Decision details

To consider options and implications for Lancaster Square Routes, the council programme to upgrade public realm in the city centre.

(Cabinet Member with Special Responsibility Councillor Hanson)

Cabinet received a report from the Head of Regeneration and Policy to update on this initiative and to propose how the Council might continue to support implementation including making available additional resources via a capital growth proposal in the forthcoming budget.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

In the context of previous decisions by Cabinet authorising the Lancaster Square Routes initiative the report set out options for continuing delivery of the programme of work required.

Option 1 -  As per the established project priority for Lancaster Square Routes to reserve the balance of funding likely remaining in the investment fund after Market Square phase 1 towards a second phase of work in Market Square and in addition, in preparing its General Capital Fund budget proposals for 2012/13,  Cabinet to consider recommending an additional £220k contribution to the Fund.

This option has the advantages of positioning the council to undertake a second phase of works to Market Square if it wishes to achieve the Square Routes design vision and also does not preclude the council securing further private contributions to Lancaster Square Routes and actually might assist this by adding further credibility as to delivery.

The main disadvantages are that the balance of funding likely to be remaining in the investment fund after completing a first phase of works to Market Square is of itself insufficient to fund a worthwhile second phase and insufficient to complete works to the Square. Also that this option does not position the council to be able to enhance the specification of highway works to Penny Street and Horseshoe Corner in a way consistent with the Square Routes design visions.

The option presents no real risks.

Option 2- After completing the first phase of works to Market Square, reserving the balance of council funding likely remaining in the Investment Fund for Lancaster Square Routes fund to enhance the specification of any highway works to Penny Street and Horseshoe Corner and, in preparing its General Capital Fund budget proposals for 2012/13, Cabinet considers including an additional contribution estimated at £300k to the fund in order to facilitate  a second phase of works to Market Square.

This option has the advantages of both positioning the council to undertake a second phase of works to Market Square to achieve the Square Routes and permitting  the council to take an opportunity to secure improvements to Penny Street and Horseshoe Corner consistent with the design visions for Lancaster Square Routes. Further, it both does not preclude the council securing further private contributions to Lancaster Square Routes and actually might assist this by adding further credibility as to delivery.

The only disadvantage is that reserving the balance of approved funding for Penny Street / Horseshoe Corner means that should Cabinet wish to recommend to council as part of the budget process that it should allocate additional funding to undertake a second phase of works to Market Square the call on additional council resources will be higher than it would were this funding not so reserved.

The option presents no real risks.

Option 3 – As per the established project priority for Lancaster Square Routes to reserve the balance of funding likely remaining in the investment fund after Market Square phase 1 towards a second phase of work in Market Square and await sufficient private contributions before proceeding with a second phase of works to the Square

This option has the advantages of retaining the ability for the council to draw in further private contributions and of making no additional demand on the council’s capital funding resources.

However it has the disadvantages of meaning the council will not have any ability to influence the timing by which it can bring forward a second phase of works to complete improvements to Market Square.

Consequently it risks that the council cannot bring forward a second phase in a timely manner if at all, albeit that officers are hopeful that over time contributions will be secured and these may in time aggregate to the level of sum required.

Option 2 was the officer preferred option.

Options 1 and 2 both provide that as part of the budget process Cabinet can consider recommending that the council make an additional contribution to the investment fund for Lancaster Square Routes towards a second phase of works to Market Square. Option 3 does not provide for this and places reliance on the council securing private contributions to a level sufficient to fund the works.  This means there can be no certainty to delivery with this option.

By a second phase of works to Market Square the council can look to complete a transformation for the public benefit, providing:

·         An environment fitting to the Square’s role as the civic centre of the city

·         A place more active, pleasant and safe to spend time in

·         An improved layout for the outdoor market

·         An environment fitting and complementary to the Old Town Hall and the council’s ambitions for use of this building

·         An improved setting and staging for events and performance

This should add to the attraction of the city to the benefit of business trading, much needed in difficult economic conditions

Option 2 in addition gives the council the flexibility to enhance any highways works to Penny St / Horseshoe Corner consistent with the Lancaster Square Routes design visions.  This should optimise the efficiency and benefits of public investment whether via the city or county councils.  Neither options 1 or 3 provide for this. On balance therefore taking the relative merits of each option into account option 2 is preferred if this can be afforded.

Councillor Hanson proposed, seconded by Councillor Sands:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved:

(7 Members (Councillors Barry, Blamire, Bryning, Hanson, Leytham, Sands and Smith) voted in favour, and 1 Member (Councillors Hamilton-Cox) abstained.)

(1)                    That Cabinet notes the progress in delivering the first phases of improvements as part of Lancaster Square Routes including in Market Square.

(2)                    That Cabinet notes that officers will in due course report to the appropriate portfolio holders on the future layout of the outdoor market, potentials for a street café(s) in Market Square and how the existing Traffic Regulation Order for the city centre pedestrian zone might best be revised and subsequently enforced.

(3)                    That Cabinet notes that officers will report to the portfolio holder on any need or potential to support the county council in works to remedy the surface condition of Penny Street and Horseshoe Corner in a way that is consistent with the Lancaster square routes design visions and that the anticipated balance of funds in the city centre investment after the first phase of works in Market Square fund for Lancaster Square Routes be reserved for this purpose pending further reporting.

(4)                    That in preparing its proposals for the 2012/13 General Fund Capital Programme as part of the budget process, Cabinet considers including an additional £300K contribution to the city centre investment fund for Lancaster Square Routes in order to provide for a second phase of works in Market Square.

Officers responsible for effecting the decision:

Head of Regeneration and Policy

Head of Financial Services

Reasons for making the decision:

The 2010-2014 Corporate Plan identifies Square Routes under the Economic Regeneration Priority and Lancaster Square Routes is identified as one of the actions under “Visitor Economy”. The Indicators for success in implementing the plan include if: the number of visitors to the district is increased and improved; the profile of the district as a visitor destination is improved; the retail offer and built environment in the city centre is improved; the economic impact of festivals and events is improved and an improved future for the district’s museums is improved. The project contributes to all these. In addition, its importance is clearly identified in the new Lancaster District Cultural Heritage Strategy.

The September 2011 Cabinet meeting considered a report on a Priorities Review that detailed on a number of areas of activity that cabinet members had requested be considered in more detail. This was to be fed into the corporate plan and budget process (Minute 34). As an existing priority Lancaster Square Routes should be considered as part of the corporate plan and budget considerations.