Cabinet:

·       Agreed that £350k be allocated from the Transformation Fund to fund the project management, master planning and other associated costs plus that funding to a cap of £100k be made available from the Business Risk Reserve to cover any necessary legal costs arising.

·       Delegated authority to the Chief Operating Officer, after consultation with the Leader and Cabinet Member for Public Protection and Safety, to authorise the submission of related funding applications to external bodies to a limit of £5m.

Councillor Viddy Persaud, Cabinet Member for Public Protection and Safety, introduced the report.

The report before Cabinet explained that the Bretons Project had been working up options in relation to Bretons Manor House and surrounding grounds and park over the last year. Cabinet was asked to approve further funding of £350k for the revenue project management costs to take forward the Project for a further year, funded from the Transformation Fund. The funding will support Phase II Development of Bretons Manor House, Tudor barn, outbuildings, walled garden, lake and parks. Phase II Development will include an architects’ master plan for the site, planning permission for the totality of the site and the continuation of external funding applications for specific projects on the site.

Cabinet was also asked to approve an application to fund legal costs from the Business Risk Reserve as necessary to a cap of £100k.

Reasons for the decision:

Due to a lack of funding at the present time, a phased approach is recommended, which would enable the development of different clusters as funding is secured. It is recommended that the Council initially invest revenue to develop a Masterplan for the site, secure planning permission for the totality of the site and to continue to submit funding bids to external bodies. The GLA have indicated that the Council should submit a bid to them for revenue development funding for this project which they consider one of just two very complex but exciting projects in London, economically and culturally.

This report requests that £350k be allocated from the Transformation Fund to fund the project management, master planning and other associated costs of taking this project forward during the period from December 2018 to November 2019 plus that funding to a cap of £100k be made available from the Business Risk Reserve to cover any necessary legal costs arising.

Additional requests for funding were considered but are not being recommended at this stage. There are projects that are close to being ready to progress but require more certainty in relation to the context for the whole site or would benefit from external funding

which is currently not confirmed. These projects are:-

·        The Great Hall - investment of £3.45 million would be required to build a brand new Great Hall in the grounds of the Manor House as a wedding and events venue. Such a development could activate the project and unlock the commercial potential of the site. However, the success of such a venue will partly be dependent on the Hall’s surroundings and these are not currently up to the standard required. It has been concluded a bid for Council funding should be paused at this time.

·        3G Football Pitches - investment of £2.2 million is currently required for two 3G football pitches and associated changing/social facilities in the south of the site. The Football Foundation is keen on this option and would probably be prepared to fund up to £1 million of the cost. Feasibility work with the Football Foundation and Essex FA is already underway. However, this leaves a potential shortfall of £1.2 million for the Council to find or to seek funding sources from elsewhere. Veolia were approached but will not fund facilities which are, or are likely to be, run by external contractors, which is expected to be the outcome for these football pitches. It is also considered unlikely that a commercial case for the pitches can be achieved. In addition, the anti-social behaviour issues will also need to be resolved before this end of the site can be developed. It has therefore been decided not to submit a bid to the Council for funding at this stage.

Options considered:

A number of options have been explored in relation to the totality of the Bretons site.

These include;

·        Do nothing: this would still cost £4m over the next 20 years as there would need to be capital costs (approximately £100k pa) and revenue costs (approximately £100k pa) incurred over the next 20 years to maintain the site

·        Sell land and buildings: this may generate a sale of approximately £2m but only if the park was included which is probably not an attractive proposition for the local community. The Council would lose responsibility for the anti-social aspects of the area but also levers of control.

·        Outsource entire model through joint venture: this is not viable as there has been a lack of interest in investing in the capital costs and the returns would not be commercially viable for the council. This situation may change over time if the problems with the site are resolved.

·        Deliver the model in-house and lease aspects of the site: this is the recommended approach however it requires £28.9m investment and would present a very high risk for the Council without external funding. It would involve, over time, investing in minimum viable projects (MVPs) that generate commercial returns (eg the Great Hall) or priority projects (eg the 3G football pitches) in a phased approach.

Cabinet:

·        Agreed that £350k be allocated from the Transformation Fund to fund the project management, master planning and other associated costs plus that funding to a cap of £100k be made available from the Business Risk Reserve to cover any necessary legal costs arising.

·        Delegated authority to the Chief Operating Officer, after consultation with the Leader and Cabinet Member for Public Protection and Safety, to authorise the submission of related funding applications to external bodies to a limit of £5m.