Vacant and Derelict Land Fund - Re-allocation of Funding
North Lanarkshire Council · 17 February 2023
Back to Enterprise and Fair Work Committee — 17 February 2023 and its agenda
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☒ Yes ☐ No Ref PH/DG Date 17/02/23 Vacant & Derelict Land Fund From Pamela Humphries, Chief Officer of Place E-mail Greerd@northlan.gov.uk Telephone David Greer, Growth Programme Manager: 07583059816 Executive Summary Since 2006, North Lanarkshire Council has received funding through the Scottish Government’s Vacant and Derelict Land Fund (VDLF) Programme to support the remediation and re-use of long-term vacant and derelict land sites within North Lanarkshire. The award of this annual grant is subject to the submission of a VDLF Local Delivery Plan (LDP) and its approval both by committee and the Scottish Government. In 2020, the Scottish Government approved the award of £0.656M to be used to allow Scottish Canals to take forward the restoration of Craigmarloch Stables (Kilsyth) for potential end use as holiday accommodation. Due to funding implications, this project could not be taken forward. The council has reviewed alternative opportunities for the regeneration of this building but any potentially viable project could not be delivered within the timescales required by this fund. As such, it is proposed that this budget is reallocated to support enabling works for the development of new industrial units at Link Park (Plot 1), Newhouse. This work would be contractually committed before financial year end and ensure that this funding award is safeguarded. This reallocation has been approved by the Scottish Government. A range of other potential funding sources would be sought for the regeneration of Craigmarloch Stables if a potential viable use for these buildings was to be identified. On January 17th 2023, the Scottish Government also confirmed that North Lanarkshire would be allocated £1.841M VDLF for 2023/24 subject to the submission and approval of a 2023/24 VDLF Local Delivery Plan (LDP). This report outlines projects currently being considered as part of this LDP and seeks approval to advance and submit this bid accordingly by the end of March 2023.
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Recommendations It is recommended that committee: 1. Approve the reallocation of Vacant and Derelict Land Fund monies from ‘the regeneration of Craigmarloch Stables’ towards enabling works for a new industrial unit at Link Park, Newhouse Industrial Estate. 2. Approve the projects which are being assessed for inclusion within the 2023/24 VDLF Delivery Plan which is to be submitted to the Scottish Government by the end of March. 3. Note that an update on the proposals for the 2023/24 VDLF funding allocation will be reported to the next committee. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (5) Grow and improve the sustainability and diversity of North Lanarkshire's economy
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1. Background 1.1 The VDLF is a ring-fenced annual capital grant allocation which provides financial support from the Scottish Government to assist with the regeneration of registered vacant and derelict land (V&DL) sites across selected local authority areas. 1.2 Funding provided through the VDLF Programme is subject to the submission (and approval by the Scottish Government) of a LDP which sets out local authority investment proposals to meet the objectives of the VDLF Programme. 1.3 These objectives are to: • tackle long term vacant and derelict land (and in particular sites which have been registered as vacant or derelict for at least 15 years); • stimulate economic growth and job creation; • develop a diverse sustainable environment with a focus on temporary and permanent greening; and • support communities to flourish and tackle inequalities 1.4 There is a range of activity which this fund cannot support including: major infrastructure works, retail and housing projects. 2. Report 2.1 In January 2020, the council was awarded a 2020/21 VDLF capital grant of £1.956M subject to the submission of a VDLF Local Delivery Plan and its approval by the Scottish Government. 2.2 As part of this approval, both committee and the Scottish Government agreed that £656,000 should be used to support Scottish Canals to take forward the regeneration of the derelict Craigmarloch Stables (Kilsyth) for use as holiday homes. 2.3 Scottish Canals were not able to take this forward. In turn, Scottish Government approval has had to be sought twice to carry-forward this grant (terms and conditions of grant require spend within financial year of approval unless dispensation is sought to carry this forward). 2.4 Given that the original project could not be carried out, North Lanarkshire Council has investigated alternative proposals for the reuse of this building. However, with lack of match-funding availability (given likely costs associated with the regeneration of this derelict building) and timescales associated with securing funding and finalising design and procurement, it was considered that any contractual commitment of this fund would likely take several years. 2.5 To avoid potential payback of this grant, it is proposed that this grant is used to address a shortfall for enabling works for industrial development works at Link Park, Newhouse Industrial Estate (works currently being taken forward by Fusion Assets – the council’s arms-length economic regeneration and property development company). 2.6 This reallocation would allow works to be completed in full at Link Park and ensure that the £656,000 would be contractually committed by year end in line with the original grant offer and permissions granted to extend this spend. The Scottish Government has approved the reallocation of this funding.
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2.7 It should also be noted that there are currently a number of alternative funding sources available that could support the future regeneration of Craigmarloch Stables (including the Scottish Government’s Regeneration capital Grant Fund and Vacant and Derelict Land Investment programmes, Historic Environment Scotland Grant Funding and Heritage Lottery Funding) and the council will continue to work with the owners of this building (Scottish Canals) to secure these when viable schemes are in place. 2.8 On the 17th January 2023, and following the Scottish Government Budget announcement in December 2022, £1.814M capital grant funding for the remediation of V&DL was awarded to North Lanarkshire Council subject to the submission and approval of a 2023/24 VDLF LDP. 2.9 The Local Delivery Plan is currently being progressed and the following projects are being assessed for viability: • further enabling works at Ravenscraig Business Park to support the first phase of industrial development at this site; • further enabling works at Condor Park (Eurocentral) to support the first phase of industrial development at this site; and • feasibility studies (including ground investigation works) to support the potential future development of vacant and derelict sites by Fusion Assets. These projects would be progressed and delivered by Fusion Assets, the council’s arms length regeneration company. 2.10 Approval is sought to finalise evaluation of the projects outlined in 2.9 above to enable the submission of the 2023/24 VDLF Local Delivery Plan by the end of March. An update will be provided to the next Committee. 3. Measures of success 3.1 Future economic and employment benefit gained from the reallocation of VDLF from the ‘restoration of Craigmarloch stables) towards the development of new industrial units at Link Park. 3.2 Future economic and employment benefit gained from the investment of the council’s allocated 2023/24 VDLF award made from the Scottish Government. 4. Supporting documentation N/A Pamela Humphries Chief Officer of Place
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes x No ☐ If Yes, please provide a brief summary of the impact? The reallocation of this funding will support the development of new industrial infrastructure (via Fusion Assets) and in turn new local employment opportunity. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality- and-fairer-scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The award of a further year of VDLF funding will help support the delivery of the Economic Regeneration delivery Plan, and specifically the remediation of vacant and derelict land. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk
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Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? If funding is not reallocated, potential exists that any non-contractually committed funding could be reclaimed by the Scottish Government. This is identified as general risk on service risk register 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.