic landscape had changed significantly
Questions
· Was it fair to say that we were in a situation where the current library site was not likely to change for some time and that the money had been put over to river park, is that it?
· Answer: We have the LGF money which had a deadline on when it had to be spent. If we could have spent in on the Library then we would have, but we moved it to the River Fund project otherwise it would have been lost. We plan to do something with cultural quarter and market walk. We were currently exploring what the opportunities were. It made sense for the library to remain in the maltings regeneration area for time being, it would stay where it was until a new plan could be brought forward.
· Throughout the development of the Maltings we have asked how had the expected shape changed due to use of the internet. It was also likely that Covid had brought forward changes, so what is the shape of the city likely to be, in terms of experience rather than spending?
Answer: The Covid situation had accelerated trends. The way people use the city centre was different these days, it was more about the experiential side of things. The Playhouse, City hall, pubs, restaurants were all experiencing strains, this may go on for some time. It was difficult to know what that would look like even in 12 months’ time. There was more demand for residential in city centres and workspace facilities that accommodate new trends.
· A request for updates on four areas of the scheme had been requested by Cllr Rogers ahead of the meeting. He asked that Richard provide those answers to the Board when available. He asked whether there was still a development partner and whether they were solidly involved in the project. The public would like to know.
Answer: The relationship we have with Nuveen was that of a landlord and tenant. The potential to bring in the private sector was still there.
· The timelines of the construction phases and when you know where the permanent home of the library would be, could you bring this to the Board?
Answer: Yes
· In October last year in phase 1 at Malt House Lane, there had been a change of policy by the council to decline signing the new let in favour of a purchase negotiation. Now nothing happening on that site. If you buy out Nuveen would the library still remain on that site?
Answer: During engagement with Nueveen we were making sure the public purse was protected. We could not reach an agreement and they were unable to deliver against that. That site had the benefit for a hotel and a library, there was no reason why we couldn’t take that forward in a commercial way. If we make an acquisition, there were other hotel operators out there we could liaise with. There was a demand for more hotel space in Salisbury once the pandemic had reduced.
· Pleased that the £6m had been protected. Sad there was such a keenness to bulldoze the old British Heart Foundation building. Was Travelodge still interested? Answer: I don’t know, that is something that Nuveen could negotiate.
· Was Tesco on board in all of this and would the project still be attractive if there were more houses and less shops. How can you develop Market Walk if the library was still there?
Answer: We would not have it as a fully residential scheme, it would need to be mixed use.
· Could something be done to the old Heart Foundation site to make it look better maybe something temporary? Answer: It was owned by Nuveen so not easy to do anything with it immediately. If acquired, we may then be able to.
River Park – update
· The basic concept was shown to the Board during the consultation phase.
· The whole scheme was based around a partnership with the Environment Agency (EA), with a sizable budget of £18m. The EA was responsible up to the edge of the park at the Maltings.
· Development principles included Biodiversity, River Improvements, Flood Risk and Water Management.