City Deal Update Report
North Lanarkshire Council · 12 May 2023
Back to Enterprise and Fair Work Committee — 12 May 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref LN/PH Date 12/05/23 City Deal Update Report Programme of Work PO21 From Pamela Humphries, Chief Officer (Place) E-mail NobleLy@northlan.gov.uk Telephone Lyndsay Noble 07970016256 Executive Summary The North Lanarkshire City Deal Programme Update report seeks to inform the Enterprise and Fair Work Committee of the current status of North Lanarkshire City Deal Infrastructure subprojects. Recommendations It is recommended that the Committee: 1) Note the status and recent progress of North Lanarkshire City Deal infrastructure subprojects. 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 Glasgow City Region (GCR) City Deal is an agreement between the UK and Scottish Governments and the eight GCR Local Authorities, with the sole focus of creating additional economic growth. The 20-year GCR Deal was accepted by GCR Council Leaders on 20 August 2014 and incorporated: • implementing a £1.13bn Infrastructure Fund to improve the regional transport network, regenerate sites for economic use and improve public transport provision; • supporting growth in the life sciences sector; • helping small and medium enterprises to grow and develop; • establishing programmes to support the unemployed; and • piloting new ways of boosting the incomes of low wage employees. 1.2 The City Deal programme for North Lanarkshire as part of the Infrastructure Fund comprises the following projects: • A8/M8 Corridor Access Improvements o Strategic Active Travel o Orchard farm Roundabout • Glenboig Link Road (complete) • Pan-Lan Orbital Transport Corridor o East Airdrie Link Road o Ravenscraig Access Infrastructure o Motherwell Town Centre Transport Interchange 2. Report 2.1 Motherwell Town Centre Transport Interchange (MTCTI) 2.1.1 The redevelopment of Motherwell Rail Station by ScotRail’s appointed contractor, Balfour Beatty, is now substantially complete. The station has undergone transformational change with the improvements providing a high quality experience for rail passengers and railway employees at Motherwell. Transport and public realm investment at Muir Street, led by the council, is substantially complete. These works complement and support the major investment in Motherwell Rail Station, provide a new access road to the station and taxi rank, expanded bus stop capacity on Muir Street and public realm improvements. 2.1.2 Together, the station investment and Muir Street improvements have created a transport hub in the heart of Motherwell. This provides an improved gateway into Motherwell and the Glasgow City Region by public transport and is a key part of regeneration plans for Motherwell town centre. The Partnership between Scotrail, NLC, SPT and Transport Scotland in delivering the joint project has been a success and is now driving forward related active travel projects to connect Motherwell Rail Station and surrounding communities to leisure facilities, employment and training opportunities at Strathclyde Country Park, Braidhurst Industrial Estate and Ravenscraig. 2.1.3 Both the Motherwell Rail Station and Muir Street contracts were scheduled to be complete by July 2022. However, primarily due to unforeseen structural issues with the station building, completion of the station contract experienced a number of delays. Interfaces with the station works, drainage and public utility issues within the Muir Street
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works area, also impacted on completion of the Muir Street works. Both contracts will therefore be completed in May 2023. Throughout the project, joint communication group meetings have been held to ensure that communication updates are coordinated. Planning is currently underway for a joint opening event in the summer. 2.1.4 Community Benefit outcome delivery by both Balfour Beatty and ScotRail is now complete. A number of skills, employability and training initiatives and community projects have been delivered through community benefit commitments within the Muir Street contract and through a funding agreement with ScotRail. ScotRail have also engaged in an initiative to promote opportunities within the rail industry. 2.2 Ravenscraig Access Infrastructure 2.2.1 The Ravenscraig Access Infrastructure project comprises three projects: • a new road connection between Motherwell and Ravenscraig from Airbles Road, passing under the West Coast Main Line railway, and on to the Regional Sports Facility • completing the dualling of Airbles Road between Airbles Farm Road and Hamilton Road and improving facilities pedestrians and cyclists • upgrading the A723 for three kilometres from the New Craig Road junction at Ravenscraig to the M8 at Holytown to create a dual carriageway and shared footway/cycleway 2.2.2 Significant progress has been made by Story Contracting, with the construction of the new bridge structure. Following its pre-construction during 2022 and early 2023, the bridge was successfully installed in the railway during the 10-day track closure at the start of April with the works completed and the railway re-opened on time. 2.2.3 Story will now complete the works for Network Rail during May and June before commencing the advance preparatory road works for the new dual carriageway within the bridge structure on behalf of the Council. These works simplify the contractual relationship with Network Rail and the Council during our main works and ensure progress continues on site. 2.2.4 In preparation for the next phase of works, the project team: • have issued the Invitation to Tender (ITT) for the Construction of the dual carriageway into Ravenscraig. The outcome of the procurement will be reported to committee in due course. It is intended that the contractor will be appointed in the autumn following City Deal and Committee approval with advance notices and preparation for works commencing before the end of 2023 and works getting underway in early 2024 and • commissioned the diversion of some public utilities in advance of the main works. 2.2.5 Related to this part of the project, works have progressed well for the relocation of the Evans Halshaw Ford car dealership with the demolition and clearance completed and construction works now commenced for the replacement showroom on the nearby former Taggarts site. The new dealership will occupy the front part of the site with the rear part of the site being made available for residential development, potentially as part of the council’s new supply programme.
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2.2.6 For the upgrading of the A723 the project team has completed the refinement of the detailed proposals for the dualling of the A723 from Ravenscraig to the M8 at Holytown. Information will be provided to the communities and the planning authority during May and June, to confirm the proposed improvements to the earlier planning permission. Following this the team will commence the preparation of the specifications and documents for procurement during 2024. 2.3 East Airdrie Link Road 2.3.1 East Airdrie Link Road will provide a new strategic link between the M8 and south Cumbernauld. 2.3.2 As previously reported, a section of the preferred route has been realigned to accommodate the proposed Monklands Hospital replacement project. The project team continue to liaise with NHS Lanarkshire to ensure coordination, secure efficiencies and to maximise benefits. 2.3.3 In line with previous approvals, the procurement for professional services for the development of the preliminary design for the road, preparation of the planning application and the collation of the outline Business Case has commenced. The ITT for Stage 3 has been issued and it is intended to award the services contract in August 2023. Approval for this contract award will be sought from the Depute Chief Executive and the outcome of this procurement activity will be brought back to Committee in line with General Contract Standing Orders. 2.3.4 As reported to Committee, the programme for the development and delivery of the EALR has been reviewed. This is to accommodate complex design and planning requirements and to allow for technical approvals and implementation of the land acquisition strategy. It is intended that the Outline Business Case is brought to committee in February 2024 and subject to approval, is submitted to the GCR Cabinet to secure further funding. 2.4 Orchard Farm Roundabout 2.4.1 The ‘A8/M8 Corridor Access Improvements’ Outline Business Case (OBC) including the Orchard Farm Roundabout was approved by the GCR Cabinet on 30 August 2022. As reported, the scope of the Orchard Farm Roundabout project comprises a financial contribution of £2m to the developer for the construction of the junction on the A8. 2.4.2 The Orchard Farm Roundabout is a new junction on the A8 All Purpose Distributor Road and critically supports the development of the Mossend International Rail Freight Park (MIRP) and provides important access to a number of development sites to the north of the A8/M8. 2.4.3 The proposed Full Business Case (FBC) for the new junction will be underpinned by a funding agreement between the council and the developer/s and will establish funding arrangements, obligations and key milestones. The remainder of the costs and any associated delivery risks relating to the delivery of the infrastructure will be met by the developer/s. The infrastructure will form part of the strategic road network and will fall under the responsibility of Transport Scotland. 2.4.4 It is proposed to submit the Full Business case (FBC) for the Orchard Farm Roundabout for approval to the GCR Chief Executive’s Group in August 2023, subject to sufficient procurement progress by the developers. The FBC will report on the procurement outcome of the new junction and associated works and is the final stage in the funding
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approvals to allow for contract award and the delivery of the infrastructure to progress. Agreement will be sought from Committee to submit the FBC to the GCR Chief Executives Group for approval. This would allow for works to commence in late autumn 2023, with the intention that the works would be complete by late 2024. 2.5 A8/M8 Corridor Strategic Active Travel 2.5.1 The provision of Strategic Active Travel Links, connecting Eurocentral/Maxim Office Park/Newhouse and Mossend to surrounding local communities and local rail stations was approved by GCR Cabinet on 30 August as the new preferred option for the Eurocentral sub-project. 2.5.2 The routes identified are to the south of Eurocentral between Bellshill Rail Station/town centre and the M8 cycle route at North Road; Bellshill town centre, Mossend and Holytown, connecting into Eurocentral from Holytown and between Holytown and Newhouse. To the north of Eurocentral, a route has also been identified from Whifflet rail station to the M8 cycle route at Shawhead. These routes are designated as Strategic Network Routes within the North Lanarkshire Active Travel Strategy. 2.5.3 In total, it is aimed to deliver 10km of shared use walking and cycling routes with City Deal investment. The routes link with other planned active travel route improvements as part of the Ravenscraig Infrastructure Access and East Airdrie Link Road projects and with other projects being developed by the Infrastructure and Transportation team. There are also opportunities to seek match funding from other external funding sources to expand the scope of the project to connect more communities to employment opportunities. 2.5.4 Due to the scale of the project, a phased approach will be taken to design and delivery. It is planned to appoint consultants to progress feasibility and design work for the first phase of the project in Q1 2023. This will focus on the route into Eurocentral from Holytown and between Holytown and Newhouse. Design work will be progressed over 2023 with it then intended, subject to Committee approval, to submit a sub-project Full Business Case in Summer 2024 and commence work on site in Autumn 2024. 3. Measures of success 3.1 As the second largest Local Authority within the GCR, North Lanarkshire’s residents and businesses will directly benefit from the City Deal through: • creation of 2,000 new workplace jobs, representing a 1.6% uplift in the future jobs growth forecast for North Lanarkshire; • a significant share of some 15,000 temporary construction jobs anticipated to be generated by the development of the Infrastructure Investment Fund projects – construction being a predominant local employment sector; • estimated 9.2% of North Lanarkshire working age residents having heightened access to employment opportunities within the wider GCR area; • additional tender opportunities as a result of GCR City Deal investment for North Lanarkshire Business and SME’s; • community benefits derived from all GCR City Deal contracts awarded over £50,000; and • a proportionate share of the £2.2bn per annum Gross Value Added (GVA) increase in the GCR area over the lifetime of City Deal, equivalent to 4% uplift in the region.
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4. Supporting documentation 4.1 No supporting document presented. Pamela Humphries Chief Officer (Place) 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 ☒ No ☐ If Yes, please provide a brief summary of the impact? The City Deal Cabinet has agreed that Inclusive Growth is to be fully embedded within the GCR City Deal programme delivery and that it is also committed to supporting the delivery of the Fairer Scotland Action Plan. Future NLC subproject OBC/FBC development will be scrutinised to ensure it meets the duties of the Fairer Scotland Action Plan. 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 North Lanarkshire Council City Deal Programme approved funding allocation across the 3 headline projects is as: • A8/M8 Corridor Access Improvements £6,478,521 • Glenboig Link Road (complete) £6,223,205 • Pan-Lan Orbital Transport Corridor £215,696,493 The City Deal funding comprises funding from the GCR City Deal Infrastructure Fund (£148,956,293) and North Lanarkshire Council (£79,441,926). The financial implications of the City Deal Programme are incorporated within the Council’s
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Long-term Financial Plan and to date budgetary implications have been approved by the Policy and Strategy Committee.
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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? The City Deal Team work closely with Legal Services on all sub projects focusing on land acquisition and CPO, procurement and contract preparation and management, funding agreements and any other related matters. 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 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? All infrastructure projects developed by the Council as part of the GCR City Deal will be subject to relevant environmental and sustainability appraisal and as part of subsequent planning application approvals and procurement.
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Furthermore, to adhere with HM Treasury Greenbook best practice, each iteration of project business case seeking GCR City Deal funding will include a review of the sustainability considerations, this will include carbon management, involving categorisation, assessment and mitigation. 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? The City Deal programme and the delivery of the projects will continue to be promoted through Corporate Communications and the Glasgow City Region’s Communications team. Specific to Muir Street Improvements, a joint communications group with Scotrail, Transport Scotland and North Lanarkshire Council has been set up to coordinate communication and promote the Motherwell Station redevelopment and the City Deal Muir Street improvements. In terms of East Airdrie Link Road, a joint communication plan will be developed with NHS Lanarkshire and North Lanarkshire Council to coordinate communication, stakeholder engagement and promote the projects as they develop. 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? A key risk for the City Deal Programme is the current global economic climate and its short and long term impacts on the delivery of the city deal projects. This risk is becoming a live issue for the Programme and will be assessed and recorded within the City Deal Issues Register. This is not unique to City Deal and the approach to this risk and issue management will be carried out in conjunction with Finance and the Glasgow City Region Project Management Office. Risk management of North Lanarkshire’s City Deal activity is incorporated within the council’s City Deal programme risk register which is reviewed by the City Deal Manager and reported to the council’s City Deal Board. The City Deal risks are also integrated in the Planning and Regeneration Service Risk Register. Each City Deal sub project has a detail risk register and is managed by the Project Manager. 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.