Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: September 12, 2024

Purpose:

Content: RESOLVED   KEY DECISION   That the Executive:   a)      Approved the principle of reallocating Section 106 funding from the Weldon Park development towards delivery of a new three form entry primary school at Priors Hall Zone 2.   b)      Delegated to the Executive Member of Growth & Regeneration in consultation with the Executive Director of Place & Economy the negotiation as necessary of any deeds of variation to existing Section 106 agreements to confirm the reallocation of S106 funds from Weldon Park towards delivery of a new three form entry primary school at Priors Hall Zone 2.   c)      Delegated to the Executive Member of Children, Families, Education and Skills in consultation with the Executive Director of Children’s Services the decision to issue a Voluntary Ex-Ante Transparency (VEAT) Notice to support delivery of a new three form entry primary school at Priors Hall Zone 2.     Reasons for Recommendations: The recommendations set out above allow the Council to move forward with securing delivery of a new three form entry primary school at Priors Hall Zone 2 by: ·       Adopting the most cost-effective course of action. ·       Minimising financial risk to the Council of further increases in build costs and liabilities. ·       Supporting the Council in delivering its statutory duties to provide a sufficient supply of school places and accelerating delivery of the third form of entry (2fe) to be provided at the Priors Hall Zone 2 primary school. ·       To accord with the relevant regulations and legislation governing procurement by direct award.   Alternative Options Considered: The alternative options set out below were considered:   Option 1: To progress with North Northamptonshire Council (NNC) delivery of the Weldon Park 2FE Primary School as outlined in the Weldon Development S106 agreement in addition to Priors Hall Planned 2FE School.   a)         This option would require additional capital investment from the Council, as there is insufficient S106 funding and insufficient grant allocations to deliver a full 2fe school on this site. b)         This option would not allow for a deed of variation to allow the Weldon site to be developed as a specialist school with a Special Educational Needs and Disabilities (SEND) Unit or ‘Satellite’ facility linked to and operated by an existing school. c)          Developing the planned Weldon Park 2fe primary school would mean over-supply of primary education capacity in the Corby area, potentially destabilising existing schools and impacting on the financial viability and operability of both new schools.   Option 2: Supporting the delivery of the new primary school at Priors Hall Zone 2 as a 2fe school by the developer without the benefit of additional funding from Weldon Park.   a)     This option would be expected to result in the developer of Priors Hall Zone 2 electing to transfer the primary school site to the Council to deliver, plus pay a £8.5m financial contribution (plus indexation) for the Council to directly procure and deliver the entire 2fe school. This option would allow the Council full control over the design, specification and timescale for build of the school however, it places additional financial risk on the Council due to the expected cost of delivering a 2fe primary school now exceeding the level of S106 funding available.   Option 3: The Council stepping in to deliver the new primary school at Priors Hall directly as a 3fe school.   a)         In the event of the Priors Hall developer exercising its election to transfer the site and financial contribution to the Council, then the Council would need to step in to deliver the school and to deliver it as a 3fe from the outset (instead of a 2fe for future expansion). b)         It is expected the cost of this will still require additional funds to be allocated from the Weldon Park development (and therefore a Deed of Variation would still be required in respect of the Weldon Park S106 agreement), however the risk will then also transfer in full to the Council to meet, and the future funding gap that may occur as a result of further cost increases. The Council does not have flexibility within its capital allocations to accommodate this level of risk.   Option 4: The Priors Hall developer deliver the new 3fe school with additional S106 funding transferred from the Weldon Park development.   a)         This option has the support of the Weldon Park Developers who have agreed in principle to the transfer of the funding and to a Deed of Variation (DoV) to allow for the Weldon Park Site to be developed for SEND purposes. This provides for a valuable site for any potential DfE New School Bid opportunities. b)         The Priors Hall Developer has confirmed their willingness to develop the 3fe School within an agreed funding envelope with an open book accounting approach and are prepared to accept the risk of any overspend on the agreed scope and costs (subject to final confirmation of the level of indexed S106 funding available). The Priors Hall Zone 2 site has a planned 1fe expansion built into the S106 but that extension was not expected to be required for 10+ years. The current estimated costs mean that we would not be able to deliver this expansion in the future, but we do have the space on the site to build a 3fe now. c)          Pupil Place Planning demonstrates the need for a 3fe in this area sooner than the planned expansion was due to come forward. d)         NNC will have oversight of the design and build process to ensure that Building Bulletin 103 non statutory area guidelines for school building and any other performance requirements are met in full.