Agenda item

Lancaster Flood Management Scheme - River Lune Phase 3

(Cabinet Member with Special Responsibility Councillor Hanson)

 

Report of Chief Officer (Regeneration & Planning)

Minutes:

(Cabinet Member with Special Responsibility Councillor Hanson)

 

Cabinet received a report from the Chief Officer (Regeneration & Planning) which provided information on a proposed project to improve the River Lune flood defences, and agree that the City Council make a bid for ERDF funding in outline, to attempt to assemble the funds required to progress a scheme.

 

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

 

 

Option 1: Do nothing

 

 

Option 2: Agree to be submit outline bid for ERDF funding.  

Advantages

 

The City Council does not have to take on a major capital scheme.

 

 

Gives the best chance of a scheme to be delivered and begins to put down formal ‘markers’ for core funding from key sources.

 

Begins the process of embedding the project in strategic programmes and securing a financial package.

 

Disadvantages

Long term uncertainty over viability of Caton Road industrial estates.

 

No realistic proposition of a scheme being undertaken in short to medium term.

 

 

 

Whilst Outline ERDF application does not commit the council to accepting funding there is an expected timetable for a full application, with added workload (although informal discussions with LEP indicate that the timetable can be flexible).

 

Risks

Divestment from industrial estates; leakage of employment and business from the sites potentially to outside Lancaster district.

 

Reputational risks of being seen to not support the scheme

 

 

 

 

Reputational risk increases through raising delivery expectations by the council.

 

Engaging in strategic fund raising processes without certainty of the scheme, costs and funding package, may raise stakeholder expectations that ultimately, cannot be met (as the scheme may prove undeliverable).  Alternatively, it may raise expectations that the Council will ‘step in’ financially.  It is sought to manage these risks by the conditions reflected in the recommendations.

 

 

The preferred option is Option 2.  This decision has to be about priorities, whilst managing the Council’s financial risk exposure.  Currently the EA and the County Council (LLFA) are concentrating on developing the Phase 4 project for the City Centre.  Left to the LLFA and the EA’s own priority scoring mechanisms a scheme to improve protection for this significant and important industrial area may not come forward for a number of years.

 

There remains an acute need to promote this scheme to help secure its delivery and the proposed course of action represents the next most appropriate route towards achieving a positive outcome, both meeting the council’s regeneration objectives for the having wider social, economic and environmental impact.

 

Councillor Hanson proposed, seconded by Councillor Hughes:-

 

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

 

Councillors then voted:-

 

Resolved unanimously:

 

(1)             That Officers be authorised to submit an outline bid for ERDF Funding by the target date of 17th February 2017, on the basis that:

-          there is no commitment to allocate capital or revenue funding to the scheme;

-          that any move into further project development would require costs/any other financial risk exposure to be underwritten by the Environment Agency and/or other stakeholders; and that

-          the Council would withdraw from project development at any early stage if it transpires that reasonably, there is no prospect of securing sufficient stakeholder buy-in and/or financing for the project.

(2)             That a progress report be presented back to Cabinet on the above, at the appropriate time.

(3)             That it be noted that the Chairman of Overview and Scrutiny Committee has agreed to waive Call-In on this occasion because a call in period would pass the deadline for submission of an outline bid for ERDF funding.

 

Officer responsible for effecting the decision:

 

Chief Officer (Regeneration & Planning)

 

Reasons for making the decision:

 

The decision enables the Council to submit an outline bid with a more detailed report brought back to members outlining the full financial, procurement, legal and operational implications, prior to progressing the scheme any further.  Economic Growth is a high level Corporate Priority for the City Council.  The flooding risk for this important industrial areas undermines business and investment confidence.  The emerging Local Plan cannot identify extensive new areas for employment development to replace such an area therefore the priority approach should be to increase the level of protection to restore business confidence.  

 

 

 

Supporting documents: