AMIDS Enabling Works - Cost Underwrite
Renfrewshire Council · 16 September 2026
Back to Leadership Board — 16 September 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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PUBLIC To: Leadership Board On: 16 September 2026 Report by: The Chief Executive and Director of Finance and Resources Heading: AMIDS Enabling Works – Cost Underwrite 1. Summary 1.1 The purpose of this report is to seek approval from the Board for the Council to underwrite enabling costs associated with the expansion of the AMIDS District Heating Network (DHN), together with the associated costs required to develop the full business case for Tech Terrace Phase 2. 2. Recommendations 2.1 It is recommended that the Board authorise the Director of Finance & Resources to enter into underwrite agreements with AMIDS (Renfrewshire) LLP in relation to (i) enabling works costs associated with the expansion of the AMIDS DHN and (ii) development of the Full Business Case (FBC) for Tech Terrace Phase 2. 3. Background 3.1 The Council appointed a Development Partner (Tarras Park Properties Ltd) to jointly form the AMIDS (Renfrewshire) LLP in May 2023. The Development Partner is required to deliver the first phase of commercial space development on a speculative basis, targeted at start-up companies and SMEs, which will be known as Tech Terrace.
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PUBLIC 3.2 Tech Terrace will create approximately 5,388 sqm of modern, flexible, speculative new build space, specifically designed for small and medium- sized enterprises (SMEs) in the advanced manufacturing sector. The space will be designed to accommodate: • Companies seeking proximity to neighbouring innovation centres: National Manufacturing Institute Scotland (NMIS) or the Medicines Manufacturing Innovation Centre (MMIC) • Companies expanding research projects initiated at NMIS/MMIC • University spin-outs • SMEs, micro-SMEs, and scale-ups in the advanced manufacturing sector 3.3 The delivery of Tech Terrace will be undertaken in two phases. Phase 1 will be part funded by the Development Partner, with support from a grant provided by Scottish Enterprise (SE). Phase 2 will also be part funded by the Development Partner together with grant support from the City Deal Enabling Commercial Space Programme. It is intended that this funding will also be used to extend the existing DHN to serve both phases, and support any other infrastructure works which would secure further development of the site. The Enabling Commercial Space (ECS) grant allocated to the Council totals £8.5m. While this funding has been agreed in principle by Cabinet, the release of funds is contingent on agreement of Full Business Cases. Up to £0.5m of the grant allocation may be drawn down to support development of FBCs. An indicative allocation of the total grant is outlined in the table below, subject to Board and GCR approval: 3.4 The design and operating proposals for Tech Terrace Phase 1 and 2 are based on the assumption that occupiers will connect to the AMIDS DHN. Phase 1 is approaching a critical decision point as the development moves from design into procurement and delivery. Planning permission for Phase 1 of the scheme has recently been secured. The Phase 1 programme estimates construction will start in October 2026 with practical completion July 2027. Indicative Allocations ECS grant - advance drawdown ECS grant - project spend Total £m £m £m DHN Extension FBC 0.1 0.2 0.3 DHN enabling works 1.5 1.5 DHN construction 1.5 1.5 Tech Terr Ph 2 FBC 0.4 0.4 Tech Terr Ph 2 construction 4.5 4.5 Other AMIDS Infrastructure 0.3 0.3 0.5 8 8.5
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PUBLIC 4. Underwrite agreements Full Business Case Development 4.1 There are two FBCs which require to be developed: • The extension to the existing DHN to service both Phases of Tech Terrace (commissioned by the Council and planned for completion in Spring 2027) • The development of Tech Terrace Phase 2 design to RIBA stage 3 (including site investigation, design and engineering support which will be commissioned by the JV and planned for completion in Summer 2027) As outlined above, the ECS grant will not be released to the Council until these FBCs have been prepared and subsequently approved by the City Region Chief Executive’s Group. These FBCs would also need to be considered by the Council's Leadership Board. 4.2 There is a cap (£0.5m as mentioned above) on the amount of grant funding available for FBC development. It is estimated the costs which may be incurred in the development of both FBCs could exceed the development funding amount by up to £0.3m ie it is expected the FBCs may cost up to £0.8m to develop in total. This total cost will be funded from the grant assuming both FBCs are approved, however there is some risk that the FBCs may not be approved. Officers consider this risk to be low given the strategic importance of the project, the funding allocation already identified for Renfrewshire, and the robust appraisal process that will be undertaken prior to approval. DHN Enabling Works 4.3 The construction programme for Tech Terrace Phase 1 is aligned to the Scottish Enterprise timescales for grant drawdown. This is progressing ahead of the FBC timescales for expansion of the DHN. It is therefore proposed that the Development Partner undertakes the DHN enabling infrastructure works (ie installing the below-ground pipework) for both phases of Tech Terrace as part of the Phase 1 construction programme. This approach will avoid construction programme conflicts and reduce the risk of additional cost when Phase 2 is under construction. The estimated cost of these works is the subject of a formal tender process, however an indicative estimate of £1.5m has been suggested by professional advisers. Should this enabling infrastructure be installed at a later date, this would result in additional costs and disruption as newly constructed roads, landscaping and utility infrastructure would require excavation, diversion and reinstatement.
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PUBLIC 4.4 The proposed approach would also mitigate the scenario whereby, should the DHN network not be extended in line with the Phase 1 construction schedule, then an alternative interim heating solution would require to be developed – potentially air source heat pumps. In that scenario, the buildings may then be unlikely to connect to the DHN in the foreseeable future, if at all. 4.5 It is proposed that the Council enter into underwrite agreements in relation to the FBC development costs and the DHN enabling infrastructure works. The potential total underwrite value is £1.8 million, consisting of up to £1.5 million estimated cost for the DHN enabling infrastructure and up to £0.3 million for the costs for developing the Phase 2 design to enable the FBC production. Implications of the Report 1. Financial - The report outlines the proposal for the Council to underwrite up to £1.8m to enable the Development Partner to progress with Tech Terrace Phase 2 and the DHN extension. There is a financial risk for the Council in the event the FBCs are not approved, however Officers consider this risk to be low given the strategic importance of the project, the funding allocation already identified for Renfrewshire, and the robust appraisal process that will be undertaken prior to approval. There is a further risk should the DHN extension not proceed as planned, as the spend on the enabling infrastructure may ultimately not result in an operational asset. In this case, the spend incurred would unlikely be eligible for grant support, resulting in the Council requiring to fund the spend via revenue resource. In this scenario a funding source would require to be identified and agreed by elected members. 2. HR & Organisational Development - None arising directly from this report. 3. Community/Council Planning – • Reshaping our place, our economy and our future - The Tech Terrace development represents a key component of the AMIDS vision, providing high-quality commercial accommodation for advanced manufacturing businesses, supporting business growth, innovation and job creation within Renfrewshire and the wider Glasgow City Region.
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PUBLIC 4. Legal – Council officers will secure appropriate legal advice in relation to the proposed underwrite agreements 5. Property/Assets – Improvement to Council AMIDS DHN and potential enhancement in value of developability of land owned by the Council. 6. Information Technology - None arising directly from this report. 7. Equality & Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. 8. Health & Safety - None arising directly from this report. 9. Procurement – Any procurement activity required to be undertaken by the Council will be conducted in accordance with the Council’s Standing Orders relating to Contracts, the GCR Sustainable Procurement Strategy and Public Procurement Regulations. 10. Risk - as set out in report. Project specific risks will be kept under regular review and reported to the Council’s internal Major Infrastructure Board. 11. Privacy Impact - None arising directly from this report. 12. Climate Risk – Improving the AMIDS DHN contributes to the sustainability and net-zero strategy, aiming to: • Reduce carbon emissions compared with traditional building heating systems. • Provide a secure and efficient shared energy solution for occupiers. • Support the long-term development of AMIDS by creating a scalable energy network that can connect future phases and buildings. • Improve the attractiveness of the site to advanced manufacturing, innovation and technology businesses seeking low-carbon premises. 13. Children’s Rights – None arising directly from this report. 14. Cosla Policy Position – None arising directly from this report. Author: Alastair MacArthur, Director