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Subject to ongoing gateway reports and financial viability
assessments, to:
2.1 Note the increased project cost since Stage 2 and the
project’s risk mitigation strategy including the retention of
£32.7m in contingency (26% of net scheme cost) 2.2 Approve
proceeding to Stage 4 based on Stage 3 Design and Viability
Assessment.
2.3 Approve £4.6m additional funding for consultant and
direct fees and PCSA fees until the end of Stage 4, mainly to cover
increased requirements under the Building Safety Act, noting total
forecast fee spend to end of stage 4 is £14.55m. Page 126 2.4
Note the costed risk included in the cost model plus the addition
of optimism bias to cover additional risk not fully mitigated
within the costed risks.
2.5 Note that while the FLCR scheme is based on a low carbon,
policy compliant design, the
gas[1]powered EC1 Energy Centre will be
removed from the FLC&R site, its future to be resolved as part
of a separate strategy for a borough-wide heat network (including
Bunhill) that will form a future paper to Executive, also noting
the issues set out in section 3.8.
2.6 Note the intention to develop of a wellbeing offer for
local residents to take advantage of the
co[1]location of leisure and
medical facilities.
2.7 Note the full General Fund deficit of £31.029m and
Housing Revenue Account (HRA) deficit of £3.187m based on
current total cost including all contingencies.
2.8 Approve re-allocation of £6.55m of General Fund
capital programme borrowing to FLCR, as set out in para 3.7.20 to
mitigate additional revenue pressures of up to £0.711m per
annum.
2.9 Note the intention to engage with the GLA to assess any
opportunities to secure additional grant to support the affordable
housing within the scheme.
2.10 Note that additional Executive approval will be sought
prior to award of a construction contract at RIBA Stage 5
 
 
 
 
AGREED RECOMMENDATIONS
 
– as detailed in the report
– as detailed in the report
– none