Agenda item

To consider a report (which includes confidential appendices) by Councillor Hugh Evans, Leader and Lead Member for Economy and Corporate Governance (copy enclosed) regarding the future development of the site together with associated risks and additional funding required.

Vote taken: 8 in favour, 0 against, 0 abstentions

RESOLVED that Cabinet approves to allocate £1.5m of funding to the project to enable the demolition and complete the planning process.

Councillor Hugh Evans presented the report updating members on the future development of the former Savoy Hotel and the Queen’s Market, Theatre and Hotel, Rhyl along with the associated risks and additional funding required.

Some background information was provided regarding the acquisition of the site and plans for its redevelopment (over a number of phases/stages) which was considered critical to the regeneration and future economic success of the area.  The focus was on delivery of phase 1 with additional phases subject to review in light of the financial and economic impact of Covid-19.  An overview of the project elements relating to phase 1 demonstrating the benefits to the area was also provided.  Cost estimates had increased significantly since the original estimate leaving a current shortfall of £4.3m and a full breakdown of costs had been detailed within the report together with the reasoning behind those cost increases which was further elaborated upon at the meeting.  The detailed review of the current financial position provided some assurance that the project could be delivered within the revised cost estimate.   To keep the project on track and enable demolition of the site as a matter of urgency Cabinet approval was sought to allocate an additional £1.5m funding to the project.  The risks associated with the project were highlighted, including the further £2.8m funding requirement for which it was hoped that Welsh Government would provide additional monies.

Councillor Bobby Feeley was concerned to note the current position and queried the possibility of taking on the role of development partner in-house, perhaps with Denbighshire Leisure Limited (DLL).  During debate it was noted that the cost increases would have occurred regardless and that the current development partner had a proven track record and had worked successfully with the council on previous regeneration projects.  Given the size of the project the council did not have the resources or expertise in-house to deliver it and an external partner was therefore considered the right approach to progress the development.  It was also noted that there may be scope for DLL to be involved in future phases of the project subject to the relevant procurement rules and correct governance procedures.

The Lead Officer – Strategic Asset Management responded to questions as follows:

·         none of the buildings on site were listed

·         a building fronting onto Sussex Street (known as Queen’s Chambers) within the town centre conservation area would be retained and refurbished as part of the overall scheme and all other buildings would be demolished

·         considerable time had been taken to try and retain the buildings with a number of surveys carried out but unfortunately they were beyond economic repair

·         work had been ongoing with the Historical Society and others with a view to saving anything of historical value or local interest at the site

·         the basement and canal no longer existed and was thought to have been destroyed by the fire in 1912 which had burned down the building

·         there had been no suggestion that there would be any merit in inserting a clause in the demolition contract regarding archaeology but there were processes if place if anything of archaeological value was found during the demolition

·         apologised that the Welsh contained within the illustrations did not currently comply with the Welsh standards which would be rectified shortly

·         future phases would need to be reviewed in light of Covid-19 and the potential siting of council services would need to be considered at that time.

Councillor Joan Butterfield spoke in favour of the recommendation and confirmed that Rhyl Member Area Group had scrutinised the programme in depth and, whilst appreciating the significant funding required and associated risks, were comfortable with the project going forward for the benefit Rhyl and Denbighshire.  The Leader confirmed it was proper to have concerns and to understand the risk and that he had been comfortable with the answers given in response to the issues raised.  Consequently he was comfortable with his recommendation to Cabinet.

RESOLVED that Cabinet approves to allocate £1.5m of funding to the project to enable the demolition and complete the planning process.