Content

RESOLVED

 
(1) 
That it be noted that the Blackburn Skills and
Education Campus referred to the wider town centre development on
Council owned land currently occupied by Brown Street and Penny
Street Car Parks and centred on a new Civic Square, as illustrated
on the masterplan and as attached as Annex A to the report, and
when completed would comprise of 4 buildings.
 
(2) 
That the agreement of commercial terms with Star to
acquire and occupy Building 1 as indicated on the phase one
masterplan as attached as Annex B to the report, with the intention
for the project to be referred to now as Star Square (Phase 1: One
Star Square and the public realm), with an ambition for the wider
development of Star Square incorporating future Buildings 2, 3 and
4, be noted.
 
(3) 
That it be noted that the estimated development
costs for the first phase of the project were £45.3m which
comprised of £32.3m for Building 1 and £13m for all
external works and was being funded by £20m of Government
funding, £2m of Lancashire Combined County Authority funding
with the remaining £23.3m funded by the Council and
Star.
 
(4) 
That it be noted that the capital funding of
£23.3m included £13m from within the existing capital
programme funded through Council borrowings together with
£10.3m of supplementary capital (borrowings) would be secured
by a forward sale development agreement to Star and repaid to the
Council in full on completion of the construction works.
 
(5) 
That the addition of £10.3m to the capital
programme, funded by Council borrowing, acknowledging the
short-term additional revenue cost of £670,000 in 2028/29 and
£493,000 in 2029/30, in respect of Minimum Revenue Provision
and interest payable, until this was repaid by way of a capital
receipt on completion of the construction works, be
approved.
 
(6) 
That the annual estimated loss of parking income
from the reduction of spaces in Brown Street Car Park and provision
of free parking permits for STAR in Penny Street Car Park of
£30,000 be noted.
 
(7) 
That the completion of the highway works in April
2026, with the final phase of enabling works due to commence
thereafter by United Utilities and completed by the end of 2026, be
noted.
 
(8) 
That it be noted that an updated planning
application would be submitted under Section 73 of the Town and
Country Planning Act 1990 to reflect the latest requirements of
Star and would be submitted later in the year.
 
(9) 
That the freehold disposal of Building 1, following
completion of the construction works for the agreed Purchase Price
in accordance with the terms as set out in this report, be
approved.

 
(10)                
That the naming of the new civic square as
‘Star Square’ as illustrated on the masterplan, as
attached at Annex A to the report, which would be included in the
primary postal address of future buildings, be approved.

 
(11)                
That the business rate position of Star as a
charitable organisation with approval for the Council to make a
non-recoverable grant payment to cover the business rate liability
of the under-utilised space within the building for a period of up
to two years, or whilst the space was unoccupied whichever was
sooner, with the payment restricted to 20% of the business rate
liability for the two floors, be acknowledged.
 
(12)                
That the conclusion of all necessary legal
formalities, to satisfy compliance with the Subsidy Control Act
relating to the terms of the disposal of Building 1, be
acknowledged.

 
(13)                
That the risk profile of the development agreement,
and the obligations to cover future adverse or unexpected
inflationary pressures together with developer risk, be
acknowledged and accepted and that it be noted that an appropriate
level of development contingency had been included in the capital
funding.

 
(14)                
That the Growth Programme Director and the Deputy
Director of Legal and Governance be granted delegated authority to
finalise terms with Star.

 
(15)                
That the Growth Programme Director be authorised to
commence the procurement of a building contractor using the North
West Construction Framework and appoint the successful contractor
under a Pre-Constriction Services Agreement with the appointment of
the construction work subject to a future report to the Executive
Board once design, costs, programme and risk had been
finalised.

 
(16)                
That the Growth Programme Director and the Deputy
Director of Legal and Governance be granted delegated authority to
finalise cost and terms and complete the necessary legal
formalities for the Pre-Construction Services Agreement.