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Salford City Council - Record of Decision
 
I,
Councillor Jack Youd, Deputy City Mayor and Lead Member for
Finance, Support Services and Regeneration, in exercise of the
powers contained within the City Council Constitution do hereby:
 
1.   
Note the current financial and programme position associated with
Salford Rise, following the re-tendering of the project;
 
2.   
Note the proposed financial contribution to the project from the
2025/26 Place Capital Programme;
 
3.   
Note that DHLUC (now known as the Ministry of
Housing, Communities and Local Government) are fully
aware of the current financial and programme challenges associated
with the project;
 
4.   Note the alternative options explored historically
to address connectivity issues across the Innovation Zone and the
wide-ranging benefits of Salford Rise in not only enhancing
connectivity, but  as a catalyst project
to unlock significant wider benefits for Crescent Innovation,
enabling the area to realise its full potential as part of the
Innovation Greater Manchester ecosystem;
 
5.   Note the previous delegated approvals secured at
Property and Regeneration Briefing on 23rd January 2023,
where the Site Business Plan for Salford Rise was approved; and
 
6.   Re-confirm Salford City Council’s support
for delivery of this important project, endorses the appointment of
the main contactor by the English Cities Fund and the commencement
of the main works to deliver the project. 
 
The Reasons are:
 
In January 2023 the Council approved the
English Cities Fund’s (ECF) Site Business Plan for the
Salford Rise project alongside approval for the Council to enter
into a Development Agreement with ECF, setting out the terms of
ECF’s role as Development Manager for the project.
 
Eric Wright Civil Engineering (EWCE) have been
identified as the main contractor. An anticipated cost-overrun has
been identified which is in large part driven by continued national
inflationary pressures in the construction and logistics market.
Contractual mechanisms exist to cover cost overruns associated with
projects brought forward within the Crescent area. Given the
importance of the project to the Innovation Zone in terms of
improving connectivity between the area and surrounding deprived
communities and improving perception of place through significant
public realm enhancements, it is proposed that the Council also
make a financial contribution (of up to £2m) to the project
from the 2025/26 Place capital programme.
 
Once the final price is fixed,  to maintain programme progress, ECF wish to
formally enter into contract with EWCE as quickly as possible, so
that the main works can commence on-site.
 
The Council has secured £13.17m of
Levelling Up Funding (LUF) to deliver Salford Rise, and this
funding must be fully drawn down by 31st March 2025. The
indicative programme from EWCE shows a completion date which is
beyond the longstop date for funding expenditure. DHLUC area aware
of the current position with the project and confirmed that while
the funding must be drawn down by the long-stop date, they will
take a pragmatic view on practical completion being achieved after
March 2025, on the basis that contracts are in place and the main
elements of the project will have been completed by then
 
The above approvals allow for ECF to formally
appoint EWCE and commence the main works to deliver the project as
soon as possible, to avoid any further programme slippage.
Options considered and rejected were: not to proceed with the project
 
 
Assessment of Risk: Medium
 
 
The source of funding is:

£2m of funding from the
Councils 2025/26 Place Capital Programme is invested as a
contribution to the project
£13.17m of Levelling Up
Funding (LUF)

 
 
Legal Advice obtained: Lauren Armstrong, Shared Legal Service
 
 
Financial Advice obtained: Daniel Hillman,
Senior Accountant, Property and Regeneration Capital Programme
 
 
Procurement Advice obtained: Deborah
Derbyshire - Procurement Category Management Level 2
 
 
HR Advice obtained: n/a
 
 
Climate Change Advice obtained: Dan Welsh
A site-specific Sustainability Strategy has
been prepared for the overall Crescent area and this has informed
the sustainability measures that will form part of the project.
 
 
 
The following documents have been used to
assist the decision process:
Public briefing report submitted to
Property/Regeneration  Briefing on
22nd July 2024
 
Contact
Officer:                               
Kurt Partington - Head of
Development  
Kurt.Partington@salford.gov.uk
 
Dan
Welsh - Principal Programme Manager     
Daniel.welsh@salford.gov.uk
 
 
-      
This decision is not subject to consideration by another Lead
Member.
-      
The appropriate scrutiny to call-in the decision is the Growth and
|Prosperity Scrutiny Panel                       
 
 
Signed: Councillor Jack Youd
Deputy City Mayor and Lead
Member for Finance, Support services and Regeneration
Dated: 22nd July 2024
 
 
This decision was published on Monday 22nd July 2024                                            
This decision will come in force at 4.00 p.m. on Monday
29th July 202 unless
it is called-in in accordance with the Decision Making Process
Rules.