Agenda item

To consider a report by Councillor Hugh Evans, Leader and Lead Member for the Economy and Corporate Governance (copy enclosed) seeking approval to proceed with the refurbishment of the Rhyl underground car park as recommended by the Strategic Investment Group.

RESOLVED that Cabinet –

(a)       approve the recommendation of the Strategic Investment Group to proceed with the refurbishment of the Rhyl underground car park, and

(b)       instruct officers to progress with the implementation of the project.

Councillor Julian Thompson-Hill presented the report seeking approval to proceed with the refurbishment of the Rhyl underground car park and funding as recommended by the Strategic Investment Group (SIG).

Cabinet had approved the current regeneration programme for Rhyl in March 2016 which comprised of various projects referenced within the report.  The underground car park was situated next to the new Waterpark facility and ensuring that it was fully operational and at full capacity was considered a key element in contributing to the future success of both the waterfront development and town centre.  Shortcomings associated with the underground car park included poor lighting, ventilation and accessibility and it was significantly underutilised.  SIG had approved a business case for the refurbishment at a cost of £2.126m with the capital costs being funded via a mix of prudential borrowing and Welsh Government Town Centre Loan.  The finance required to repay the borrowing would be generated through the additional car parking revenue.

Cabinet supported the refurbishment of the car park as a key project in the wider regeneration of Rhyl and recognised its importance in providing appropriate and adequate car parking provision for the waterfront development, with links to the town centre.  However questions were raised and assurances sought with regard to the risks involved with the project, particularly financial risks, together with any mitigation measures to alleviate those.  Assurances were also sought with regard to traffic flow management and the provision of adequate signage prior to the opening of the new Waterpark facility and also consideration of public transport links.

The Lead Member for Finance, Performance and Strategic Assets and officers responded as follows –

·         the risk that insufficient car parking revenue would be generated to repay borrowing had been acknowledged but prudent estimates had been used to calculate visitor numbers and income and reasonable assumptions had been made regarding additional use, particularly when considering the current limited use of the site against the completion of all year round visitor attractions, and known factors from the Nova refurbishment had also been taken into account.  SIG was confident that the additional revenue generated should more than cover the repayment costs.  In the event that insufficient income was generated, the debt would be considered a corporate pressure to be funded by the council

·         confirmed that the Welsh Government Town Centre Loan had already been approved.  The Town Centre Loan was used as a funding mechanism to provide interest free funding for regeneration schemes resulting in additional revenue – the funding was available for fifteen years before it had to be repaid and the funding could be used a number of times within that timeframe

·         elaborated upon the proposed refurbishment works in order to effect improvements and ensure a safe and welcoming environment for users with appropriate management and security arrangements and links to other visitor attractions and the town centre – specific details of the refurbishment had been included within the report

·         appropriate signage would be in place to navigate visitors through to Rhyl and the site and work was being undertaken with regard to increasing footfall from public transport links which would be in place prior to the opening of the Waterpark in January 2019; in terms of coach parking a temporary measure was being put in place for the current season with a view to including a permanent coach park for 2019 and future seasons to support and service other facilities

·         reported upon a separate piece of work around traffic modelling for Rhyl as part of the wider regeneration programme in order to effectively manage the significant increase in traffic as a result of the additional visitor attractions, with future reports being presented to Cabinet on the outcome of the traffic surveys; whilst this work was unlikely to be implemented in time for the opening of the new Waterpark it would follow to facilitate future developments in the regeneration programme

·         confirmed the car park would be marketed as a separate facility and would be incentivised as much as possible given its links to other attractions and outlets

·         provided assurances regarding the refurbishment works in terms of due diligence to ensure robust mechanical and technical arrangements were in place with the removal of outdated mechanical engineering that would be replaced as appropriate.  Building regulations would be complied with and any issues arising from the planning application process would also be addressed.  The facility would be subject to the usual inspections and appropriate maintenance works.

Cabinet was satisfied with the assurances provided and fully supported the project.

RESOLVED that Cabinet –

(a)       approve the recommendation of the Strategic Investment Group to proceed with the refurbishment of the Rhyl underground car park, and

(b)       instruct officers to progress with the implementation of the project.

At this point the Leader, Councillor Hugh Evans, took the Chair for the remainder of the meeting.