Item 9 Glasgow City Region City Deal Update
West Dunbartonshire Council · 27 March 2024
Back to West Dunbartonshire Council — 27 March 2024 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer (Regeneration and Regulatory) Council: 27 March 2024 Subject: Glasgow City Region City Deal - Update 1. Purpose 1.1 To note the progress with the implementation of the Exxon Infrastructure Project, and to provide an update on Glasgow City Region City Deal Programme. 2. Recommendations 2.1 It is recommended that Council notes: i) The progress of the Glasgow City Region programme ii) The update on the Exxon Infrastructure Project 3. Background 3.1 The Glasgow City Region City Deal Infrastructure programme equates to £1.13bn of investment during period 2015-2035. Projects are progressing and have reached various stages from Strategic, Outline and Full Business Case stages of approval. 4. Main Issues 4.1 This report provides information on City Region progress, and includes an update on the Exxon site infrastructure project development. Exxon Infrastructure Project 4.2 At its meeting in December 2023, Council noted progress made with the Exxon Infrastructure Project and approved delegated authority to agree the construction agreements required to deliver the project, subject to the approval of Planning and the conclusion of land transfers. Planning permission was granted in January 2024. 4.3 The main construction contract will be signed when all required land acquisitions and temporary access agreements are concluded. Land acquisitions are being progressed in line with the terms agreed with landowners and are anticipated to be complete by the end of March 2024. 4.4 The Esso remediation work is delayed due to newly discovered heavy contamination pockets on site at close proximity to the water edge. The latest prediction to complete the work on site is end of April which will be followed by a 4-6 weeks decommissioning phase. Parallel to this activity the remediation report approval will be concluded. The estimated earliest land ITEM 9
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transfer of the formal Esso site is mid-June 2024. 4.5 The UK Government have recently confirmed to the Glasgow Region City Deal Programme Management Office that 50% of the £128m funding that was to be released as a result of transferring the responsibility of delivery of Glasgow Airport Rail Link from City Deal to Clyde Metro should be spent on one new regional project. Prior to this announcement City Region Member Authorities had anticipated that 100% of the reprogrammed monies would be available to Member Authorities to meet the increased costs of their City Deal Infrastructure projects, including Exxon. Consequently, only half of the anticipated additional funding for the Exxon project will be now available. Each Member Authority’s share of the funding will be confirmed later in 2024 in tandem with the selection of the new regional project (refer to paragraph 4.9 for further information). Commencement of works at Exxon will not prejudice the Council’s claim for additional funding. 4.6 Decisions on Stage 2 Vacant and Derelict Land funding applications have been delayed by Scottish Government in order to take stock of the impact of recent reductions in their capital budget. The Council had submitted a £2m application for greenspace and access improvements on the Exxon site and was expected to hear the outcome in January of this year. City Region Update 4.7 The last Glasgow City Region Cabinet Meeting was held on 13 February 2024. Agenda items included: • proposed new Regional Spatial Planning Arrangements • further information on the City Deal Reprogramming Exercise (referred to in paragraph 4.5) • an update on the City Region Investment Zone • an update on Regional Electric Vehicle Charging. 4.8 The report on Regional Spatial Planning outlined the proposed process for agreeing the Regional Spatial Strategy which National Planning Framework 4 (NPF4) has introduced, and which will replace Clydeplan. The report makes the case for the Regional Spatial Strategy incorporating the various recent economic ventures and initiatives, such as Investment Zone. 4.9 Cabinet heard the process for Member Authorities to submit a proposal for one new £64m project, or 2-3 smaller projects across Member Authorities that would fulfil the expectations of UK Government and comply with the City Deal’s own Assurance Framework. A call for bids with a 12 week turnaround has been sent to Member Authorities to produce a Strategic Business Case for eligible projects. Projects must have a regional impact and meet the objectives of the Regional Economic Strategy. Member Authorities will be responsible for delivery and managing risk. Programme Management Office will revert to UK and Scottish Government for further advice if there are no suitable bids identified following bid submission and assessment. At that stage a regional programme might be considered but there is no guarantee this will be acceptable to either or both governments.
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4.10 Stage 2 bids for the Investment Zone are to be submitted by the end of March. It’s been confirmed that the funding available, and the timescale for expenditure, of Investment Zone benefits has doubled to £160m, over 10 years. The Stage 2 bids are expected to be led by business and/or universities. The Regeneration and Business Support teams are currently supporting one bid, and following a call to business via social media, have responded to other enquiries. 4.11 The Clyde Bridge contractor maintains a website with regular updates on the project. A viewer at the top of the website home page shows a video of progress which is updated monthly. This can be accessed at: www.graham.co.uk/clyde-waterfront 5 People Implications 5.1 There are a number of senior officers involved in the Glasgow City Region wider programme as identified at City Region Update paper at Council on 26 August 2021. 6. Financial Implications 6.1 Spend this financial year to date on the Exxon project is £2,546,742. Overall spend is £6,483,747 7. Risk Analysis 7.1 There are a number of project risks associated with the development at the Exxon project site and these are contained within the project risk register and updated by the Project Board on a regular basis. The Project Board is made up of senior officers from all key services. 8. Equalities Impact Assessment 8.1 Not relevant for this report 9. Consultation 9.1 Consultation with all key stakeholders is progressing as we continue to work as part of the Glasgow City Region. 10 Strategic Assessment 10.1 At its meeting on 26 October 2022, the Council agreed that one of its main strategic priorities for the Strategic Plan 2022 - 2027 is ‘A Strong local economy and improved employment opportunities’ 10.2 The proposals within this report are specifically designed to deliver on this priority.
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Alan Douglas Chief Officer: Regulation and Regeneration Date: 13 March 2024 Person to Contact: Gillian McNamara gillian.mcnamara@west-dunbarton.gov.uk Appendix: None Background Papers: UK Shared Prosperity Fund Report to Housing and Communities Committee 22 August 2022 Glasgow City Region City Deal- Council 13 August 2014. “City Deal Initiative” Clyde Valley Investment Fund- Council 30 April 2014 (Memorandum of Understanding). Clyde Valley Community Planning Partnership – City Deal Initiative – Council 28 August 2013. Wards Affected: All