Decision details

The Forum 2

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Decision:

The Cabinet considered a report of report of the Deputy Chief Executive and Executive Director (Growth & Housing) providing an update on the delivery of Forum 2 in the context of the economic impacts of the Covid-19 pandemic, and to seek agreement to the closure of the project in its current form.

 

Resolved:-

 

1.    That the financial impact of the Covid-19 pandemic on project viability for Forum 2, be noted and that as a result, the project as is currently planned is brought to a conclusion.

 

Recommended:-

 

2.    That as a result of 1 above, the associated capital expenditure budgets and their financing are removed from the current Capital Investment Programme;

 

3.    That the £6m Local Growth Fund (LGF) money secured for the project is released back to South East Local Enterprise Partnership (SELEP) for re-investment across the SELEP area and the costs incurred to date (c£1.4m) are borne on a 50:50 basis by the Council General Fund and by South Essex College (the College) and that the Council’s share of circa £700k is funded from the Business Transformation Reserve;

 

4.    That the outcomes identified for delivery through the project be noted and officers be requested to undertake an options appraisal as to how these could be still delivered in an alternative way, and that £50,000 is set aside in the Business Transformation Reserve to support this work.

 

Reason for decisions:

 

The Forum 2 development which had secured planning consent and commensurate funding is not viable as a result of the Covid-19 pandemic and resulting pressures on organisational finances, particularly those of South Essex College.  However, both the Council and the College remain committed to delivering the outcomes sought through Forum 2 and therefore should continue to work together to identify other ways in which these may be achieved within a viable budget envelope.

 

Other options:

 

1.    Alternative options have already been explored in relation to continuing with the development, notably the Council increasing its investment in the project or reducing the size of the scheme and therefore the cost.  However, neither of these will be deliverable within the timescales of the LGF funding and present a range of other risks. 

 

2.    The Council could decide not to pursue the outcomes which were to be delivered through Forum 2.  This would have a detrimental impact on the Southend 2050 ambition and related outcomes.

 

Note: The decision in 1 above constitutes an Executive Function. The decisions in 2-4 above constitute a Council Function

Eligible for call-in to: Place Scrutiny Committee

Executive Member: Cllr Robinson

Report author: Emma Cooney

Publication date: 18/09/2020

Date of decision: 15/09/2020

Decided at meeting: 15/09/2020 - Cabinet

Effective from: 26/09/2020

Accompanying Documents:

 

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