That additional funding from the Council’s capital contingency, up to a maximum of £540k, be approved for the completion of the Harbour View Hotel project.

Increased costs have come as a result of the limited availability of Groundworks Contractors in the market, hence the ability to negotiate, exacerbated by plant, material and labour price increases.

The Hotel forms part of a comprehensive programme of town centre regeneration projects across the Bay and the Council’s wider place-making agenda, helping to deliver Torbay's Local Plan, Economic Strategy, Transformation Strategy for Torbay’s Town Centres, and Destination Management Plan.

This decision will be implemented immediately.

The current budget to complete the construction of the Harbour View Hotel was insufficient due to increased costs to complete the external works package.  Cost estimates for the works were agreed with the Contractor, however the quote for the actual works have been higher than estimated.  Additional costs also exist, predominantly relating to utility provisions.

On the 11 October 2023 the Overview and Scrutiny Board considered the proposal and supported the Director of Finance using his delegated powers to authorise up to £540,000 to meet the additional costs to complete the Harbour View Hotel development and that these costs would be met through capital reserves rather than borrowing with the final position reported as part of the revised Capital Investment Programme which will be submitted to Council in January 2024.

None.