City Deal and AMIDS Projects Update
Renfrewshire Council · 30 November 2022
Back to Leadership Board — 30 November 2022 and its agenda
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___________________________________________________________________ To: Leadership Board On: 30 November 2022 ___________________________________________________________________ Report by: Chief Executive and Director of Finance and Resources ___________________________________________________________________ Heading: City Deal and AMIDS Projects Update ___________________________________________________________________ 1. Summary 1.1 This report is to update the Board on the progress of Renfrewshire Council’s Glasgow City Region City Deal and Advanced Manufacturing Innovation District Scotland (AMIDS) projects being undertaken by the Council’s City Deal and Infrastructure Team. 1.2 Renfrewshire Council is delivering an ambitious regeneration agenda, focused on creating the infrastructure and business environment that will generate economic growth and jobs whilst promoting active travel and green opportunities ensuring that the area is a fairer, more inclusive place where all our people, communities, visitors and businesses thrive. As a partner in the Glasgow City Region City Deal, signed in 2014, Renfrewshire Council along with the Scottish Government, the UK Government and the other Member Authorities is tasked with growing the economy through the delivery of £1.13bn of infrastructure projects and supporting economic development activity. 1.3 Since the City Deal projects were approved in 2014, the scale of the economic shock we have since experienced from global events such as the pandemic and war in Ukraine has been unforeseeable. Renfrewshire continues to invest and build on the enabling infrastructure provided by the City Deal to deliver its ambitious Advanced Manufacturing Innovation District Scotland (AMIDS) and the Levelling Up funded AMIDS South project as completion of these projects are central to the recovery and inclusive growth of the Renfrewshire economy. ________________________________________________________________________ 2. Recommendations 2.1 The Leadership Board is asked to: i) Note the scale of ambition and progress of the City Deal and AMIDS projects as outlined in this paper.
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________________________________________________________________________ 3. Project Updates At the commencement of the City Deal programme in 2014, the Glasgow Airport Investment Area (GAIA) project and the Clyde Waterfront and Renfrew Riverside (CWRR) project were viewed as complementary. Whilst each project individually contributed to economic growth, it was accepted, that the combined social and economic outcomes from both would be greater than the sum of the two individual parts, and that the absolute maximum potential of AMIDS would be achieved with the construction of CWRR. It was also recognised that the development opportunities provided by CWRR will gain increased investor attention as a result of AMIDS. Glasgow Airport Investment Area Project The Glasgow Airport Investment Area project provides the enabling infrastructure for the Advanced Manufacturing Innovation District Scotland. This project has now reached construction completion and is now in an extended (5 year) defects and maintenance period. The project has realigned a section of Abbotsinch Road between a point north of Arran Avenue and the existing A8 Inchinnan Road to the west of the existing Bascule Bridge. This has created a new road called Netherton Avenue which has wide shared active travel footways and high-quality lighting and landscaping to ensure the vision for the manufacturing district is achieved. A new vehicular bridge (the Barnwell Street Bridge) across the White Cart links the industrial and commercial sites at the bottom of Wright St including Westway Park with the realigned Abbotsinch Road and a new pedestrian and active travel bridge across the Black Cart which links to the cycling and walking improvements on Greenock Road (Inchinnan) land onwards to Inchinnan Business Park and beyond. Clyde Waterfront Renfrew Riverside Project The Clyde Waterfront and Renfrew Riverside (CWRR) project consists of a new opening road bridge at Meadowside Street, Renfrew linked to a new road network which links to Dock Street on the north side of the River Clyde and a new road connecting the bridge to AMIDS. The road will run between Meadowside Street, and Argyll Avenue, Renfrew to link with Inchinnan Road and onwards to AMIDS. The roads and bridge include provision for walking and cycling and will enable improved public transport links. CWRR provides an alternative route around Renfrew Town centre (for traffic travelling from and to locations out with the area) by delivering the North Renfrew Development Road. This has a consequential improvement in air quality and public transport reliability, within Renfrew town centre. The project also provides access to development opportunities along Meadowside Street, increases the potential to reinvigorate Blythswood Retail Park and improves access for the communities on both sides of the River Clyde to facilities and employers on the other side such as the Queen Elizabeth University Hospital; NHS Golden Jubilee; West College Scotland’s Clydebank campus and Yoker train station. The project also increases the employee catchment area for businesses planning to locate at AMIDS, while improving links to suppliers and customers. Early site works including ground remediation, updated habitat and invasive species surveys commenced 31st January 2022 and the contractor Graham Construction is now fully established on site with works progressing. Accommodation works for adjacent landowners, agreed as part of the project consent process are now underway. Detailed design work for the bridge is underway as is liaison with key stakeholders including Peel Ports and Glasgow Airport. The construction is due to complete during 2025
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The economic outcomes from the project remain the most significant within the whole of the City Deal infrastructure programme, providing the opportunity and environment to attract an estimated £230million of private sector investment over 25 years into the project area. Value for money checks on the project reveal a healthy benefit to cost ratio of 10.2 for public sector spend and 3.1 for the combined public and private sector spend, following investment in development and business creation. These indicators demonstrate a solid, evidence based, justification for the project. As an outcome of the CWRR Project, 1,440 permanent jobs and 950 temporary construction roles could follow from the estimated £230million in private sector investment attracted to both sides of the Clyde. Around 700 jobs will support the project construction. Included in these additional jobs resulting from construction of the CWRR project, there will be a minimum of 17 new entrant job opportunities and 25 work experience opportunities. Contractor Grahams have already employed 13 new entrants and 10 work experience personnel. Career awareness events and site visits have also been managed with clients from Invest in Renfrewshire employability team and schools in Renfrewshire including: Park Mains High, Trinity High and Renfrew High. This project is also sustaining a significant number of existing jobs in the construction industry. The Construction Contract for the CWRR project requires that subcontract and supplier opportunities over a value of £10,000 are advertised through the PCS Tender portal. This requirement ensures that as the large-scale project is broken into smaller work parcels, local companies and SME’s have the opportunity to bid for packages of work. To date 13 works packages have been advertised, five awarded, three of which to companies within the City Region. Additionally, a commitment of a minimum of 12 days will be spent by the Contractor undertaking supply chain development, to encourage and coach, local organisations and SME’s how to prepare to enable access to this and therefore other public sector work opportunities. Thus far five sessions of training have been held. Advanced Manufacturing Innovation District Scotland (AMIDS) The establishment of the Advanced Manufacturing Innovation District Scotland (AMIDS) has only been possible as a consequence of the catalyst provided by the City Deal Glasgow Airport Investment Area (GAIA) project. The delivery of AMIDS is progressing well with the Medicines Manufacturing Innovation Centre now operational and the National Manufacturing Institute Scotland (NMIS) due to become operational early next year. Now that the GAIA contract is complete the City Deal and Infrastructure team are now focusing on securing further investment which will bring employment, skills development and economic growth to Renfrewshire. This context is recognised within the Renfrewshire Economic Strategy 2020-2030 where AMIDS is noted as a key component. AMIDS Development Partner To ensure the progressive and effective delivery of AMIDS, the City Deal and Infrastructure Team are working with specialist commercial property and legal advisers to procure a development partner who shares the vision for AMIDS and who will finance and drive the investment and delivery of the AMIDS site for future occupiers. As part of the requirements the successful Development Partner will design and construct a speculative first phase development on the site aimed at providing space and support for small scale innovative organisations such as university spin off companies. This will enable organisations to tap into the expertise provided by NMIS on site, develop and expand, providing more high quality jobs. The procurement process is progressing well with negotiated dialogue underway. It is anticipated an outcome of the procurement process will be complete in early 2023.
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AMIDS District Heating Network The City Deal and Infrastructure Team have delivered a £7million award-winning innovative fifth generation district heating network for the AMIDS site, the first of its kind in Scotland. This enhances the sustainable credentials of AMIDS in line with the Council’s ambition for carbon reduction and long-term sustainability and provides an additional attraction for employers we would wish to locate at AMIDS. The initial off-takers are NMIS and the Medicines Centre who will utilise the system in the coming weeks for heating and hot water. AMIDS Netherton Square Netherton Square, which will be the arrival and focal point of AMIDS Netherton, is currently under construction and due to complete early in 2023. The City Deal and Infrastructure Team have worked with specialist designers to develop a high-quality public realm design for the whole of Netherton with Netherton Square being the first phase. The contractor RJ Mcleod are making excellent progress and the initial phase focusses on the area immediately adjacent to the two flagship facilities. AMIDS Strategic Advisory Group The innovation eco-system that is being created at AMIDS has also resulted in the Lightweight Manufacturing Centre (LMC) and a research and development initiative by Boeing, locating at Westway. It is estimated that around £185million of investment has already been made so far at AMIDS, with more to come. None of this would have been possible without the City Deal infrastructure and investment by the Council. The Council also organises and Co-Chairs with Scottish Enterprise, a Strategic Advisory Group (SAG) with our partners to ensure the AMIDS vision, as a key development location in Scotland for national and international investors, is delivered. The group is currently working closely to identify and target markets for potential development at AMIDS and are preparing marketing materials to enable discussions to take place with some of the specialist Advisory Group members including Scottish Enterprise, NMIS, the Medicines Centre and the University of Strathclyde. SAG members are recruiting an AMIDS director who will be based within the NMIS building and lead these specialist conversations. AMIDS South Levelling Up Fund project The City Deal and Infrastructure team are progressing the AMIDS South project with 90% funding from the UK government Levelling Up Fund. The project will provide a 1.7km ‘gateway route’ along the White Cart river with a network of road, cycling and walking links from Paisley Gilmour Street train station and bus interchange to Glasgow Airport, AMIDS and onto Inchinnan. The project includes a new bridge crossing at Paisley Harbour for pedestrians, cyclists and vehicular traffic and landscaping along the route. AMIDS South is a high-impact local transport scheme which will reduce carbon emissions, improve air quality, cut congestion, support economic growth and improve the experience of transport users. Economic analysis demonstrates the project could bolster the local economy by an additional £136million, cut carbon emissions by 21,700 tonnes and help existing and new companies to grow creating new job opportunities for years to come. A new east-west road linking Renfrew Road to the new Gateway route is also included and will increase connectivity to and from AMIDS and improve accessibility to the new Paisley Grammar School community campus, West College Scotland and the Gallowhill area. The project team are working closely with Council teams delivering these other projects to ensure designs are aligned and that benefits are maximised. An extension to the new Renfrew to Paisley active travel route into the Gallowhill catchment area will provide a new safe active travel route to the education facilities.
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The funding also enabled the construction of the walking, cycling and road safety improvements on Greenock Road (Inchinnan) which is now largely complete providing improved walking and cycling between Inchinnan Business Park and Netherton at AMIDS. This route links to the pedestrian and active travel bridge over the Black Cart river and is already being well used providing a safe route and reduced speed of traffic. Inclusion of traffic calming works on Love Street will improve the environment for local residents and pedestrians with this residential area benefiting from a reduction in traffic flow due to the new routes. Design development for the project is underway with consultants Amey. Stakeholder engagement proposals are being progressed and discussions with any affected landowners underway. A planning application was submitted in May 2022 and is expected to be presented to the Planning Board in January. Ground Investigation works have been completed across the project area which will feed into the design development phase of the project. Due to the number of different landowners it is not feasible or efficient to progress land assembly on an individual basis and so a paper asking for approval to progress a compulsory purchase order will be presented to Infrastructure Land and Environment Board in January. Construction is due to be completed by the end of 2025. Recognising the volatility in the cost of construction projects currently, regular reviews of estimated project costs are completed. This process will continue with each stage of the design development. Airport Access Project/Clyde Metro The Airport Access project (AAP), a joint Glasgow City and Renfrewshire Council City Deal project, led by Renfrewshire was paused in April 2020 to allow a feasibility study to be undertaken on an alternative Clyde Metro solution, which would incorporate access to Glasgow Airport via a link from Paisley Gilmour Street Station. Should the Clyde Metro progress, the Cabinet agreed that the approved city deal funding for the AAP would be allocated as a contribution to the Clyde Metro build costs from Paisley Gilmour Street to Glasgow Airport. The Glasgow City Council team are working with Transport Scotland, neighbouring councils (including representatives from Renfrewshire Council) and other key stakeholders to progress route options and a programme for delivery of the Clyde Metro to present a “Case for Investment” by summer 2024. Transport Scotland identified Clyde Metro as a strategic priority with the draft Strategic Transport Projects Review 2 (STPR2) in early 2022. Consultation on the draft is now closed and publication of the final STPR2 document is expected early in 2023 with a commitment to Clyde Metro. ___________________________________________________________________ Implications of the Report 1. Financial – The financial implications arising from the Council’s participation in City Deal are set out in detail in item 3 Financial Sustainability and General Fund Financial Outlook section 7.7 and 7.8 of the report approved by Council on 30th June 2022. A The increased funding requirement can be accommodated within the existing revenue provision that has already been built into the Council’s financial plans. In total £45M prudential borrowing and £4M from Covid construction ringfenced provision.
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2. HR & Organisational Development - none 3. Community/Council Planning – • Our Renfrewshire is thriving – These projects will link our communities and facilitate new development opportunities and business growth with both projects improving skills development, educational and health opportunities for people within the local communities as well as aiding employees to access these major existing and new employment centres. The projects align with and aid the outcomes of the Renfrewshire Economic Strategy 2020 -2030 and the Renfrewshire Economic Recovery Plan • Our Renfrewshire is well - The new safer walking and cycling infrastructure incorporated within these projects, will help encourage active travel by children and young people, as well as adults. • Reshaping our place, our economy and our future – These infrastructure projects provide connectivity and access to new and existing jobs for people in our communities. During the project construction period hundreds of new jobs will be created and as a result of new business creation it is estimated that thousands of additional new permanent jobs will be created. The combined projects investment in linking active travel infrastructure and education and will provide connectivity and access to new and existing jobs for people in our communities. • Tackling inequality, ensuring opportunities for all – the successful City Deal labour market programmes are now completed and targeted hard to reach citizens. The AMIDS South project links our less advantaged communities with education and job opportunities and provides healthy transport options • Creating a sustainable Renfrewshire for all to enjoy - The completed infrastructure includes segregated provision for walking and cycling and will also enable improved public transport links. AMIDS incorporates an overarching sustainable transport plan, which is currently being further developed as occupiers begin to locate in the area. CWRR opens up development opportunities, which through the LDP will be managed as sustainable linked communities. • Working together to improve outcomes - Officers are working closely with local communities, neighbouring councils, private sector organisations, Scottish Government, Scottish Enterprise and other partners to ensure the maximisation of positive outcomes from the projects noted within this report. 4. Legal - none 5. Property/Assets – land acquisition required to deliver AMIDS South will be subject to a Compulsory Purchase Application. All land acquisition matters will be approved by relevant ILE Boards. some land acquisition will be required to deliver aspects of the AMIDS South project although much is already owned by Renfrewshire Council or in the current public road network 6. Information Technology - none
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7. Equality & Human Rights - (a) 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 because it is for noting only. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety - none 9. Procurement – all contracts are tendered in accordance with Council procurement procedures and where relevant taken to FRCS Board for approval. 10. Risk – Project specific and Programme level risk registers have been established for all projects. These are kept under regular review and reported to the Council’s internal City Deal and Infrastructure Programme Board. 11. Privacy Impact - none 12. COSLA Policy Position – not applicable 13/ Climate Risk – the project will provide sustainable active travel routes and encourage sustainable neighbourhoods and transport links including provision of blue green infrastructure _________________________________________________________ List of Background Papers none __________________________________________________________________ BW November 2022 Author: Barbara Walker, City Deal and Infrastructure Programme Director; Email Barbara.walker@renfrewshire.gov.uk