Issue - meetings

To provide the Committee with an update regarding the demolition works at the former Cummins factory, known as the St. Martin’s Park development scheme and outline the next steps with remediating the site prior to its disposal. 

Purpose of report

To provide the Cabinet with an update regarding the demolition works at the former Cummins factory, known as the St. Martin’s Park development scheme, and to outline the next steps with remediating the site prior to its disposal. 

Decision

That Cabinet:

1.            Notes the update regarding the project.

2.            Recommends to Full Council the budget of £192,630.23, to be met from the regeneration reserve, for the additional expenditure incurred in the contract with GF Tomlinson for the demolition. Authority to be delegated to the S151 Officer in consultation with the Leader of the Council to pay for the additional works above the original £1.303m.

3.            Notes that Members will receive a subsequent report on the remediation costs once the strategy has been finalised and will seek approval for the budget for those works at Full Council. 

Alternative options considered and rejected

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To not pay GF Tomlinson for these additional items – this would be a breach of contract.

Reason for decision

The Council was obligated to demolish and remediate its part of the site at the St. Martin’s Park to enable the delivery of housing, a retirement village and commercial space.

The construction contract was reviewed at the Finance, Economic Development and Corporate Services Overview and Scrutiny (FEDCO) meeting held on 27 September 2022. It was highlighted that there were no contingency monies in the original contract. There had been additional unforeseen works which were included in the report before members; these needed to be addressed before completing the sales contract with the developer.

The following points were raised during discussion:

·         The situation with the 1904 building on site at St. Martin’s Park was discussed at length at FEDCO at its meeting on 27 September. It was the oldest building on the site, and it had originally been hoped that the building could be retained. However, following demolition works of the pre-fabricated block attached to the 1904 building, it had become apparent that the structural integrity of the 1904 building had been compromised. Therefore, it would need to be demolished as the costs of retaining the building in its current form would be prohibitive.

·         The Council would ensure that the developers of the site recreated the 1904 building in as close a form as possible to the original layout and look.

·         The St. Martin’s Park development was an excellent initiative within the Council’s property portfolio.

·         The project was ‘on-track’ in terms of timescales and there were ongoing positive relations with Burghley Estates, the development partners.

·         The aim of the development project was to look for a return on capital, whilst providing wider benefits in terms of economic growth for the south of the district. It would provide 180 homes of good quality.