Agenda item

1. Title of Item/Report

 

Billingham Town Centre and Sports Hub

           

2. Record of the Decision

 

Consideration was given to a report that provided an update on the development of a masterplan for Billingham town centre and sought approval for the partial acquisition of Billingham town centre and associated next steps, to enable redevelopment in line with the emerging masterplan and successful Levelling Up Fund bid.

 

The report also provided an update on the emerging proposals for Billingham Sports Hub, as part of the Council’s commitment to improving leisure facilities and encouraging participation in sport and active leisure.

 

 

Since the acquisition of the town centre the Council had been in discussion with Evolve Properties to explore opportunities for how the masterplan can be delivered and what role the Council and Levelling Up Funding could play in enabling redevelopment.

 

The Council had agreed to acquire West Precinct and part of the adjacent Queensway South block at the point of vacant possession.  Full details of the acquisition and valuation rationale were provided to members in exempt Appendix A. The first phase of redevelopment would therefore focus on working alongside Evolve to relocate tenants from the properties to be acquired, into other units, within the town centre. LUF would be used to cover the cost of this process.

 

The tenant relocation strategy would be led by Evolve, as landlord, and would require negotiation and agreement dependent on the specific lease arrangements and conditions.

 

Detailed negotiations on tenant relocation would commence following Cabinet approval to proceed.

 

Following the relocation of businesses and at the point of vacant possession, a phased programme of demolition would be undertaken. This process would facilitate the creation of a more sustainable level of retail floorspace across the town centre whilst retaining key anchor tenants, adding vibrancy, increasing footfall and providing opportunities for new uses, investment and job creation in the town centre.

 

The cleared West Precinct, Queensway South and former Library site would create an area that had the potential to accommodate a new residential community of circa 160 units in the heart of the town centre alongside new retail space and improvements to accessible infrastructure, public realm and car parking.

 

The total cost of relocation, demolition and fees was estimated at £13m in addition to expenditure on acquisition, as set out in exempt Appendix A.

 

Options for securing a development partner would be explored to facilitate the future redevelopment of the West Precinct site. Depending on the nature of any future development agreement, it was likely that some funding would be required to support the redevelopment of the site. 

 

Cabinet was asked to agree to the principles of redevelopment as described above and in paragraphs 13-20 of the report and delegate authority to the Director of Regeneration and Inclusive Growth in consultation with Director of Finance, Transformation and Performance, Director of Corporate Services authority to negotiate and complete the necessary legal documentation and all other contracts and agreements to support the proposals.

 

As part of the Council’s commitment to improving leisure facilities and encouraging participation in sport and active leisure, the Playing Pitch and Outdoor Sports Strategy (PPOSS) was adopted in January 2023. Both the PPOSS and the Stockton-on-Tees Local Football Facilities Plan (LFFP) support the delivery of a Sports Hub on the former Billingham Campus site.

 

The Sports Hub proposal was being progressed via the Football Foundations Hubs Programme which was designed to create financially sustainable grassroots sports facilities with multiple artificial grass pitches.  Through the initial stages of the Hubs Programme process it was identified that the project has potential to deliver strong outcomes and following completion of the ongoing public consultation work was progressing towards the submission of a planning application in July 2024.

 

Cabinet was asked to consider approving delegated authority to extend the current contract beyond RIBA Stage 3 at a total estimated contract value of £800,000 utilising already secured developer contributions linked to open space provision alongside funding from the Football Foundation

 

In July 2023, Cabinet approved the allocation of £4M from the £6M provided from the Tees Valley Combined Authority to help drive economic growth in Billingham as part of their refreshed 10-year investment plan to support the development of the Billingham Sports Hub project. A formal funding application would be made to the Football Foundation later this year and if successful it was anticipated that  construction would begin in Spring 2025 and being completed in Spring 2026.

 

It was intended that the completed facility would be leased to and vested in the National Football Trust (NFT) which was established in 2021 and held charitable status.

 

RESOLVED that

           

Billingham Town Centre

 

1. the vision for Billingham town centre as set out in this report and reflected in the masterplan in exempt Appendix 2, be agreed.

 

2. the partial acquisition of Billingham town centre, be approved, to enable delivery of redevelopment proposals as outlined in the masterplan and in line with the terms set out in exempt Appendix A.

 

3. the approach to relocation of affected businesses and demolition of West Precinct, Queensway South and former library buildings for mixed use residential development, infrastructure and public realm improvements, be approved.

 

4. the intention to bring the former Wynyard House building into use as part of the redevelopment proposals, be noted.

 

5. Cabinet support a resolution in-principle for the acquisition of the necessary land and rights through use of its compulsory purchase powers in the event that any of the parties were unable to secure the necessary third party land and rights to redevelop Billingham town centre.

 

6. Delegate to the:-

 

a. Director of Regeneration and Inclusive Growth in consultation with Director of Finance, Transformation and Performance and Director of Corporate Services the authority to agree the terms to support the relocation of tenants within the town centre.

 

b. Director of Regeneration and Inclusive Growth, in consultation with Director of Finance, Transformation and Performance and Director of Corporate Services, the authority to negotiate and complete the necessary legal documentation and all other contracts and agreements to give effect to the recommendations above.

 

Billingham Sports Hub

 

7. Cabinet gives authority to the Director of Regeneration and Inclusive Growth to make the specific contract award decisions to progress detailed design to RIBA Stage 4 and any subsequent contract variations, annual inflationary uplifts (where allowed in the contract terms and conditions) and extension decisions relating to Billingham Sports Hub.

 

8. Cabinet approves in principle to vesting the completed facility within the National Football Trust and delegates all legal contracts and final terms in relation Billingham Sports Hub to the Director of Regeneration and Inclusive Growth to approve in consultation with the Leader of the Council.

 

3. Reasons for the Decision

 

The recommendations would provide a means for the Council to secure control of part of Billingham town centre to enable delivery of redevelopment proposals in line with the emerging masterplan and Levelling Up Fund objectives.

 

Approval of the recommendations relating to Billingham Sports Hub would support the continuation of the project towards funding applications and delivery.

           

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 Tuesday, 25 June 2024

 

 

 

Proper Officer