Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: March 12, 2026

Purpose:

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.