Cabinet:

• Agreed to enter into a Grant Agreement with the Greater London Authority (GLA) until 31^st March 2022 to provide an Innovation Hub designed to boost productivity and skills in Havering and across East London and improve the physical environment of the area for workers, students and visitors, focussing initially on the use of digital technologies in logistics, construction and related sectors. The Grant from the GLA is for £1,631,940.
• Approved match funding from the Council be provided to help fund the overall project derived from the value of staff time (£16,200), £800,000 from the London Strategic Investment Pot funding for connectivity in Rainham, £56,000 to be identified from business sponsorship/social value contributions or S106 (and if this is not identified by 2021/22 from the Council’s allocated Regeneration and Economic Development revenue budget. Match funding will also be provided by Havering College, Riverside BID and SEGRO at a combined value of £1,049,565. 
• Delegated authority to the Director of Regeneration Delivery to enter into Delivery Agreements with SEGRO, Havering College of Further and Higher Education and the London Riverside Business Improvement District to draw down delivery funding for the project of £309,400, £562,800 and £250,000 respectively, to deliver elements of the project and achieve agreed outcomes;
• Agreed to provide forward funding to the Riverside BID of £50,000 (capital) in 2019/2020 and £200,000 (capital) in 2020/2021 to enable them to fund the public realm improvements; and,
• Agreed a Statement of Intent with Havering College and SEGRO to confirm the partners’ intentions to develop and deliver the Innovation Hub and work together to take it forward; and,
• Noted that the process of appointing an operator for the Hub will be undertaken on behalf of the partners through the Council’s procurement processes.

Councillor Roger Ramsey, Cabinet Lead Member for Finance and Property presented the report to Cabinet for consideration.  The Grant Agreement sets out the proposals for funding to be received from the Good Growth Fund following agreement by the GLA for the Rainham Innovation Hub and Public Realm Agreements and is a commitment to the 2019/20 Corporate Plan under the Opportunities to help the Businesses in the Borough grow.

Rainham is an important area for business and residential growth.  The acceptance of the grant will give great potential to improve the area.

There are two principal elements to the project.  The first will be delivered through the Riverside BID which will improve the public realm which will involve landscaping one or more spaces to provide improved outdoor facilities including a seating area for workers which has been a long standing priority for the BID.  The second is the innovation hub which is a three way partnership project involving the Council, Havering College and SEGRO.  It will involve construction works at the College’s Rainham Campus, a fit out of the space within the College and within a SEGRO industrial unit, purchasing of new digital equipment and a programme of teaching and business support, events and research activities to improve productivity and workforce skills. The concept is to develop expertise and promote improvements for workers and for the area developing a local skilled workforce.

Funding will be in part by SEGRO who will procure an operator for the hub. Part of this procurement will require the operator to set out how skills will be developed and monitored. A computer assisted design expert will be sought to ensure that skills are developed to pave the way for computer assisted building design which will be needed into the future. The funding aspects are set out within the report under paragraphs 5.2 and 5.3. The Council will be accountable for the delivery and will be entering into delivery agreements.

Following discussion,

Cabinet:

• Agreed to enter into a Grant Agreement with the Greater London Authority (GLA) until 31^st March 2022 to provide an Innovation Hub designed to boost productivity and skills in Havering and across East London and improve the physical environment of the area for workers, students and visitors, focussing initially on the use of digital technologies in logistics, construction and related sectors. The Grant from the GLA is for £1,631,940.
• Approved match funding from the Council be provided to help fund the overall project derived from the value of staff time (£16,200), £800,000 from the London Strategic Investment Pot funding for connectivity in Rainham, £56,000 to be identified from business sponsorship/social value contributions or S106 (and if this is not identified by 2021/22 from the Council’s allocated Regeneration and Economic Development revenue budget. Match funding will also be provided by Havering College, Riverside BID and SEGRO at a combined value of £1,049,565. 
• Delegated authority to the Director of Regeneration Delivery to enter into Delivery Agreements with SEGRO, Havering College of Further and Higher Education and the London Riverside Business Improvement District to draw down delivery funding for the project of £309,400, £562,800 and £250,000 respectively, to deliver elements of the project and achieve agreed outcomes;
• Agreed to provide forward funding to the Riverside BID of £50,000 (capital) in 2019/2020 and £200,000 (capital) in 2020/2021 to enable them to fund the public realm improvements; and,
• Agreed a Statement of Intent with Havering College and SEGRO to confirm the partners’ intentions to develop and deliver the Innovation Hub and work together to take it forward; and,
• Noted that the process of appointing an operator for the Hub will be undertaken on behalf of the partners through the Council’s procurement processes.