Decision details

1.

Title of Item/Report

Levelling Up Fund Preston Park Museum and Grounds

2.

Record of the Decision

Consideration was given to a report that provided an update on progress improvements to Preston Park Museum and Grounds (PPMG) funded through Levelling Up Fund  grant (LUF) ) and sought a decision  to address financial pressures arising from mandatory unforeseen drainage works.

The programme of works as reported to Cabinet in March 2023 consisted of:-

a.       An extension exhibition and open store space at Preston Park Museum

b.       Improvement to the café and toilets (including demolition of current block)

c.        Enhancements to car parking

d.       Opportunities for an alternate use for the Aviary

e.       The creation of a new feature adjacent to the main entrance to celebrate and highlight the Stockton & Darlington Railway (S&DR) heritage and the original route through the Park

Following the most recent report to Cabinet on this matter in March 2023, work began on the Museum extension, exhibition space and open store along with increase to parking capacity in early 2024.  The scheme was progressing on site with the car park works largely complete and completion and commissioning of the main build due in Spring 2025.

Work was also underway on the refurbishment of the existing café building which would see new toilets and changing places facility along with the demolition of the current toilet block complete by June 2025.

Initial design work had been undertaken on the reuse of the Aviary, opening it up at surface level, with new planting and seating to create a new space and point of interest. Designs had been developed for the demolition (subject to planning permission) of the dilapidated 1920’s South Lodge gatehouse and replace it with a feature to celebrate and highlight the route of the former Stockton & Darlington Railway (S&DR). Enhancements to the central area (adjacent to and between the café and car park) would improve accessibility and movement of vehicles and pedestrians. This work had progressed at a slower pace in cognisance of the emerging budget issues described within the report.

As work had progressed on the Museum extension, it became apparent that the historic drainage infrastructure which serves the current museum building and to which the new build would connect, did not meet current environmental standards and legal requirements.

This discovery prompted a period of assessment and exploration of mitigating actions in regard to both temporary and permanent solutions along with discussion with Northumbrian Water Limited.

Given the legal requirement to be fully compliant with modern environmental regulations, it quickly became apparent that in order for the facility to be operable both in its current form and following the addition of the extension and exhibition space,  an attenuation tank and the addition of a significant length of new drainage as well as a new connection into the nearby network was required and this work was added to the current construction contract.

The cost of the temporary drainage solution (which is currently in place) as well the permanent solution described above (currently under construction) amounts to £950,000.

The terms of the LUF funding committed the Council to the delivery of the exhibition space, café/toilets and parking, with the Aviary, S&DR feature commemoration and central area not forming part of the bid but emerging more latterly in the programme as opportunities to enhance the park and visitor experience.

The core LUF bid could be delivered within the project budget of £12.4m. However, despite some minor value engineering of elements within the exhibition space, the required additional drainage works had exhausted project contingency reserves and the budget reserved for the additional works to the Aviary, S&DR heritage feature and central area.

The budget of £12.4m was fully committed (including fees and contingency) to the exhibition space, car park, toilets and café only, which was in line with the originally envisaged scope of works in the LUF bid.

There were essentially two options for the PPMG programme of works.

Option 1 -  Reduce the scope of project works, excluding the Aviary, a S&DR heritage feature and the central area, resulting in delivery of the exhibition space, car park, café and toilets works within existing budget;

Option 2 – Identify funding within the Council’s Medium Term Financial Plan to enable delivery of the full scope of the project, Aviary, a S&DR heritage feature and the central area

The cost of the works to the Aviary, S&DR heritage feature and central area as described at paragraph 4 of the report, as well as reinstatement of value engineered elements, was estimated at up to £950,000.  These sums were estimates that would be confirmed at the point tenders are finalised, alongside provision for professional fees, contingency and provision for some value engineered items. The cost estimates were broken down within the report.

The sum for interventions was above the current approved funding envelope and as such up to £950,000 would need to be identified to deliver these interventions. It was recommended that funding be identified as part of the Medium Term Financial Plan report to Cabinet in February 2025.

If Cabinet were minded to approve option 2 to ensure the delivery of Aviary, S&DR heritage feature and central area along with reinstatement of value engineered elements, the final design and tender documentation could be prepared in order to achieve an accurate figure for delivery, with agreement of final contract sums and specification delegated to Director of Regeneration and Inclusive Growth in consultation with Cabinet Member for Regeneration and Housing.

If Members were minded to approve Option 1, it should be noted that there would remain a future liability to demolish the structurally unsound South Lodge which would need to be considered in the near future.

RESOLVED that the importance of the Aviary, Stockton & Darlington Railway heritage feature and central area to the Preston Park LUF enhancements be recognised and their delivery be supported, subject to funding being identified as part of the Medium Term Financial Plan report to Cabinet in February 2025.

3.

Reasons for the Decision

To enable delivery of enhancements in Preston Park under the Levelling Up Fund programme as previously reported to Cabinet in March 2023.

4.

Alternative Options Considered and Rejected

None

5.

Declared (Cabinet Member) Conflicts of Interest

None

6.

Details of any Dispensations

None

7.

Date and Time by which Call In must be executed

Midnight Monday 27 January 2025