That additional funding of up to £200,000 to redevelop the Harbour Light building, to funded from prudential borrowing, with borrowing costs to be met from the Harbour Account be approved.

To ensure the successful redevelopment of the Harbour Light building to enable it to be brought back into use.

None

This decision will come into force immediately.

On 22 June 2017, the Council approved funding for the redevelopment of the Harbour Light building following a recommendation from the Harbour Committee in accordance with the Port Masterplan, subject to vacant possession of the building as set out in the business case in the submitted report.  The decision of the Council is set out below (Minute 39/6/17):

(i)         that, the Executive Head of Business Services be asked to obtain vacant possession of the Harbour Light building at Paignton harbour;

(ii)        that Council approve funding of up to £600,000 to redevelop the Harbour Light building and that a contribution of £100,000 should be made from the harbour reserve fund with the balance of the funding obtained through prudential borrowing; and

(iii)       that, the Executive Head of Business Services, supported by the Torbay Development Agency, be asked to secure tenants for the redeveloped building, on favourable terms, which represent best value.

Since the original decision was taken significant progress has been made, however, the development costs have increased by up to £200,000 and it is therefore necessary to take a further decision to approve additional funding to enable the project to be completed.  This still meets the requirements of the original business case but now:

• Includes the spending to date of legal and compensation sums required to attain the premises in a vacant possession state. 
• Includes project costs for example legal/project fees, risk items, increased contingency and collateral warranties work.
• Takes account of scheme development, inflation and higher than anticipated tender returns.

None