CLYDE GATEWAY URBAN REGENERATION COMPANY.
Minute of Board Meeting of 20thMay 2013.
Present: / Neil MacDonald (Chair) / George Redmond (Vice Chair)Ian Manson (Chief Executive) / Chris Thompson (Vice Chair)
Jill Farrell / Anne Clyde
Denis McKenna / Alan McQuade
In Attendance: / Barry Macintyre, Executive Director of Resources
Steve Pritchard, Executive Director of Development
Martin McKay, Head of Development
Jim Clark, Senior Manager
Alison Brown, Senior Manager
Angela Rowley, Senior Manager
Raymond Burns, Corporate Support Officer
Jim McCaffer, South Lanarkshire Council
Steven Hope,Project Manager
Dougie Cameron, Assistant Project Manager
William Devlin, Project Manager
Tracy McAlpine, Scottish Government
Carol Jack, Glasgow City Council
1Welcome.
The Chair welcomed everyone to the special meeting and thanked the Board members for their attendance.
2Business.
2.1Capital Development Programme – Shawfield/Dalmarnock Smart Bridge –
Tender Returns (For Approval) CG13(MAY)01.
Martin McKay and William Devlin presented a report on the Shawfield/Dalmarnock Smart Bridge advising
(1)of the papers approved at the Clyde Gateway Development Ltd (CGDL) meeting;
(2)of previous approvals given by the Board;
(3)that the Shawfield/Dalmarnock Smart Bridge
(a)had been identified as a key component of the South Dalmarnock Integrated Urban Infrastructure Framework;
(b)would provide quick access to and from the river walkway and Carstairs Road; and
(c)would half the walking time from the station to the National Business District to under 10 minutes;
(4)that £1.9 million of the European Regional Development Fund (ERDF) had been contributed to the project;
(5)on the key stages of the tender process and beyond;
(6)that Glasgow City Council would own and maintain the bridge;
(7)that this project had been an example of partnership working between ClydeGateway, South Lanarkshire Council and Glasgow City Council; and
(8)the contractor would be on site in July and finish early 2014.
After consideration the Board
(a)approved
(i)Clyde Gateway’s Grant Contribution of £3,945,929 towards the construction of the Shawfield-Dalmarnock Smart Bridge to be undertaken by Glasgow City Council;
(ii)the allocation of a 10% contingency of £394,593 to address any emerging construction risk encountered by Glasgow City Council which is identified as the responsibility of Clyde Gateway;
(iii)land acquisition costs of £95,000;
(iv)professional fees required to complete the construction phase in the sum of £650,000; and
(v)delegated authority to enter into a Grant Contribution Agreement with Glasgow City Council for the construction works; and
(b)noted
(i)that the total sum for approval is £5,085,522. As this is a grant contribution VAT is not applicable; and
(ii)that total costs with EDRF funding would be clearly set out in the report.
2.2Clyde Gateway East Joint Venture: Asset Disposal Plots 1-4 and Contribution to Development Costs of Plot 6b (For Approval) CG13(MAY)02.
Councillor Thomson advised that this paper had been approved at the CGDL Board meeting.
Steve Pritchard referred to the verbal update given to the Board at its meeting on 29 April 2013 on the background through to the current position of developments and opportunities at the Clyde Gateway East Joint Venture. Steve then presented a report on the Clyde Gateway East Joint Venture in relation to the potential asset disposal of Plots 1-4 and a contribution to the Development Costs of Plot 6B.
Steve outlined
a)the background to the development of the first Phase of the Gateway East project;
b)the working relationship between Clyde Gateway, SCOT Sheridan and MEPC in terms of developing the site and preparing a Marketing Strategy for the promotion of Clyde Gateway East;
c)the current level of interests shown in the site resulting in SCOT Sheridan submitting a planning application for a further 7,984 square metres of development on Plot 6B;
d)that MEPC had approached Clyde Gateway and made an offer for the acquisition of plots 1-4 in the sum of £1,616,034 which would be developed on a phased approach and had sought a contribution of £200,000 towards the cost of extending the adoptable road network into Plot 6B;
e)that negotiations were progressing for the transfer of 1.6 hectares of land around the periphery of the site which will pass the liability from Clyde Gateway to the Forestry Commission for Scotland (FCS) who were well placed to undertake this form of property management; and
f)the Market, Financial and Options appraisal for the proposal and a risk assessment.
After consideration and a lengthy discussion, the Board
i)noted that a planning application had been submitted for the development of 7,984m2 on Plot 6B and that subject to receipt of permits the scheme work was scheduled for completion in Q1 2014 and that further development of 2,680m2 would follow on confirmation of the BT relocation from Shawfield to Clyde Gateway East;
ii)approved a capital contribution of £200,000 towards the cost of the provision of an adoptable road into Plot 6b to facilitate development of the Plot;
iii)approvedthe sale of Plots 1-4 Clyde Gateway East comprising 4.36 hectares of land, at an estimated value of £1,616,034, subject to re-measure to MEPC upon the above mentioned terms, conditional on MEPC entering into a building contract for the development of Plot 6B;
iv)noted that Clyde Gateway would continue to work with SCOT Sheridan and MEPC and liaise with Scottish Power and adjacent owners to supplement the power supply to Clyde Gateway East;
v)noted that a report detailing the transfer of 1.6 hectares of land to FCS would be brought back to the Board for consideration at a later date; and
vi)notedthat subject to the adoption of highway and drainage infrastructure that the proposed sales to FCS and MEPC would conclude the development of Clyde Gateway East and Clyde Gateway’s exit from the scheme.
2.3Employment Opportunities – CCG (OSM) Ltd (For Approval) CG13(MAY)03.
The Chief Executive provided details ofa report seeking an additional contribution, by way of a wage subsidy and sustainment payment, of up to £78,000 to CCG (OSM) Limited, (CCG), to support the employment of up to an additional 20 individuals from the Clyde Gateway area for a period of one year bringing the total contribution to CCG under this activity to £220,480 and the total number of local people recruited to 64.
After consideration the Board
a)noted the contents of the report; and
b)approved an additional contribution, by way of wage subsidy, of £78,000 to CCG (OSM) Ltd.
2.4Forward Agenda - (For Information) CG13(MAY)04.
The Board noted
a)the work programme currently being undertaken within Clyde Gateway; and
b)the schedule of reports currently being drafted for consideration by the Board.
3.Any other business.
- Barry Macintyre provided a verbal report on the resolution of material disputes involving Clyde Gateway. Clyde Gateway Developments Limited had initiated legal proceedings in one case. Of the remaining disputes no formal legal proceedings had been raised by or against either Clyde Gateway URC or Clyde Gateway Developments Limited.
- The Chair stated that this was Jill Farrell’s last Board meeting and Jim Watson, Scottish Enterprise, would be replacing her position on the Board. He thanked Jill on behalf of the Board for her immense contribution to Clyde Gateway URC over the past 3 years.
- The Chief Executive stated that the Depute First Minister would be visiting the area on 7th June and Margaret Burgess, Housing and WelfareMinister, was returning to the area and had requested community meetings be arranged for her to attend.
4.Date and time of next meeting.
4.1The next URC Board Meeting would be as scheduled on Monday 24 June 2013 inRutherglenTown Hall at 10 am.
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