Agenda Document Pack - Cabinet - 01/10/2024
North Ayrshire Council · 1 October 2024
Back to Cabinet — 1 October 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Cabinet A Meeting of the Cabinet of North Ayrshire Council will be held in the Council Chambers, Ground Floor, Cunninghame House, Irvine, KA12 8EE on Tuesday, 01 October 2024 at 14:30 to consider the undernoted business. Meeting Arrangements - Hybrid Meetings This meeting will be held on a predominantly physical basis but with provision, by prior notification, for remote attendance by Elected Members in accordance with the provisions of the Local Government (Scotland) Act 2003. Where possible, the meeting will be live-streamed and available to view at https://north-ayrshire.public- i.tv/core/portal/home. 1 Declarations of Interest Members are requested to give notice of any declarations of interest in respect of items of business on the Agenda. 2 Minutes The accuracy of the minutes of meeting of the Cabinet held on 27 August 2024 will be confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973 (copy enclosed). EDUCATION ITEMS FOR DECISION Reports by the Executive Director (Education) 3 Proposal to Limit P1 Intake at Mayfield Primary School to 25 Children Submit a report by the Executive Director (Education) to provide information on the roll at Mayfield Primary School and to seek approval to limit the P1 number to 25 children, for each school session, from the August 2025 intake (copy enclosed). 1
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 4 Collaborating for Health Equity in Scotland Submit a report by the Executive Director (Education) to provide initial information on our bid to become a participant in the Collaborating for Health Equity in Scotland (CHES) programme and next steps (copy enclosed). GENERAL BUSINESS FOR DECISION Reports by the Director (Health and Social Care Partnership) 5 Performance Information Update - Drug and Alcohol Services 2023- 24 Submit a report by the Director (Health and Social Care Partnership) to provide (i) an update on the national and local drug and alcohol related targets and standards and performance in North Ayrshire; (ii) information of the ongoing successful implementation of the Medication Assisted Treatment Standards; and (iii) assurance to Members of the performance, actions and service developments being progressed to address the significant challenges for our communities (copy enclosed). Reports by the Executive Director (Place) 6 Household Waste Recycling Centre (HWRC) Digital Booking System Submit a report by the Executive Director (Place) to seek approval to implement a digital Household Waste Recycling Centre (HWRC) booking system at all sites (copy enclosed). 7 Scottish Government Consultation: Changing the International Territorial Level Geography for Scotland Submit a report by the Executive Director (Place) to seek approval for the submission of the proposed response to the consultation on Changing the International Territorial Level Geography for Scotland (copy enclosed). 8 The Great Harbour, Irvine – Phase 1 Coastal Hub Full Business Case Submit a report by the Executive Director (Place) to seek endorsement of the Full Business Case for Phase 1 of the Great Harbour, Irvine, and approval for its submission to the Ayrshire Economic Joint Committee (copy enclosed). 9 Urgent Items Any other items which the Chair considers to be urgent. 2
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Webcasting Please note: this meeting may be filmed/recorded/live-streamed to the Council's internet site and available to view at https://north-ayrshire.public- i.tv/core/portal/home, where it will be capable of repeated viewing. At the start of the meeting, the Provost/Chair will confirm if all or part of the meeting is being filmed/recorded/live-streamed. You should be aware that the Council is a Data Controller under the Data Protection Act 2018. Data collected during the webcast will be retained in accordance with the Council’s published policy, including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Generally, the press and public will not be filmed. However, by entering the Council Chambers and using the press or public seating area, you acknowledge that you may be filmed and that any information pertaining to you contained in the video and oral recording of the meeting will be used for webcasting or training purposes and for the purpose of keeping historical records and making those records available to the public. In making this use of your information the Council is processing data which is necessary for the performance of a task carried out in the public interest If you have any queries regarding this and, in particular, if you believe that use and/or storage of any particular information would cause, or be likely to cause, substantial damage or distress to any individual, please contact dataprotectionofficer@north-ayrshire.gov.uk 3
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Cabinet Sederunt Elected Members Marie Burns (Chair) Shaun Macaulay (Vice-Chair) Tony Gurney Alan Hill Margaret Johnson Christina Larsen Church Representatives Mr Andrew Bruce Ms Elizabeth Turbet Vacancy Teaching Representative Ms Jacqui MacKenzie Youth Council Representatives Chair: Apologies: Attending: 4
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Cabinet 27 August 2024 IRVINE, 27 August 2024 - At a Meeting of the Cabinet of North Ayrshire Council at 2.30 p.m. Present (Physical Participation) Marie Burns, Tony Gurney, Alan Hill, Margaret Johnson, Christina Larsen and Shaun Macaulay. Also Present Davina McTiernan. In Attendance C. Hatton, Chief Executive; D. Hammond, Executive Director; and R. Leith, Head of Service (Communities)(Communities and Housing); C. Cameron, Director; S. Hunter, Chief Social Work Officer; and L. Higgins, Service Manager Practice Standards (Health and Social Care Partnership); S. Anson, Executive Director; and A. McClelland, Head of Service (Education); M. Boyd, Head of Service; D. Forbes, Senior Manager (Strategic Business Partner); J. McCallum Senior Manager (Audit, Fraud, Safety and Risk) and J. Walls, Team Manager (Health and Safety); (Finance); Russell McCutcheon, Executive Director; L. Kirk, Head of Service (Economic Development, Growth and Regeneration); L. Cree, Head of Service (Sustainability, Transport and Corporate Property); and T. Reaney, Head of Service (Neighbourhood Services) (Place); F. Walker, Head of Service (People & ICT); and A. Craig, Head of Service; I. Hardy, Senior Manager (Policy, Performance & Democracy); J. Hutcheson, Senior Communications Officer; S. Wilson, Committee Services Officer and Hayley Young, Senior Committee Services Officer (Democratic Services). Chair Marie Burns in the Chair. 1. Declarations of Interest In terms of Standing Order 11 and Section 5 of the Code of Conduct for Councillors, Councillor Johnson declared an interest in Item 10: Community Asset Transfer – Garnock Valley Men’s Shed and agreed to leave the meeting during consideration of this item of business, taking no part in its determination. 2. Minutes The Minutes of the Meeting of the Cabinet held on 4 June 2024 were confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973. Agenda Item 2 5
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3. Revenue Budget 2024/25: Financial Performance to 30 June 2024 Submitted a report by the Head of Finance to advise of the financial performance for the Council at 30 June 2024. Officers responded to Members’ questions and the Cabinet agreed to (a) approve the virements detailed at Appendix 8 to the report; and (b) note (i) the information and financial projections outlined in the report and (ii) the latest financial projection for the Health and Social Care Partnership highlighted at section 2.6 of the report. 4. Capital Programme and Treasury Management Performance to 30 June 2024 Submitted a report by the Head of Finance advising of progress in delivering the Capital Investment Programme 2024/25 and the associated Treasury Management performance to 30 June 2024. Officers responded to Members’ questions and the Cabinet agreed to (a) approve the virement proposal noted within the HRA programme detailed in appendix 2; (b) note (i) the revisions to budgets outlined in the report; (ii) the General Services and HRA revised budgets at 30 June 2024 and the forecast expenditure to 31 March 2024; (iii) the estimated performance against the Prudential Indicators set out in the Treasury Management and Investment Strategy. 5. Health and Safety Annual Report 2023/24 Submitted a report by the Head of Finance providing an update on the Health and Safety performance within Council Services during 2023/24. The Corporate Health and Safety Annual Report and 3 Year Statistical Comparison was attached at Appendix 1 to the report. Officers responded to Members’ questions and the Cabinet agreed to note the Annual Health & Safety Performance update for 2023/24 and the 3 year statistical comparison. 6. Council Plan Year End 2023-24 Performance Reporting Submitted a report by the Head of Democratic Services for approval of the Council Plan Year End Performance Reporting. The Six Monthly Progress Report and Council Plan Annual Performance Report were attached at Appendices 1-2, respectively, to the report. Officers responded to Members’ questions and the Cabinet agreed to (a) approve (i) Council Plan Six Monthly Progress Report attached at Appendix 1 to the report; (ii) the Council Plan Annual Performance Report attached at Appendix 2 to the report; and (b) note (i) the status of the council’s performance within the LGBF Analysis of 2024 Data Release attached at Appendix 3 to the report; and (c) to refer the report to the Audit and Scrutiny Committee for further consideration. 6
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7. North Ayrshire – Being Trauma Informed and Responsive Submitted a report by the Director (Health and Social Care Partnership) providing an update in relation to ongoing work to develop our approach and response to trauma. Officers responded to Members’ questions and the Cabinet agreed to endorse the progress being made to strengthen our trauma informed approach in North Ayrshire. 8. Chief Social Work Officer’s Annual Report Submitted a report by the Director (Health and Social Care Partnership) presenting the annual Chief Social Work Officer report attached at Appendix 1 to the report. Officers responded to Members’ questions and the Cabinet agreed to (a) approve the submission of the annual report to the Office of the Chief Social Work Adviser in Scottish Government; and (b) note (i) The contents of the report, in particular the successes and challenges; (ii) the skilled and compassionate interventions of our practitioners and managers; and (iii) the worsening financial context and associated impact on all ages within our community both in terms of wellbeing and risk. 9. Proposals for Community Investment Fund (CIF) Expenditure Submitted a report by the Executive Director (Communities and Housing) to determine applications by Locality Partnerships for allocation of CIF funding to proposed projects. Applications from Beith Hive Childcare Ltd., North Coast and Cumbraes Locality Priorities Officer, Parent Network Scotland and Three Towns Community Shed were attached at Appendices 1-4, respectively, to the report. Having reviewed the applications in line with the CIF criteria, the Cabinet agreed to approve (i) £41,000 to Beith Hive Childcare Ltd.; (ii) £52,000 to the North Coast and Cumbraes Locality Priorities Officer; (iii) £99,393 to Parent Network Scotland; and (iv) £56,850 to the Three Towns Community Shed. Councillor Johnson left the meeting at this point. 10. Community Asset Transfer – Garnock Valley Men’s Shed Submitted a report by the Executive Director (Communities and Housing) to amend the previously agreed Community Asset Transfer to Garnock Valley Men’s Shed in relation to the former Cleansing and Grounds Maintenance Depot, Kilbirnie. Officers responded to Members’ questions and the Cabinet agreed to approve (a) the variation of the decision made at Cabinet on the 8 December 2020 from a 25 year lease to full ownership of the former Cleansing and Grounds Maintenance Depot, Ladysmith Road, Kilbirnie in respect of the Garnock Valley Men’s Shed; and (b) that the asset be disposed of for the price of £2,750 (a 95% discount on the valuation of £55,000) and authorised relevant Council officers to engage with Garnock Valley Men’s Shed and their legal representatives to arrange the disposal of the asset and conclude the Community Asset Transfer process. Councillor Johnson rejoined the meeting at this point. 7
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11. Education Service Standards and Quality Report 2023-24 Submitted a report by the Executive Director (Education) seeking permission to publish the Standards and Quality Report (SQR), attached at Appendix 1 to the report, highlighting key progress towards the Education Service improvement priorities and the National Improvement Framework priorities made during session 2023-24. Officers responded to Members’ questions and the Cabinet agreed to approve the publication of the Standards and Quality Report attached at Appendix 1 to the report. Councillor Hill left the meeting at this point. 12. Education Authority Annual Plan 2024-25 Submitted a report by the Executive Director (Education) seeking approval for the publication of the Education Authority’s annual Service Improvement Plan for 2024-25 attached at Appendix 1 to the report. Officers responded to Members’ questions and the Cabinet agreed to approve (a) the Service Improvement Plan for 2024-25, noting its alignment with the Council Plan priorities and the National Improvement Framework (NIF) priorities; and (b) publication of the Education Authority Annual Plan attached at Appendix 1 to the report. 13. Child Poverty Action Plan Progress Report 2023-24 Submitted a report by the Executive Director (Education) seeking approval of the Child Poverty Action Plan Progress Report 2023-24 attached at Appendix 1 to the report. Cabinet agreed to publish the Child Poverty Action Plan Progress Report 2023-24 attached at Appendix 1 to the report and its submission to the Scottish Government. 14. Regeneration Delivery Plan Action Programme and Funding Proposals Update Submitted a report by the Executive Director (Place) seeking approval for funding proposals for the Regeneration Delivery Plan. The Regeneration Delivery Plan Funding Proposals were attached at Appendix 1 to the report and Project Updates were attached at Appendix 2 to the report. Officers responded to Members’ questions and the Cabinet agreed to (i) approve the Regeneration Delivery Plan funding proposals attached at Appendix 1 to the report; (ii) note the update on previously secured or applied for funds attached at Appendix 2 to the report; and (iii) delegate authority to the Executive Director (Place) to agree changes to the funding allocations in Appendices 1 and 2 in consultation with the Portfolio Lead as required. Councillor Hill rejoined the meeting at this point. 8
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15. Construction Quality Improvement Collaborative (CQIC) Submitted a report by the Executive Director (Place) providing information on the Construction Quality Improvement Collaborative (CQIC) in Scotland and seeking approval to become signatories to the Scottish Construction Quality Improvement Charter (CQIC). The Cabinet agreed to approve the Council becoming signatories to the Scottish Construction Quality Improvement Charter (CQIC). 16. Urgent Items There were no urgent items. 17. Disposal of Property at 84 Montgomery Street, Irvine to a Nominated Party Submitted a report by the Executive Director (Place) seeking approval to sell 84 Montgomery Street, Irvine to the sitting tenant. The Cabinet agreed to approve the recommendation as detailed in the report. The meeting ended at 4.20p.m. 9
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NORTH AYRSHIRE COUNCIL 1 October 2024 Cabinet Title: Proposal to limit the P1 intake at Mayfield Primary School to 25 children Purpose: • To provide information to Cabinet on the roll at Mayfield Primary School • To seek approval to limit the P1 number to 25 children, for each school session, from the August 2025 intake Recommendation: That Cabinet agrees to: • Allow Education to limit the number of P1 children at Mayfield Primary School to 25 for each school session intake. 1. Executive Summary 1.1 At the Statutory Public Consultation in respect of proposed changes to Saltcoats/Stevenston catchment areas, held in early 2023, it was made clear that an intake limit would be required for Mayfield Primary School Primary 1 each session. 1.2 This report provides background information on the roll at Mayfield Primary School and sets out a proposal to maintain capacity in the school to ensure that spaces are available for future catchment children. 1.3 The proposal is to limit the intake to 25 children for P1 each session, leading to a 7- class structure for the school, leaving room for the roll to expand in future years to accommodate catchment children from the new homes. 2. Background 2.1 The current roll at Mayfield Primary School is 192 pupils over 8 classes. Only 42% of children on the roll live within the catchment, with 58% attending as a result of a successful placing request. Many of the children attended Mayfield Primary Early Years class, which has no geographical catchment area – these parents/carers then opt to apply to keep their child at the school for their P1-7 education. 2.2 The breakdown of the pupil roll, showing numbers of children registered for Primary 1 (P1) who reside within the catchment area and those outwith (placing requests) over the last 7 years is shown in the table below: Agenda Item 3 11
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School Session 2018/19 19/20 20/21 21/22 22/23 23/24 24/25 Catchment Children Registered 16 25 20 12 12 17 17 Placing Requests Out 3 5 4 1 0 5 4 Placing Requests In 14 12 10 10 18 17 19 Deferred Entries 1 1 1 3 0 1 2 P1 Intake 26 31 25 18 30 28 30 Total School Roll 199 197 189 173 183 184 192 2.3 On 30 May 2023, Cabinet agreed to amend the primary school catchment boundary lines between the following primary schools: • Mayfield Primary School • Glencairn Primary School and • St Anthony’s Primary School • St John’s Primary School 2.4 This rezone was as a direct result of a new housing development, Mayfields, by Persimmon Homes, being built directly upon the boundary between the above noted schools. The key aim of the rezoning was to provide children from the new development with a place at the primary school nearest their home. 2.5 At that time, the Statutory Public Consultation outlined that ‘should the proposal be approved, the P1 intake at Mayfield Primary School will be monitored closely and capped when required, in order to ensure that there are sufficient places for catchment children in future years’. 2.6 Persimmon have completed and sold the first 26 units (including 12 flats) of a total 280, with another 23 due to be complete by March 2025. Although the current number of children living in the development is low, numbers are expected to rise as more family homes are completed. 2.7 As outlined in the previous report, it is expected that, at its peak, the Mayfields housing development could contribute up to 86 children to the total school roll, up to 12 children per year group. 2.8 The current situation is that 192 of a possible 237 spaces are already taken up – 111 of these are placing requests. The table at 2.2 shows that the number of placing requests into Mayfield Primary School is rising – from 10 in 2021 to 19 for the current session. 2.9 In order to mitigate against the school failing to have sufficient accommodation for catchment children in future years, it is recommended that the P1 intake number is limited to 25 children for each new school session from August 2025. The proposal aims to ensure that there are sufficient spaces for catchment children from both the existing homes and planned new homes, protecting school spaces for catchment children to be educated at their local school. 12
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2.10 In 2014, the Scottish Government issued guidance to Education Authorities on aspects relating to the determination of school capacity and this has been taken into account when formulating the proposal. The aim of the proposal is to effectively manage the capacity at Mayfield Primary School and in an attempt to ensure adequate capacity for catchment children. In consideration of the proposal, the following factors were taken into account: i) The school’s current capacity ii) The predicted demand for catchment places at the school in future years iii) The current and predicted number of placing requests at the school 2.11 If the P1 intake number at Mayfield Primary School is not limited, the current trend of increasing occupancy is likely to continue. Children attending by placing request will comprise a larger proportion of the school roll, and many of these children are likely to have younger siblings. Parental expectation will be that, where we have granted a placing request for an older sibling, space will be available in the future for younger family members – this may not be the case. Over time, as the catchment roll increases, there will be fewer and fewer spaces available each session for placing requests. 2.12 School spaces will be allocated in line with current policy: 1. Children with home addresses within the catchment area 2. Placing request applicants who, in the opinion of a family doctor and community medicine specialist, could only be educated with difficulty in another school 3. Placing request applicants who have older sibling(s) continuing their attendance in the requested school 4. All other placing requests Should the proposal be approved, there will be fewer P1 spaces available than there have been in the past. This may result in a ballot process, whereby names are drawn and the procedure is supervised by a local elected member. It should be noted that the other primary schools in Saltcoats have sufficient capacity to accommodate their catchment children. 3. Proposals 3.1 That Cabinet agrees to: • Allow Education to limit the number of P1 children at Mayfield Primary School to 25 for each school session intake. 13
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4. Implications/Socio-economic Duty Financial 4.1 The proposal aims to ensure that there are sufficient spaces for catchment children to attend Mayfield Primary school, thus reducing the potential transport and staffing costs of them being educated elsewhere. Human Resources 4.2 None. Legal 4.3 Whilst there is no duty on the Education Authority to consult in respect of a proposal to cap the intake of a school, during the Statutory Public Consultation in respect of proposed changes to Saltcoats/Stevenston catchment areas held in early 2023 which affected Mayfield Primary School, it was recommended that the Primary 1 intake for Mayfield Primary School be capped at 33 in respect of the August 2023 session. It has become apparent through roll projections that in order to effectively manage capacity at the school, that the Primary 1 intake requires to be capped a 25 from August 2025. The Education Authority is under a statutory duty to manage its education estate effectively to ensure that there is adequate capacity to meet demand and the Education Authority is under a duty to provide adequate and efficient education in terms of the Education (Scotland) Act. Relevant legislation has been considered in formulating the proposal, as has the Scottish Government guidance in respect of determining Primary School capacity. The proposal reflects Council policy insofar as it promotes children attending their local school. Council policy will be adhered to in respect of admissions, with catchment children being given priority. Equality/Socio-economic 4.4 The key aim of this proposal is to provide children with a place at the primary school nearest their home, along with their neighbourhood peers. This includes continuity in support of their education and social development and plays a significant role in the early social cohesion of the new community which this significant housing development will deliver. Climate Change and Carbon 4.5 The proposal supports walking to school. The boundary change created a local catchment area, with a walk of less than 0.5 miles from the new development to Mayfield Primary School. St Anthony’s Primary School is 0.7 miles from the new housing development, whilst St John’s Primary School is 1.8 miles away, along a busy main road with Glencairn PS located 1.3 miles away from the new development. 14
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Key Priorities 4.6 Inspiring Place Vibrant, welcoming, and attractive places An efficient Council that maximises resources and provides value for money Community Wealth Building 4.7 None. 5. Consultation 5.1 Consultation has taken place with the Head Teacher of Mayfield Primary School, Education Portfolio Holder and Local Elected Members. Should the proposal be approved, we will communicate with the wider school community in order to let parents/carers understand the implications for the future. Andrew McClelland Head of Service (Education) For further information please contact Lynn Taylor, Senior Manager, on 01294 324437. Background Papers Document.ashx (cmis.uk.com) – Item 5 15
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NORTH AYRSHIRE COUNCIL 1 October 2024 Cabinet Title: Collaborating for Health Equity in Scotland Purpose: To provide initial information on our bid to become a participant in the Collaborating for Health Equity in Scotland (CHES) programme and next steps. Recommendation: It is recommended that Cabinet notes the update and endorses the bid to participate in the programme. 1. Executive Summary 1.1 Public Health Scotland (PHS) and the University College London Institute of Health Equity (IHE) have partnered in the CHES to strengthen and accelerate the action underway to improve Scotland's health, increase wellbeing and reduce health inequities. 1.2 CHES will partner with three places in Scotland. We submitted an expression of interest (EOI) on Friday 20th September 2024. The EOI was developed jointly with partners, including across all relevant service areas, the CPP and IJB. 1.3 The EOI highlights that NAC experiences consistently poor outcomes across all key indicators, the strategic alignment between the ‘Marmot principles’ and the ambition in our own Council Plan, our commitment to partnership working, and our corporate culture of learning and continuous improvement. It also highlights that we have recently been successful in securing funding from the Scottish Government to participate in the Fairer Futures Partnership (the next phase of the Child Poverty Pathfinders). 2. Background 2.1 PHS and the IHE, directed by Professor Sir Michael Marmot, have partnered in the CHES to strengthen and accelerate the action underway to improve Scotland's health, increase wellbeing and reduce health inequities. 2.2 The aim of CHES is to answer two fundamental questions: i. What are the most impactful areas for intervention in Scotland to make meaningful progress in closing inequities in healthy life expectancy? ii. How can national and local organisations work more effectively to close the gap between policy intent and impact in these areas? 2.3 In order to answer these questions, CHES will: Agenda Item 4 17
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i. Develop analyses which will provide new insights into the most effective ways to take action in Scotland through the Marmot 8 framework. ii. Show, through practical work with three places in Scotland, how local areas and partnership actions can strengthen action on health equity and improve wellbeing. iii. Develop recommendations for national and local organisations and sectors to strengthen delivery to reduce inequities in health and wellbeing. iv. Provide a catalyst for enhanced action in Scotland and renewed and strengthened partnerships for health equity. 2.4 CHES will partner with three places in Scotland. Alongside that, there will be collaborations with healthcare systems, other public services, businesses, the third sector including community groups and voluntary and faith sector, communities and academia. Expression of interest 2.5 An expression of interest (EOI) was submitted on Friday 20th September 2024, ahead of the deadline of 23rd September 2024. The EOI was developed jointly with partners, including across all relevant service areas, the CPP and IJB. As required, the EOI was signed off by the NAC Chief Executive and on behalf of the NHS A&A Chief Executive Officer. The Council Leader provided a supportive quote. 2.5 The EOI highlights that NAC experiences consistently poor outcomes across all key indicators (see table below). Indicator NAC Scotland Rank ( / 32) Life expectancy of males 74.58 76.54 28 Life expectancy of females 79.47 80.72 26 Healthy life expectancy of males 56.51 60.39 28 Healthy life expectancy of females 52.07 61.07 32 2.6 This health inequity impacts across other key outcomes for our communities. For example, NAC also has the third highest rate of economic inactivity across Scotland (29.9% against a national average of 22.9%) and the second highest rate of long-term limiting illness across Scotland (41%). 2.7 There is a strong alignment between ambitions within our Council Plan and the eight Marmot principles: • Give every child the best start in life. • Enable all children, young people and adults to maximise their capabilities and control their lives. • Create fair employment and good work for all. • Pursue environmental sustainability and health equity together. • Ensure a healthy standard of living for all. • Strengthen the role and impact of ill-health prevention. • Tackle discrimination, racism and their outcomes. • Create and develop healthy and sustainable places and communities. 18
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2.8 Data shows that there is a complex interaction between the area’s health, social and economic inequities. In addition, we know the importance of adopting a place-based approach and are striving to better understand inequity within the area, with significant differences in outcomes between localities. 2.9 We believe that participation in the programme can help us to understand this dynamic in greater detail, including in relation to intersectionalities, and will enable us to design and target interventions that can successfully reduce these inequities. We will also need to consider intertemporal dynamics, particularly in relation to how we: • maintain a focus on transformation of long-term and intergenerational inequity through prevention and early-intervention, while • simultaneously supporting those households whose needs are the most acute today. 2.10 The EOI proceeds to highlight the council’s commitment to partnership working and collaboration, our culture of learning and continuous improvement, the synergies between this programme and our participation in other national programmes, and the resource and capacity which would be deployed to the programme. 2.11 With regards to complementary national programmes, it is particularly worth highlighting that we have recently been successful in our bid to participate in the Scottish Government’s Fairer Futures Partnership (FFP) (the next phase of the Child Poverty Pathfinder). This funding will support three full-time posts for 18 months to help provide greater coherence across a number of relevant workstreams, including moving towards a ‘no wrong door’ approach and the development of a ‘single shared assessment’ to enable better use of data. 2.12 In terms of resource and capacity, Sam Anson will be responsible for this work in his capacity as lead for our Strategic Priority of Wellbeing. Additional capacity will be provided through all relevant service areas as part of a cross-sectoral project team approach that: i) recognises that health inequity is the responsibility of all of us – i.e. it is impacted by our services while also impacting upon our operating context, and ii) helps to embed the informal matrix-management approach to delivery as embodied by our strategic priorities Next steps / timeline 2.13 CHES will do an initial review of an area’s fit with programme aims and notify all who have submitted if they have been shortlisted by Friday 3rd October. Shortlisted participants will be invited to meet with them between Monday 14th October and Friday 25th October. They will then decide the three places identified as most meeting the criteria, notifying them by Monday 4 November. Cabinet members will be kept informed of progress throughout this process. 3. Proposals 3.1 It is proposed that Cabinet notes the update and endorses the bid to participate in the programme 4. Implications/Socio-economic Duty Financial 19
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4.1 None. Human Resources 4.2 Staff from across all relevant service areas will be involved in this work as part of a cross-sectoral project team. By way of demonstrating our whole-system approach to this agenda, that is likely to include each of Education, Communities, Place, Economy and HSCP. Legal 4.3 None Equality/Socio-economic 4.4 The primary purpose of the programme is to strengthen and accelerate the action underway to improve Scotland's health, increase wellbeing and reduce health inequities. Health inequity arises when there are unfair and avoidable differences among groups of people, whether those groups are defined socially, economically, demographically or geographically, or by other dimensions (e.g. sex, gender, ethnicity, disability, or sexual orientation). Climate Change and Carbon 4.5 None Key Priorities 4.6 The proposal supports the North Ayrshire Council Plan Strategic Priority of Wellbeing. Community Wealth Building 4.7 Addressing health equity – including a focus across the full suite of eight Marmot principes – is integral to our CWB ambitions of adopting an inclusive and people- centred approach to developing our local economy and ensure fair distribution of wealth and opportunities for our communities 5. Consultation 5.1 Discussions have taken place with key partners (including through the CPP) and other council services. Sam Anson Executive Director (Education) For further information please contact Sam Anson, Executive Director (Education), on samanson@north-ayrshire.gov.uk. Background Papers 0 20
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1 NORTH AYRSHIRE COUNCIL 1 October 2024 Cabinet Title: Performance Information and Update – Drug and Alcohol Services – 2023/24 Purpose: To provide an update on the national and local drug and alcohol related targets and standards and performance in North Ayrshire. To provide information of the ongoing successful implementation of the Medication Assisted Treatment Standards. To provide assurance to Members of the performance, actions and service developments being progressed to address the significant challenges for our communities. Recommendation: To note the update on performance and improvement actions contained within the report. 1. Executive Summary 1.1 Detailed progress reports for Drug and Alcohol Services in North Ayrshire are included within: Appendix 1 – North Ayrshire Performance Management Report Alcohol and Drug Services 2023-24 Appendix 2 - Medication Assisted Treatment Progress Report 2023-24 1.2 During 2023-24 all the following national and local drug and alcohol related targets and standards were met in North Ayrshire: • ‘Access to Treatment’ waiting times • Medication Assisted Treatment (MAT) ‘access to MAT’ waiting times • Alcohol Brief Intervention delivery • Substance Use treatment • Naloxone delivery Agenda Item 5 21
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2 1.3 Improvement actions were delivered in support of implementing the Medication Assisted Treatment Standards (MAT). North Ayrshire services implemented a wide reaching MAT Improvement Plan which enabled the rollout and delivery of the MAT Standards across all localities. The most recent (2024) national benchmarking report has highlighted continued improvement in North Ayrshire across all 10 MAT Standards. A MAT 7 (primary care focused) model of service delivery has been developed, peer reviewed and is currently being implemented. Further improvement actions have been identified through extensive experiential and data gathering and will be implemented in the year ahead. 1.4 National reports covering the year 2023 were published recently in relation to drug and alcohol related deaths. With regard to drug related deaths, sadly there was a 12% increase in numbers across Scotland with a slight decrease in numbers for North Ayrshire. With regard to alcohol related deaths, there was an increase of one death across Scotland with an increase of one death in North Ayrshire. Further local improvement actions have been identified and are being implemented in support of preventing drug and alcohol related deaths. 1.5 More individuals have been supported to access residential rehabilitation support across North Ayrshire and Scotland wide. 2. Background 2.1 ‘Access to treatment’ waiting times standards In order to promote the importance of individuals being able to access local support timeously, a national standard is in place for individuals seeing help for both for alcohol and drug related issues: • 90% of all clients referred to services will wait no longer than 3 weeks from referral to appropriate alcohol treatment that supports their recovery • 100% of clients will wait no longer than 6 weeks from referral to appropriate alcohol treatment that supports their recovery The same standard and measurements are also in place for individuals seeking support for their drug use 2.2 ‘Alcohol Brief Interventions’ (ABI) standards for 2023-24 In order to promote the importance of engaging with individuals to reflect on their alcohol use and consider possible change, a national standard is in place to ensure opportunistic discussions can take place across a variety of settings. The ‘Priority’ settings are primary care, A&E and ante-natal. The ‘wider’ settings include partnership and local authority and 3rd sector services. • Target number of ABI’s to be delivered across Ayrshire and Arran within ‘priority’ settings – 3,419 • Target number of ABI’s to be delivered across Ayrshire and Arran within ‘wider’ settings – 855 22
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3 2.3 ‘Substance Use’ treatment target As part of the ‘National Mission’ the Scottish Government created a ‘Substance Use Treatment Target’ to increase the number of individuals being supported in treatment. North Ayrshire was set a target to increase numbers in treatment from 882 individuals in April 2020 to 959 individuals by March 2024. 2.4 ‘Naloxone’ supply One of the key initiatives to prevent drug related deaths is to supply and promote the use of ‘Naloxone’ (which is an opiate antidote which can temporarily reverse the effects of an opiate overdose, providing more time for an ambulance to be called and treatment to be administered). An improvement plan was created to promote the use of Naloxone and a local target was set for 2023-24 for services to supply, as a minimum, 460 kits. 2.5 Alcohol and drug related deaths Central to the ‘National Mission’ is the requirement to prevent alcohol and drug related deaths. Each and every drug and alcohol related death is a tragedy for those involved and of great concern to all. Services have implemented a range of actions to prevent such deaths whilst also wishing to learn as much as possible about the circumstances around each death and work closely with partners to identify issues and areas for improvement. The North Ayrshire Alcohol and Drug Partnership (ADP) enables partners to come together to implement actions aimed at preventing drug and alcohol related deaths. By adopting a wider public health and human rights based approach and working with local people, services and stakeholders, everyone can work together to prevent these deaths. Each year the National Records of Scotland produce annual reports on drug and alcohol related deaths. 2.6 Residential Rehabilitation Another key element of the ‘National Mission’ is to increase access to residential rehabilitation support. For residents of Ayrshire and Arran, Ward 5, Woodland View, is available for hospital based detoxification support, shorter term rehabilitation support and also offers a day attendance programme. In addition, vulnerable families with young children can be supported to access Harper House in Saltcoats (who offer support to families from across Scotland - with a local enhanced pathway of support available for more vulnerable families from North Ayrshire. The ADP has continued to receive funding to ensure pathways are in place to support individuals to access longer term external residential rehabilitation support across Scotland 23
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4 2.7 Medication Assisted Treatment Standards As part of the ‘National Mission’ services have been tasked with delivering on 10 Medication Assisted Treatment (MAT) Standards with the aim of improving access, choice and support for individuals. The term MAT is used to refer to the use of medication such as opioids, together with any psychological and social support, in the treatment and care of people who experience problems with their drug use. Over the last year, across North Ayrshire, there has been sustained improvement and progress across all 10 standards. 3. Proposals Performance Information 2023-24 3.1 ‘Access to treatment’ waiting times standards Alcohol • 90% of clients will wait no longer than 3 weeks from referral to appropriate alcohol treatment that supports their recovery Quarter 1 data Quarter 2 Quarter 3 Quarter 4 96% 100% 97% 100% • 100% of Clients will wait no longer than 6 weeks from referral to appropriate alcohol treatment that supports their recovery Quarter 1 data Quarter 2 Quarter 3 Quarter 4 100% 100% 100% 100% Drugs • 90% of clients will wait no longer than 3 weeks from referral to appropriate drug treatment that supports their recovery Quarter 1 data Quarter 2 Quarter 3 Quarter 4 96% 99% 97% 100% • 100% of clients will wait no longer than 6 weeks from referral to appropriate drug treatment that supports their recovery Quarter 1 data Quarter 2 Quarter 3 Quarter 4 100% 100% 100% 100% All waiting times standards were met during 2023 to 2024: 3.2 ‘Alcohol Brief Interventions’ standards for 2023/24 Annual Target set by Scottish Government in priority settings (2023/24) – 3,420 Total ABI delivery in priority settings (as at 31/03/2024) – 6,398 Target achieved 24
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5 Annual target set by Scottish Government in wider settings – 855 Total ABI delivery in wider settings (as at 31/03/2024) – 1,210 3.3 ‘Substance Use’ treatment target North Ayrshire was set a target by the Scottish Government to increase the number of individuals in treatment from 882 individuals in April 2020 to 959 individuals by March 2024. Against a target of 77, there was an increase of 247 individuals receiving treatment, which significantly exceeded the target set. We are now awaiting a new nationally set target for 2024 onwards. 3.4 ‘Naloxone’ supply Against a local target of supplying 460 Naloxone kits during 2023 to 2024 – 679 kits were supplied across North Ayrshire. 57 lives across Ayrshire and Arran were reported to be saved through the use of Naloxone during this period (23 in North Ayrshire). 3.5 Drug related deaths The National Records of Scotland recently produced its annual report titled ‘Drug Related Deaths (DRD) in Scotland 2023’. In 2023, there were 1,172 DRD deaths registered in Scotland. This was an increase of 121 deaths compared with 2022 (an increase of 12%). Scotland continues to have the highest rates of any European country, with 90 per cent of these deaths classified as ‘accidental poisoning’. These deaths are a tragedy for individuals, families and communities across Scotland and are avoidable and preventable. People in the most deprived areas of Scotland are over 15 times more likely to die from a DRD compared to people in the least deprived areas, with males being twice as likely to die as females. Ayrshire and Arran Health Board saw a slight increase of DRDs last year, from 82 deaths in 2022 to 83 deaths in 2023. In North Ayrshire, we saw a slight decrease from 37 deaths in 2022 to 36 in 2023. East Ayrshire saw a slight increase from 30 deaths in 2022 to 31 in 2023, and South Ayrshire saw a slight increase from 15 deaths to 16. North Ayrshire Drug Related Death figures for the past five years are as follows: 2019 – Total number of deaths: 41 2020 – Total number of deaths: 39 2021 – Total number of deaths: 39 2022 – Total number of deaths: 37 Target achieved 25
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6 2023 – Total number of deaths: 36 While we again welcome this slight reduction in the number of deaths in North Ayrshire, there is no room for complacency. Behind each drug death was a human being who was loved and is missed by their families and friends. 3.6 Alcohol Specific Deaths Sadly, 1,277 people across Scotland died from an Alcohol Specific Death (ASD) in 2023 - an increase of one death from 2022. This is the highest level of deaths in 15 years – with the figures showing that individuals in the poorest communities were more than 4.5 times as likely to die as those in the wealthiest areas. Male deaths continue to account for around two thirds of all deaths. These deaths are preventable and are a tragedy for individuals, families and communities across Scotland. In North Ayrshire, we saw a slight increase from 29 deaths in 2022 to 30 in 2023. North Ayrshire Drug Related Death figures for the past five years are as follows: 2019 – Total number of deaths: 50 2020 – Total number of deaths: 44 2021 – Total number of deaths: 37 2022 – Total number of deaths: 29 2023 – Total number of deaths: 30 We will refresh our actions to reduce the number of deaths in North Ayrshire with an increased focus to reduce alcohol related harms similar to prioritising improvement actions to reduce drug related deaths. 3.7 Residential Rehabilitation Another key element of the ‘National Mission’ is to increase access to residential rehabilitation support. Local hospital based support is provided in Ward 5, Woodland View, Irvine to anyone who has an alcohol and/or drug problem and mental health issues. Ward 5 has 10 beds for residential care – offering local access to residential, detoxification, rehabilitation and day attendance support. Seamless pathways of support are in place with local community alcohol and drug services supporting individuals before, during and after their placement (extra support in place for NA residents e.g. in addition to ongoing NADARS support, everyone is also provided with daily follow up support from the local Turning Point, Scotland, service for the first week following discharge). 26
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7 During 2023/24: 138 individuals received detoxification support – 94 from North Ayrshire 74 individuals received rehabilitation support – 45 from North Ayrshire Access to additional local residential rehabilitation - Harper House The NA H&SCP was instrumental in supporting Phoenix Futures, Scotland, to open ‘Harper House’ in November 2022 which offers specialist support for the ‘whole family to recover from the harms of problematic drug and alcohol use’. In 2023/24 NADARS supported 7 applications into Harper House with 5 starting the programme. Access to External Residential Rehabilitation (ERR) Individuals wishing to access external residential rehabilitation support can do so via NADARS who will support the development of a care plan, identify a residential rehabilitation provider, seek funding and then support individuals into, through and after their ERR placement. In 2023/24, NADARS received 55 referrals for consideration of ERR. Following assessment, 22 individuals were suitable for ERR and funding was approved (33 individuals felt not ready or declined the ERR intervention at that time and were offered alternative community supports). No application has been declined due to financial considerations 21 individuals commenced ERR (with one individual declining admission at their start date) 3.8 Medication Assisted Treatment Standards In 2021, the Scottish Government introduced 10 Medication Assisted Treatment (MAT) Standards for implementation. Evidence suggests that rapid access to MAT meets the needs of highly vulnerable groups and reduces mortality. New approaches were required within North Ayrshire to support rapid access to MAT: A local test of change was carried out to evaluate the new model of care to establish effectiveness prior to roll out An Improvement Implementation Plan was implemented, evaluated & updated with progress reports submitted to the Scottish Government; Quarterly updates on MAT developments were submitted to the national MAT support Team – MIST; An explicit plan was put in place for delivering trauma informed practice; Guidelines and clinical & care pathways of support were put in place to ensure consistency and to support the staff to deliver the interventions. 27
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8 Results/outcomes (2023-24): • Improvement in the waiting time from referral to commencement of appropriate Opiate Substitution Therapy medication - 75% of individuals were offered a first MAT assessment on the same day as engagement with the service • 100% of individuals were supported to make an informed choice on MAT medication and the appropriate dose • 75% of notified high risk events to the multi-agency assessment team for assertive outreach were contacted on the same day • 85% of individuals were retained in service for more than 6 months • Over 90 individuals have shared care support with Primary Care • 100% of individuals received a mental health assessment • 100% of individuals were offered BBV testing, Harm Reduction interventions and a physical health assessment • Improvement in satisfaction and experience of clients. A RAGB self-assessment was completed and evidence (numerical, experiential and process information) was submitted to the MIST team for analysis and benchmarking. The table below highlights a very positive final RAGB score for the implementation of MAT standards 1 - 10 across North Ayrshire with improvement and progress across all 10 standards. Funding sustainability issue in relation to delivery of MAT Standard 7 (primary care) MAT Standard 7 relates to essential primary care involvement in order to meet the MAT 7 commitment that ‘All people have the option of MAT shared with Primary Care’. In North Ayrshire a MAT 7 delivery model was identified, peer reviewed and agreed. In 2023, NHS Boards received a letter from the Scottish Government which identified that funding for MAT 7 related developments should be extracted from the funding already allocated through the Primary Medical Services funding for 28
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9 Enhanced Services. This creates an issue for NHS Boards to unpick previous commitments which would enable a shifting of resource. To date there has been no funding re-allocated by NHS Ayrshire & Arran to support MAT 7 developments. With no additional funding being made available, the North Ayrshire ADP allocated non-recurring funding of £89,000 to initiate, at pace, proposed developments in North Ayrshire. Following national discussion and peer review the North Ayrshire MAT 7 delivery model was further refined and agreed resulting in the ADP then increasing their funding commitment to £116,936 a year for a further two years to provide time to review and evaluate the model. This non-recurring funding has been used to employ additional specialist GP and Pharmacist prescribers and to initiate a test of change involving local pharmacies administering Buvidal (an OST medication). 4. Implications/Socio-economic Duty Financial 4.1 The performance report provides an overview of the funding allocated and directed by the ADP to deliver on this critical mission. There remain financial risks including recurring funding which will require to be identified to ensure sustained implementation of all 10 MAT Standards and MAT Standard 7 in particular and the prescribing budget in the HSCP remains under pressure due to the positive promotion of choice of medication. Human Resources 4.2 None Legal 4.3 None Equality/Socio-economic 4.4 The majority of people at risk of drug and alcohol related deaths are among the most marginalised and disadvantaged in our population. Many of those people experience significant disadvantage of opportunity and poorer health outcomes. The programmes of work delivered via our ADP, HSCP, NHS Board, NAC and wider partners contributes to reducing inequalities and in the prevention of drug and alcohol related deaths through public health and human rights based approaches. Climate Change and Carbon 4.5 None Key Priorities 29
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10 4.6 The information contained within this report and the improvement actions that have been implemented have a positive contribution to play in support of one of the Councils key themes: • Wellbeing (we will address health inequalities, promote children and young people’s wellbeing and enable community wellbeing) Community Wealth Building 4.7 None 5. Consultation 5.1 This report notes the significant collaboration and engagement underway both nationally and locally across the health and social care system to prevent alcohol and drug related deaths and to ensure that all standards and targets are met. The report has been presented to the ADP and also the Integration Joint Board. Caroline Cameron Director - North Ayrshire Health and Social Care Partnership For further information please contact: Peter McArthur, Senior Manager – Alcohol and Drug Services, on 07770730916. Background Papers 2 30
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1 NORTH AYRSHIRE HEALTH & SOCIAL CARE PARTNERSHIP (H&SCP) and the Alcohol & Drug Partnership (ADP) Performance Management Report Alcohol and Drug information 1st April 2023 to 31st March 2024 Prepared by: Denise Brown NHS Prevention and Service Support Team Peter McArthur North Ayrshire Alcohol & Drug Services 32
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2 North Ayrshire – Access to Services – Waiting Times April 2023 – March 2024 Alcohol • 90% of clients will wait no longer than 3 weeks from referral to appropriate alcohol treatment that supports their recovery • 100% of clients will wait no longer than 6 weeks from referral to appropriate alcohol treatment that supports their recovery Drug • 90% of clients will wait no longer than 3 weeks from referral to appropriate drug treatment that supports their recovery • 100% of clients will wait no longer than 6 weeks from referral to appropriate drug treatment that supports their recovery Target achieved Q1 Q2 Q3 Q4 100% 96% 97% 100% Q1 Q2 Q3 Q4 100% 100% 100% 100% Target achieved Q1 Q2 Q3 Q4 99% 96% 97% 100% Target achieved Q1 Q2 Q3 Q4 100% 100% 100% 100% Target achieved 33
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3 ALCOHOL BRIEF INTERVENTIONS (ABI) Ayrshire and Arran wide information Annual report: April 2023 – March 2024 Annual target set by Scottish Government in priority settings (2023/24) – 3420 Total ABI delivery in priority settings (as at 31/03/2024) – 6398 Annual target set by Scottish Government in wider settings – 855 Total ABI delivery in wider settings (as at 31/03/2024) – 1210 SUBSTANCE USE TREATMENT TARGET The Scottish Government have created a new ‘Substance Use Treatment Target’ to increase the number of individuals being supported in treatment. North Ayrshire has been set a target to increase numbers in treatment from 882 individuals in April 2020 to 959 individuals by March 2024. Baseline from Scottish Government Quarterly reporting – North Ayrshire North 01/04/2020 882 Target by March 2024 - an increase of 77 North 01/04/2020 959 Interventions were put in place across our community alcohol and drug recovery services to support the achievement of this target. Please note the monthly information supplied is unpublished and has been collected from local prescribing systems to monitor progress, however, we await an initial verified nationally published report. Increase from Baseline figure by 247 at the end of March 2024. This exceeded the target set. Now awaiting a new nationally set target for 2024 onwards. Quarterly period Target Actual Apr-Jun 22 891 898 Jul-Sep 22 900 940 Oct-Dec 22 910 974 Jan-Mar 23 920 1011 Apr-Jun 23 930 1051 Jul-Sep 23 940 1080 Oct-Dec 23 950 1103 Jan-Mar 24 959 1129 Total 2 Year Increase Figure 77 247 Target achieved Target achieved 34
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7 AYRSHIRE AND ARRAN DRUG RELATED DEATHS INFORMATION Annual summary report: 1st April 2023 – 31st March 2024 National Records for Scotland - Drug Related Deaths Please find information in the link below around the definition of drug related deaths and what deaths are excluded from this definition: https://www.nrscotland.gov.uk/files/statistics/drug- related-deaths/drd2016/html/drug-related-deaths-2016-annex-a.html The link below details the full report which details statistics of drug-related deaths in 2022 and earlier years, broken down by age, sex, substances implicated in the death, underlying cause of death and NHS Board and Council: https://www.nrscotland.gov.uk/statistics-and- data/statistics/statistics-by-theme/vital-events/deaths/drug-related-deaths-in-scotland/2022 Published confirmed deaths (Extracted from National Records of Scotland Drug Related Deaths in Scotland, 2021) Number of deaths confirmed (most recent published information) East North South Total 2018 29 38 15 82 2019 41 41 26 108 2020 36 39 31 106 2021 38 39 23 100 2022 30 37 15 82 2023 – No confirmed published data as yet (however when reviewing local unpublished information, a further decrease is expected for North Ayrshire) Number of NADARS reviews conducted for individuals identified as potentially suffering a drug related death Number of these reviews which identified learning or recommendations Number of reports submitted by other services which identified learning or recommendations In the last year, local learning identified from reviews were: • NADARS review robustness of processes around GP notification of discharge from their service. • Where clients have not been seen and have to be re-appointed the plan of next steps should be documented clearly within clients notes • The Ayrshire Risk Assessment Framework (ARAF) used to assess a client’s mental health must be updated to reflect any significant change in a client’s circumstance on all occasions • Where Next of Kin information is available it is important to ensure their details are complete and up to date and recorded on the Care Partner system. 47 4 3 0 38
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8 PREVENTION AND SERVICE SUPPORT TEAM Annual summary report: 1st April 2023 – 31st March 2024 Alcohol & Drug training and education sessions Calendar courses with 739 participants Ad-hoc training courses with 1723 participants 110 89 Bitesize sessions with 79 participants 29 Training Delivery The team continue to provide a wide range of education and training initiatives which focus on improving awareness, competence and knowledge of those affected by alcohol and drug use, and those working in the field. Due to the COVID-19 pandemic the team introduced virtual training, this continues to be offered as well as face to face training. PSST currently issue upcoming training courses on a quarterly basis. What did our participants say? “I really enjoyed the variety of delivery slides/videos/breakout rooms” “Interactive. Trainers very knowledgeable and happy to answer any questions” “Thoroughly enjoyed today. Very informative and I particularly liked the interactive part of the presentation” "Learning about BBV which was new to me. Training was really useful and informative. Trainers were great" "I really enjoyed the training. Being new to this line of work it was very informative and will help me my job role" "I enjoyed learning about the types of drugs and the stats in this session. The trainers’ knowledge of the same provides me with confidence to carry out my role effectively” 46 sessions delivered within Ward 5 Attended 13 stalls/events Ad-hoc training and health information events by locality area 38% 30% 8% 24% East North South Pan-Ayrshire Alcohol Brief Interventions Annual target set by Scottish Government in priority settings (2023/24) – 3420 Total ABI delivery in priority settings (as at 31/03/2024) – 6398 Annual target set by Scottish Government in wider settings – 855 Total ABI delivery in priority settings (as at 31/03/2024) – 1210 Follow our social media pages to keep up to date with our activities in the Prevention and Service Support Team Prevention and Service Support Team – NHS Ayrshire and Arran @PSST_NHSaaa 39
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9 Ayrshire College Alcohol and Drug Liaison Officer 98 workshops were held with 1138 students 37 1-1 supports with students 6 staff supports 9 health events with an estimated 765 contacts 1 training session delivered for 12 information hub staff Naloxone 99 staff completed the Naloxone Learnpro Minimum of 57* lives saved in the community *lives saved across Ayrshire and Arran as reported on the Shared Addiction Management System (SAMS). Many saves go unsupported. 6 Train the trainer sessions delivered 39 Naloxone awareness sessions delivered 113 203 267 401 0 50 100 150 200 250 300 350 400 450 2020 2021 2022 2023 Naloxone supplied by PSST Service Support Service Support facilitate service development activity which supports the implementation and delivery of the quality improvement agenda for Alcohol and Drug Services which meets national, local and strategic objectives. 22 Audit and evaluation activity 8 Guidelines reviewed and updated Get our NHS Ayrshire and Arran Alcohol and Drug App Download the NHS Ayrshire & Arran app from your Apple or Android app store. Then search for Alcohol and Drugs. 32 Drug and Alcohol groups supported Support to implementation of MAT standards and reporting Development of NADARS Roles and responsibilities directory Gathering, collating and presenting client satisfaction and client stories ABI Heat Standard recording and reporting Support to START and RADAR service Support to local Adverse Incident review processes and reporting 40
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10 INFORMATION MANAGEMENT AND TECHNOLOGY (IM&T) Annual summary report: 1st April 2023 – 31st March 2024 The Information Management and Technology Team are responsible for the development, training and monitoring of the Shared Addiction Management System (SAMS) and the training and monitoring of Drug and Alcohol Information system (DAISy). These systems are used to record drug and alcohol information, which enables the team to provide national and local reports. SAMS updates 3 sections within SAMS were updated New MAT 9 Mental Health added to SAMS SAMS updated to use Active Directory Login New Substitute Prescribing Application went live Training, e-learning and support E-learning • Completion of a new Alcohol Detox module • New Substitute Prescribing read-only module released • Updated ABI module Training • 68 individuals received SAMS training • 34 individuals received DAISy training • 2 Naloxone training sessions delivered to new organisations Support Approximately 50 SAMS/ DAISy support calls per month IM&T are also responsible for the collation and reporting of Drug Related Deaths and the completion of the National Drug Death database. Drug related death reporting Reporting • Quarterly reports including ASPIRE report, (29 individual performance reports), Naloxone quarterly reports, Scottish Governance reports, ADP reports and local performance and planning reports • Development of reports and audits for MAT standards and submission of MAT 1 – 10 numerical data • Monthly reports including 10 current OST reports, MAT Target Report, SAMS Data Quality Reports and Psychological Therapy Waiting Times • Weekly DAISy quality data checks for Waiting Times, Assessments and Reviews for all Alcohol and Drug services • Monthly substitute prescribing audit • Drug related death report • Development of report for new residential rehab dataset • Approximately 10 – 15 ad hoc report requests per month 41
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11 IMPLEMENTATION OF MAT STANDARDS ACROSS NORTH AYRSHIRE Annual summary report 2023 - 24 In April 2021, the Scottish Government introduced 10 new Medication Assisted Treatment (MAT) Standards for implementation by Alcohol and Drug Services. There is evidence that rapid access to MAT meets the needs of highly vulnerable groups and reduces mortality1. , New approaches were required within North Ayrshire to support rapid access to MAT: • A local test of change was carried out to evaluate the new model of care to establish effectiveness prior to roll out • An Improvement Implementation Plan was implemented, evaluated & updated with regular progress reports submitted to the Scottish Government; • Quarterly updates on MAT developments were submitted to the national MAT support Team – MIST; • An explicit delivery plan was put in place for delivering trauma informed practice; • Guidelines and clinical & care pathways of support were put in place to ensure consistency and to support the staff to deliver the interventions. Results/outcomes (2023/24) • Improvement in the waiting time from referral to commencement of appropriate Opiate Substitution Therapy medication - 75% of individuals were offered a first MAT assessment on the same day as engagement with the service • 100% of individuals were supported to make an informed choice on MAT medication and the appropriate dose • 75% of notified high risk events to the multi-agency assessment team for assertive outreach were contacted on the same day • 85% of individuals were retained in service for more than 6 months • Over 90 individuals have shared care support with Primary Care • 100% of individuals received a mental health assessment • 100% of individuals were offered BBV testing, Harm Reduction interventions and a physical health assessment • Improvement in satisfaction and experience of clients. A RAGB self-assessment was completed and evidence (numerical, experiential and process information) was submitted to the MIST team for analysis and benchmarking. The table below highlights a very positive final RAGB score for the implementation of MAT standards 1 - 10 across North Ayrshire with improvement and progress across all 10 standards. 42
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12 RESIDENTIAL REHABILITATION EXPANSION Access to residential rehabilitation across Ayrshire and Arran – Ward 5, Woodland View. Ward 5 has 10 beds for residential care: Seamless pathways of support are in place with the local community team supporting individuals before, during and after their placement (extra support in place for NA residents e.g. in addition to ongoing NADARS support, everyone is also provided with daily follow up support from the P.E.A.R service for the first week following discharge). During 2023/24 Access to additional local residential rehabilitation - Harper House The NA H&SCP was instrumental in supporting Phoenix Futures, Scotland, to open ‘Harper House’ in November 2022. It is located in Saltcoats and is a Care Inspectorate registered service, funded by the Scottish Government – it offers specialist support for the ‘whole family to recover from the harms of problematic drug and alcohol use’. Their family- focused programme of interventions is ‘designed to benefit each member of the family and the family unit as a whole’. Referrals are accepted from across Scotland, with enhanced local access available for residents of North Ayrshire. These pathways continue to be improved with a local oversight group meeting regularly to support the identification and suitability of families. In 2023/24 NADARS supported 7 applications into Harper House with 5 starting the programme. The 2 families who were not suitable at that time have had continued involvement from community services as appropriate. Access to External Residential Rehabilitation (ERR) Individuals wishing to access external residential rehabilitation support can do so via NADARS who will support the development of a care plan, identify a residential rehabilitation provider, seek funding and then support individuals into, through and after their external residential rehabilitation placement. In 2023/24, 55 referrals were received for ERR. Following assessment, 22 individuals were suitable for ERR and funding was approved (33 individuals felt not ready or declined the ERR intervention at that time and were offered alternative community supports). • 21 individuals commenced ERR (with one individual declining admission at their start date) 5 5 Detoxification Rehabilitation 138 individuals (NA = 94) 74 individuals (NA =45) Detoxification support Rehabilitation support 43
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13 FINANCIAL INFORMATION ADP 23-24 Forecast Spend Ministerial Priorities Sum of Agreed Projects Community based treatment and recovery services for adults £1,122,568.30 Other £107,995.54 Other Projects £1,030.90 Prevention including educational inputs, licensing objectives, Alcohol Brief Interventions) £209,179.50 Alcohol and drug services specifically for children and young people £100,343.47 Recovery community initiatives £135,699.00 Services for Families affected by alcohol & Drug use £126,637.91 Additional National Mission uplift £218,035.22 MAT Standards £364,225.04 Residential Rehab £164,252.28 Whole family Approach framework £141,366.26 Residential Support £41,609.04 Grand Total £2,732,942.45 Community based treatment and recovery services for adults 41% Other 4% Other Projects 0% Prevention including educational inputs, licensing objectives, Alcohol Brief Interventions) 8%Alcohol and drug services specifically for children and young people 4% Recovery community initiatives 5% Services for Families affected by alcohol & Drug use 5% Additional National Mission uplift 8% MAT Standards 13% Residential Rehab 6% Whole family Approach framework 5% Residential Support 1% Community based treatment and recovery services for adults Other Other Projects Prevention including educational inputs, licensing objectives, Alcohol Brief Interventions) Alcohol and drug services specifically for children and young people Recovery community initiatives 44
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14 Additional funding streams Ministerial Priorities Sum of Agreed Projects Other Projects £ 1,030.90 Additional National Mission uplift £ 218,035.22 MAT Standards £ 364,225.04 Residential Rehab £ 164,252.28 Whole family Approach framework £ 141,366.26 Grand Total £ 888,909.70 The ADP has accumulated a reserve balance due to underspends in previous financial years. • Plans are in place to utilise the reserves and they are committed in future years. Other Projects 0% Additional National Mission uplift 25% MAT Standards 41% Residential Rehab 18% Whole family Approach framework 16% Other Projects Additional National Mission uplift MAT Standards Residential Rehab Whole family Approach framework 45
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IMPLEMENTING MEDICATION ASSISTED TREATMENT (MAT) NORTH AYRSHIRE DRUG AND ALCOHOL RECOVERY SERVICE (NADARS) Reporting period: 1st April 2023 - 31st March 2024 Quality issue: In 2022, there were 1,051 drug related deaths registered in Scotland, 279 deaths fewer than 2021. Although this is the lowest number of deaths since 2017, there were 3.7 times as many deaths in 2022 compared with 2000. Ayrshire and Arran continues to have the second highest death rate at 28.1per 100,000 population. Evidence suggests quick access to treatment is crucial and being in treatment can be a protective factor for majority of individuals. The Scottish Drug Deaths Taskforce (SDDTF) has prioritised the introduction of the MAT standards to help reduce the number of drug related deaths. There is evidence that rapid access to MAT meets the needs of highly vulnerable groups and reduces mortality. Aim: To have no barriers to accessing treatment and care that supports an individual’s recovery. This project focussed specifically on improving access to appropriate Medication Assisted Treatment (MAT) within the North Ayrshire Drug & Alcohol Recovery Service (NADARS) in order to prevent deaths, reduce harms and promote recovery opportunities. Effects of change during 202324: • Improvement in the waiting time from point of referral to commencement of appropriate Opiate Substitution Therapy (OST) medication - average time from assessment to prescribed medication 0 days. • Increased choice in OST medications • Improvement in satisfaction and experience of clients. • All individuals received a mental health assessment and support as required. • All individuals were offered Blood Borne Virus (BBV) testing, Harm Reduction interventions, physical health assessment and referred on for further support where required. • All individuals had the opportunity to access Recovery Development Worker's with lived experience to provide person centred recovery support. • All individuals had the opportunity of family involvement. • All individuals were offered housing, advocacy support and were referred for social care support where appropriate. Tests of change: Cycle 1: Implement and Test the MAT clinic pathway on a Monday and a Thursday in one locality (Three Towns). Cycle 2: Secure funding to recruit staff to support the implementation of the full model. Cycle 3: Refine project charter to facilitate full model Cycle 4: Expand service to 5 days per week across 6 localities of North Ayrshire (NA). (Test of change is complete and now working towards sustaining full model during 2024/25) 0 1 2 3 4 5 Average number of days referral to prescription 0 1 2 3 4 5 6 7 8 9 10 Average number of days from assessment to prescription Median = 3 days Median = 0 days 46
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IMPLEMENTING MEDICATION ASSISTED TREATMENT 565 REFERRALS BY GENDER FEMALES MALES 188 377 (33%) (67%) REFERRALS BY GENDER & AGE GROUP 0 50 100 150 200 0 - 24 25 - 34 35 - 44 45 - 54 55+ COMMENCED SAME DAY/NEXT DAY (where clinically safe and appropriate) 97% of clients commenced MAT on same day or next day from assessment INTERVENTIONS OFFERED AT POINT OF MAT DELIVERY 100% of clients were offered Mental Health Support and Harm Reduction interventions BBV testing, IEP and Sexual Health 350 individuals chose this pathway of MAT related support. The reasons given for not commencing the pathway were: • clients went to prison • not ready to commence MAT but continued to receive support from the wider service NALOXONE AND OVERDOSE AWARENESS 100% 72%* of clients were of clients were supplied offered Naloxone with Naloxone or already had a kit *The remaining 28% declined* CLIENT SATISFACTION Of clients rated their initial waiting time either “excellent” or “very good” 79% 81% Of clients rated the communication from NADARS either “excellent” or “very good” Of clients who were able to commence medication at their initial appointment stated that there were no delays in getting their prescription 95% 95% Of clients felt that they were given sufficient information to make an informed choice on their treatment options 95% Of clients felt that the NADARS worker explained all the care and treatment options in a way that they understood 81% Of clients rated the overall service either “excellent” or “very good” OPIOID SUBSTITUTION THERAPY (OST) MEDICATIONS PRESCRIBED FOLLOWING ASSESSMENT 63% 32% 5% Methadone Espranor/ Buvidal Suboxone This evidences increased patient choice of OST 47
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IMPLEMENTING MEDICATION ASSISTED TREATMENT Developments during 2023/24: • Quarterly reports have been submitted to the Scottish Government evidencing progression across each of the 10 standards from the previous year. • An explicit delivery plan was put in place for delivering trauma informed practice • LOPs, SOPs, guidelines and clinical & care pathways of support were reviewed & updated • MAT availability was increased at Caley court and expanded to 5 days per week. MAT is now available across all 6 localities with immediate support available to all from Caley Court alongside remote (low threshold) access in more rural areas including the islands. • Over 90 individuals currently have ‘shared care’ support with Primary Care colleagues. • A workforce training plan is in place to ensure all staff offering MAT & OST can provide the core harm reduction services at the same time and place as MAT delivery • A robust 7 wide reaching experiential process was implemented by the NA ADP, to capture, analyse and utilise feedback from clients, families and staff to inform service improvement • Appropriate recording information systems were updated to collect and analyse data • In the absence of additional national being able to be accessed, the NA ADP committed non-recurring funding to implement initial MAT 7 (Primary Care) developments at pace. • A new staff guidance document was approved for implementation to provide an ‘interface protocol’ as to how secondary care mental health services & alcohol & drug services can better support individuals with co-occurring mental health and alcohol and/or drug use. Priorities for 2024/25 • Sustained implementation of all 10 MAT standards • Following formal submission of experiential data, we will conduct a local analysis to identify themes for further improvement. • Based on national feedback/approval we will update the NA MAT 7 model & explore options to secure additional funding to deliver, in full by next year, a revised NA implementation plan • Work underway, with all ADP partners, to scope out requirements and system change to support MAT delivery for individuals using Stimulants and Benzodiazepines; • Engage with service users, families and staff to evaluate and learn from the recently implemented MAT 9 related multi-agency ‘operational interface protocol’ to better support individuals presenting with co-occurring mental health and alcohol and/or drug use • For MAT 6&10 a key development/priority is to continue to increase access to psychological interventions and therapies through staff training and ongoing support. INFORMATION AND FEEDBACK 565 referrals were received between 1st April 2023 and 31st March 2024 350 clients commenced MAT support (the others declined service, required preparatory support or disengaged from service) 97% of clients commenced MAT on the same day or next day from assessment (where clinically appropriate and safe) 99% of clients commenced MAT within 1 week Reasons for timescales over 7 days include initial non- attendance with follow up in place Detailed numerical data on referrals, timescales, interventions etc was submitted to MIST in April 2024, which is now being analysed to identify good practice and learning. 48
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IMPLEMENTING MEDICATION ASSISTED TREATMENT EXPERIENTIAL FEEDBACK • To gather feedback and data in a consistent and impartial way, the ADP adopted a multidisciplinary approach by identifying a mixture of service staff and individuals with Lived & Living Experience (LLE) to gather experiential feedback from service users, families/carers of people on MAT, and staff delivering the service. • Individuals identified to carry out the interviews attended a 3-session training course delivered by MIST (national MAT Implementation Support Team). • A mixed methods approach was applied to gather data e.g. 1-1 interviews, smaller engagement events. • The ADP Support Team collated, analysed, and themed the data for submission to MIST (with full involvement of the Experiential Engagement Team and people with LLE). The feedback received was mainly positive and demonstrates the ease of access, increased choice of medications and no barriers to the overall support received. “Everything got dealt with at my initial appointment. Services are totally different now in comparison to years ago so there is nothing I could suggest that would've made it better” “I definitely felt involved in my options. I mind the lassie discussed all available options I could choose from and I think it was Espranor she recommended for me, due to it having a blocker effect, so if I used on top of it there would be no effects. I decided to go for methadone though and my choice was respected.” MIST BENCHMARKING 2024 – SCORING TRACKER Over the last year there has been improvement and progress across all 10 standards 49
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NORTH AYRSHIRE COUNCIL 1 October 2024 Cabinet Title: HOUSEHOLD WASTE RECYCLING CENTRE (HWRC) DIGITAL BOOKING SYSTEM Purpose: To seek approval from Cabinet to implement a digital Household Waste Recycling Centre (HWRC) booking system at all sites. Recommendation: That Cabinet approves the proposal to procure and implement a digital booking system within all Household Waste Recycling Centres (HWRCs) on the mainland and the Isle of Arran. 1. Executive Summary 1.1 The Council operates four Household Waste Recycling Centres (HWRCs) located in Irvine, Kilbirnie, Largs and at Brodick on the Isle of Arran. 1.2 A HWRC permit system has operated since August 2011 at the mainland HWRCs for vans and trailers, with height restriction barriers being installed. A pre-paid permit system is in place at Brodick for commercial vehicles. 1.3 The Council approved a saving in February 2024 of £75,000 to reduce HWRC Opening Hours. The implementation of a digital booking system will support the budget decision for reduced operating hours/days and help minimise the impact on our customers. 1.4 The procurement and implementation of a digital booking system at HWRCs will provide a range of benefits, which are detailed in paragraph 2.5. The system will allow customers to book slots at HWRC sites at a time convenient to them and this will enable the appropriate support to offload their household waste safely and correctly, minimising contamination and improving recycling. 1.5 An outline of the key aspects of how the digital booking system will operate are detailed at paragraph 2.7. 2. Background 2.1 The Council operates four Household Waste Recycling Centres (HWRCs), three on the mainland, located in Irvine, Kilbirnie and Largs and one in Brodick on the Island of Arran. 2.2 A HWRC permit system for vans and trailers was implemented in August 2011 on the mainland, which included the installation of vehicle height restriction barriers. The Agenda Item 6 51
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permits allow 12 visits per annum per household, however if residents wish to use a HWRC more frequently for the reuse/recycling or disposal of household waste only, additional permits may be issued where justified. A pre-paid permit process is in place at Brodick HWRC for the deposit of commercial waste only, as alternative disposal facilities on Arran are limited. 2.3 The Council approved a saving in February 2024 of £75,000 to reduce HWRC opening hours, based on closing the sites for some days and we will no longer operate 7 days per week. This will likely result in longer than usual waiting times at peak periods, as well as on the day after sites re-open. The implementation of a digital booking system will support delivery of the budget decision for reduced operating hours/days, while minimising the associated impact on our customers. 2.4 The Corporate Transformation Team and officers from the Waste Service have engaged with a range of councils that have already implemented a digital HWRC booking system and identified best practice from them to support the implementation of a system within North Ayrshire’s HWRCs. The feedback received from some of the Councils included: • East Renfrewshire Council - received minimal complaints regarding the introduction of the booking system. • South Ayrshire Council - since the implementation of the booking system they have not had to review any incidents at their Ayr site and from a safety point of view, it has been a great improvement. Customers commented on how much safer they felt when visiting their sites. • Hampshire County Council - HWRC tonnages decreased by 70,000 which equates to a 37% reduction and only 3% of bookings are being made over the phone, with the rest being made online. • Kent County Council – site staff have reported an increase in job satisfaction. • North Lanarkshire Council - during a pilot in 2023/24 at one HWRC, 59,000 bookings were made and 98.6% were online, with positive feedback from site staff and customers. Following the successful pilot this is now being implemented at all their sites. • Research has shown that councils who have implemented a booking system have not experienced a visible increase in fly tipping following its inception. 2.5 The system will focus on allowing customers to be able to book a time slot at HWRC sites at a time convenient to them and this will enable the provision of appropriate support to offload their household waste safely and correctly, minimising contamination and improving recycling. The key benefits of implementing a digital HWRC booking system include: • Customer Experience o Avoidance of long queues at sites, particularly at peak times and providing certainty of access to the site at the time and date booked, while reducing customer waiting/lost time. o Reduced vehicle idling when queuing, reducing vehicle emissions and the associated fuel costs for customers. o Freeing up staff to assist with customers and encourage reuse/recycling. 52
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o Ability to send booking reminders and bulk notifications to customers e.g. for emergency site closures/ training. o Supporting the ability to book the same day will be a key element of the system. o Providing a simple and standardised booking experience, which will support the incorporation of the existing HWRC permit access system and policy for vans, trailers and oversize vehicles, standardising the application process and streamlining the approach for customers. o Provides an opportunity to close off booking times at individual sites for small periods as required to allow the delivery of essential staff training. o Supports the ‘Meet and Greet’ approach to ensure customers have booked and to ascertain what wastes customers have for deposit at the site. • Health and Safety o Reduced traffic at the sites ensures a safer site for the customer and employees, particularly at peak times. o It will reduce the risk of violence and aggression towards staff. o It will prevent Police Scotland having to visit the sites during extremely busy periods to deal with traffic congestion and reduce queue jumping incidents and the associated customer and staff issues in respect of this. • Site Misuse o Ability to monitor the level of customer visits / flag up unusual visit patterns, helping to identify and prevent site misuse. o Discourage commercial businesses from misusing the sites. o Ensure no hazardous waste enters sites e.g. asbestos and supports the provision of waste related information to customers in advance of their visit (waste packing advice, waste disposal guidance etc). o Avoidance of fly-tipping near HWRCs, due to certainty of access and never having to leave a site with a full vehicle. • Analysis o Allows the understanding of patterns/trends for site usage through bookings and the type of materials that are being presented for reuse, recycling or disposal. o Supports engagement with frequent site users to ascertain whether additional support is required e.g. help with recycling at home. • Financial o It will improve staff vigilance which will help to reduce contamination and the associated contamination contractual charges levied on the Council. o Improved staff vigilance will help to increase reuse/recycling and reduce waste disposal costs. o It will help to reduce the overall disposal costs due to reduced tonnages, through avoiding waste from residents of neighbouring councils and improved commercial waste controls. 53
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2.6 The system will focus on allowing customers to be able to book slots at HWRC sites at a time convenient to them and this will enable the appropriate support to offload their household waste safely and correctly, minimising contamination and improving reuse and recycling. 2.7 The key aspects of how the digital booking system will operate are included below: • Customers will still be able to call to book slots via the contact centre without signing up to MyNAC, however it is expected the vast majority will book on-line. • Should a customer present at a site without a booking then a ‘one time’ pass will be issued, which will be recorded against the car registration number. • An extensive communication campaign will be carried out ensuring the new system is widely publicised via multiple communications channels. • A number of same day booking slots will be made available via the system, to accommodate unexpected demands, subject to availability. • The system will also support the digital delivery and management of the existing permit system and policy for householders seeking access with vans and small trailers, as well as facilitate the review and digitisation of the commercial permit system on Arran. • The system will be configured to support family members to be able to deposit household waste on behalf of elderly NAC residents. • The system will be implemented as soon as practically possible taking account of the communication required and the procurement of the system. 2.8 A one-off implementation cost is estimated to be around £6,500 for tablets and system. Recurring costs are estimated to be around £5,000 for hosting, licences etc and will be met from the existing Waste Service revenue budget through savings in waste disposal costs. 2.9 The estimated implementation date is 1 April 2025 which will provide sufficient time for the procurement of the system, configuration and testing of the system, alignment with MyNac & the Customer Relationship Management (CRM) system and an extensive communications campaign. 2.10 An implementation and communication plan will be developed which includes: • A cross-service implementation group will ensure that all services and stakeholders are considered in the implementation strategy and within the communication plan. This will include Customer Services, Communications, Financial Services, Procurement, IT, Transformation and the Waste Service. • A marketing campaign will be undertaken in advance to advise residents of the implementation of the new digital booking system. • Providing clear guidance on the implementation of the new digital booking system, including step by step guidance on how to book using the online system, or through the Customer Contact Centre for those residents without digital access. • New signage will be installed at the gates of each HWRC to advise residents of the implementation of the new booking system. • The council’s website will be updated prior to implementation with the details of the booking system, including a detailed section to answer frequently asked questions. 54
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3. Proposals 3.1 That Cabinet approved the proposal to implement the HWRC Booking System at all sites on the mainland and on the Isle of Arran. 4. Implications/Socio-economic Duty Financial 4.1 An estimated initial investment cost of £6,500 will be required for the purchase and installation of the system with ongoing revenue costs of £5,000 per annum. Human Resources 4.2 There are no direct implications for human resources. Legal 4.3 Household Waste Recycling Centres are only licensed for the acceptance of specific types of household waste. The implementation of a digital HWRC booking system will assist the council in ensuring compliance with the site waste management licences, which are issued and regulated by SEPA. Equality/Socio-economic 4.4 The proposal will ensure that HWRCs are equally accessible for all customers. Environmental and Sustainability 4.5 The implementation of a HWRC booking system will support the promotion of a circular economy in North Ayrshire to reduce consumption of raw materials and promote reuse and recycling. Key Priorities 4.6 The proposal supports the Council Plan strategic priority to be a sustainable council, through supporting the effective governance and management of resources. Community Wealth Building 4.7 The implementation of the HWRC booking system contributes to being a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities, and by supporting the reuse and recycling of waste, helping to reduce carbon emissions and contributing to the mitigation of climate change. 55
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5. Consultation 5.1 Consultation has taken place with Customer Services, Transformation, IT and Procurement. A report was taken to the Policy Advisory Panel on 10 September 2024 and feedback was positive. RUSSELL McCUTCHEON Executive Director (Place) For further information please contact Thomas Reaney, Head of Service (Neighbourhood Services), on 01294 324570. Background Papers 0 56
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NORTH AYRSHIRE COUNCIL 1 October 2024 Cabinet Title: Scottish Government Consultation: Changing the International Territorial Level Geography for Scotland Purpose: To seek Cabinet approval for the submission of the proposed response to the consultation on Changing the International Territorial Level Geography for Scotland Recommendation: That Cabinet: a) Approves the submission of the proposed consultation response provided at Appendix One; b) Notes the engagement with Scottish Government officers and Highlands and Islands Regional Economic Partnership to inform the consultation response; and c) Notes that responses to the consultation are also being submitted by Highlands and Islands Regional Economic Partnership and Highlands and Islands Enterprise. 1. Executive Summary 1.1 On 9 July 2024 Scottish Government commenced a consultation on proposals to revise International Territorial Level boundaries in Scotland. Created by the Office for National Statistics, these are geographical boundaries used to produce regional statistics in the UK and to allow comparisons with regions in other countries. The existing alignment of these boundaries positions Arran and Cumbrae within the Highlands and Islands region. The consultation proposes that Arran and Cumbrae move out of the Highlands and Islands groupings to be part of a new regional level with mainland North Ayrshire and East Ayrshire. This report seeks approval for the proposed response to the consultation provided at Appendix One. 2. Background 2.1 International Territorial Levels (ITL) were created by the Office for National Statistics (ONS) following UK withdrawal from the EU and are a replacement for the Nomenclature des Unités Territoriales Statistiques (NUTS) geographies. ONS is currently reviewing ITL boundaries in the UK and has asked Scottish Government to review the alignment of boundaries in Scotland. ITLs were designed to align with the previous NUTS specifications, allowing for international comparisons between regional level geographies. Agenda Item 7 57
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2.2 Prior to the UK leaving the EU, the NUTS geographies were primarily used to submit regional statistics to the EU. These statistics were used to formulate regional policy initiatives and determine regional funding allocations. The UK is no longer required to provide statistics to the EU and is no longer eligible for EU Structural and Investment Funds. Other uses of the ITL geography include submission of economic statistics to the Organisation for Economic Co-operation and Development (OECD) and the production of UK wide statistics by ONS on some policy areas reserved to the UK Government. Although demand for ITL statistics is currently limited, the consultation suggests there may be greater demand in the future. 2.3 To consider the potential impacts of proposed changes to the ITL boundaries, the Scottish Government commenced a consultation on 9 July 2024. The consultation closes on 1 October 2024 with the feedback used to inform a response to the ONS. It is expected that any revisions to the statistical boundaries will be implemented form 1 January 2025. 2.4 ITL is a hierarchical geography with three levels. There are agreed population thresholds for each level to ensure they are broadly comparable to international areas: • ITL1: the highest level. The whole of Scotland is an ITL1 region. • ITL2: currently divides Scotland into 5 regions. • ITL3: currently divides Scotland into 23 regions. 2.5 The consultation states that the purpose of the changes is to ensure better alignment of ITL boundaries to local authority boundaries in Scotland. This would make the calculation of ITL statistics easier by ensuring each region would either be a local authority or a group of local authorities. The proposed changes would also aim to ensure the proportion of population within the regions are more balanced. The consultation proposes that the number of ITL2 geographies is increased from 5 to 6 regions and the number of ITL3 geographies is reduced from 23 to 18. 2.6 Arran and Cumbrae are currently grouped with Highlands and Islands areas within both the ITL2 and ITL3 geographies. The consultation proposes that for both levels, Arran and Cumbrae are moved out of the Highlands and Islands grouping as follows: • For ITL2 it is proposed that Arran and Cumbrae move out of the ‘Highlands and Islands’ region and are grouped within the ‘Southern Scotland’ region (this includes mainland North Ayrshire, East Ayrshire, South Ayrshire, Dumfries & Galloway, South Lanarkshire and the Scottish Borders). • For ITL3 it is proposed that Arran and Cumbrae move out of the ‘Lochaber, Skye, Lochalsh, Arran and Cumbrae and Argyll and Bute’ region and are grouped within a region with East Ayrshire and mainland North Ayrshire. 2.7 Proposals to align regional statistical boundaries with local authority boundaries were considered as part of a previous consultation in 2012 and again in 2016. North Ayrshire Council objected to proposals at that time as Arran and Cumbrae would have been moved out of the EU geography that provided more flexibility in the type of support, increased intervention rates and a higher per capita amount of funding than the rest of Scotland. Following withdrawal from the EU and removal of eligibility for EU Structural and Investment Funds, this is no longer the case. There was also strong opposition to the proposals from island communities based on it being considered 58
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important to align Arran and Cumbrae with other island communities which face similar challenges and opportunities. 2.8 The consultation proposals have been carefully considered by the Economic Policy Team and with advice from Legal Services. In addition, meetings have taken place with Scottish Government Officers and members of the Highlands and Islands Regional Economic Partnership (HIREP). The consultation has been shared with Arran Locality Partnership and North Coast and Cumbrae Locality Partnership. 2.9 The proposed consultation response provided at Appendix One recommends that the consultation proposals are rejected. This is informed by the potential risk and implications to the island communities of Arran and Cumbrae. The key issues and concerns are as follows and are noted in the response: • Under the proposals and for both ITL2 and ITL3 geographies, Arran and Cumbrae would be removed from their previous groupings as part of the Highlands and Islands region. From a policy, statistical and cultural perspective it is important that Arran and Cumbrae remain aligned to the other populated islands within the Highlands and Islands region. Removing two of Scotland’s populated islands from the rest would impact culturally, statistically and potentially in policy terms, removing alignment with the administrative boundary of Highlands and Islands Enterprise (HIE) and the Highlands and Islands Regional Economic Partnership (HIREP). • The proposed changes would further complicate access to data at a Highlands and Islands level. If the ITL2 proposals are accepted, this would result in loss of access to regional data which mapped to previous NUTS3 and the HIE agency boundary for key economic statistics. HIE would therefore lose the ability to consider trends and undertake analysis at the regional enterprise agency level. • While the proposed changes are noted within the consultation as for the benefit of statistical purposes, there is uncertainty on how the proposed changes may affect future decisions e.g. policy development and funding allocations. With the Scottish Government’s commitment through the recent Programme for Government to ‘empower decision making and investment through REP’s (Regional Economic Partnerships)’, retaining Arran and Cumbrae within the Highlands and Islands region may impact on availability of funding for regional economic activity. • There is uncertainty around how the provision of business support under Highlands and Islands Enterprise (HIE) versus Scottish Enterprise would be impacted. • There may be implications for North Ayrshire Council representation on the Convention of the Highlands and Islands (COHI) and Highlands and Islands Regional Economic Partnership (HIREP). 2.10 Some small benefits have been identified as part of the proposals such as improving statistical accuracy, reducing risk of disclosure of personal data and improving ease and efficiency of producing data particularly at an Ayrshire regional level. However, it is proposed that these limited benefits are outweighed by the potential risks to and implications for the island communities of Arran and Cumbrae. 2.11 It is understood that consultation responses are being prepared by HIREP and Highlands and Islands Enterprise with the recommendation of rejecting the proposals based on similar reasons to those identified above. 59
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3. Proposals 3.1 That Cabinet: a) Approves the submission of the proposed consultation response provided at Appendix One; b) Notes the engagement with Scottish Government officers and Highlands and Islands Regional Economic Partnership to inform the consultation response; and c) Notes that responses to the consultation are also being submitted by Highlands and Islands Regional Economic Partnership and Highlands and Islands Enterprise. 4. Implications/Socio-economic Duty Financial 4.1 There are no financial implications resulting directly from submission of the consultation response, however it is unclear if financial implications could arise from the removal of Arran and Cumbrae from the Highlands and Islands ITL geography. There is no clarity provided on the future use of these proposed regional geographies on funding allocations from Scottish Government. Human Resources 4.2 None. Legal 4.3 Legal Services have reviewed the proposals and provided advice. They have concluded that there are no apparent legal concerns. Equality/Socio-economic 4.4 There are no equality/socio-economic implications resulting directly from submission of the consultation response, however it is unclear if such implications could arise from the removal of Arran and Cumbrae from the Highlands and Islands ITL geography. There is no clarity provided on the future use of these proposed regional geographies and therefore no certainty that this would not lead to equality/socio- economic implications for island residents. Climate Change and Carbon 4.5 None. Key Priorities 4.6 None. Community Wealth Building 4.7 None. 60
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5. Consultation 5.1 The proposed response has been informed by consultation with Legal Services, Scottish Government officers, members of the Highlands and Islands Regional Economic Partnership (HIREP) and HIREP Officers Group and Highlands and Islands Enterprise (HIE). RUSSELL McCUTCHEON Executive Director (Place) For further information please contact Emma McMullen, Senior Manager- Economic Policy, on 07956 461806. Background Papers 0 61
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Appendix One – Proposed Consultation Response Question 1 Do you support the principle of changing the ITL2 and ITL3 geographies so that each region is an exact grouping of Local Authorities? Yes No If no, why not? In some cases, alignment to local authority boundaries is considered appropriate, for example the inclusion of the entire Argyll and Bute local authority within Highlands and Islands ITL2. However, it is not considered appropriate that Arran and the Cumbraes are removed from their previous groupings within ITL2 and ITL3 to align with the rest of North Ayrshire Council. This grouping reflects strong geographical, socio-economic and cultural circumstances which have existed for many years and still persist. This includes challenges in relation to: − Reliance on seasonal tourism and the need for diversification − Transport particularly aligned to ferries − Recruitment and retention of employees − Housing − Health and social care including meeting the needs of older people − Preservation of the natural environment, heritage and cultural identity − Education and skills and retention of young people − Population and depopulation − “Island premium” costs − Resilience The Council has consistently resisted proposals to date for change which might result in our islands being subject to different treatment from other islands, and which might exclude them from the ability to take on both challenges and opportunities in a structured and coordinated way, which reflects the circumstances of the Highlands and Islands region. We are seriously concerned that the proposed changes would constrain this. From a policy, statistical and cultural perspective it is important that Arran and Cumbrae remain aligned to the other populated islands within the Highlands and Islands region. Our islands of Arran and Cumbrae have a connection with Scotland’s other populated islands. Removing two of Scotland’s populated islands from the rest would impact culturally, statistically and potentially in policy terms, removing alignment with the administrative boundary of Highlands and Islands Enterprise (HIE) and the Highland and Islands Regional Economic Partnership (HIREP). The different nature of the challenges, opportunities and economic circumstances that the islands and remote areas face are recognised at present in the support frameworks currently in place. This position is supported by both HIE and HIREP. It is acknowledged there are some benefits to aligning ITL2 and ITL3 geographies to exact groupings of local authorities such as improving statistical accuracy by removing the need to estimate data, ease and efficiency of producing statistical data and reducing the risk of disclosure of personal data. These benefits are however outweighed by the potential risks to and implications for our island communities. 62
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Question 2 Do you support the proposed groupings at ITL2 level? Yes No If no, why not? Question 3 Do you support the proposed groupings at ITL3 level? Yes No If no, why not? Question 4 Are there specific statistical products that you currently use that would be negatively affected by these proposals? Yes No If yes, how might we ensure that your requirements continue to be met? North Ayrshire Council proposes that the islands of Arran and Cumbrae should remain as part of the ITL2 Highlands and Islands region for the reasons outlined at our response to Question 1. It is considered critical to retain all populated islands within the same region due to the unique cultural and socio-economic contexts of island communities. This position is supported by both HIE and HIREP. If the ITL2 proposals are accepted, this would result in loss of access to regional data which mapped to previous NUTS3 and the HIE agency boundary for key economic statistics. HIE would therefore lose the ability to consider trends and undertake analysis at the regional enterprise agency level which is of importance to North Ayrshire Council and our island enterprises. North Ayrshire Council is opposed to the proposal that Arran and Cumbrae are moved to a new ITL3 grouping which includes East Ayrshire Council and mainland North Ayrshire Council for the reasons outlined at our response to Question 1. It is considered important to retain Arran and Cumbrae with similar geographies within the Highlands and Islands due to islands having similar development requirements as well as sharing many cultural and socio-economic similarities. This position is supported by both HIE and HIREP. It is noted that consolidating the islands of Arran and Cumbrae with the rest of mainland North Ayrshire provides a slight benefit in terms of carrying out analysis of GDP/GVA figures for the Ayrshire region. East Ayrshire would be grouped with North Ayrshire and South Ayrshire would have its own ITL3 geography, this would therefore make it easier to generate regional level statistics. However despite this, it is considered the risk of potential impact to our islands outweighs the small benefit. 63
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Question 5 Do you have any other comments, suggestions, or alternative proposals for the ITL geographies? It is proposed that the islands of Arran and Cumbrae remain within their existing ITL geographies for the reasons outlined in our response to Question 1. While the proposed changes are noted within the consultation as for the benefit of statistical purposes, there is uncertainty around how the proposed changes may affect future decisions e.g. policy development and funding allocations. For example, if the revised boundaries were used for the calculation of funding allocations, this could impact the level of funding received according to the geography in which the area is based, as was the case with EU Structural and Investment Funds. The Highlands and Islands region, including Arran and the Cumbraes, qualified for Special Transitional Status in 2000 then Transitional Status for the 2007-2013 and 2014-2020 ERDF and ESF programmes. This provided more flexibility in the type of support, increased intervention rates, and was a higher per capita amount of funding than the rest of Scotland. Scottish Government has been unable to answer questions posed about the future impacts of these changes. Although they have outlined that the consultation is for statistical purposes, they have been unable to confirm that future funding decisions may be impacted by these geographical changes The Council has concerns regarding the removal of Arran and Cumbrae from the Highlands and Islands region which could have impacts on the following areas: • Business Support: There is uncertainty around how the provision of business support under Highlands and Islands Enterprise versus Scottish Enterprise would be impacted. • Island Authority Representation: There may be implications for North Ayrshire Council’s representation on the Convention of the Highlands and Islands (COHI) and HIREP. • Funding: For example, Scottish Government decisions on funding, specifically relating to islands and population-based decisions. To our knowledge, no products used by North Ayrshire Council would be negatively affected by these proposals. 64
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NORTH AYRSHIRE COUNCIL 1 October 2024 Cabinet Title: The Great Harbour, Irvine: Phase 1 Coastal Hub Full Business Case Purpose: To seek endorsement of the Full Business Case for Phase 1 of the Great Harbour, Irvine, and approval for its submission to the Ayrshire Economic Joint Committee. Recommendation: That Cabinet agrees to: (a) Endorse the Full Business Case (FBC) provided at Appendix One for Phase 1 Coastal Hub of the Great Harbour, subject to feedback from the Scottish Government; and (b) Approve the submission of the FBC to the Ayrshire Economic Joint Committee (AEJC). 1. Executive Summary 1.1 The Great Harbour is a transformational project at Irvine Harbourside as part of the Ayrshire Growth Deal Tourism Programme, which seeks to invest £23.5M in the development of tourism infrastructure in North Ayrshire. The Programme includes a £14M allocation towards the Great Harbour from Scottish Government (£9M) and North Ayrshire Council (£5M). 1.2 The Outline Business Case for the project was approved by the Scottish Government in June 2021. Following significant stakeholder consultation in Spring 2023, the Great Harbour Masterplan was approved by Cabinet on 5 December 2023 and Planning Committee on 24 April 2024. 1.3 The Great Harbour project will be delivered in three phases of which the Coastal Hub project is the first. The project has been informed by extensive consultation and comprises a major new outdoor play facility at Irvine Beach Park, improved outdoor park facilities and new infrastructure to support major events. This requires an overall estimated investment of approximately £5M from the Ayrshire Growth Deal, including the spend to date on development work, consultancy support, costs towards the tendered works and contingency. The overall programme for Great Harbour has approval through the annual Capital Programme. Each of the three phases and their outline budgets have contingency allowances and funds can be reallocated if necessary to Phase 1, should some additional funds be required to enable the award of the Coastal Hub tender. A further update will be provided to Cabinet at Phase 2. Agenda Item 8 65
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1.4 This report seeks endorsement of the Final Business Case and agreement for its submission to the Ayrshire Economic Joint Committee for approval in line with the governance arrangements for the Ayrshire Growth Deal. 2. Background 2.1 The Great Harbour project is a key tourism led socio-economic regeneration, placemaking and destination development project aiming to transform the highly deprived area of the coastal town of Irvine, North Ayrshire. It will create a new national and regional waterfront destination in Irvine, transforming the tourism and visitor potential of Ayrshire and the Clyde Coast, based on enhancing the current assets of the Harbourside and Beach Park areas. It is a key project for the Ayrshire Growth Deal within the Tourism Programme, with planned investment of £14m, consisting of £9m from the Scottish Government and £5m from NAC. 2.2 Following approval of the Great Harbour’s Outline Business Case in June 2021, the project has been further developed, informed by extensive consultation as detailed at Section 5. This has led to a Masterplan for the wider area of the Harbourside and the Beach Park, which sets out an ambitious vision and provides a framework for the Ayrshire Growth Deal investment and for future development opportunities. The Masterplan was approved by Planning Committee in April 2024 following the endorsement from Cabinet in December 2023. This is now a material consideration in the determination of future planning applications for the area. 2.3 Proposals are focussed around three hubs of which the Coastal Hub is the first phase: • Coastal Hub (Phase 1) – a new major outdoor play facility for the Beach Park area, improvements to routes to and from the Beach Park, outdoor events infrastructure and initial improvements to the Pilot House. • Maritime Mile including a Marine & Arts Hub (Phase 2) – improvements to public spaces and the river’s edge around the vicinity of the Harbour Arts Centre and Harbour Master’s Office and public realm improvements to the Maritime Mile along Harbour Street. • Maritime Heritage Hub (Phase 3) – expanded facilities for the Scottish Maritime Museum (SMM), led by the SMM and additional outdoor events space adjacent to Harbour Street. 2.4 The Coastal Hub project aims to meet local needs and aspirations whilst ensuring that the maintenance and upkeep burden is minimised. It encompasses the southern end of the harbourside walkway and the most north-west part of the Beach Park, stretching from the large grassy area to the north, towards the cycle path/service road to the south and the boating pond to the east. It also includes the Pilot House, Boyd’s Automatic Tide Signalling Apparatus, which is a listed building and its surroundings, Beach Drive car park, the roundabout at the most western end of the Beach Drive and the access road to the boating pond car park. 2.5 The project will provide a destination for play and physical activity that caters for a wide range of age groups and abilities and is free to use. A themed playpark will be the central focus, integrated into the local landscape, with a skate park and pump track. The area between the play hub and the boating pond will remain as green space and will be equipped with some essential infrastructure to accommodate major events, with the potential to generate a source of revenue income for the Council. In 66
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addition, free public play activities are expected to increase footfall in the area, benefiting local businesses. As part of the hub, an outdoor gym near the boating pond has already been installed by Neighbourhood Services and the area will be further equipped with picnic benches to encourage longer stays and social interaction. 2.6 The project will also improve access between the Harbourside and the Beach Park, including active travel improvements to reduce car dominance and to provide better access to facilities and blue and green spaces, helping to improve wellbeing. The approach road and path network will be redesigned to improve pedestrian and cycle connectivity and new street furniture, picnic benches and directional signs will be installed. There will also be a first phase of external improvements to the Pilot House and its surrounding setting. Beach Drive car park will be re-lined and will provide spaces for motorhomes, alongside area-wide landscaping. The site hosting the play hub will be provided with a new drainage system and will require the diversion of some utilities. Digital infrastructure columns will also be installed on the Harbourside as a separate project, funded by UK Government’s SMART Infrastructure Pilot Programme, for which several columns will be within the Coastal Hub area. 2.7 As the first phase of the Great Harbour proposals, the Coastal Hub has been developed to technical detail and civil works have been tendered as part of a two- stage process. All necessary statutory permissions have been secured. The proposal requires an overall investment of up to £5M from the Ayrshire Growth Deal, which in addition to the civil works, also includes spend to date for development, work relating the Coastal Hub and also from a number of other funding sources. 2.8 AGD funding is subject to the Green Book Treasury Business Case process and requires the approval of spend to ensure projects offer value for money. The Coastal Hub project has reached the final approval stage for the drawdown of funds and the Full Business Case (FBC) provided at Appendix One, has been prepared to allow the scrutiny of proposed spend, commercial and economic viability, financial feasibility and robust management of the project. 2.9 The FBC has progressed through project governance stages and is now available for consideration of approval following completion of key aspects of the Coastal Hub project set out in this report. Costs related the Coastal Hub are generally affordable, with tender costs received and are within the available capital budget for the Great Harbour Programme. Under the agreed AGD governance, the approval of the FBC has been delegated to the Ayrshire Economic Joint Committee (AEJC), following endorsement from the Scottish Government (which is pending) and endorsement by Cabinet. 2.10 The FBC for the Coastal Hub provides a strong and competent case for approval, following the completion of key elements of the project as set out in this Report. Subject to receiving endorsement from Scottish Government, which is pending, and Cabinet endorsement, the next steps are to seek final approval of the FBC from the AEJC, to enable the award of the works tender and commencement of works on site. 2.11 The FBC approval is subject to a critical timeline to ensure the award of the works during October and commencement of works on site by November 2024. This aims to ensure that the delivery of the play park element of the works is complete by the end of June 2025. 67
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3. Proposals 3.1 It is proposed that the Cabinet agrees to: a) Endorse the Full Business Case (FBC) provided at Appendix One for the Phase 1 Coastal Hub project of the Great Harbour, subject to endorsement from the Scottish Government; and b) Approve the submission of the FBC to the Ayrshire Economic Joint Committee (AEJC). 4. Implications/Socio-economic duty Financial 4.1 The main financial implications are summarised as follows: Capital: overall estimated capital investment of up to £5M is required from AGD for the Great Harbour Phase 1 - Coastal Hub project, towards a construction contract and spend on the development, delivery and management of the project. This is funded by the AGD Great Harbour Programme. The Coastal Hub project is further supported £392,000 of UK Government funding towards 5GIR SMART infrastructure. It is considered that endorsement from the Scottish Government will be a final acknowledgement that Phase 1 can proceed and the Council can then draw down the Scottish Government Grant. Revenue: it is anticipated that there will be revenue costs related to the maintenance and repair of the area and equipment, that are in addition to currently incurred costs. This will follow an initial 12-month maintenance period covered by the contractor which is currently estimated to end by May 2026. The implications will be factored into the appropriate year’s Revenue Budget process and Medium-Term Financial Plan Update. To ensure that future maintenance costs and resource pressures are minimised, the development and design of the project in terms of layout, materials and finishes, has involved consultation with all relevant Council services. As a result, a Coastal Hub Maintenance Plan has been prepared. This plan will be updated during and post-construction, to capture all relevant maintenance and repair regime requirements with identified processes and timescales, to assist relevant services and to ensure adequate revenue allocations are put in place. The process has already been initiated with relevant Council services, and later will involve specialist advice from manufacturers and contractors. Streetscene have confirmed costs per annum of approximately £22,000 to undertake grounds maintenance and regular inspections of play equipment. In addition, £20,000 is being aligned from the Council’s Regeneration revenue budget for the ongoing maintenance of the SMART columns. Human Resources 4.2 The project is funded by the Ayrshire Growth Deal and will be delivered by the Growth and Investment Team with support from other NAC teams and external contractors and consultants. All services required have been procured in line with the Council’s Standing Orders Relating to Contracts. In addition, once the project is delivered, the improved areas will be maintained by Streetscene. 68
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Legal 4.3 All statutory consents have been secured. The project’s geographical scope is within the sole ownership of the Council and has been developed alongside the Great Harbour Masterplan and aligns to its objectives and planning/design guidance. The award of tender now requires to be made within the 120-day period. In addition, the Terrorism (Protection of Premises) Bill, also known as Martyn’s Law, is pending UK wide legislation. This will place a requirement on those responsible for certain publicly accessible locations to consider the threat from terrorism and implement appropriate and proportionate mitigation measures. In this respect, consideration has been given to ensuring that the proposals, where possible, contribute towards compliance with the forthcoming requirements. Equality/Socio-economic 4.4 As part of the Great Harbour project and related Masterplan, the Coastal Hub proposals have considered social and economic sustainability. The Great Harbour project aims to tackle inequalities derived from the area’s high levels of multiple deprivation, through enhancement, improved connections and safe public access to the harbourside, the beach, green spaces, local heritage and new attractions, for the enjoyment of the local community and visitors, creating accessible and inclusive spaces. The Coastal Hub phase will offer free access to play and physical activity for residents and visitors. The play equipment is designed to encourage inclusive play for all ages and abilities and aims to diversify the park's offerings and to cater to a broader audience. Climate Change and Carbon 4.5 Addressing climate change and carbon management is essential to making the Great Harbour a sustainable place and destination as part of the Ayrshire Growth Deal investment. The overall Masterplan for the area recognises the impact of climate change and considers national and local strategies and actions on environmental sustainability and carbon emissions in line with the Climate Change Act 2019, Scotland’s net zero targets and the Sustainable North Ayrshire Strategy 2024-2027. In particular, the project has been informed by the Place Standard and 20 Minute Neighbourhood principles, with consideration of its whole-life carbon emissions. The overall approach to sustainability is summarised in the table below: Great Harbour: Coastal Hub – Sustainability Community - Providing tourism & leisure opportunities. - Providing access to green and blue spaces to improve wellbeing. - Job opportunities through new investment. Design - Identifying areas needing most improvement. - Retaining existing assets and features. - Applying the Place Standard and 20 Minute. - Neighbourhood design principles. - Flood protection and biodiversity considerations. - Minimising future maintenance requirements. Construction - Adopting Community Wealth Building principles. 69
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- Adopting PAS 2080 Carbon Management in Infrastructure. Transport / Commute - Providing active travel & improving routes and connections. - Prioritising walking, cycling and wheeling. - Better connected and more legible routes across the Coastal Hub area. 4.6 A Carbon Management Plan has been developed for the Coastal Hub and reviewed regularly throughout the design stages. The construction work will be monitored against this plan to support the identification of further carbon emission reductions. In addition, it will undergo a 12-month performance evaluation post construction. This comprehensive strategy ensures that carbon management remains a central focus, aligning with industry best practice and sustainability objectives. Key Priorities 4.7 The Great Harbour Masterplan reflects the priorities of the Council Plan 2023 to 2028 of wellbeing, communities and local democracy, climate change and a sustainable Council. The Masterplan and Coastal Hub project contribute to the delivery of the priorities of several other Council plans and strategies, including: • Local Development Plan 2 • Vacant and Derelict Land Strategy • Electric Vehicle Strategy • Open Space Strategy • Local Transport and Active Travel Strategy • Local Biodiversity Action Plan. Community Wealth Building 4.8 The Coastal Hub project considers social and economic sustainability through the Community Wealth Building Strategy 2020-2025. The project aligns with the principles of the Community Wealth Building (CWB) to ensure local wealth benefits the community and creates more equitable, inclusive, and sustainable economies, fostering sustainable growth, enhancing local participation, and ensuring long-term benefits for the community. 4.9 The Coastal Hub project, guided by the principles of Community Wealth Building, goes beyond economic development. It aims to take a holistic approach that empowers the community, promotes inclusivity, and builds a sustainable and resilient local economy. This approach reflects a commitment to prioritise the well- being of local residents and create a community where prosperity is shared by all. The Coastal Hub contributes to these priorities through reaching and involving a broad spectrum of the community, using local suppliers where possible and creating a lasting community asset. In this respect, early engagement has been undertaken with several local manufacturers, who may be positioned to deliver elements of the proposed improvements. 70
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5. Consultation 5.1 The overall Masterplan proposals are closely aligned with the Council’s Local Development Plan and National Planning Framework (NPF4) and build upon community engagement progressed during the Irvine Vision (2016) and the Irvine Harbourside Study (2017). Initial public consultation on the Great Harbour proposals took place between February and March 2022. The feedback informed the development of the Great Harbour proposals. This included a priority to upgrade the Beach Park area and deliver this as the first phase of the works. 5.2 Further public consultation on the Masterplan took place in March and April 2023. In line with the first phase of consultation, it followed a strategy based on the best practice process developed by the Connected Communities Team, incorporating ‘lessons learnt’ from the previous phase. A Stakeholder Reference Group (SRG) informed the consultation methodology and verification of the consultation information material. The material and a survey were available online for the duration of the consultation and several drop-in events, walkarounds and direct presentations to stakeholder groups were also facilitated. The material was also displayed at Irvine Library and on the fencing opposite the Harbour Arts Centre with a QR code for direct access to the survey and paper survey forms made available at specific locations. 5.3 The majority of responses were supportive of all of the various proposals, recognising the opportunity for the regeneration of the Harbourside. There was overall support for improvements to the public realm and access along the Harbourside and for the proposed activity hubs, especially the Coastal Hub. Feedback has informed the development of the proposals including the need for adequate maintenance and waste management and the protection of place assets, including heritage and cultural assets. 5.4 As part of the consultation process local schools and youth groups have been engaged to provide inspiration for a suitable name for the play park. This work is ongoing with an event planned to announce the selected name. 5.5 The Coastal Hub proposals have been informed by continuous internal consultations with a range of Council services including Neighbourhood Services, Roads, Flooding, Housing and Public Protection, Connected Communities and Sustainability, Transport and Corporate Property Management. Russell McCUTCHEON Executive Director (Place) For further information please contact Marnie Ritchie, Interim Senior Manager, Growth & Investment, via marnieritchie@north-ayrshire.gov.uk or on 07342 713 349. Background Papers Cabinet Report: Great Harbour Masterplan, Irvine. 5 December 2023 Planning Committee Report: Great Harbour Masterplan, Irvine. 24 April 2024. Great Harbour Masterplan, June 2024 71
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Great Harbour Phase 1 Coastal Hub Full Business Case 72
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Great Harbour Phase 1 Coastal Hub Full Business Case (FBC) August 2024 Revision log Version Date Issued Change Owner 01 29/04/2024 Including Change Paper submitted to PMO & Government 02.05.24 Kasia Smith 02 04/06/2024 • Economic case completed • Financial tables updated • Tables references updated Kasia Smith 03 07/06/2024 Minor text and graphics corrections Kasia Smith Marnie Ritchie Louise Kirk 04 30/07/2024 Response to Scottish Government feedback of 12/07/2024 Marnie Ritchie Lisa Jamieson 05 16/09/2024 Response to Scottish Government feedback of 14/08/2024 Kasia Smith Marnie Smith 73
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1 Great Harbour | Coastal Hub | FBC Contents PART A | PROJECT DESCRIPTION ......................................................................................................... 10 What is the project about? ................................................................................................................11 What is being undertaken? ................................................................................................................12 How does it fit within the wider Deal? ..............................................................................................12 What is being proposed? ...................................................................................................................13 How will it be delivered? ....................................................................................................................14 Who will use it and why? ...................................................................................................................14 What are the headline figures around what is being proposed? ......................................................15 PART B | THE FIVE CASES .................................................................................................................... 17 1. Executive summary ........................................................................................................................18 1.1 Introduction .................................................................................................................................18 1.1.1 Background ...................................................................................................................................19 1.1.2 Cost and Schedule updates ..........................................................................................................20 1.1.3 Description ...................................................................................................................................23 1.1.4 Masterplan development .............................................................................................................25 1.1.5 Great Harbour Masterplan Proposals ..........................................................................................27 Building on the Quality of Place ........................................................................................................27 Access and Movement ......................................................................................................................28 Masterplan Distinctive Elements .......................................................................................................29 1.1.6 Ayrshire Growth Deal Investment ................................................................................................30 1.1.7 Destination development .............................................................................................................30 Tourism potential ..............................................................................................................................32 Sustainable Destination .....................................................................................................................33 Tourism product ................................................................................................................................34 Heritage Tourism ...............................................................................................................................35 Maritime Heritage .............................................................................................................................36 Natural Heritage ................................................................................................................................38 Marine Leisure and Play ....................................................................................................................39 Events ................................................................................................................................................41 1.2 Strategic case. ..............................................................................................................................43 1.2.1 The strategic context ....................................................................................................................43 1.2.2 The case for change ......................................................................................................................44 74
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2 Great Harbour | Coastal Hub | FBC 1.3 Economic case ..............................................................................................................................45 1.3.1 Great Harbour OBC long list and short list ...................................................................................45 1.3.2 The procurement ..........................................................................................................................46 General approach ..............................................................................................................................46 Specifics to Coastal Hub procurement ..............................................................................................46 1.3.3 Key findings ..................................................................................................................................47 Option appraisal conclusions.............................................................................................................48 1.3.4 Overall findings: the preferred option .........................................................................................48 1.4 Commercial case ..........................................................................................................................48 1.4.1 Agreed products and services ......................................................................................................50 Additional work .................................................................................................................................51 1.4.2 Agreed risk allocation and charging mechanism ..........................................................................51 1.4.3 Key contractual arrangements .....................................................................................................52 1.4.4 Agreed implementation timescales .............................................................................................52 1.4.5 Accountancy treatment ................................................................................................................53 1.5 Financial case ...............................................................................................................................53 Great Harbour ...................................................................................................................................53 Phase 1 - Coastal Hub ........................................................................................................................54 1.5.1 Financial expenditure ...................................................................................................................54 Summary of financial appraisal – draw down profile – Coastal Hub .................................................54 Summary of financial appraisal – planned project delivery/spend – Coastal Hub ............................55 1.5.2 Overall affordability and balance sheet treatment ......................................................................55 1.6 Management case ........................................................................................................................56 1.6.1 Project management arrangements ............................................................................................56 Great Harbour governance structure ................................................................................................56 1.6.2 Benefits realisation and risk management ...................................................................................56 1.6.3 Post project evaluation arrangements .........................................................................................57 1.7 Recommendation .........................................................................................................................57 2. THE STRATEGIC CASE ....................................................................................................................... 59 2.1 Introduction .................................................................................................................................59 Structure and content of the document ...........................................................................................60 OBC to FBC development ..................................................................................................................61 2.2 Organisational overview ..............................................................................................................63 2.3 Business strategies .......................................................................................................................64 Local context .....................................................................................................................................64 Regional context ................................................................................................................................65 75
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3 Great Harbour | Coastal Hub | FBC National context ................................................................................................................................65 Strategic fit with national and regional Policy ...................................................................................66 2.4 Other organisational strategies ....................................................................................................75 2.5 Investment objectives ..................................................................................................................75 2.6 Existing arrangements ..................................................................................................................79 2.7 Business needs .............................................................................................................................80 Potential ............................................................................................................................................81 Consultation ......................................................................................................................................82 2.8 Potential business scope and key service requirements .............................................................83 2.8.1 Detailed Great Harbour change outline ..................................................................................85 2.8.2 Coastal Hub change outline .....................................................................................................88 2.9 Main benefits criteria ...................................................................................................................93 2.10 Main risks ...................................................................................................................................94 2.11 Constraints .................................................................................................................................95 2.12 Dependencies .............................................................................................................................97 3. THE ECONOMIC CASE ...................................................................................................................... 99 3.1 Introduction .................................................................................................................................99 3.2 Critical success factors .................................................................................................................99 3.3 The long-listed options .............................................................................................................. 100 Detailed outcomes of options assessment ........................................................................................ 102 Option 1 - Do nothing / business as usual. ..................................................................................... 102 Option 2 - Deliver coastal tourism priorities at other Ayrshire locations ...................................... 103 Option 3: Deliver coastal tourism priorities at other North Ayrshire locations ............................. 104 Option 4: Deliver coastal tourism priorities at Irvine Harbourside (Coastal Hub) ......................... 105 Preferred way forward ................................................................................................................... 106 3.4 Short-listed options ................................................................................................................... 106 3.4.1 Preferred option ........................................................................................................................ 108 3.4.2 Preferred option development ................................................................................................. 108 3.5 The procurement process ......................................................................................................... 109 3.5.1 Coastal Hub long list criteria ..................................................................................................... 109 3.5.2 Coastal Hub long list .................................................................................................................. 109 3.5.3 Coastal Hub short list criteria .................................................................................................... 110 3.5.4 Coastal Hub short list ................................................................................................................ 110 3.6 Economic appraisal ................................................................................................................... 110 3.6.1 Introduction............................................................................................................................... 110 3.6.2 Estimating benefits .................................................................................................................... 111 76
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4 Great Harbour | Coastal Hub | FBC Cash Releasing Benefits .................................................................................................................. 111 Carbon Benefit ................................................................................................................................ 111 Non-Cash Releasing Benefits .......................................................................................................... 112 3.6.3 Estimating costs ......................................................................................................................... 113 3.6.4 Net present value benefits findings .......................................................................................... 114 3.6.5 Benefits to cost ratios................................................................................................................ 117 3.6.6 Option appraisal conclusions .................................................................................................... 117 3.7 Qualitative benefits appraisal ................................................................................................... 118 3.7.1 Methodology ............................................................................................................................. 118 3.7.2 Qualitative benefits criteria....................................................................................................... 118 3.7.3 Qualitative benefits scoring ...................................................................................................... 119 3.7.4 Analysis of key results ............................................................................................................... 119 3.8 Risk appraisal – unquantifiables ................................................................................................ 120 3.8.1 Methodology ............................................................................................................................. 120 3.8.2 Risk scores ................................................................................................................................. 120 3.9 The preferred option ................................................................................................................. 121 3.10 Sensitivity analysis ................................................................................................................... 122 3.10.1 Results of switching values ...................................................................................................... 122 3.10.2 Key observations ..................................................................................................................... 122 3.10.3 Results of scenario planning .................................................................................................... 122 3.10.4 Key observations ..................................................................................................................... 126 3.11 Preferred option ...................................................................................................................... 126 4. THE COMMERCIAL CASE ................................................................................................................ 127 4.1 Introduction .............................................................................................................................. 127 Stimulating Tourism ....................................................................................................................... 127 Catalysing Business Growth............................................................................................................ 127 Delivering Sustainable Returns ....................................................................................................... 128 Strategic Partnerships .................................................................................................................... 128 4.2 Required services ...................................................................................................................... 128 Additional work .............................................................................................................................. 129 4.3 Agreed risk transfer ................................................................................................................... 129 4.4 Agreed charging mechanisms ................................................................................................... 131 4.5 Agreed contract length ............................................................................................................. 132 4.6 Key contractual clauses ............................................................................................................. 132 4.7 Personnel implications (including TUPE) ................................................................................... 133 4.8 Procurement route and implementation timescales ................................................................ 133 77
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5 Great Harbour | Coastal Hub | FBC Contract Exit Strategy ..................................................................................................................... 135 4.9 FRS 5 accountancy treatment ................................................................................................... 135 4.10 Subsidy Control ....................................................................................................................... 136 5. THE FINANCIAL CASE ..................................................................................................................... 137 5.1 Introduction .............................................................................................................................. 137 Great Harbour ................................................................................................................................ 137 Phase 1 - Coastal Hub ..................................................................................................................... 138 5.2 Impact on the organisation’s income and expenditure account .............................................. 139 Summary of financial appraisal – draw down profile......................................................................... 139 Coastal Hub .................................................................................................................................... 139 Great Harbour ................................................................................................................................ 139 Summary of financial appraisal – planned project delivery/spend .................................................... 140 Coastal Hub .................................................................................................................................... 140 Great Harbour ................................................................................................................................ 140 5.3 Impact on the balance sheet ..................................................................................................... 140 5.4 Overall affordability .................................................................................................................. 140 6. THE MANAGEMENT CASE .............................................................................................................. 143 6.1 Introduction .............................................................................................................................. 143 6.2 Programme management arrangements .................................................................................. 145 6.3 Project management arrangements ......................................................................................... 146 6.3.1 Project reporting structure ....................................................................................................... 150 6.3.2 Project roles and responsibilities .............................................................................................. 150 6.3.3 Project plan ............................................................................................................................... 152 6.4 Use of special advisers .............................................................................................................. 153 6.5 Arrangements for change management ................................................................................... 155 6.6 Arrangements for benefits realisation ...................................................................................... 156 Outputs ............................................................................................................................................... 156 Outcomes ........................................................................................................................................... 157 Impacts ............................................................................................................................................... 157 Community Benefits ........................................................................................................................... 157 6.7 Carbon Management ................................................................................................................ 159 6.8 Arrangements for risk management ......................................................................................... 161 6.9 Arrangements for contract management ................................................................................. 162 6.10 Arrangements for post project evaluation .............................................................................. 163 6.10.1 Post implementation review (PIR) .......................................................................................... 163 6.10.2 Project evaluation review (PER) .............................................................................................. 163 78
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6 Great Harbour | Coastal Hub | FBC 6.11 OGC Gateway review arrangements ....................................................................................... 163 6.12 Contingency plans ................................................................................................................... 164 165 PART C | APPENDICES ....................................................................................................................... 165 Appendix A | Stakeholder Engagement and Public Consultation Strategy .................................... 166 Appendix B | Great Harbour Project Governance Structure .......................................................... 167 Appendix C | Leverage Funding Strategy ....................................................................................... 168 Appendix D | Maritime Mile Events Programme ........................................................................... 169 Appendix E | Making Waves Festival – Economic Impact Assessment – October 2022 ................ 170 Appendix F | AGD Benefits Realisation Plan 2022 .......................................................................... 171 Appendix G | Benefits Realisation Guidance .................................................................................. 172 Appendix H | Great Harbour Risk Register ..................................................................................... 173 Great Harbour Risk Register ........................................................................................................... 173 Coastal Hub Project Risk Register ................................................................................................... 173 Coastal Hub Design Risk Register ................................................................................................... 173 Appendix I | Coastal Hub Technical Economic Appendix ............................................................... 174 Appendix J | AGD Implementation Plan 2022 ................................................................................ 175 Appendix K | Coastal Hub Carbon Management Plan .................................................................... 176 Appendix L | AGD Regional Community Benefits Statement ......................................................... 177 Appendix M | Coastal Hub Maintenance Plan ............................................................................... 178 Appendix N | Coastal Hub Site Plan ............................................................................................... 179 Appendix O | Contract Exit Strategy .............................................................................................. 180 Appendix P | Irvine Town Centre Audit .......................................................................................... 181 Appendix Q | Irvine Vision report .................................................................................................. 182 Appendix R | Great Harbour Masterplan – Strategic Ecological Assessment – Pre-screening Notification ........................................................................................................................... 183 Appendix S | Coastal Hub - Equality Impact Assessment ............................................................... 184 79
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7 Great Harbour | Coastal Hub | FBC List of Tables Table 1 Phase 1 FBC costings ........................................................................................................................15 Table 2 Phase 1 FBC costings ........................................................................................................................18 Table 3 Great Harbour Milestones ...............................................................................................................22 Table 4 Great Harbour project phasing ........................................................................................................23 Table 5 Summary short list ...........................................................................................................................46 Table 6 Economic Appraisal – Ayrshire level ................................................................................................47 Table 7 Great Harbour project phasing ........................................................................................................53 Table 8 Phase 1 FBC costings ........................................................................................................................54 Table 9 Coastal Hub Funding ........................................................................................................................54 Table 10 Coastal Hub Spend Profile ..............................................................................................................55 Table 11 Phase 1 FBC costings ......................................................................................................................59 Table 12 Great Harbour deliverables ............................................................................................................61 Table 13 Policy and Strategies - National .....................................................................................................67 Table 14 Policy and Strategies - Regional and Local .....................................................................................70 Table 15 Great Harbour SMART objectives ..................................................................................................76 Table 16 Great Harbour change outline .......................................................................................................85 Table 17 Coastal Hub change outline ...........................................................................................................89 Table 18 Investment objectives ....................................................................................................................93 Table 19 Coastal Hub Main Risks ..................................................................................................................95 Table 20 Critical success factors ...................................................................................................................99 Table 21 Great Harbour long list options assessment ............................................................................... 101 Table 22 Options appraisal ........................................................................................................................ 107 Table 23 Short list option assessment ....................................................................................................... 108 Table 24 Coastal Hub main benefits .......................................................................................................... 112 Table 25 Qualitative project costs ............................................................................................................. 113 Table 26 Results of Economic Appraisals – Ayrshire.................................................................................. 114 Table 27 Key Results of Economic Appraisals – Scotland .......................................................................... 115 Table 28 Key Results of Economic Appraisals – UK .................................................................................... 116 Table 29 Benefit to cost ratios ................................................................................................................... 117 Table 30 Net Additional BCR for the Coastal Hub Option .......................................................................... 117 Table 31 Qualitative benefits criteria ........................................................................................................ 118 Table 32 Weighted scoring example .......................................................................................................... 119 Table 33 Benefits Appraisal Results ........................................................................................................... 119 Table 34 Summary of the risk appraisal results ......................................................................................... 120 Table 35 Summary of overall results ......................................................................................................... 121 Table 36 Switching values .......................................................................................................................... 122 Table 37 Summary of scenario planning results Coastal Hub Option ........................................................ 123 Table 38 Summary of scenario planning results – Business as Usual Case................................................ 124 Table 39 Summary of scenario planning results (BCRs) ............................................................................. 125 Table 40 Summary of scenario planning results (NABCRs) ........................................................................ 126 Table 41 Risk transfer matrix ..................................................................................................................... 130 Table 42 Coastal Hub contract key dates ................................................................................................... 132 Table 43 Coastal Hub programme ............................................................................................................. 135 Table 44 Great Harbour project phasing ................................................................................................... 137 Table 45 Phase 1 FBC costings ................................................................................................................... 138 Table 46 Coastal Hub Funding ................................................................................................................... 139 Table 47 Great Harbour Funding ............................................................................................................... 139 Table 48 Coastal Hub Spend Profile ........................................................................................................... 140 Table 49 Great Harbour Spend Profile ....................................................................................................... 140 80
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8 Great Harbour | Coastal Hub | FBC Table 50 Phase 1 FBC costings ................................................................................................................... 141 Table 51 Great Harbour Milestones .......................................................................................................... 144 Table 52 Great Harbour project phasing ................................................................................................... 145 Table 53 Great Harbour project management roles and responsibilities ................................................. 147 Table 54 Outline of Communication Strategy ........................................................................................... 149 Table 55 Great Harbour project team roles and responsibilities .............................................................. 151 Table 56 Great Harbour Milestones .......................................................................................................... 152 Table 57 Great Harbour Programme ......................................................................................................... 153 Table 58 Great Harbour professional advisors .......................................................................................... 153 Table 59 Coastal Hub professional advisors .............................................................................................. 154 Table 60 Great Harbour Outputs ............................................................................................................... 156 Table 61 Great Harbour Outcomes ............................................................................................................ 157 Table 62 Great Harbour Impacts ............................................................................................................... 157 Table 63 Great Harbour Community Benefits ........................................................................................... 157 Table 64 Great Harbour initial carbon statement ...................................................................................... 160 Table 65 Coastal Hub contract management ............................................................................................ 163 Table 66 Coastal Hub Gateways ................................................................................................................ 163 List of Figures Figure 1 The Great Harbour hubs .................................................................................................................11 Figure 2 Great Harbour Masterplan as approved .........................................................................................26 Figure 3 Maritime Mile concept ...................................................................................................................30 Figure 4 Maritime Mile - the activity hubs ....................................................................................................31 Figure 5 Great Harbour – Maritime Heritage ...............................................................................................37 Figure 6 The Dragon, Irvine Beach Park ........................................................................................................38 Figure 7 Great Harbour - Natural Heritage ...................................................................................................39 Figure 8 Great Harbour – Marine Laisure and Play.......................................................................................40 Figure 9 Coastal Hub arrangements with events space at the Beach Park ..................................................42 Figure 10 Great Harbour - Events Areas .......................................................................................................42 Figure 11 Coastal Hub general arrangements ..............................................................................................49 Figure 12 Coastal Hub view from the Harbourside showing a new setting for the Pilot House ..................49 Figure 13 Play Park visualisation ...................................................................................................................51 Figure 14 Great Harbour Project Governance Structure ..............................................................................56 Figure 15 Great Harbour Business Case Pathway .........................................................................................60 Figure 16 Great Harbour Masterplan as approved! .....................................................................................64 Figure 17 Regional drivers to inclusive growth .............................................................................................76 Figure 18 Great Harbour Masterplan consultation feedback summary .......................................................83 Figure 19 Coastal Hub concept design ..........................................................................................................84 Figure 20 Maritime Mile and Marine, Arts and Events Hub - concept design ..............................................84 Figure 21 Maritime Heritage Hub concept design ........................................................................................85 Figure 22 Coastal Hub as proposed in OBC ...................................................................................................91 Figure 23 Coastal Hub as proposed in FBC ...................................................................................................92 Figure 24 Great Harbour governance structure ........................................................................................ 147 Figure 25 Organisational reporting structure ............................................................................................ 150 Figure 26 Great Harbour Change Control process ..................................................................................... 155 Figure 27 Great Harbour sustainability approach ...................................................................................... 159 81
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9 Great Harbour | Coastal Hub | FBC 82
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10 Great Harbour | Coastal Hub | FBC Part A Project Description 83
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11 Great Harbour | Coastal Hub | FBC What is the project about? The Great Harbour project is a key tourism led socio-economic regeneration, placemaking and destination development project aiming to transform the highly deprived area of the coastal town of Irvine1, North Ayrshire. It will create a new national and regional waterfront destination transforming the tourism and visitor potential of Ayrshire and the Clyde Coast based on the place’s best assets. The project addresses a regional priority to invest in tourism and aligns with the Regional Growth Strategy and Community Wealth Building programme. The Great Harbour project, supported by the Ayrshire Growth Deal, presents a strategic opportunity to transform Irvine into a thriving tourist destination, fostering economic prosperity, community well-being, and a sustainable future for the region. The development of the Great Harbour will create a unique coastal destination comprising of a number of key assets to attract new visitors to the area and create jobs. It will build on the unique qualities of place, creating a national waterfront destination focussed on a series of activity hubs and dynamic event and public spaces. These will include heritage, arts, maritime, outdoor and marine leisure activities, providing an animated waterfront that connects from Irvine train station to the coast to achieve a regional waterfront destination that will transform the tourism and the visitor potential of Ayrshire and the Clyde Coast. It will also unlock a series of secondary development opportunities which will contribute to the creation of a premium regional coastal destination that delivers Community Wealth Building opportunities. The Great Harbour project will be delivered in three phases as shown in the image below and description. The Maritime Mile forms part of the overall area linking the project hubs across the Harbourside from the town centre and railway station in the east to the coast at the western edge. Figure 1 The Great Harbour hubs 1Scottish Index of Multiple Deprivation (SIMD) 2020 – data zone: Irvine Fullarton (S01011232), most deprived 5% 84
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12 Great Harbour | Coastal Hub | FBC • Coastal Hub (Phase 1) – a new major outdoor play facility for the Beach Park area, improvements to routes to and from the Beach Park, outdoor events infrastructure, initial improvements to the Pilot House, digital infrastructure columns with wi-fi/5G/IoT (funded separately); • Maritime Mile including Marine & Arts Hub (Phase 2) – improvements to public spaces and the River Irvine’s edge around the vicinity of the Harbour Arts Centre and Harbour Master’s Office and public realm improvements to the Maritime Mile (the connection from Irvine Railway Station & town centre to the Beach Park and coast; and • Maritime Heritage Hub (Phase 3) – expanded facilities for the Scottish Maritime Museum (SMM), led by the SMM and additional outdoor events space adjacent to Harbour Street. The Coastal Hub is the new activity hub of the Great Harbour project. It focuses on the creation of a new and more diverse outdoor tourist attraction at the existing Beach Park area, Pierhead/Harbour Point and the coastal beach, combining improved recreational amenities with improved accessibility, catering to a wider range of user groups. What is being undertaken? Following approval of the Great Harbour Outline Business Case (OBC) in June 2021, the Great Harbour project underwent a phase of intensive development and consultations, which resulted in an updated Masterplan for the wider area of the Harbourside and the Beach Park, providing a framework for AGD proposals and for future investment opportunities, ensuring the sustainable growth of the area, which aligns with local needs and community aspirations. . Stakeholder feedback prioritised the upgrading of the Beach Park as a key issue and in response the Council prioritised the Coastal Hub works as a first phase. The Great Harbour Masterplan has now been approved by North Ayrshire Council’s Planning Committee in April 2024 following endorsement from Cabinet in December 2023 and is now a material consideration in the determination of future planning applications for the area. In response to the volatile economic climate, which has placed significant pressure on the project's budget and schedule, the development work for the Great Harbour project and the area masterplan was closely aligned with a deliverability assessment. This assessment aimed to identify priorities and potential leverage funding opportunities without compromising the established outcomes, outputs, and impacts. Further consideration was given to the effects of factors such as ownership, legal obligations, and consenting requirements on delivery timescales. The updated proposals, including programming and phasing, reflect these considerations, as scrutinised by the public and wider area stakeholders, and are designed to minimise dependencies and constraints. In this respect, the Coastal Hub was prioritised. The Coastal Hub has been developed to technical detail and civils works have been tendered as part of a three-stage process. The project has secured all statutory permissions and has been the subject of consultation with a broad range of area stakeholders to ensure the maintenance and upkeep burden is minimised and that local needs and aspirations are met. How does it fit within the wider Deal? The Great Harbour scheme is an integral part of the Tourism Programme, which comprises of a portfolio of projects that build on and strengthen the existing tourism offer to make the region a highly desirable place to visit, live, work and invest in. Total programme funding of £23.5 million, with £18.5 million from Scottish Government and £5 million from North Ayrshire Council will deliver two major tourism projects, Marine Tourism (£9.5m) and The Great Harbour (£14m). 85
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13 Great Harbour | Coastal Hub | FBC The projects associated with these themes focus on key sectors and strategic sites across Ayrshire, as well as digital infrastructure, skills, community wealth building and transport – all of which will combine to facilitate sustained recovery and renewal of the regional economy. The majority of projects focus on infrastructure investment designed to act as a catalyst for business growth. These are complemented by a Skills and Inclusion Programme and a Community Wealth Building Programme to ensure maximum benefit for Ayrshire communities, both resident and business, from large scale capital expenditure. The Great Harbour project, with its major activity hub at the Coastal Hub, plays a vital role in the wider Ayrshire Growth Deal by driving economic growth, improving connectivity, and fostering innovation. Together, these initiatives work towards realising the shared vision of a prosperous and sustainable future for Ayrshire and its residents. By establishing the Coastal Hub within the Great Harbour project, the area gains a vibrant activity centre that attracts visitors from both the local community and beyond. This influx of visitors not only enhances tourism but also supports local businesses, generating economic activity and employment opportunities. Moreover, the Coastal Hub aligns with the Growth Deal's objectives of improving connectivity and accessibility. The project enhances links between the harbourside area and surrounding amenities, promoting active travel and encouraging people to explore the wider region. This increased connectivity not only benefits residents but also enhances the visitor experience, making Ayrshire a more attractive destination for tourists. The inclusion of innovative features such as digital infrastructure providing, amongst a number of uses, an enhanced AI based surveillance, monitoring and augmented reality experience demonstrates a commitment to innovation and modernisation, key components of the Ayrshire Growth Deal's vision for the region. By embracing cutting-edge technology, the Coastal Hub sets a precedent for future development projects within the Growth Deal, ensuring that Ayrshire remains competitive in a rapidly evolving global economy. The ADG investment has been used as leverage to secure additional funding from several external sources, which directly align with AGD objectives by maximising impact, fostering collaboration, enhancing sustainability, diversifying funding sources, and accelerating project implementation. This strategic approach amplifies economic benefits, strengthens partnerships, advances sustainability goals, reduces dependency on a single funding source, and expedites project realisation, ultimately contributing to the long-term growth and prosperity of Ayrshire. What is being proposed? The Coastal Hub project covers the northwestern end of the Beach Park in Irvine hidden behind a local landmark of the Billy Bing hill, and the approach road with a roundabout to the Beach Pavilion area. The site adjoins an open grassed area to the northeast, retained for major events and beyond that a boating pond, both of which also form part of the Beach Park. The works proposed are as follows: • Creation of outdoor play hub comprising a regional play park, skatepark, pump track (subject to additional funding) and outdoor gym (delivered utilising additional NAC funding) to provide a variety of facilities to attract a wide range of age groups and abilities, ensuring inclusivity and fostering a vibrant and active community; • Creation of new road and footway layout including active travel improvements to reduce car dominance and provide better connection and access between the Harbourside, Beach Park and coast, encouraging visitors to explore the entire area seamlessly using sustainable travel options; 86
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14 Great Harbour | Coastal Hub | FBC divert vehicle traffic to the Beach Dr carpark, which will be re-lined to improve its capacity and cater for motorhomes and coaches; • Landscaping works including new and upgraded paths and planted areas to replicate the natural coastal setting for the new facilities which is easy to maintain and respects the local natural environment, while improving local biodiversity; • Installation of street furniture, picnic areas and rest points to encourage longer stays and community integration; • New signage to improve wayfinding and interpretation boards on local dune habitat and Gaelic legend inspiring the theme for the play park; • Related works to the project area to prepare the site, including the installation of a new drainage system, diversion of utilities and new connections and some required remediation works, including infrastructure improvements to support major events; and • Improvements to the setting of the B Listed Pilot House and minor improvements to its façade. The works are also supported by separately funded digital infrastructure for the wider Great Harbour area, including digital infrastructure columns equipped with wi-fi, IoT and CCTV capabilities. Longer term and using some available AGD funds, a business case is being prepared regarding proposals to redevelop the existing Beach Pavilion building to provide improved public facilities and a café/restaurant, further works to the Pilot House as a potential visitor attraction and to introduce Augmented Reality (AR) technology enhancing the facilities and user experience. The pump track and skatepark are also supported by additional investment. The pump track has been included within the tender to be costed separately, in order to determine whether it could be funded from the budget. If this is not possible then an application will be made to SportScotland in September 2024. Alternatively, the project would be delivered as a later phase. A site plan detailing all elements of the scope referring to this contract is attached in Appendix N. How will it be delivered? The contractor for the Coastal Hub works will be selected during a tender process and will deliver works between October 2024 and April 2026 with a milestone of end of May 2025 for the completion of the main play facility. The contract will be covered by the NEC4 Construction and Engineering Contract model, which facilitates co-operation and arbitration. The main contractor will hold overall control over the civils works and will subcontract specialist contractors for the installation of the play equipment, skatepark and subject to funding, the pump track. The consultant appointed for the design of the proposals will also have the role of Contract Administrator and Principal Designer, while NAC will provide Quantity Surveyor (QS), Clerk of Works and additional project management services, either in-house or appointed from a framework. Who will use it and why? The Coastal Hub will cater for a diverse audience of users, visitors, and residents, it promises an engaging visitor experience centred around play and physical activity. Enhanced accessibility and connectivity with the harbourside area will encourage active travel, granting easier access to expansive blue and green spaces for heightened wellness and wellbeing. 87
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15 Great Harbour | Coastal Hub | FBC At the heart of the Coastal Hub lies a themed play park seamlessly integrated into the local landscape, featuring distinctive, tailor-made equipment to attract visitors from across Ayrshire and the West Coast. A skatepark, and subject to funding, a pump track, will cater for the needs of young adults, potentially addressing a gap in recreational offerings spanning from Gourock to Girvan. The addition of seating and picnic areas within the Coastal Hub will encourage longer stays. The improved events space equipped with the utilities and wi-fi/5G provision will help attract a wide range of event organisers and concert goers, positioning the Coastal Hub as a premier outdoor venue for major events and securing revenue for the Council. Innovative digital infrastructure will be provided through separate funding to instal digital infrastructure columns within the Coastal Hub area with wi-fi, 5G and IoT sensors which will help monitor safety, accident response, footfall monitoring and environmental sensing and provide an improved network service for the area and potential future projects, for example the use of augmented reality (AR) technology. This will support the Smart Places Initiative and serve as a demonstration site for these technologies. Future enhancements will focus on creating interactive STEM trails and maritime heritage explorations. Users will access AR content that enhances their understanding and engagement with the area and maritime exhibits. The intention is to collaborate with local academia and businesses to develop the content for these AR experiences, integrating into a dedicated platform/app, to provide a user interface to access AR content, along with additional information and features, that will enhance the overall visitor experience. While the public can enjoy the play activities free of charge, the anticipated increase in foot traffic promises to stimulate the local economy, with local businesses gaining the indirect benefits of the Coastal Hub as a major attraction. What are the headline figures around what is being proposed? The total cost of the Phase 1 of the Great Harbour project, the Coastal Hub, is £5.164m with £5.010m from Ayrshire Growth Deal, £22,625 from the Place Based Investment Fund (approved and spent) and external funding of £131,251 which is required to deliver the pump track. Details are shown in Table 1 below. This includes cost of development and delivery of the Coastal Hub. The spend to date for the development works of the Great Harbour project and the programme management costs are excluded from this table and are captured within the detailed financial tables in section 5. Table 1 Phase 1 FBC costings Service (RIBA stage of works) Timescales Total GH phase 1 development (stage 0-4) Nov 2021 – May 2023 GH phase 1 delivery (stage 5-6) · Consultancy · Civils · Contingency May 2023 – April 2026 Defects Period/ Evaluation (stage 7) April 2026 – April 2027 Community fund May 2023 – April 2026 £25,000 TOTAL Coastal Hub £5,164,233 88
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16 Great Harbour | Coastal Hub | FBC DEDUCTIONS PBIF - committed £22,625 CLCF - potential £131,251 TOTAL AGD £5,010,357 Investment within the first phase of the project represents value for money as a single project, in terms of the upgraded Beach Park facilities that it will provide and the enhancements to the open public area making it more accessible and attractive as a tourist and visitor destination and will create several opportunities for activities around play. Should the subsequent phases of the Great Harbour project be at risk, the Coastal Hub would be an attraction in its own right but the overall improvements and consistency of design quality and public space and visitor facilities across the remainder of the Great Harbour area and Maritime Mile would not be delivered. 89
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17 Great Harbour | Coastal Hub | FBC Part B The Five Cases 90
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18 Great Harbour | Coastal Hub | FBC 1. Executive summary 1.1 Introduction This Full Business Case (FBC) follows on from the Outline Business Case (OBC) for the Great Harbour project, as set out in the Ayrshire Growth Deal (AGD) Heads of Terms and in the Outline Business Case approved by Government in June 2021 and covers the first phase, the Coastal Hub. The AGD framework defines the purpose of the FBC as the final part of staged approval to support the critical investment decision, Notice to Proceed, of Phase 1 of civils construction works, following the process of appraisal of the project detail, level of analysis and its readiness for delivery and implementation. It is the final stage of the Government’s three-stage, five-case business case model, outlined in the HM Treasury Green Book, and includes the: Strategic Case, Economic Case, Financial Case, Commercial Case, Management Case. This FBC requires an overall investment of £5.164m into Phase 1 of the Great Harbour project – the Coastal Hub as represented in Table 2 below. This includes cost of development and delivery of the Coastal Hub. The spend to date for the development works of the Great Harbour project and the programme management costs are excluded from this table and are captured within the detailed financial tables in section 5. Table 2 Phase 1 FBC costings Service (RIBA stage of works) Timescales Total GH phase 1 development (stage 0-4) Nov 2021 – May 2023 GH phase 1 delivery (stage 5-6) · Consultancy · Civils · Contingency May 2023 – April 2026 Defects Period/ Evaluation (stage 7) April 2026 – April 2027 Community fund May 2023 – April 2026 £25,000 TOTAL Coastal Hub £5,164,233 DEDUCTIONS PBIF - committed £22,625 CLCF - potential £131,251 TOTAL AGD £5,010,357 The procurement process consisted of three stages advertised on Public Contracts Scotland as listed below: 1. first stage involving a Procurement Information Notice to gauge initial interest and sector capacity to deliver works, 2. second stage verified contractors’ capacity and capability to deliver the service within the timescale, 91
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19 Great Harbour | Coastal Hub | FBC 3. third stage involved inviting shortlisted bidders to submit full financial and quality bids. The designer developing the proposals is taking on the role of Contract Administrator and Principal Designer in relation to the civils contract to ensure continuity. Best practice is being used to prepare and develop the business case with professional input where required. Detailed research and extensive consultations have been performed during the development phase to confirm current and future demand and project sensitivities. The site is in NAC ownership with a well recorded history, which assisted detailed site investigation (SI) works throughout the development phase, guided by the relevant Council services. The regeneration proposals, called the Coastal Hub aim to revitalise the area, focusing on enhancing recreational spaces and improving active travel infrastructure. This strategic initiative aligns with NAC’s commitment to community well-being and sustainable urban development and will assist in achieving several of the objectives of the Council Plan and Regeneration Delivery Plan. 1.1.1 Background Following the OBC approval, the Great Harbour project underwent a phase of intensive development involving commercial, institutional and community stakeholders in addition to the internal cross-service scrutiny. A Stakeholder Engagement and Public Consultation Strategy (Appendix A) has been developed to ensure all area stakeholders and parties with invested interest are actively engaged and that the proposals meet local needs and priorities. A Great Harbour Project Governance Structure (Appendix B) has been established to monitor the development and provide strategic control. The proposals were informed by public consultations in February/March 2022 and March/April 2023 and the reports of both include the main feedback areas and recommendations: • February/March 2022 - Great Harbour Coastal Hub Public Consultation Report – May 2022 • March/April 2023 - Great Harbour Masterplan Public Consultation Report – May 2023 As a result, the Great Harbour Masterplan has been developed to provide a framework for AGD investment proposals as part of the wider Tourism Programme and for future investment opportunities ensuring sustainable growth of the area. The Great Harbour Masterplan has been approved by the Planning Committee in April 2024 following the endorsement from the Cabinet in December 2023 and is now a material consideration in the determination of future planning applications. The Masterplan recognises the best local assets and tests them against strategic objectives of the Local Development Plan. It identifies the main areas of AGD investment along the Irvine Harbourside, called the Maritime Mile, which will incentivise further investment, both public and private, and act as an enabler to secondary development of the area through the identified and de-risked opportunities. The Maritime Mile will focus on the provision of activity hubs, attractions, animated public and activity spaces designed along the harbourside and connected with improved, accessible and safe links mimicking a string of pearls stretching from Irvine train station to the beach and catering for varied audiences. As part of the Masterplan development a Strategic Ecological Assessment was considered and resulted with the Pre-screening Notification submitted to the SEA Gateway. It concluded that there is zero or negligible (but in all instances positive) impact on the environment, as the majority of the Masterplan’s proposals relate to improvements to brownfield areas (including land classed as vacant & derelict) and public realm at the Harbourside. Full document is provided in Appendix R. 92
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20 Great Harbour | Coastal Hub | FBC 1.1.2 Cost and Schedule updates Following the approval of the OBC, significant development occurred to assess the feasibility of various project elements, given the pressures stemming from inflation and related factors on the project's budget. The recent volatile economic climate, caused by factors such as the energy crisis with related rising inflation and disruptions to the construction sector observed in the UK, like shortages of labour, materials and transport of goods, put a significant pressure on the project’s budget and schedule. It also influenced the project partnerships. The project, therefore, required a comprehensive deliverability test to identify the priorities and potential for leverage funding, without compromising the set outcomes, outputs and impacts. The focus of value engineering was to safeguard the project's benefits and outcomes while maximising opportunities for leverage funding to effectively utilise the allocated AGD funds. Particular focus was put on elements proposed in the OBC to be constructed within the marine environment, as marine infrastructure and construction costs have been substantially affected by inflation. The updated proposals reflect these considerations as scrutinised by the public and wider area stakeholders. This report sets out an updated cost and schedule estimate for the Great Harbour project focusing on: • Appraised deliverability | considering a range of aspects including ownership, consenting and permissions with associated timescales, physical and financial constraints but also the scale of the elements against set benefits and local priorities. By applying an alternative approach focusing on benefits, some scaling and rearrangements of physical deliverables was carried out to achieve satisfactory value engineering. • Setting a realistic cost envelope | the cost profile for the GH updated to reflect current market condition and maximising the leverage funding opportunities from internal and external sources. This followed from the intensive fundraising research and engagement exercise resulting in the Leverage Funding Strategy (Appendix C) supporting the project cost plan. The cost estimate for the Phase 1 civil works is based on the most current market information. • Protecting benefits | the Benefit Realisation Matrix was at the core of the change considerations, and this approach allowed for protection of the majority of the benefits by reallocating/reassociating some to other elements while enhancing others. • Reshaping partnership collaboration | addressing changes of circumstances affecting the commitment of previous partners and utilising new partnership opportunities with associated financial and professional support expertise. This resulted in a number of informal partnerships within tourism, natural and build heritage, events sector and academia supporting project delivery and promoting its vision on the wider forum. • Securing community support | applying the principles of community empowerment and Community Wealth Building (CWB), a particular emphasis was put on engagement with the local community and community groups and other area stakeholders to empower them by providing strong representation within the project governance and approval processes. A collaborative partnership approach has been exercised with an extensive engagement with all identified area stakeholders to ensure that the project aspiration and the AGD vision meet local needs and priorities. This has proven very successful and enabled a change of perception with increased support for the project, reflected within the consultations feedback, but also through close collaboration on various project activities. 93
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21 Great Harbour | Coastal Hub | FBC • Improving governance and management | reflecting the lifecycle of phased development and delivery schedule and addressing staff skill gaps to improve project delivery, risk management and change control. Given the Great Harbour project's multifaceted nature, with distinct elements requiring specific consents, construction procedures, and partnership arrangements, the transition from concept to detail relied on budget flexibility and targeted AGD investment to maximise leverage funding opportunities. Consequently, although the overall AGD allocation of £14 million remains unchanged, the allocations between elements have been redesigned. The adjustment and reallocation of funds during the development process from concept to detail is not only common but often necessary for the successful execution of complex projects and reflects a proactive approach to optimising project outcomes, mitigating risks, and ensuring alignment with evolving project requirements and stakeholder expectations. Several factors contributed to the need for such changes: o Increased Clarity and Understanding | increase in clarity and understanding of project requirements, constraints, and opportunities, leading to the identification of better ways to allocate resources to optimise project outcomes. o Refinement of Scope and Objectives | deeper insights into the project's scope and objectives necessitates adjustments to resource allocation to ensure alignment with the refined project goals and to address any emerging priorities. o Response to Changing Conditions | external factors such as economic fluctuations, regulatory changes, and technological advancements, etc. impact project dynamics, therefore flexibility in budget allocation to respond effectively to these changing conditions and mitigate potential risks. o Optimisation of Funding Opportunities | since the projects rely on a mix of funding sources, including grants, loans, and public-private partnerships, during development the opportunities to leverage additional funding change - arise or evolve, necessitating adjustments to the allocation of funds to maximise overall funding efficiency. o Risk Management | effective risk management is a critical aspect of project development and adjusting funding allocations based on evolving risk profiles helps mitigate potential financial and operational risks, ensuring the project's overall resilience and success. o Stakeholder Input and Feedback | adjusting funding allocations based on stakeholder feedback ensures that the project remains responsive to the needs and expectations of its diverse stakeholders, including community members, government agencies, and industry experts, who’s input is vital for project success. Due to the complexity and a substantial geographical scope of the Great Harbour project, a phased delivery is required, as indicated previously by proposed milestones and gateways to delivery. This will be reflected in the submission of the FBCs, with this first FBC for the Coastal Hub also providing an update on development work since the approval of the OBC. While the OBC proposals focussed on the activity hubs with individual growth potential and wider connectivity, the delivery phasing must take into consideration a number of factors such as the type of construction works proposed and related procurement requirements, available budget and timescales for securing of the potential external funding, partners’ organisational readiness and internal approval and governance procedures. A recent review of Ayrshire Growth Deal projects, including a review by North Ayrshire Council, identified that there could be a reallocation of funds to increase the Great Harbour overall budget by approximately £2.5m. If supported, this will be submitted to Governments for approval and Ministerial sign off. The 94
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22 Great Harbour | Coastal Hub | FBC additional funds relate to the delivery of subsequent phases of the project. This will be reflected in future FBCs after analysis and approval of any budget reallocations. The details of phasing with associated timescales are described within further chapters and outlined in Table 3. The scope of the phasing with allocated budgets are presented in Table 4. Table 3 Great Harbour Milestones Great Harbour Gateway | Milestone Phase 1 Phase 2 Phase 3 RIBA Stage 0 Establishment of project governance and Strategic Business Case 0 - Strategic Definition 1 Sign-off concept delivery/ objectives and Outline Business Case development 1 - Preparation & Briefing 2 - Concept Design OBC submission to PMO & Govt(s) - OBC approved by Government - 2 Completion of the detailed design 27/11/2023 09/12/2024 Q2 26/27 2 - Concept Design 3 - Developed Design Statutory Consents 31/01/2024 16/06/2025 Q2 27/28 3 Completion of Technical Design 20/05/2024 16/06/2025 Q2 27/28 4 - Technical Design Completion of Construction Tender 26/07/2024 18/08/2025 Q3 27/28 Internal sign-off of FBC (Cabinet) 27/08/2024 22/07/2025 Q2 27/28 - FBC Submission 10/06/2024 01/07/2025 Q2 27/28 - FBC approved by Economic Joint Committee 04/09/2024 26/08/2025 Q2 27/28 - EJC Update (evidence of tender) 06/09/2024 06/09/2025 Q3 27/28 - 4 Construction start 07/10/2024 06/09/2025 Q3 27/28 5 - Manufacturing & Construction 5 Construction complete and Handover 06/04/2026 06/08/2027 Q2 28/29 6 - Handover 6 Retention/Reporting outputs/outcomes/CWB incl. AGD Evaluation/Monitoring 06/04/2027 06/08/2028 Q2 29/30 7 - Use RAG STATUS Green = on track Amber = subject to change/potential delay Red = Project slippage 95
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23 Great Harbour | Coastal Hub | FBC Table 4 Great Harbour project phasing Great Harbour Phase Programme Phase 1 Phase 2 Phase 3 TOTAL Scope Project management Coastal Hub Maritime Mile hubs connections Maritime Heritage Hub Development Play Park Marine & Arts Hub Harbour Master's Office marketing Masterplan Pilot House plaza Transport and parking remodelling Gap site marketing (between 128 and 138 Harbour Street) Events space at the Beach Park Active travel infrastructure Pilot House restoration* Digital network infrastructure Harbour Master's Office restoration Residential - Portland site marketing* Beach Park access Public/events spaces AGD budget [M] £1.091 £5.010 £5.809 £2.090 £14.000 Additional funding [M] £0.130 £0.154 £0.636 £0.000 £0.920 committed additional NAC £0.130 £0.023 - - £0.153 Sustrans - - £0.079 - £0.079 VDLF - - £0.158 - £0.158 DIST - - £0.392 - £0.392 CLF - - £0.007 - £0.007 CLCF** - £0.131 - - £0.131 TOTAL committed £1.221 £5.164 £6.445 £2.090 £14.920 Additional funding [M] £0.000 £0.365 £0.042 £5.525 £5.932 potential sources Sport Scotland Sustrans NLHF CLCF additional NAC HES other other additional NAC TOTAL proposed investment [M] £1.221 £5.529 £6.487 £7.615 £20.852 *Subject to additional funding secured ** Funding not committed with sources identified, included within tender to generate competitive pricing 1.1.3 Description The Great Harbour project is a key tourism led socio-economic regeneration, placemaking and destination development project aiming to transform the highly deprived area of the coastal town of Irvine2, North Ayrshire. The area has suffered a prolonged loss of identity and growth potential following the decline of the home industries relating to the operating port and harbour. It will create a new national and regional waterfront destination transforming the tourism and the visitor potential of 2 Scottish Index of Multiple Deprivation (SIMD) 2020 – data zone: Irvine Fullarton (S01011232), most deprived 5% 96
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24 Great Harbour | Coastal Hub | FBC Ayrshire and the Clyde Coast based on the place’s best assets. The project addresses a regional priority to invest in tourism and is aligned with the Regional Growth Strategy, Community Wealth Building programme. The AGD investment will lead a physical transformation of the wider location, creating capacity to support community participation and commercial opportunities. The development of the Great Harbour will create a unique coastal destination comprising a number of key assets to attract new visitors to the area and create jobs. It will build on the unique qualities of place, creating a national waterfront destination focussed on a series of activity hubs and dynamic event and public spaces. These will include heritage, arts, maritime, outdoor and marine leisure and activity, providing an animated waterfront that connects from the train station to coast to achieve a regional waterfront destination that will transform the tourism and the visitor potential of Ayrshire and the Clyde Coast. It will unlock a series of secondary development opportunities which will contribute to the creation of a premium regional coastal destination that delivers Community Wealth Building opportunities. The geographical scope area of the Great Harbour project falls within the most deprived area of the coastal town of Irvine2 and comprises of the Harbourside, Beach Park and the coast, which are Irvine’s greatest place assets, providing access to vast green and blue spaces for leisure and wellbeing benefits, maritime heritage assets connecting the area to its past and an important historical role and celebrating local history and culture. Benefitting from good connectivity by road and rail, it presents a great opportunity for a new tourism destination promoting sustainable tourism and utilising best local place assets focusing on the themes of maritime heritage, arts and culture, natural heritage and wellbeing, marine leisure and play, and arts and events. The new tourism destination will provide an opportunity for further development and investment, both public and private, which will support the sustainable growth of the area and local community. Private and public sector developments form key elements of the Great Harbour Masterplan. The AGD funding will secure the transformational change of the area and create opportunities for partnership and further investment unlocked through the catalyst of enabling infrastructure delivered by AGD investment. The Masterplan development tested all potential future opportunities and provides a framework for fast-tracked and de-risked options. The project deliverables include: 1. Direct AGD investment: o a new waterfront tourism destination for Ayrshire and wider Scotland’s West Coast supporting the COIG tourist route3 ; o provision of activity hubs and spaces for play, active leisure, water-based activity, cultural and music events; o improved train station-to-beach connection and active travel infrastructure supporting sustainable destination aligned to the National Cycle Network; o improved connection with water by slipway improvements and access points for water- based sports and leisure; o comprehensive streetscape enhancement ensuring safe and inclusive setting and access; o community enterprise and community wealth building programme; o improved transport and parking hierarchy to unlock prime waterfront space for visitors and to target support for investment opportunities; o enhanced greenspace and improved, safe and inclusive access to green and blue spaces for wellbeing benefits of residents and visitors; o provision of economically sustainable model of a community hub and commercial 3 Welcome to Ayrshire and Arran 97
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25 Great Harbour | Coastal Hub | FBC restaurant at the coast enhancing local food and beverage provision; o empowerment of local community groups and clubs with vested interest in area’s regeneration. 2. Partnership investment o restoration and enhancement of the local heritage assets; o built and natural heritage interpretation; o extension of the provision of the arts and culture space by a new gallery and various event spaces; o destination development and tourism promotion; o improvements to the greenspace of the Beach Park, o provision of digital infrastructure supporting public safety and area maintenance by improved surveillance and monitoring, supporting further tourism destination growth by tracking footfall and space use, providing public wi-fi, supporting activity and events by provision of hi-speed network; o provision of food and beverage offer enhancing current provision and extending evening animation; o social enterprise and 3rd sector opportunities. 3. Indirect partner investment o open market and affordable homes; o social enterprise. 4. Future leverage investment o inward investment; o large scale commercial development supporting leisure and tourism (hotel, leisure centre, wellness hub); o wider tourism offer (guided tours, educational visits, boat tours, water sports, marine leisure); o wider sports offer utilising skatepark and pump track facilities (events, competitions). 1.1.4 Masterplan development The updated Masterplan, as endorsed by the Cabinet in December 2023 and approved by the Planning Committee in April 20244 refines the vision for the Great Harbour as presented in the OBC and establishes the area development framework ensuring the sustainable growth of the area and community, by maximising and de-risking the opportunities for future investment and community participation. It also sets out how the £14m of Ayrshire Growth Deal funds will be invested in the Irvine Harbourside area. The Masterplan strengthens the adopted Local Development Plan (LDP2), setting out the statutory framework to guide development and investment, which identifies Irvine Harbourside as a Strategic Development Area 4 (Policy 3)5 and the open green space of the Beach Park as a Strategic Tourism Asset. LDP2 supports the development of the comprehensive Masterplan for the area, which proposes best use of the Harbourside’s unique location, heritage and environment to create new opportunities for local people and attract new investment into the area. The LDP supports a range of uses proposed by the Masterplan, in particular: o new residential development, comprising both affordable and market housing; o range of commercial leisure facilities, particularly those that enhance or develop the maritime tourism potential of the area; o proposals that strengthen physical and digital links between the town centre and harbourside to enhance the vitality and vibrancy of town centre and harbourside; 4 24 April 2024 Planning Committee minutes 5 LDP2 p.28 - ldp2.pdf (north-ayrshire.gov.uk) 98
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26 Great Harbour | Coastal Hub | FBC o proposals that are in keeping with the character of the area as an edge of town centre location; o proposals that result in the productive reuse of vacant land identified as development opportunities. The Masterplan applies the placemaking requirements of the LDP2 (Policy 2) to ensure that all development contributes to making quality places that remain attractive to those that live and work there. It promotes a holistic design-led approach to enhancing places and environmental quality by meeting the six qualities of successful places – welcoming, safe and pleasant, accessible and connected, distinctive, sustainable and adaptable. A people-centric approach to the development of the Masterplan adheres to the Policy 4 of the LDP26 and is expressed by delivering on the priorities of the local community set up by the Irvine Locality Planning Partnership. The community planning aligning with the Community Empowerment (Scotland) Act and Community Wealth Building principles ensures that local knowledge is utilised, local partnerships between groups with vested interest and the Council are promoted and that the local community has strong representation within the project governance structure and process. Figure 2 Great Harbour Masterplan as approved The Masterplan also adopts the detailed policies of the LDP2: 1. A Successful, Sustainable North Ayrshire | support economic growth and regeneration. 2. A Natural Resilient North Ayrshire | helping to protect and enhance our natural and cultural assets and facilitating their sustainable use. 3. A Connected North Ayrshire | support better transport and digital connectivity. Subject Policies include Active Travel, Transport and Digital Connectivity. 4. A Low Carbon North Ayrshire | reducing our carbon emissions and adapting to climate change. 6 LDP2 Community Planning Policy 4 p.38 - ldp2.pdf (north-ayrshire.gov.uk) 99
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27 Great Harbour | Coastal Hub | FBC 1.1.5 Great Harbour Masterplan Proposals The final proposals reflect the aforenoted policies and considerations and are a result of a coherent planning and design process. They build on local history and community aspirations. The proposals create value for residents and visitors with a view of creating a successful destination supporting the local economy, which creates jobs and investment opportunities, but also encourages community participation. The best local assets create a focus for development of activity hubs and the themes of the tourist offer for the Maritime Mile destination. Building on the Quality of Place o Distinctive Place Quality Commitment to sustainable quality. High quality, durable and distinctive design solutions that reflect the Harbourside’s character, heritage, materials and create a low maintenance, high quality public space that is accessible to all. The Harbourside forms an important Conservation Area with proposals planned to protect and wherever possible enhance the conservation value and status of the Harbourside. o People, Activity and Animation Activity and animation are created by people enjoying space, with spaces that support local community, commercial and event activity. A number of local clubs (e.g. Irvine Watersports Club / heritage groups /Coastwatch) provide important local services and have significant local membership. The need to work in partnership with local organisations is critical to the public realm, and allows for more open, inclusive use (water sport activity/waterfront seating/ cafes/ event spaces). o Places for Living Opportunities for developing the neighbourhood and supporting town-living should be celebrated. Homes create life, increase activity and security and create demand for off-season goods and services. The Irvine Development Corporation and more recent North Ayrshire Council residential developments set a successful framework with an appealing scale and character on which to build. Recent research carried out by L&C Mortgages7 places East and North Ayrshire at the top of the most affordable areas to buy a home, with favourable house-to-income cost ratio. o Celebrating Heritage & Distinctiveness 7 Where are the most and least affordable areas for first-time buyers? 100
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28 Great Harbour | Coastal Hub | FBC Heritage helps to anchor the Great Harbour and offers strong local stories (The “Harbour Dauner”/ Heritage Trail/Tours). A heritage app with links to contemporary offers around local arts, stories, local foods, local hospitality, building a strong sense of participation and exploration that provides a unique narrative around a fascinating place. A natural heritage is strongly represented in the area with several Sites of Special Scientific Interest (SSSIs), a birds nature reserve, natural dunes and the coast and a Beach Park. This presents the opportunity to promote improved access to green and blue spaces for the increased wellness and wellbeing benefits of residents and visitors. o Waterfront Appeal Waterfronts have appeal and attract activity whether that be the River Irvine, Irvine Harbour, or the Coast. There is a need to strengthen the quality of the waterfront by removing clutter, enhancing water access opportunities, creating authentic experiences and building the level of activity and events that attract and retain visitors. o Inclusive Connections Building connections (physical/ neighbourhood/community/ organisation/ activities) is key to creating a more inclusive, active, healthier and wealthier place. This needs to provide safe walking, wheeling and cycling routes and strengthen the core path and cycle network and improve lighting and facility maintenance. Digital connectivity provision will further improve public safety, both perceived and factual, monitoring and tracking for traffic, parking and waste management, footfall tracking for tourism planning, but will also provide an additional level to visitor experience enhancing heritage interpretation, trails, events and information. Access and Movement The Masterplan recognises a huge potential for the Harbourside to become a sustainable destination promoting active modes of travel based on a great rail links to Ayr, Glasgow and Largs and a good network of active travel routes, including NCN7, which is proposed to have an alternative off-road link created along the Harbourside. In addition to rail linkages, public transport offers also a good bus connectivity to Irvine Town Centre and Irvine Rail Station but with limited provision to the Harbourside. Opportunities exist to promote stronger public transport services and supporting commercial services, like bike hire, as the demand grows and proposed developments and events are delivered. Through the design interventions integrating streetscape measures and signage the hierarchy of multimodal traffic will be changed to free-up the prime Harbourside areas for predominantly non-vehicle access, with visitor vehicle access and parking directed away from the busy pedestrian and residential streets to the road network running in parallel to the rear of the Harbourside. Reducing parking accessed from the Harbourside and providing relocated parking accessed from the streets to the rear will allow for greater segregation of resident and visitor parking and reduce traffic movement and through-traffic to create a safer environment for residents, pedestrians and cyclists. Working in partnership with Sustrans, Strathclyde Partnership for Transport (SPT) and Network Rail, the Council aims to improve the infrastructure to promote active travel, support inclusive access throughout and promote active commuting and onward travel for residents and sustainable access for visitors. The vehicle access to the Waterfront will be limited to residents, deliveries and disabled users and drop- off access and traffic calming with 20 mph zone and raised tables will further improve safety for users and prioritise the pedestrians, cyclists and wheelchair users. Harbourside has the capacity to provide safe mobility for wheelchairs and mobility scooters. Improvements to access for those with limited mobility and disability will be supported with raised crossings to key attractions with dropped and flush kerb detailing prioritising walking, wheeling and cycling into street design. While the proposals promote the sustainable travel, the specific local context and area demographics require a close consideration to the provision of public parking, as expressed strongly throughout the 101
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29 Great Harbour | Coastal Hub | FBC public consultations and engagement activities. The Council strongly supports a reduction in non- essential car journeys but equally wants to attract visitors and tourists to the Maritime Mile and is seeking to extend and grow the event programme. This approach is complemented by our Travel Smart behaviour change programme to support modal shift to sustainable travel by local communities and visitors. Masterplan Distinctive Elements The Masterplan provides a development framework identifying the optimal elements for intervention with Ayrshire Growth Deal investment, but also identifying opportunities and creating relevant design guidance for future development and private/partnership delivery accommodating the sustainable growth of the area. o Maritime Mile Waterfront It will join the Harbourside and the coast with the railway station and the Scottish Maritime Museum at the Linthouse and it will also provide the improved connectivity between the ‘activity hubs’: o Coastal Hub Building a quality play facility and upgrading existing beach facilities to extend the appeal of the Beach Park and the coast. o Marine, Creative Arts and Events Hub A mix of arts venues, leisure, food and drink outlets and water sports clustered around an events space to create an activity hub. o Maritime Heritage Hub Extending and redeveloping the Puffer Café with an Educational/Arts/Creative space for the Scottish Maritime Museum alongside a refurbished café. o Portland Housing Housing developed on the brownfield site in a strong well-connected location, reinforcing 20 Minute Neighbourhood. The recent research carried out by L&C Mortgages8 places East and North Ayrshire at the top of the most affordable areas to buy a home, with favourable house-to-income cost ratio. This opportunity was consulted with Council’s Housing service for a potential development. o Leisure Related Developments Overlapping with and supplementing the Maritime Mile activity hubs. o Beach Park Event Space / Arena Developing the existing Harbourside-Beach Park Event Arena space extending from the Play Park to the Boating Pond and offering the capacity for Irvine to host major national/regional outdoor events. o Harbour Master's Office – mixed-use tourism and leisure Developing the Harbour Master’s Office and immediate local area for Mixed-Use Tourism & Leisure Uses (arts & crafts / food and beverage /heritage) compatible with the Harbourside. This could include small craft based retail, food and beverage and leisure and tourism related small business and enterprise activity. It could also operate as a small event and exhibition space and venue for other community/commercial activities. 8 Where are the most and least affordable areas for first-time buyers? 102
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30 Great Harbour | Coastal Hub | FBC o Harbour Point – community hub & restaurant Developing a hub clustered around the Beach Pavilion working with Coastwatch and others to create a new purpose-built facility providing a range of services for the Beach/ Beach Park and potential commercial café/restaurant operating from the upper floor. o Portland Leisure Development Site The Portland site offers opportunity for housing or a mixed-use with commercial leisure. Ideas based on a hotel/ leisure /water sport /conference facility /wellness centre have been explored by private sector developers. This would be an alternative to the site being advanced for housing. 1.1.6 Ayrshire Growth Deal Investment The Investment will provide the connectivity between the ‘activity hubs’ and will also join the Harbourside and the coast with the railway station and the Scottish Maritime Museum at the Linthouse. It will provide a setting for and will enable the development of the ‘activity hubs’ ensuring safe and inclusive access and minimising noise and CO2 pollution. It will create an enjoyable, safe and low maintenance outdoor public area that people feel comfortable spending time in or passing through, that considers the needs of visitors, local residents and local businesses and meets the aspirations of quality place-making, providing a setting for the area’s key assets along the route and treatment of waterfront elements, like the public slipway and the wharf. 1.1.7 Destination development A well-executed marketing strategy that highlights the sustainability initiatives, historical significance, and unique attractions of Maritime Mile can attract environmentally conscious tourists. This, in turn, can contribute to a positive feedback loop, where increased tourism revenues support further sustainable development. Figure 3 Maritime Mile concept 103
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31 Great Harbour | Coastal Hub | FBC The Great Harbour project along Irvine Harbourside is one of the most ambitious and transformational regeneration proposals for the area. It has the potential to transform the Irvine Harbour area – already a popular tourist destination – into a colourful, exciting and cultural hotspot that blends the town’s rich maritime history with new and exciting features. It is essentially a tourism-led regeneration, placemaking and destination development project for Irvine and the wider Ayrshire Coast. The project aims to reinvigorate the area and re-define what it stands for and its ambition. The vision is to create a new destination for the Ayrshire Coast that puts people first and reconnects them with the waterfront, to enhance existing parks, greenspace, local heritage and waterfront attractions while creating new ones, to make it an area that has safe and sustainable public access for residents and visitors, with the access to water for leisure and recreation enhanced. The project builds on the best place qualities and the strong connection to the harbour’s successful past. It responds and contributes to the wider Council strategies, like marine tourism, place, and regeneration. The first stage of the Great Harbour proposals is the creation of the Coastal Hub, followed by the Maritime Mile linking all the hubs together and the last phase will focus on partner-led delivery of the Maritime Heritage Hub. Figure 4 Maritime Mile - the activity hubs Starting at Irvine Railway Station, our aim is to make this a tourism destination stretching for a mile along Irvine’s Harbourside with a rich offer focusing on maritime, built and natural heritage, culture and arts, marine leisure and play. We hope to create a series of riverside and coastal attractions, accompanied by a great range of food and drink provision on the way – including a river-view restaurant at the new Maritime Heritage Hub, a new coastal restaurant at the pierhead and a food court at the Harbour Master’s Office supporting seasonal pop-up provision. We are looking to create three areas of activity – the hubs, within the Maritime Mile to maximise the opportunity and experience for varied demographics: o Coastal Hub with a major new play facility at the Beach Park and improved outdoor park facilities with longer-term plans for the landmark Pilot House and a café/restaurant facility at the redeveloped Beach Pavilion, 104
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32 Great Harbour | Coastal Hub | FBC o Marine/Arts/Events Hub which will feature a new waterfront plaza helping to support events, improved access to marine facilities, and the redevelopment of the Harbour Master’s Office, o Maritime Heritage Hub which aims to create expanded facilities for the Scottish Maritime Museum complete with a dry dock and fronting event space. With a unique coastal setting at the estuary of the Rivers Garnock and Irvine, the Maritime Mile will provide a mile of attractions imbedded into the rich maritime history, culture, and heritage of Irvine Harbour. It will be easily accessible, sustainable and safe. Irvine already has great rail links with Glasgow and Ayr. We’re working on improving public transport connectivity and want to limit vehicle traffic and parking along the harbourside to ensure a safe and enjoyable experience for visitors and residents and to encourage walking, wheeling and cycling. Visitor parking will be accessible off Beach Drive and Harbour Road. A 20mph zone and a raised riverside plaza mid-way is also proposed along other traffic calming measures. We are also preparing an app showcasing all the points of interest and details of all the amenities along the way to help visitors in planning their visit and navigating the area. At the end of the Maritime Mile, we have our incredible five-mile-long beach with its amazing views towards the west and stunning sunsets. We want to take advantage of this incredible natural setting and create something really special. Tourism potential North Ayrshire Council’s Making Waves Tourism Action Plan for 2018-20229 recognises the tourism potential across our area and sets out a plan of capitalising on our main assets, such as our coastline, natural and built heritage and events. The Moffat Centre - the UK's largest university-based consultancy and research centre for tourism and travel market research - analysed the potential of the Great Harbour project. They highlighted the strong foundation of the quality built environment, existing visitor attractions, existing attractive natural heritage along with established and busy private sector hospitality provision. They found that the coast and the waterfront are a natural draw and the potential to build on this is significant given the Ayrshire Growth Deal investment, as well as the already established COIG touring routes. The Maritime Mile seeks to become a destination of regional importance and sustainable appeal with varied elements creating a place-based offer that can establish a national profile and support regeneration, both for the Harbourside, Irvine and wider Ayrshire. Scoring high on the qualities of a successful places, investment to improve accessibility infrastructure and the development of associated facilities and commercial investment opportunities will establish the Maritime Mile as an attractive, prime public space capable of supporting significant additional visitors and residents. The Maritime Mile is a key part of re-defining tourism, leisure and activity on the Outer Clyde and is a key ‘Gateway Hub’ for the COIG as a major regional driver and anchor point for southwest Scotland. The Great Harbour will help secure a strong regeneration-led profile through the promotion of Irvine as a strategic visitor destination that will support growth, attract business, commerce, investment and enterprise in key sectors. The Great Harbour is key to the wider strategy for regeneration of Irvine. 9 Making Waves in North Ayrshire Tourism Action Plan 2018 - 2022 - DocsLib 105
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33 Great Harbour | Coastal Hub | FBC Sustainable Destination The Great Harbour project provides a holistic approach to making Maritime Mile a sustainable tourism destination. By considering economic, environmental, and social factors, the development can strike a balance that benefits both visitors and the local community while preserving the area's cultural and natural assets. Maritime Mile has the potential to become a leading low carbon and sustainable tourism destination through the implementation of the Great Harbour proposals and investments from the Ayrshire Growth Deal and project partners such as Sustrans, Historic Environment Scotland (HES), National Lottery Heritage Fund (NLHF), Land Trust Fund (LTF). Here are several arguments supporting this notion: o Economic Growth and Job Creation. The Great Harbour project and investments from the Ayrshire Growth Deal can stimulate economic growth in the Maritime Mile area. New infrastructure and developments will create job opportunities, fostering a sustainable local economy. o Green Infrastructure and Public Spaces. The proposals include the provision of green infrastructure and public spaces along Maritime Mile. This includes the development of parks, pedestrian zones, and cycling paths. Sustrans, with its focus on sustainable transportation, can contribute to the creation of sustainable transportation options, promoting walking and cycling. This will create an opportunity for private investment into the provision of the sustainable transport modes in the area. o Revitalisation of Historic Sites. By investing in Maritime Mile, historic sites and landmarks will be revitalised. This not only preserves cultural heritage but also attracts tourists interested in maritime history, contributing to sustainable tourism. o Environmental Sustainability. Sustrans, recognised nationally for their role in promoting sustainable transportation, can contribute to the development of sustainable travel infrastructure along Maritime Mile. This could include shared use or segregated paths, and eBike charging stations, reducing the environmental impact of tourism. Investment from heritage sector funders can restore heritage and cultural assets and bring them back into positive use. o Community Engagement. Involving local communities in the planning and development process ensures that the benefits of tourism are shared among residents. Sustainable tourism emphasises community engagement, helping to create a sense of ownership and pride among the local population. o Green Initiatives and Conservation. Investment will support green initiatives and conservation projects along Maritime Mile. This may include the restoration and enhancement of green spaces, biodiversity projects, waterfront conservation efforts, and the promotion of sustainable practices to minimise the environmental impact. It also creates significant opportunities for the community engagement and community-led initiatives and educational activities. This also creates promotion opportunities showcasing eco-friendly accommodations, local businesses committed to sustainability, and highlighting the natural beauty of the area. o Cultural and Recreational Activities. The development of Maritime Mile can incorporate cultural and recreational activities that attract tourists while respecting the local environment. This could include maritime festivals, art installations, and outdoor recreational spaces, providing sustainable entertainment options. The proposed events space will be equipped with utilities and infrastructure significantly reducing carbon emissions typical for the remote and off-grid event spaces. 106
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34 Great Harbour | Coastal Hub | FBC o Education and Interpretation. Establishing education and interpretation facilities along Maritime Mile will enhance the tourist experience by providing insights into the region's maritime history, ecological significance, and sustainability efforts. Such facilities can also promote responsible tourism practices. o Integration of Sustainable Technologies. The proposals incorporate sustainable technologies in the development of Maritime Mile and the construction of the new assets emphasising energy efficiency and environmentally friendly construction materials and methods. The contractors will be encouraged and incentivised to adopt sustainable building standards, contributing to a low carbon footprint. This may include energy-efficient lighting, waste reduction programs, and digital infrastructure that minimises resource consumption. o Transportation Connectivity. Sustrans’ focus on sustainable transportation aligns with creating better connectivity to and within Maritime Mile. Improved transportation options, including walking and cycling infrastructure, can reduce reliance on cars and contribute to a more sustainable tourism model. Provision of stopovers along the Maritime Mile in form of lookooteries or viewing points, will not only provide viewpoints towards local nature or historic sites, but will also act as a rest point supporting less able users. o Waste Reduction and Recycling Initiatives. The project is exploring the potential for improved waste management and opportunity for waste reduction and recycling programs along Maritime Mile. The partnership investment into digital infrastructure with relating digital infrastructure will help to implement effective waste management and monitoring systems. The engagement and activity plan proposes several educational projects promoting recycling practices, and encouraging businesses to adopt eco-friendly packaging. Such initiatives align with the goals of creating a sustainable and environmentally conscious destination. o Community Wealth Building. The project adheres to the principles of the CWB to ensure local wealth is used to benefit the community and create more equitable, inclusive, and sustainable economies and bringing land and assets into positive use. When applied to the development of the Maritime Mile through the Great Harbour project, community empowerment and CWB can play a crucial role in fostering sustainable growth, enhancing local participation, and ensuring long-term benefits for the community. Tourism product Maritime Mile is a tourism destination stretching for a mile along Irvine’s Harbourside with a rich offer focusing on maritime, built and natural heritage, culture and arts, marine leisure and play. A series of riverside and coastal attractions is accompanied by a great range of food and drink provision on the way and completed by a nearly five-mile-long beach, amazing views towards the west and stunning sunsets. The calendar of associating events further enhances the unique experience on the West Coast of Scotland. Inspired by the Year of Coasts and Waters 2021 and the Year of Stories 2022, the Maritime Mile aspires to tell a story of Irvine’s Harbourside through heritage, art, culture and local cuisine. Irvine has great rail links with Glasgow and Ayr. The Maritime Mile begins at Irvine Rail Station, where local bus stops are also located. We are working on improving public transport connectivity with a 107
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35 Great Harbour | Coastal Hub | FBC potential for a mobility hub at the station linking with our behaviour change programme. We are limiting vehicle traffic and parking along the Harbourside to ensure a safe and enjoyable experience for visitors and residents and to encourage walking, wheeling and cycling. Visitor parking will be accessible off Beach Drive and Harbour Road. A 20mph zone and a raised riverside plaza mid-way is also proposed. We’re also preparing an app showcasing all the points of interest and providing details of all the amenities along the way to help visitors plan their visit and navigate the area. Short and long-stay provision is located along the harbourside. There is already a fantastic range of food and drink provision along the Harbourside. This offer will be extended by the river-view restaurant at the new Maritime Heritage Hub, a potential coastal restaurant at the pierhead and a potential for a food court supporting seasonal pop-up provision at the Marine & Arts Hub. Public toilets will be provided at all the hubs’ locations. A drinking water point is located at the Central Hub. Bike parking can be found along the way. Heritage Tourism Irvine Harbourside’s history and cultural and industrial heritage within the landscape of a local natural heritage, are the major contributors to place identity for the Maritime Mile. Local heritage and the connection to the rich history of the working harbour were determined to be some of the Harbourside’s key assets, and basis for development of the tourism destination. While tourism will be a key platform for enabling the area’s regeneration through provision of jobs and wider economic growth, it also plays a part in encouraging support of Scottish culture and arts (Gov.Scot, 2018). Trends show that tourism has been shaped by ‘Transformational Tourism’, which sees tourists desiring more meaningful engagement with the culture and heritage of the destination (VisitScotland, 2020). The Great Harbour project focuses its investment on the Maritime Mile, building a unique tourism offer on the particular Harbourside heritage and history by repairing and preserving existing assets, providing bespoke facilities and solutions for further engagement with heritage, history and arts and improving the interpretation along the Harbourside to facilitate the discovery of heritage and history along the ‘Maritime Mile’. The need to preserve local heritage and promote the history of the area was expressed by the public during consultations in 2022 and 2023: ‘The Harbour Master's Office refurbish to include museum of Irvine Carters and incorporated trades. Educating people of Irvine's proud past. Open days to recreate carters + trades, horse + carts, coopers, tailers, weavers, etc Encourage tourism along Maritime Mile. One pass for SMM, Harbour Masters Museum + Pilot House.’ ‘I think any development must reflect, protect and preserve the natural beauty and green spaces the beach park provides. I think it has to take into account the already abundant wildlife, sealife and birdlife there and ensure they are protected.’ 108
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36 Great Harbour | Coastal Hub | FBC Maritime Heritage A unique offer of the Maritime Heritage is the vast array of assets, artwork and events celebrating the history of the harbour and the dockyards, with several listed buildings along the Maritime Mile. Some of these have links to historical harbour operations, like the Harbour Master’s Office or the Pilot House, others are of architectural value. The Scottish Maritime Museum, with a main space within the Linthouse and a proposed new Maritime Heritage Hub with a gallery at the riverside, provides access to an extensive collection of artefacts and artwork supported by a calendar of events. Local community groups, namely the Irvine Burns Club, Irvine Lasses Burns Club and the Irvine Carters Society, actively promote local history and heritage through the heritage walks and community events like the annual Marymass celebrations. We would like to support them in training new members, organising more events, improving websites and online content and promoting their work. The Harbour Arts Centre and the local artists located at the WASPS Courtyard Studios add to the artistic and cultural quality inspired by local history and heritage. We want to harness this potential and expand the interactive and hands-on engagement by introducing workshops for school children from all over the region, local community groups and visitors. A heritage trail with 10 Blue Plaques was created by our Cultural and Heritage Services in partnership with local community groups with vested interest. A potential to extend the trail was highlighted and the opportunity to create a dedicated trail for children was also identified. We would like this to be included into the interpretation works for the public realm improvements, to ensure a holistic approach and adequate share of physical and digital information available for visitors exploring the area. ‘History - Irvine Harbour was third most important Scottish port in Scotland when Scottish trade opened to American enterprise. Carters of Irvine transported goods from Irvine to Glasgow to surrounding areas. From mid 1600's to mid 1900's Irvine Harbour was a hive of activity from dawn to dusk.‘ ‘Irvine’s beach/harbour is the towns greatest asset and it’s great to see these being highlighted. Perhaps the Pilot House could lean into Irvine tourism - could it have a gift shop with postcards of Irvine or artwork of Irvine. As a resident, I’d love to see inside the Pilot House and the views it offers.’ 109
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37 Great Harbour | Coastal Hub | FBC A Heritage, History and Culture Group has been created to support the development of the Maritime Mile destination and ensure the local expert knowledge and experience is translated into the design at the early stages. The group gathers representatives from the local community groups with history and heritage interest, local artists, Scottish Maritime Museum and our Cultural and Heritage Services. Figure 5 Great Harbour – Maritime Heritage 110
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38 Great Harbour | Coastal Hub | FBC Natural Heritage With a unique coastal setting at the estuary of the Rivers Garnock and Irvine, the area is surrounded by open green spaces, which, beside the river, attract wildlife throughout the year. It’s a popular area for walkers, cyclists, nature watchers, photographers and artists. The site of special scientific interest at Bogside Flats including a Nature Reserve is just across the river and meets the open green space of the Ardeer Peninsula to the west. Maritime Mile proposals will investigate providing rest/viewing points, possibly sheltered, along the harbour to provide the best views possible. The Beach Park is a popular open green space with a good network of paths for walking, cycling and wheeling throughout, a great 360º viewing point at the Billy Bing hill, and another one further south at the Dragon. We would like to provide a sheltered facility at the Billy Bing point for the enjoyment of views and wildlife watching. The existing Boating Pond and outdoor gym will get a facelift and the new regional play facility will be delivered with accompanying skate park, alongside the improvements to the large events space. Another site of special scientific interest is located further south at Western Gailes. Figure 6 The Dragon, Irvine Beach Park A nearly 5 mile-long beach with natural dunes is a popular hot spot in summer and a desirable dog walking area throughout the year. The Scottish Government recognises the importance of the wellbeing economy in place-based economic strategy and policy development. The importance of access to nature and its benefits for our wellbeing was widely appreciated during the recent pandemic. We would like to improve the safety and accessibility of our walking, cycling and wheeling infrastructure along the Harbourside and at the Beach Park and improve the enjoyment and accessibility of our green spaces by the provision of sheltered viewpoints. 111
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39 Great Harbour | Coastal Hub | FBC Figure 7 Great Harbour - Natural Heritage Marine Leisure and Play With a coast, beach and the waterfront naturally drawing visitors to the area, there is a huge opportunity to provide more water-based leisure activity, which is particularly sought after by younger visitors. To encourage private operators and providers, the project seeks to improve access to the water, repair the wharf and slipway and work with the local water sports clubs on promoting more activity. The best opportunity for water activity is the area located near the public slipway and we propose to create a plaza with raised surface and priority of use for pedestrians, cyclists and wheelchairs near this location. We would like to include the wharf, currently not safe to be used, into the public realm with provision for berthing at this deepest river area. We would like to make more use of the step-down wharf in front of the Harbour Master’s Office to improve the connection to water further. Proposals to increase pontoon provision for tourists/visitors are also considered as the future phases of the programme and subject to more stable economic and industry conditions. Beach Play Park A new regional scale play park is proposed at the Beach Park as a free facility providing a family experience unique to the West of Scotland and of a national appeal. Reflecting the local context, coastal location and local harbour historic connections, the facility aspires to facilitate as much all-weather natural play as it can be balanced with the maintenance requirements. It will provide accessible play for all ages and abilities and will also include a skatepark and pump track, subject to additional funding. The facility is likely to draw a substantial number of visitors of family and young people demographics. We would like to incorporate more learning opportunities relating to STEM, local history and sustainability to extend family learning and create even more unique and desirable experiences for users. 112
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40 Great Harbour | Coastal Hub | FBC The Boating Pond situated within Beach Park historically provided an additional avenue for water-related recreation due to its sheltered positioning. It was previously a favoured destination for motorboat clubs and hosted various associated events. In response to community feedback, our maintenance team and a specialist consultant were enlisted for assessment. The conducted survey affirmed the pond's status as a robust ecosystem, necessitating no human intervention. However, it highlighted the occurrence of seasonal algae blooms, posing potential health risks to the public. To uphold its current ecological balance, it was recommended that any future activities prioritise wildlife conservation and avoid disturbances. Additionally, it was advised to update information materials to alert visitors to the hazards posed by algae and to discourage the feeding of birds with bread, which introduces too much nutrient into the waterbed supporting algae growth further. Figure 8 Great Harbour – Marine Laisure and Play 113
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41 Great Harbour | Coastal Hub | FBC Events Irvine has a rich history of hosting live events with Oasis famously performing at Irvine Beach in 1995 for two sold-out gigs. More recently, our first Making Waves event – featuring music from the likes of Del Amitri, Twin Atlantic and a special performance from the Red Arrows – put the area back on the map and showed its huge potential. The area has an extensive calendar of events celebrating local history and culture and the Maritime Mile will help promote the area, connect communities and encourage more activity in the area. Recognising the events as an important and successful tourism drive into the area, we’re developing the Maritime Mile Events Programme (Appendix D) adding Council-run shows and encouraging those driven by the community. Our local businesses, community groups and partners recognised the benefits the Making Waves brought to the area and are supportive of its continuation. The successful Making Waves festival in 2022 has boosted visitors’ perception of Irvine and encouraged them to return visits10. The programme also allocates £25k from the Community Fund identified within the Great Harbour budget to community events relating to the promotion of the Great Harbour project or engagement with the project’s activities. This will allow evaluation of the use of the project area, assessing any barriers before the investment and to test the facilities once delivered, but will also allow help to identify the potential for further improvements. 10 Making Waves Festival – Economic Impact Assessment – October 2022 – Appendix E Events are an important motivator of tourism, and figure prominently in the development and marketing plans of most destinations. The roles and impacts of planned events within tourism have been well documented and are of increasing importance for destination competitiveness. (…) But not all events need to be tourism oriented, (…) As well, events have other important roles to play, from community-building to urban renewal, cultural development to fostering national identities — tourism is not the only partner or proponent. Event tourism: Definition, evolution, and research Donald Getz | Haskayne School of Business | University of Calgary |2007 114
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42 Great Harbour | Coastal Hub | FBC Figure 9 Coastal Hub arrangements with events space at the Beach Park The Scottish Maritime Museum provides its own events throughout the year to promote their activities but also to support the local community and respond to visitors’ expectations. Similarly, the Harbour Arts Centre runs art and culture-related activities, including workshops, theatre and live music performances, while the WASPS artists provide tailored art classes at the Courtyard Studios. In addition, local community groups run ad-hoc and regular events, like the Marymass Festival, and this is an established tradition on the Harbourside. To support the programme of events in the long-term, the project will make a provision for improvements to several public spaces to cater for events of varied type and scale. We aim to provide necessary infrastructure and surfacing at those areas, including access to public amenities. Figure 10 Great Harbour - Events Areas 115
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43 Great Harbour | Coastal Hub | FBC 1.2 Strategic case. 1.2.1 The strategic context The Great Harbour project in Irvine, Scotland, presents a strategic case for tourism-led regeneration, place-making, and destination development. With investment from the Ayrshire Growth Deal, this initiative has the potential to revitalise the region economically and culturally. By leveraging Irvine's maritime history and natural beauty, the project can attract tourists, stimulate local businesses, and create a vibrant community hub. Additionally, it aligns with broader regional development goals, fostering sustainable growth and positioning Irvine as a key destination in Ayrshire. By leveraging the investment from the Ayrshire Growth Deal, this initiative aims to revitalise the region, fostering economic growth and community development. o Economic Stimulus. The project can act as a catalyst for economic development by creating jobs in tourism, hospitality, and associated industries, thereby boosting the local economy and providing sustainable employment opportunities. o Tourism Attraction. Irvine's Harbourside has the potential to become a key tourism attraction, drawing visitors to the region. Its historical significance, combined with well-planned infrastructure, can enhance the overall appeal and contribute to increased tourist footfall. o Place-Making and Community Engagement. The development focuses on place-making, creating a vibrant and welcoming community space. This approach encourages community engagement, fosters a sense of identity, and contributes to residents' well-being. o Infrastructure Development. The Ayrshire Growth Deal investment allows for essential infrastructure improvements, such as transportation, digital connectivity, accommodation, and recreational and play facilities. These upgrades not only support the Great Harbour project but also enhance the overall accessibility and connectivity of the region. o Cultural and Heritage Preservation. The project aims to play a role in preserving and showcasing the cultural and historical heritage of Irvine. By integrating cultural elements into the development, it becomes a living testament to the area's rich history. o Public-Private Partnerships. Collaborations with third party and private sector entities can further enhance the project's success. It will bring in additional expertise, funding, and management capabilities, ensuring the sustained growth and success of the Great Harbour initiative. o Sustainability Focus. Incorporating sustainable practices in the development aligns with global trends and local expectations. This includes sustainable infrastructure, green spaces, and initiatives that promote environmental stewardship. o Marketing and Branding. A well-executed marketing strategy will position Irvine's Harbourside as a desirable destination. Effective branding efforts can attract a diverse range of tourists, contributing to the overall success of the project. o Collaborative Regional Development. The Great Harbour project can serve as a cornerstone for broader regional development. Coordination with neighbouring areas ensures a holistic approach to growth, benefiting the entire Ayrshire region. o Long-Term Viability. Careful planning for sustainability, adaptability, and resilience ensures the project's long-term viability. This includes strategies for ongoing maintenance, community involvement, and continuous improvement. In summary, the Great Harbour project, supported by the Ayrshire Growth Deal, presents a strategic opportunity to transform Irvine into a thriving tourist destination, fostering economic prosperity, community well-being, and a sustainable future for the region. The first phase of the Great Harbour project, referred to as a Coastal Hub, focuses on the creation of a new tourist attraction at the area of the Beach Park, Pierhead/Harbour Point and the coastal beach. It involves integrating a strategic approach that combines recreational amenities with enhanced 116
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44 Great Harbour | Coastal Hub | FBC accessibility. The addition of a play hub, including an accessible play park, skatepark, and pump track (subject to additional external funding), aims to diversify the park's offerings and cater to a broader audience. The accessible play park ensures inclusivity, providing a space where people of all abilities can engage in recreational activities. The skatepark and pump track target the youth demographic, fostering a vibrant and active community. A competition is being run amongst school-aged children to name the play park. In addition, North Ayrshire’s Tourism Forum is currently developing a Discover North Ayrshire tourism brochure for distribution physically and digitally, which aims to drive visitors to Ayrshire and highlight attractions and activities. This will also be reflected in the new content on North Ayrshire Council’s Discover North Ayrshire web pages. Alongside this, a new events calendar is being developed with details on events and festivals in the area, including those taking place at Irvine Beach Park and Harbourside. Moreover, supporting these features with improved active travel infrastructure serves a dual purpose. Firstly, it promotes sustainable transportation, aligning with environmental goals. Secondly, it enhances connectivity between the harbourside and the Beach Park, encouraging visitors to explore the entire area seamlessly. This comprehensive strategy designed at the level of the Great Harbour Masterplan not only elevates the recreational experience but also contributes to community engagement, health, and environmental sustainability, positioning the Beach Park as a multifaceted destination in Irvine and the Ayrshire Coast. The Great Harbour project contributes to Irvine's broader strategy of creating vibrant and healthy communities. The regeneration addresses the need for accessible and attractive recreational spaces, aligning with the town's vision for fostering a high quality of life for residents. The project incorporates environmentally sustainable practices, minimising ecological impact. Green design elements, energy-efficient features, and landscape preservation measures demonstrate a commitment to environmental responsibility. 1.2.2 The case for change Regenerating the harbourside area in Irvine is crucial, particularly given its status as the highest SIMD (Scottish Index of Multiple Deprivation) area. By investing in improvements through the Ayrshire Growth Deal, we not only enhance the physical landscape but also address social and economic disparities. The revitalised harbourside can serve as a beacon for tourism, attracting visitors and injecting much-needed revenue into the local economy, thus fostering a sustainable tourism destination and driving the growth of a tourism-related economy. This not only uplifts the community but also aligns with broader regional development goals. o Addressing Socio-Economic Disparities | The harbourside area in Irvine stands as the highest SIMD area, indicating significant socio-economic challenges. By investing in its regeneration through the Ayrshire Growth Deal, we have the opportunity to directly tackle these disparities. Improvements to infrastructure, amenities, and the overall environment can uplift the local community by providing better access to resources and enhancing quality of life. o Enhancing Tourism Potential | Revitalising the harbourside area can unlock its untapped potential as a tourist destination. With strategic investments in beautification, cultural attractions, and recreational facilities, we can transform it into a vibrant hub that attracts visitors from near and far. The allure of a revitalised harbourside will not only draw tourists interested in experiencing its unique charm but also encourage them to explore other offerings in the region, thereby extending the economic benefits beyond the immediate area. 117
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45 Great Harbour | Coastal Hub | FBC o Boosting Local Economy | A flourishing harbourside area can serve as an economic engine for Irvine and the wider region. Increased tourist footfall translates to higher demand for hospitality services, retail outlets, and leisure activities. Local businesses stand to benefit from this surge in consumer spending, creating job opportunities and generating revenue streams that contribute to the economic prosperity of the community. o Creating a Sustainable Tourism Destination | Sustainable tourism is increasingly becoming a priority for travellers and destinations alike. By investing in the regeneration of the harbourside area with sustainability principles in mind, we can ensure its long-term viability as a tourism destination. Initiatives such as green infrastructure, renewable energy integration, and eco-friendly practices not only appeal to environmentally conscious visitors but also safeguard the natural and cultural heritage of the area for future generations. o Utilising Key Assets | The regeneration of Irvine's harbourside area presents an opportunity to leverage its best assets effectively. This includes the integration of blue and green spaces, such as waterfront promenades, parks, and greenways, which not only enhance the aesthetic appeal but also provide recreational opportunities for residents and visitors alike. Additionally, tapping into the area's rich natural and built heritage, such as historic landmarks, maritime heritage, and architectural gems, adds depth to the visitor experience and contributes to the sense of place. o Improving Public Transport Links | A critical component of successful urban regeneration is ensuring good connectivity through public transport links. By enhancing accessibility to the harbourside area via reliable and efficient public transportation, we can encourage sustainable modes of travel while reducing congestion and carbon emissions. Improved connectivity not only benefits local residents by facilitating easier access to employment and amenities but also makes the area more attractive to tourists who may opt for public transport options during their visit, thereby reducing the reliance on private vehicles and mitigating environmental impact. Integrating these assets and enhancing connectivity strengthens the overall appeal and accessibility of the regenerated harbourside, contributing to its success as a vibrant and sustainable destination. Investing in the regeneration of the Great Harbour project, with its first phase at the Coastal Hub through the Ayrshire Growth Deal represents a strategic opportunity to not only transform a deprived community but also to catalyse sustainable economic development and tourism growth. By leveraging the unique assets of the area and aligning with broader regional goals, we can create a thriving destination that benefits residents, businesses, and visitors alike. 1.3 Economic case This section provides an overview of the economic appraisal of Phase 1 of the Great Harbour project – The Coast Hub. 1.3.1 Great Harbour OBC long list and short list The Economic Case at 3.3 outlines the previous work undertaken at OBC stage to identify the preferred way forward for the overall Great Harbour project at long list and short list stage. The scope and consideration of options were developed with a strong spatial and regeneration focus, based on Irvine Harbourside, community and neighbourhood growth and inclusive, Community Wealth Building and partnership working. Information has been taken from the OBC and combined within a list to help explain the rationale and methodology for the preferred way forward. In summary, the preferred way forward at long list stage was to deliver coastal tourism priorities at Irvine Harbourside. In terms of the short-listed options for Great Harbour, this was based on a quantitative scoring exercise led by project board 118
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46 Great Harbour | Coastal Hub | FBC members and the project team. Each short-listed option was assessed and scored against the following evaluation criteria: • Economic performance • Assessment of expected impacts and benefits • Assessment of project risk The summary result is tabulated below which recommends Option 3 – promoting a regeneration partnership for Irvine Harbourside: Table 5 Summary short list Evaluation Results Options 1 Options 2 Options 3 Options 4 (scored 1-5 with 5 best) Do Nothing Core Site Physical Enhancement Promoting a Regeneration Extended Regeneration Harbourside Partnership for Partnership: Harbourside Harbourside-Ardeer Economic appraisals 2 1 4 4 Impacts/ Benefits 2 2 4 4 Risk appraisal 4 2 2 1 Overall Score 8 5 10 9 Option Ranking 3 4 1 2 Option Selection Retained for comparison Rejected Recommended Rejected 1.3.2 The procurement General approach The procurement strategy will follow the Council’s Standing Orders in respect of procurement and/or those of the AGD Regional Model. NAC has commissioned design and technical work associated with design development and appointed specialists under Professional Services Frameworks, either in-house or external dedicated for public sector, to secure the necessary professional support. The commissioned services include: o Site investigation, technical engineering; consultation & stakeholder engagement o Environmental planning & planning/consenting services; engagement o Place focussed external civic, public realm design and landscape architectural services o Marine development / Marine Engineering / Structural Engineering o Project Coordination / Engagement & Project Management services o Procurement strategies designed to ensure local benefit through a Community Wealth Building approach. Specifics to Coastal Hub procurement The procurement strategy was prepared following the options appraisal and considering lessons learnt compiled on other work of similar scale and complexity carried out by the Council. Early engagement with potential bidders was carried with Prior Information Notice (PIN) issued in January 2024 to gauge the market interest and promote the upcoming opportunity. This attracted 24 views and 6 expressions of interest submitted confirming intention to bid, team capacity to fulfil the scope and capability of delivering the works within proposed timescales. The procurement was carried out in three stages on Public Contracts Scotland-Tender as listed below: 1. first stage involving a Procurement Information Notice to gauge an initial interest and sector capacity to deliver work, 119
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47 Great Harbour | Coastal Hub | FBC 2. second stage verified contractors’ capacity and capability to deliver service within the timescale, 3. third stage involved inviting shortlisted bidders to submit full financial and quality bids. The second stage was carried out in March/April 2024 and was a selection process, where the bidders’ capability, capacity and experience to perform the contract was assessed via the SPD (Scotland). i.e. the SPD (Scotland) is used to shortlist bidders. This meant the number of bidders could be reduced at the selection stage. Eight bidders submitted bids answering 4 quality questions. Five bidders were shortlisted and invited to the next stage. The third stage was carried out in July 2024 with Invitation to Tender issued to the bidders shortlisted at stage 2 and the bids were assessed to determine the most economically advantageous tender, the basis of contract award. The full bid comprised of a technical bid with the proposed financial submission against the Bills of Quantities, and the quality submission, with additional Client Appraisal Questionnaire (pass/fail). An NEC4 Construction and Engineering Contract with Option B will be used to promote collaboration, early warnings and arbitration. The designer developing the proposals is taking on the role of Contract Administrator and Principal Designer in relation to the civil contract to ensure continuity. The planning permission for the proposals was granted in January 202411. 1.3.3 Key findings This section provides a summary of the appraisal relating to the Coastal Hub, as the preferred option for the first phase of the Great Harbour project and the focus of this FBC. Detailed analysis of the main costs, benefits and risks associated with project’s preferred way forward and the business-as-usual factual option were carried out at the main geographical levels, including Ayrshire, Scotland and the UK and are outlined in section 3. Key results of economic appraisals at Ayrshire level are outlined in Table 6 below. Table 6 Economic Appraisal – Ayrshire level Business-as-usual Case 25-year Undiscounted (£m) 25-year Net Present Value (£m) Capital £0.0 £0.0 Cost of Risk Retained £0.0 £0.0 Optimism Bias £0.0 £0.0 Operational £0.3 £0.2 Carbon (Embodied and Operational) £0.0 £0.0 Project Costs £0.3 £0.2 Cash releasing benefits £0.1 £0.1 Carbon influence £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £0.1 £0.1 Social benefits £29.3 £20.0 11 24/00077/PP planning application 120
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48 Great Harbour | Coastal Hub | FBC Economic benefits £5.3 £3.1 Land value benefits £1.4 £1.0 Non-cash releasing benefits £36.0 £24.1 Coastal Hub Option 25-year Undiscounted (£m) 25-year Net Present Value (£m) Capital £4.6 £4.5 Cost of Risk Retained £0.3 £0.2 Optimism Bias £0.5 £0.4 Operational £0.4 £0.2 Carbon (Embodied and Operational) £0.4 £0.3 Project Costs £6.0 £5.8 Cash releasing benefits £0.2 £0.2 Carbon influence £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £5.8 £5.6 Social benefits £54.9 £36.3 Economic benefits £32.1 £19.3 Land value benefits £1.6 £1.2 Non-cash releasing benefits £88.6 £56.9 Net Benefit (Non-cash releasing benefits minus Net cost) £82.9 £51.3 Option appraisal conclusions Business-as-usual Case: at all geographic levels of analysis the business-as-usual case delivers positive net present value benefits primarily driven by the no capital input required and a low, but steady level of social benefits associated with use of the coastal hub area as current. We not that the BCR for the BAU case is very high – ranging from 79.8 to 136.0. However, to put this into context, the high BCRs are driven by the lack of any capital expenditure within this option. Further to this, the BAU fails to address any of the business and project objectives to any significant extent. Coastal Hub Option: at all geographic levels of analysis the Coastal Hub option delivers positive net present value benefits, driven by significant social benefits and economic benefits. When considering the BCR the project is expected to deliver a strong positive return at all geographies. When considering the NABCR, the project is expected to deliver positive socioeconomic return at all geographic levels. At three Ayrshire level the NABCR is 5.8, meaning that for every additional £1 of public expenditure, the project will generate £5.80 in additional net socioeconomic benefit. 1.3.4 Overall findings: the preferred option Based on the analyses and appraisal presented within this Economic Case it was confirmed that the Coastal Hub Option is the preferred option. 1.4 Commercial case The improved Beach Park, featuring a state-of-the-art regional play facility, positions Irvine as a family- friendly destination, appealing to a wider demographic also with the added provision of the skatepark, 121
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49 Great Harbour | Coastal Hub | FBC pump track (subject to additional external funding) and outdoor gym. As the first phase of the wider Great Harbour project and development of the new sustainable destination, the Maritime Mile, this enhancement is expected to elevate the Irvine's image and attract events, contributing to increased tourism and commercial opportunities. Further opportunities for private investment have been identified within the Great Harbour Masterplan and sites ‘de-risked’ to attract investment. Several informal discussions are on-going with private developers seeking commercial opportunities within the area. Figure 11 Coastal Hub general arrangements Figure 12 Coastal Hub view from the Harbourside showing a new setting for the Pilot House 122
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50 Great Harbour | Coastal Hub | FBC 1.4.1 Agreed products and services The Coastal Hub project aims to transform the current landscape, transitioning it from one defined by road infrastructure and car parks to a pedestrian-oriented environment that seamlessly integrates with the surrounding natural and historic assets. By establishing direct connections between the destination play area and the broader beach park amenity space, including walking routes, a boating pond, as well as providing a direct link to the beach, and barrier-free access to the historic Pilot House building, Harbour Point, and onward to the Town Centre, the project seeks to enhance accessibility and promote active transportation. Key features of the Coastal Hub include the creation of new footpaths and cycling paths, redesigning the road leading to Harbour Point to prioritise pedestrian safety and comfort, and implementing generous pedestrian crossings. These improvements aim to encourage pedestrian traffic, accommodate increased footfall, and promote cycling as a sustainable mode of transportation. At the heart of the project is the development of a high-quality play area designed to cater to a diverse range of ages and interests. From traditional play equipment to natural play elements, interactive environments, interpretive displays, skate areas, and a pump track, the play area will offer a multifaceted and engaging experience for visitors, establishing itself as a prominent destination within the community. Situated within a flat landscape with natural enclosure to the south and overlooked by the Billy Bing hill to the north, the Coastal Hub site encompasses various assets, including the southern end of the harbour side walkway, the large Beach Park car park, the Pilot House, and an amenity grass area. Currently, the site is divided by the Beach Drive carriageway and a roundabout, posing barriers to pedestrian connectivity between the car park, waterfront, and beach. Through thoughtful design and strategic interventions, the Coastal Hub project seeks to overcome these barriers, fostering greater cohesion and accessibility throughout the area. The play equipment for the play park, the skatepark and the pump track are specialist packages of work which will be subcontracted by the main contractor for the manufacture and installation of the equipment and features, with fixed lump sum allocations within the contract, as these types of facilities are designed and constructed to set budgets. The Play Park is the focal point of the works and is the first milestone to be delivered by the identified deadline. 123
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51 Great Harbour | Coastal Hub | FBC Figure 13 Play Park visualisation Additional work A number of additional works has been planned or delivered by the Council within the area independently to support and enhance AGD proposals, based on the feedback received during public and stakeholder consultations. These include: o digital infrastructure – a series of multiuse columns within the Great Harbour project area utilising 5GIR partner funding, with 4 columns located to serve the Coastal Hub and provide the mixture of uses, such as lighting, CCTV monitoring, weather monitoring, public information, public wi-fi supporting events and additional small cell 5G and Augmented Reality (AR) experience proposed at the later phases; o outdoor gym – already delivered, located near the Boating Pond near the proposed play activity within the Coastal Hub to enhance the physical activity opportunity for older demographics within the ‘wellness hub’ of the Beach Park; and o Boating Pond picnic area improvements – utilising partner funding to provide better facilities for the enjoyment of the outdoors encouraging longer stays. 1.4.2 Agreed risk allocation and charging mechanism The general principle is to ensure that risks should be passed to the “party best able to manage them”, subject to value for money (VFM). The potential allocations of risks are tabulated within the main report. All design services include collateral warranties and are covered by professional indemnity insurances. The model contract selected for the Coastal Hub civils is NEC4 Engineering and Construction Contract (Option B – with Bill of Quantities). At its core it encourages collaboration and follows the principles of partnership and also provides comprehensive risk management mechanisms, including early warnings, multilevel risk registers with monitoring process. Option B of the contract indicates the charging mechanism based on bill of quantities. A professional advisor has been appointed to manage the construction works and contract on behalf of the Council and provide a Principal Designer service within the meaning of the CDM 2015 regulations. In addition, the project management will be overseen by the Council’s Property Management and 124
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52 Great Harbour | Coastal Hub | FBC Investment (PMI) team, which will also provide the services of the Clerk of Work and QS for cost control and interim works evaluation and certification for the purpose of invoicing. 1.4.3 Key contractual arrangements The Contractor will act as Principal Contractor as defined by the Construction (Design and Management) Regulations 2015. Works will include but not limited to the following: o Undertake dilapidation survey of all existing roads, paths, fences, gates and walls within the site and at junctions with adjoining highways. o Obtain current utilities records. o Service alterations and their co-ordination with public utilities and site users. o Mobilise and set up safe routes to be shared with park users to enclosed live working areas. o Set up welfare facilities, site offices, staff parking and material storage areas. o Site clearance of fences, planting and signage. o Install new drainage systems including managing existing surface water within the site boundaries o Diversion of existing sewer o Creation of new carriageway and footway areas o Lining of existing car parks o Hard landscaping including new and upgraded paths, walls, steps, paving, etc. o Soft landscaping (shrubs / grasses, etc.) o New Play Area o New Pump and Skate Track o Installation of street furniture, signage and fencing o De-mobilise and clear site. Protocols to ensure the safety of the public will be required to be implemented. Typically, this will include physical segregation at working areas which will be construction sites, vehicle speed restrictions and use of banksman to escort vehicles. The contractor will undertake responsibility to manage all traffic management for the duration of the works. The contract is anticipated to commence on 7 October 2024 with anticipated duration of 74 weeks. The below table highlights some of the key dates that are required to be met during the contract period: Milestone/Key Date Anticipated delivery date Contract Commencement 7th October 2024 Play Park, Skate Park & Pump Track completed (Key Date) * 30th June 2025 Completion 6th April 2026 Defects / Maintenance Period (1 Year Post Completion) 6th April 2027 There are no personnel implications and TUPE does NOT apply. Further details are bound by the contract and contain commercially sensitive information, which cannot be shared. 1.4.4 Agreed implementation timescales 07/10/2024 – construction contract award 11/11/2024 – site start 30/06/2025 – play park completion [milestone] 125
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53 Great Harbour | Coastal Hub | FBC 06/04/2026 – practical completion 06/04/2027 – end of defect liability period and retention period 10/05/2027 – evaluation report 1.4.5 Accountancy treatment It is envisaged that the assets underpinning the delivery of the service will be on the balance sheet of the organisation should the development remain in the ownership of NAC. 1.5 Financial case Great Harbour Financial projections demonstrate a sustainable funding model, considering both initial development costs and long-term maintenance. The proposed investment in the Great Harbour project is £14 million invested in phases. The phasing has been revised and updated following the post-OBC development including finalising the Masterplan, development frameworks and intensive consultations with relevant services, professionals, stakeholders and the local community. The proposed phasing reflects the deliverability assessed against timescales and maximum opportunities for partnership funding. Table 7 Great Harbour project phasing Great Harbour Phase Programme Phase 1 Phase 2 Phase 3 TOTAL Scope Project management Coastal Hub Maritime Mile hubs connections Maritime Heritage Hub Development Play Park Marine & Arts Hub Harbour Master's Office marketing Masterplan Pilot House plaza Transport and parking remodelling Gap site marketing (between 128 and 138 Harbour Street) Events space at the Beach Park Active travel infrastructure Pilot House restoration* Digital network infrastructure Harbour Master's Office restoration Residential - Portland site marketing* Beach Park access Public/events spaces AGD budget [M] £1.091 £5.010 £5.809 £2.090 £14.000 Additional funding [M] £0.130 £0.154 £0.636 £0.000 £0.920 committed additional NAC £0.130 £0.023 - - £0.153 Sustrans - - £0.079 - £0.079 VDLF - - £0.158 - £0.158 DIST - - £0.392 - £0.392 CLF - - £0.007 - £0.007 CLCF** - £0.131 - - £0.131 126
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54 Great Harbour | Coastal Hub | FBC TOTAL committed £1.221 £5.164 £6.445 £2.090 £14.920 Additional funding [M] £0.000 £0.365 £0.042 £5.525 £5.932 potential sources Sport Scotland Sustrans NLHF CLCF additional NAC HES other other additional NAC TOTAL proposed investment [M] £1.221 £5.529 £6.487 £7.615 £20.852 * Subject to additional funding secured ** Funding not committed with sources identified, included within tender to generate competitive pricing Phase 1 - Coastal Hub Phase 1 relates to the Coastal Hub diverse ‘play activity’ within the area of the Beach Park and Pierhead/ Harbour Point with wider improvements of access to the open green space of the Beach Park for increased wellbeing benefits for local residents and visitors. Table 8 Phase 1 FBC costings Service (RIBA stage of works) Timescales Total GH phase 1 development (stage 0-4) Nov 2021 – May 2023 GH phase 1 delivery (stage 5-6) · Consultancy · Civils · Contingency May 2023 – April 2026 Defects Period/ Evaluation (stage 7) April 2026 – April 2027 Community fund May 2023 – April 2026 £25,000 TOTAL Coastal Hub £5,164,233 DEDUCTIONS PBIF - committed £22,625 CLCF - potential £131,251 TOTAL AGD £5,010,357 1.5.1 Financial expenditure Summary of financial appraisal – draw down profile – Coastal Hub Table 9 Coastal Hub Funding FUNDED BY Capital Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 UK Gov 0 Scottish Gov 4,774,005 1,377,972 2,659,976 736,057 Regional Partners 236,352 1,300 0 237,533 -2,481 AGD TOTAL 5,010,357 0 0 1,300 0 237,533 1,375,491 2,659,976 736,057 0 0 0 PBIF 22,625 22,625 127
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55 Great Harbour | Coastal Hub | FBC Funding tbc - Pump Track* 131,251 131,251 PROJECT TOTAL 5,164,233 0 0 1,300 0 260,158 1,506,742 2,659,976 736,057 0 0 0 * Funding not committed with sources identified, included within tender to generate competitive pricing Summary of financial appraisal – planned project delivery/spend – Coastal Hub Table 10 Coastal Hub Spend Profile EXPENDITURE Capital Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Coastal Hub 5,164,233 0 0 1,300 0 260,158 1,506,742 2,659,976 736,057 0 0 0 Total 5,164,233 0 0 1,300 0 260,158 1,506,742 2,659,976 736,057 0 0 0 1.5.2 Overall affordability and balance sheet treatment One crucial aspect when assessing the economic viability of the Coastal Hub project is its ability to yield sustainable, long-term returns while remaining affordable. Through a blend of public and private funding sources, including government grants, private investments, and strategic partnerships, the project aims to allocate resources wisely and maximise returns on investment. By integrating digital infrastructure and innovative technologies like Augmented Reality experiences and public Wi-Fi, which are planned as a later phase, the project not only enhances operational efficiency but also focuses on cost-effectiveness, ensuring affordability. This approach also futureproofs the project against evolving market dynamics and consumer preferences. Additionally, the events space’s flexibility to host various events throughout the year enhances its revenue-generating potential, thus ensuring long-term affordability and financial sustainability. The redevelopment of the Beach Pavilion at the later phases, adopts a model where community amenities such as toilets and communal spaces are sustained by revenue generated from the commercial rental of the restaurant, fostering affordability in the long term. Thoughtful planning for sustainability, adaptability, and resilience further ensures the project's long-term affordability, including strategies for ongoing maintenance, community involvement, and continuous improvement. Similar to the overarching Great Harbour project, the Coastal Hub was designed to balance high-quality public spaces and amenities with future maintenance considerations, including resource pressures. While addressing maintenance requirements creates employment opportunities, the design also considers layouts, materials, and finishes to minimise and simplify future maintenance burdens, ultimately contributing to long-term affordability. ASSURANCE STATEMENT This is to confirm that the financial profile for the project outlined in Section 1.5.1 above reflects the position of North Ayrshire Council as at the date stated below. Name of Council’s S95 Officer in block capitals: Signed: Date: 128
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56 Great Harbour | Coastal Hub | FBC 1.6 Management case The management plan is based on the governance structure and reflects project milestones with defined monitoring and an approval roadmap. The plan is divided into three phases with identified gateway stages and milestones corresponding to the RIBA Work Stages. The phases relate to work of similar type and procurement requirement and also reflect the dependencies, like partnerships. Gateway reviews are subject to a three level process: Project Board, ELT and Cabinet. 1.6.1 Project management arrangements Overall responsibility for the delivery of the project will rest with NAC Executive Director of Place reporting to the Chief Executive. The Senior Responsible Officer within NAC is Louise Kirk, Head of Service for Economic Development, Growth & Regeneration. A dedicated Growth & Investment team is in place including a dedicated Project Manager with day-to-day responsibilities and a Senior Manager providing a strategic alignment. A dedicated PMO manager and a financial manager provide regular support, and assistance from other council services is sought when needed. All personnel are experienced and professionally qualified in their respective roles. Great Harbour governance structure 1.6.2 Benefits realisation and risk management The project performance data including deliverables, outputs and outcomes is recorded and monitored through the Council’s and wider regional Capital Programme management system. Benefits will also be logged within the Community Benefits commitments within contracts. The monthly Project Board meetings will oversee performance and monitoring including reporting to the Executive Leadership Team (ELT) and the Ayrshire Economic Partnership. Performance reporting will be provided in accordance with established governance arrangements. The PMO will provide reports to the CEOs/Directors Group, the REP and the Ayrshire Economic Joint Planning Committee AEPB / AEJC PMO Cabinet GH Project Board Stakeholders Partners G&I risks & finance monitoring Project Management ELT Figure 14 Great Harbour Project Governance Structure 129
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57 Great Harbour | Coastal Hub | FBC Committee. These will provide updates on a monthly, quarterly and annual basis to the UK and Scottish Governments. The AGD Benefits Realisation Plan 2022 (Appendix F) sets out how the Deal outcomes will be monitored against alignment with delivery plans and AGD objectives and how the impacts will be captured and reported. It defines a set of reporting principles, including: adherence to the overarching principles of Government best practice in project delivery; selecting common monitoring and evaluation (M&E) approaches that best measure progress in meeting AGD objectives and impacts; and, going forward, continually updating this Plan and using any other new measures that will help assess and support the better management of AGD activities and impacts. The Benefits Realisation Guidance (Appendix G) identifies all the types of outputs, outcomes, impacts and community benefits that are likely to be generated across the six AGD project themes and includes pro formas for each project outlining the approach to monitoring and evaluation of relevant outputs, outcomes, impacts and community benefits. The Great Harbour Risk Register (Appendix H) is an essential component of project management, especially in the context of a development project following the Green Book process focused on public sector investment appraisals. The risk register is a live document undergoing regular revisions and updates to identify, assess, and manage potential risks that could impact the successful delivery of the project and reflects the most current stage of the project. 1.6.3 Post project evaluation arrangements The arrangements for post implementation review (PIR) and project evaluation review (PER) have been established in accordance with best practice and are as follows. PIR will be carried out at RIBA work stage 7 respectively for each construction contract by the consultants respectively responsible for contract management. In relation to the phase 1, the Coastal Hub, this involves one civils contract with several deliverables. In addition to assessing whether the objectives have been achieved, it will also identify lessons learned, successes and challenges, and determine areas for improvement in future projects. In addition, a Great Harbour project wide review will be carried out following the completion of the last phase of the development by the project team with expert input if required. PER is included within the quality control mechanism for each contract and is assessed systematically and reviewed at the completion of each RIBA stage of work to identify strengths and weaknesses in project management practices, learn from past experiences, and improve project team’s ability to deliver successful projects in the future. The final review for each phase of developments will be carried out at RIBA work stage 7 by the project team and reported to the Project Board. 1.7 Recommendation The recommendation to approve the Coastal Hub for delivery, as the first phase of the Great Harbour project represents a pivotal step towards realising a multitude of benefits for Irvine and its surrounding community. This proposal stands as a testament to the strategic foresight and comprehensive planning that underpins its development. Here's why this recommendation is not just prudent but essential: • Strategic Alignment | The Great Harbour project, along with the Coastal Hub, is meticulously aligned with the long-term goals and vision for Irvine's development. It dovetails seamlessly with the town's broader strategic objectives, leveraging its unique geographical advantages and economic potential. By integrating seamlessly with existing infrastructure and development plans, it ensures a harmonious and coherent urban landscape. 130
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58 Great Harbour | Coastal Hub | FBC • Economic Viability | Central to this recommendation is the robust economic viability of the project. Extensive feasibility studies and financial projections underscore its potential to generate substantial economic returns, both in the short and long term. The development of the Coastal Hub as the inaugural phase promises to catalyse further investment and economic activity, creating a ripple effect that permeates through the local economy. • Community Benefits | At its core, this recommendation is about enhancing the quality of life for Irvine's residents. The Great Harbour project and its associated Coastal Hub are not just about bricks and mortar; they represent vibrant community spaces where people can live, work, and play. From recreational amenities to employment opportunities, the project is designed to enrich the social fabric of the area, fostering a sense of belonging and pride among its inhabitants. • Sustainable Practices | Sustainability is not an afterthought, but a guiding principle woven into the fabric of the project. From energy-efficient design to green spaces and sustainable infrastructure, every aspect is meticulously crafted to minimise environmental impact and promote long-term sustainability. By embracing sustainable practices, the project not only mitigates negative externalities but also positions Irvine as a beacon of responsible development and environmental stewardship. • Masterplan Alignment | Importantly, the Great Harbour project finds solid footing within the approved Masterplan for the wider area. This alignment provides a clear roadmap for integration and collaboration, ensuring that the project synergises with other planned developments and infrastructure initiatives. Moreover, by leveraging de-risked development sites identified within the Masterplan, the project minimises uncertainties and maximises the potential for success, thereby safeguarding the interests of investors and stakeholders alike. In conclusion, the approval of the updated OBC for the Great Harbour project, coupled with the endorsement of the Coastal Hub for delivery, represents a landmark decision that underscores Irvine's commitment to sustainable growth, community well-being, and strategic development. By embracing this recommendation, Irvine is not just building infrastructure but laying the foundation for a brighter, more prosperous future for generations to come. Signed: Date: Senior Responsible Owner Project Team 131
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59 Great Harbour | Coastal Hub | FBC 2. The Strategic Case 2.1 Introduction This Full Business Case (FBC) follows on from the Outline Business Case (OBC) for the Great Harbour project, as set out in the Ayrshire Growth Deal (AGD) Heads of Terms and in the Outline Business Case approved by Government in June 2021 and covers the first phase, the Coastal Hub. The Great Harbour proposals have been refined and developed in further detail through extensive consultations with public, partners and stakeholders with phasing developed to reflect the character of works and expected pressure on the area. Phase 1, the Coastal Hub is now developed to technical detail (Stage 4 RIBA Plan of Works) and is currently the subject of a tender for civils construction works. The AGD framework defines the purpose of the FBC as the final part of staged approval to support the critical investment decision, Notice to Proceed, of Phase 1 of civils construction works, following the process of appraisal of the project detail, level of analysis and its readiness for delivery and implementation. It is the final stage of the Government’s three-stage, five-case business case model, outlined in the HM Treasury Green Book, and includes the: Strategic Case, Economic Case, Financial Case, Commercial Case, Management Case. The Strategic Case explores whether the proposals developed from the OBC still align with the AGD and NAC strategic direction and goals and evaluates how they support and contribute to the overall success and long-term objectives of the AGD and NAC and identifies the strategic benefits and risks associated with the project. This FBC seeks approval to invest £5.010M of Ayrshire Growth Deal into Phase 1 of the Great Harbour project, with a working title – the Coastal Hub, and consisting of: Table 11 Phase 1 FBC costings Service (RIBA stage of works) Timescales Total GH phase 1 development (stage 0-4) Nov 2021 – May 2023 GH phase 1 delivery (stage 5-6) · Consultancy · Civils · Contingency May 2023 – April 2026 Defects Period/ Evaluation (stage 7) April 2026 – April 2027 Community fund May 2023 – April 2026 £25,000 TOTAL Coastal Hub £5,164,233 DEDUCTIONS PBIF - committed £22,625 CLCF - potential £131,251 TOTAL AGD £5,010,357 132
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60 Great Harbour | Coastal Hub | FBC The regeneration proposals, called the Coastal Hub aim to revitalise the area, focusing on enhancing recreational spaces and improving active travel infrastructure. This strategic initiative aligns with Irvine's commitment to community well-being and sustainable urban development. The hub’s geographical scope includes the areas neighbouring with the coast and proposals aim to deliver the activity hub focusing on play and outdoor physical activity and wellbeing benefiting from the exposure to green and blue spaces. The comprehensive area upgrade includes soft landscaping, drainage, road re-alignment, Pilot House repairs, construction of the play park, skatepark, pump track and some improvements to the Beach Park to accommodate the events space infrastructure. Structure and content of the document The FBC has been prepared using the agreed standards and format for business cases to meet the requirements of the Ayrshire Growth Deal Framework. This document has been structured to ensure transparency of the processes applied and an auditable account of the proposals. It follows the approved format of the Five Case Model, which comprises the following key components: o the strategic case section. This sets out the case for change, together with the supporting investment objectives for the scheme o the economic case section. This demonstrates that the organisation has selected the most economically advantageous offer, which best meets the existing and future needs of the service and optimises value for money (VFM) o the commercial case section. This sets out the content of the proposed deal o the financial case section, which confirms funding arrangements, affordability and the effect on the balance sheet of the organisation o the management case section which details the plans for the successful delivery of the scheme to cost, time and quality. The document seeks to retain a simple legibility. Text seeks to be clear and succinct and tabulated where possible. Extended material and supporting evidence are provided in Appendices. This Full Business Case (FBC) follows on from the Outline Business Case (OBC) for the Great Harbour project, as set out in the Ayrshire Growth Deal (AGD) Heads of Terms and in the Outline Business Case approved by Government in June 2021 and covers the first phase, the Coastal Hub. The subsequent FBCs relating to the remaining phases will be submitted accordingly. This is illustrated in the diagram below. June 2021 June 2024 July 2025 June 2026 OBC FBC 1 FBC 2 FBC 3 Figure 15 Great Harbour Business Case Pathway 133
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61 Great Harbour | Coastal Hub | FBC OBC to FBC development Great Harbour and the area of Harbourside, Beach Park and Coast are North Ayrshire and Irvine’s greatest assets. Investment in the Great Harbour project supports area regeneration utilising best place assets to develop a successful tourist destination. Regeneration requires partner activity unlocked through the catalyst of enabling infrastructure (AGD investment). Key deliverables for success shown within the OBC are listed in the Table 12 below with the indication of changes resulting from the development of the FBC. Table 12 Great Harbour deliverables Direct AGD Investment OBC deliverables FBC deliverables reason for change new waterfront destination new waterfront destination no change quays and waterfront boardwalk with marine access lookooteries/viewpoints along harbourside with interpretation and seating high cost and long consenting process relating to the construction on the riverbed slipway and active leisure marine access point slipway and active leisure marine access point no change provision for play, active leisure / e-bikes provision for play, active leisure / e-bikes no change waterfront and town – to - waterfront gateways waterfront and town – to - waterfront gateways no change site infrastructure extended site infrastructure additional funding secured for digital infrastructure supporting provision of CCTV, public wi-fi, digital events support, EV charging, weather monitoring etc. National Ayrshire Coastal Path connections National Ayrshire Coastal Path connections and NCN7 extension active travel infrastructure improvements added to create a new loop connecting the beach and the Beach Park with the Harbourside community enterprise support programme TBC redevelopment of the Beach pavilion to provide community hub and commercial (restaurant) opportunity potential identified through engagement with relevant business sector Indirect Partner Investment OBC deliverables FBC deliverables reason for change affordable homes (71No.) completed Affordable and private homes (110-120 No.) Portland site opportunity open market waterfront homes removed not supported by stakeholders and public a care and older people / special needs facility completed enterprise and arts retail workshop facilities small scale retail/workshop opportunities for social amended following the results of review showing that art 134
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62 Great Harbour | Coastal Hub | FBC enterprise and private investment spaces provided currently are sufficient Future Partner Investment OBC deliverables FBC deliverables reason for change re-purposing of the Big Idea / Resort -Village / National Play Facility removed partnership with private owner dissolved new specialist waterfront gallery space (SMM) new specialist waterfront gallery space (SMM) scaled down and developed on land only amended due to construction cost inflation and predicted increase in operating cost hotel and related leisure / small conference / hospitality services Hotel and related leisure / small conference / hospitality services no change existing business investment for growth Existing business investment for growth No change Leverage investment has been realigned during the FBC development through series of engagement activities with business and funding bodies. Market interest is currently being shown in the redevelopment of the Beach Pavilion and Harbour Master’s Office, and with positive commercial activity associated with recent new businesses supporting the visitor market. The investment will support national, regional and local policies to boost tourism numbers, spend and market penetration whilst supporting local regeneration. The project will deliver tourism growth in the growing sector of activity leisure, increasing visitor spend in the West of Scotland and local spend in an area of significant deprivation and supporting town, town centre and Harbourside regeneration. The Great Harbour investments have been developed through the varied stakeholder groups and with investment targeted at: o Comprehensive re-development of the Harbourside waterfront space o Development of a Maritime Mile key route between the beach and railway station, incorporating access and connectivity o Enabling the development of new homes and supporting leisure/retail/play and associated public realm o Small enterprise/workshop space (bldg. conversion /new build) for artists/crafts/tourism o Upgrading of Active Travel Routes, Coastal Path / Beach Park facilities - play o Enterprising Communities Programme A key part of the work in development of the project has been working with partners and local stakeholders. This has included engagement across a range of groups and included: o AGD / PMO Team o NAC Growth & Investment & Place Directorate Teams o NAC Physical Environment Team – part of Place Directorate o Key Advisors/Stakeholders (Scot. Govt / VisitScotland /Scottish Enterprise) o Key Market Sector Stakeholder / Business Leader Engagement / Hoteliers /Development Partners o Scottish Maritime Museum (SMM) on Marine, Heritage and Arts led Regeneration o Harbourside Wide Stakeholder Workshops o Community Planning Partners including: Ayrshire College / NHS / Skills Development Scotland / Strathclyde Partnership for Transport (SPT) / Police Scotland / o Statutory Consultees including: NatureScot / Scottish Environmental Protection Agency (SEPA) / Health & Safety Executive (HSE) / Historic Environment Scotland (HES) / Crown Estate / Marine Directorate Licensing Operations Team / Royal National Lifeboat Institution (RNLI) o Regeneration Partner Consultees including: Scottish Enterprise / Sustrans 135
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63 Great Harbour | Coastal Hub | FBC o Community Partners including Irvine Water Sports Club / Fullarton Community Association / Coastwatch / Irvine Burns Club / other community groups o Ayrshire Community Trust (TACT) o Utility & Statutory Authority Technical Updates Part A: the strategic context 2.2 Organisational overview The AGD Heads of Terms were agreed with Scottish and UK Governments in March 2019. Following the Great Harbour OBC approval in June 2021, the Great Harbour project underwent a phase of intensive development involving commercial, institutional and community partners in addition to the internal cross-service scrutiny. The Stakeholder Engagement and Public Consultation Strategy (Appendix A) has been developed to ensure all area stakeholders and parties with invested interest are actively engaged and that the proposals meet local needs and priorities. Project’s partnership opportunities have been reviewed and evaluated to reflect new circumstances and updated proposals. The Governance Structure (Appendix B) has been established to monitor the development and provide a strategic control. The proposals were informed by public consultations in February/March 2022 and March/April 2023 and reports of both include the main feedback areas and recommendations: • February/March 2022 - Great Harbour Coastal Hub Public Consultation Report – May 2022 • March/April 2023 - Great Harbour Masterplan Public Consultation Report – May 2023 As a result, the Great Harbour Masterplan has been developed to provide a framework for AGD investment proposals as part of the wider Tourism Programme and for future investment opportunities ensuring a sustainable growth of the area. The Great Harbour Masterplan has been approved by the Planning Committee in April 2024 following the endorsement from the Cabinet in December 2023 and is now a material consideration in the determination of future planning applications. The Masterplan recognises the best local assets and tests them against strategic objectives of the Local Development Plan. It identifies the main areas of AGD investment along the Irvine Harbourside, called the Maritime Mile, which will incentivise further investment, both public and private and act as an enabler to secondary development of the area through the identified and de-risked opportunities. The Maritime Mile will focus on the provision of activity hubs, attractions, animated public and activity spaces scattered along the harbourside and connected with improved accessible and safe links mimicking the string of pearls stretching from the train station to the beach and catering for varied audiences. 136
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64 Great Harbour | Coastal Hub | FBC Figure 16 Great Harbour Masterplan as approved! 2.3 Business strategies Local context The Great Harbour Masterplan was advanced in accordance with the Local Development Plan 2 (LDP2) where Irvine Harbourside is identified as a Strategic Development Area (Strategic Policy 3) with support stated for its development and complies with the objectives of the LDP2 in relation to scope, land use and environmental quality. The adopted LDP2 acts as the land use expression of ‘A Better Life’ a vision defined within the Single Outcome Agreement. The Council Plan sets out the framework to make North Ayrshire ‘the place to be’ in order to provide a better life for our residents, businesses and visitors and deliver on our commitments within the SOA. Key relevant strategic policies relate to Spatial Strategy (1), Placemaking (2), Strategic Development Areas (3), Delivering on Community Priorities (4). The project also reflects the Council priorities contained in the new Council Plan 2023 to 2028 of wellbeing, communities and local democracy, climate change and a sustainable Council. In addition, the project supports a number of other Council plans and strategies, including: o Vacant and Derelict Land Strategy (draft) 2023-2027 o Community Wealth Building Strategy 2020-2025 o Electric Vehicle Strategy 2021-2025 o Sustainable North Ayrshire Strategy 2024-2027 o Flood Risk Management Plan 2022-2028 o Open Space Strategy 2016-2026 o Local Transport and Active Travel Strategy (draft) 2023-2028 o Water Safety Policy 2021 o Waste Management Strategy 2018-2022 (under review) o Local Biodiversity Action Plan 2019-2031 137
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65 Great Harbour | Coastal Hub | FBC It is also worth highlighting that the North Ayrshire Visitor Management Plan and Strategic Tourism Infrastructure Plan – Mainland, were developed in conjunction with North Ayrshire Council’s member/officer Tourism Forum. This group’s Terms of Reference states its purpose as: • to consider and recommend the introduction of new policies or changes to existing visitor management policies to manage tourist pressures through the preparation of a visitor management plan, particularly refreshing the Visitor Management Plan as necessary. • to consider investment priorities for facilities and infrastructure for visitors and in maintenance of existing facilities identified through Strategic Tourism Infrastructure Development Plans. • to consider the wider socio-economic reports on the impact and value of the tourism sector in North Ayrshire • to consider North Ayrshire’s role in supporting the Regional Economic Partnership visitor economy workstream and associated Regional Strategy • to consider wider strategic issues affecting the tourism and visitor economy sector, including strategy development at regional and local level and provide strategic guidance to inform the Council’s position on such matters. • to consider how our wider Marine Tourism work and Ayrshire Growth Deal investment fits in with the activities of the Forum. • to provide strategic guidance on any other emerging visitor economy matters arising as appropriate. • The Tourism Forum monitors the impacts of visitors and can make recommendations based on its observations. The project already considers many aspects of an increase in visitors in terms of the development of active travel routes, enhanced signage, improved traffic management and optimisation of available car parking spaces, provision of motorhome facilities and EV charging, and use of digital infrastructure and analysis to help with effective crowd, traffic and waste management. Regional context Ayrshire Regional Economic Partnership (REP) - a regional approach developed by the three Ayrshire Councils to build on all the area's assets and key sectors to grow the economy. The REP has coordinated the submissions and requirements of the Ayrshire Growth Deal. Great Harbour is a partnership approved AGD project. The partnership identified and agreed a series of strategic priorities, which reflect our vision and ambition for what we want our economy to be by 2030. Taking a place and asset based approach to the strategy, and building on our strategic priorities, we have identified 6 areas of transformational growth, where the strategy sets out how we can position Ayrshire are sector-leading in Advance Manufacturing, Aerospace/space, Blue Economy, Clean Energy/Decarbonisation, Rural and Islands Economy, and the Visitor Economy, by capitalising on the geographical, environmental and sectoral advantages Ayrshire currently offers. The Strategy also outlines how we can optimise the building blocks of the Ayrshire economy, so they offer the best platform to delivering our vision. This will focus on business growth accelerator, skills, digital ecosystem, connectivity, and thriving communities. National context The project is justified through the strategic planning context set out in Scottish Planning Policy and National Planning Framework 4 which: 138
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66 Great Harbour | Coastal Hub | FBC o Supports area regeneration to address nationally significant and longstanding issues of disadvantage; o Identifies sustainable development and use of the coast and marine environment to deliver economic and social benefits for island and coastal communities and supporting quality of life and underpin important economic sectors like tourism, outdoor recreation and food and drink. o Recognises the importance of outdoor recreation throughout the coastal and marine area. The proposals for the waterfront are based on quality place-making and the six qualities of successful place-making aligning with National Policy - NPF4. The National Planning Framework (NPF4 – approved January 2023) forms part of the Development Plan. NPF4 sets out a series of principles of direct relevance in place making and building stronger and more resilient communities. Key policy areas include planning for climate change, biodiversity and the creation of ‘liveable’ places. The Harbourside offers significant opportunity to create a place with good-quality homes close to local facilities and services applying the concept of 20-minute neighbourhoods; making better use of spaces to support physical activity, relaxation and play, to bring people together and to celebrate culture, diversity and heritage. In addition, measures within the coastal margin can support enhanced biodiversity in accordance with the Local Biodiversity Action Plan. Strategic Policy 2v sets out a commitment to placemaking to ensure the delivery of Local Outcome Improvement Plan priorities (LOIP) that looks to make North Ayrshire safer and healthier by ensuring that all development contributes to making quality places. NAC and partners, recognising the policy framework of NPF4 and through LBAP 2019-2031, are seeking to protect and enhance biodiversity across the region through ecosystem restoration, investment in natural capital, improving greenspace and supporting sustainable management of land, marine, freshwater and coastal ecosystems. Target areas relevant to the study area include greenspace, coastal sand dunes and a wide area of potential ecosystem regeneration. The LBAP has specific reference to the Girvan to Irvine Nectar Network (Task 3.1 / 3.2 / 4.4) and a number of actions relative to estuarine sites. Strategic fit with national and regional Policy Scottish Government Strategic Objectives and Outcomes The Government has five objectives that underpin its core purpose - to create a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth. Objectives include Wealthier & Fairer, Healthier, Safer & Stronger, Smarter, Greener. In addition to the National Objectives, the Scottish Government has 16 National Outcomes. They define priorities and set a structure for delivery of national objectives. Great Harbour’s contribution includes: o We have tackled the significant inequalities in Scottish society – The proposed development will create new and significant additional economic activity for NAC and the town region, contributing to improving access to the labour market for the poorest and most disadvantaged and tackling significant inequalities in the area. o We live in well-designed, sustainable places where we are able to access the amenities and services we need – The proposed development will represent an environmentally, socially and economically sustainable place providing increased levels of employment for people in the area and attracting and retaining the skills/talent required to achieve sustainable economic growth. o We value and enjoy our built and natural environment and protect it and enhance it for future generations – The proposed development will have significant positive land-use impacts on the local community, and on the natural and built environment. o We have strong, resilient and supportive communities where people take responsibility for their own actions and how they affect others. 139
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67 Great Harbour | Coastal Hub | FBC The proposed development supports LOIP and Community and Locality Planning within an area of significant deprivation. Scotland’s Economic Strategy sets six key priority themes in their vision for 2033 including: o Support for Enterprise: A region where businesses can grow both domestically and globally; entrepreneurship and creativity can flourish. o Fair Work: A region which offers all individuals an effective voice, opportunity, security, fulfilment and respect in work. o Innovation: A region where enterprises and the public sector adopt innovative solutions to address economic problems. o Good Health and Wellbeing: A region where people of all ages have the access to resources to live a healthy, full and purposeful life. o Stronger Places and Communities: Local economies can sustain thriving communities and deliver good public and private services to residents and visitors. o Enhancing Natural Capital: Preserving and enhancing Ayrshire’s natural capital, meeting Scotland’s commitments to net zero and protection of biodiversity. The summary in tables below sets out how the proposed development fits with the main policy and/or strategies. Table 13 Policy and Strategies - National National Policy and Strategies Policy/Strategy Document Status and Purpose of Document Relevance for Proposed Great Harbour Project National Infrastructure Strategy (2020) The UK Gov. strategy outlines priorities for levelling up the country’s infrastructure and investment relating to transport, digital, energy and utility network to: • Boost growth and productivity, • Meeting net zero emissions by 2050, • Support private investment, • Accelerate and improve delivery. This Strategy also puts innovation and new technology at the heart of the government’s approach. • Decarbonising the project through a comprehensive carbon emission plan monitored throughout a duration of the project to identify opportunities to reduce emissions. • Digital infrastructure futureproofed for uses supporting public health and safety, events and visitor experience. Scottish Government – Programme for Government It seeks to deliver a fairer, greener Scotland. Actions within the Programme are focused towards (inter alia) ending Scotland’s contribution to climate change; putting sustainability, wellbeing and fair work at the heart of economic transformation; and supporting thriving, resilient and diverse communities. It includes commitments to invest in active travel and better-connected communities. • Inclusive growth and enterprising economy, • Sustainability and transition to net zero emissions, • Active travel and wellbeing, • Resilient communities. 140
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68 Great Harbour | Coastal Hub | FBC Scotland's National Strategy for Economic Transformation (2022) Sets out an overarching framework for a more competitive and fairer Scotland and forms the strategic plan for existing and all future Scottish Government policy. Shifting the balance towards social and environmental dimensions, while keeping the economic prosperity at the core, it focuses on delivering the best economic performance and creation of a wellbeing economy, green economic recovery to meet the climate and nature targets while ensuring to maximise the benefits as part of a just transition. • Wellbeing economy and benefit of access to blue and green spaces. Scotland’s National Performance Framework It seeks to ensure opportunities for all of Scotland to flourish through increased wellbeing, and sustainable and inclusive growth. It includes as target national outcomes: • Tacking poverty by sharing opportunities, wealth and power more equally, • Living in communities that are inclusive, empowered, resilient and safe, • Being healthy and active, • Expressing and enjoying vibrant and diverse cultures • Community Wealth Building, • Creating opportunities to physical activity and play, • Improving access to assets, activities and green and blue spaces for improved wellness and wellbeing benefits, • Improvements to active travel infrastructure supporting sustainable travel, • Climate change action and net zero transition, • Inclusive growth and enterprise activity. Scottish Enterprise Building Scotland’s Future Today Operating Plan Business Plan The purpose to support more, better jobs in Scotland, remains core to who we are and what we do every day. We'll work with partners to build vibrant economic communities across Scotland, build Scotland’s reputation and reach, build business resilience and growth, and develop future opportunities. • Jobs creation in construction and also tourism and hospitality industry, • Sustainability and transition to net zero • Development of under- utilised assets • Promoting innovation through use of digital infrastructure. • Creating economic opportunities for private investment and social enterprise that deliver benefits to the environment and community. National Planning Framework 4 (2023) It sets a long-term spatial strategy for Scotland focused on the creation of: • Sustainable places where we reduce emissions and restore biodiversity, • Liveable places where we can live better, healthier lives, • Productive places where we have a greener, fairer and more inclusive wellbeing economy, • Distinctive places where we recognise and work with our assets. Spatial principles: • Climate change and net zero transformation, • Local heritage assets and derelict land are restored and brought back to use, • 20 min neighbourhood growth opportunities are fully utilised, • Regeneration of highly deprived post-industrial area. • Sustainable tourism destination supported by active travel infrastructure and improved access to assets, activities and 141
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69 Great Harbour | Coastal Hub | FBC • Just transition to net zero, • Conserving and recycling assets, • Local living, • Compact urban growth, • Rebalanced development in areas of decline, • Rural revitalisation. blue and green spaces. Community Wealth Building Programme Major CWB piloted in NA supporting inclusive growth and wellbeing economy. Based on five pillars of: • Spending maximising community benefits, • Workforce – fair work and developing local labour markets, • Land and Property – social, ecological, financial and economic value gain for communities from land and assets, • Inclusive ownership – supporting local and social enterprise, • Finance – financial gains work for local communities and business. • Procurement supporting sustainable use of resources and local labour markets, with imbedded community benefits, • Regenerating brownfields, vacant and derelict land and assets for the benefit of local communities and business, • Creating opportunities for the growth and expansion of local business and social enterprise. Scottish Planning Policy (2023) It supports Scottish Government’s commitment to increasing sustainable economic growth and sustainable development. • Sustainable place with inclusive access to assets and activities supported by active travel infrastructure and linkage with public transport and identified opportunities for future growth, • Opportunities for inclusive growth and investment for private business and social enterprise aligned with CWB principles, • Sustainable tourism destination building on the best place assets. Place Principle (2019) It encourages better collaboration and community involvement to improve the impact of combined energy, resources and investment. It promotes a collaborative approach to services and assets, across all institutions and sectors within a place, to achieve better outcomes for people and communities. • Community engagement throughout the development based at the Locality Planning Partnerships structure, • Quality place design for people offering varied activity and inclusive access, • Building on the blue-green network. Update to the Climate Change Plan 2018-2032: Securing a Green Recovery on a Path to Net-Zero (2020) It includes transport as a key dimension to reaching net-zero emissions. It encourages creating of ‘active freeways’ to provide sustainable links to/between towns and commits to a place-based approach to green • Creating more residential opportunities within highly deprived project area based on the principle of 20 Minute Neighbourhoods creating more sustainable community, 142
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70 Great Harbour | Coastal Hub | FBC recovery. Specifically, it commits to reduce car kilometres by 20% by 2030. Supports 20 Minute Neighbourhoods, supports existing resilience and capacity within existing settlement and reduces the need for car-based trips. Supports re-population of an area suffering from population decline. • Improving active travel infrastructure and connectivity between assets, activities and public transport, • Place based community engagement and CWB. Scottish Tourism Alliance Marine Tourism Strategy Awakening the Giant + Giant Strides 2020-2025 Recognises the role within coastal and island communities and the significant benefits marine tourism can deliver for communities, the environment and the economy of Scotland. It promotes partnership working to maximise growth in Marine Tourism across Scotland aiming to boost Scotland‘s reputation as a world-class sustainable marine tourism destination by meeting changing consumer, workforce, community and environmental needs and grow the industry’s economic contribution to over £500 million by 2025. • Creating sustainable tourism destination based on the best place assets and costal location linked to blue-green network and supported by the active travel infrastructure with improved connectivity to public transport, • Creating opportunities for leisure related commercial activity linked to the waters at the coast and the harbourside, • Inclusive growth creating investment opportunities for private business and social enterprise. Scotland Outlook 2030 & The THILG Responsible Tourism for a Sustainable Future Scotland’s national tourism strategy’s key priorities: • passionate people • thriving places • diverse businesses • memorable experiences Tourism is one of Scotland’s key economic contributors. The national tourism strategy ambition to grow visitor spend through partnership and focus on six conditions: digital, policy, investment, connectivity, business network and positioning. • Promoting innovation through use of digital infrastructure, • Sustainable tourism destination building on the best place assets, • Improving active travel infrastructure and connectivity between assets, activities and public transport, • Inclusive growth creating investment opportunities for private business and social enterprise, • Place based community engagement and CWB. Table 14 Policy and Strategies - Regional and Local Regional & Local Policy and Strategies Policy/Strategy Document Status and Purpose of Document Relevance for Proposed Great Harbour Project Ayrshire Regional Economic Strategy (2023) Building wealth for everyone in Ayrshire is a vision for 2033 prioritising: • Support for enterprise • Fair work • Innovation • Good health and wellbeing • Stronger places and communities • Enhancing natural capital. • Inclusive growth creating investment opportunities for private business and social enterprise, • Promoting innovation through use of digital infrastructure, • Sustainable tourism destination building on the best place built and natural assets, 143
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71 Great Harbour | Coastal Hub | FBC • Improving active travel infrastructure and connectivity between assets, activities and public transport and improved inclusive access to green and blue spaces for wellness and wellbeing benefits, • Place based community engagement and CWB. Ayrshire Region Growth Deal (2020) The partnership seeks to raise productivity and economic output across the town region by investing in economic infrastructure. The Growth Deal supports a wide scope of programmes addressing economic growth and barriers to growth at the key areas identified for need of regeneration and transformation. • As part of Marine Tourism Programme, the project will generate new economic activity and support inclusive growth in highly deprived area facing significant and long- standing challenges, • Transformation into sustainable destination and community based on tourism industry and best place assets. Indicative Regional Spatial Strategy It sets out a vision for Ayrshire and key outcomes relating to five main themes: people, place, connectivity, economy and climate change. It sets out inter- linked and complementary strategic development priorities and connectivity improvements that will help deliver these outcomes. It identifies 17 spatial development priorities that are complementary and will help deliver on the vision and outcomes for Ayrshire. • Improved inclusive connectivity including active travel links between assets, activities and public transport, • Regenerating brownfields, vacant and derelict land and assets, • Sustainable tourism destination building on the best place built and natural assets. Ayrshire Local Flood Risk Management Plan (2022- 2028) Builds on SEPA’s plan with considerations to climate change to set out the risks and its management informing development proposals and raising awareness of flood risk amongst residents and businesses. • The plan informs all proposals along the Harbourside and near the beach, • The proposals for the facilities within the Beach pavilion are influenced by the need to protect sensitive dune habitat as a natural flood defence. NAC Community Wealth Building Strategy (2020- 2025) A commitment to exploring the potential for community wealth building as an approach to deliver inclusive growth through: • Spending maximising community benefits through responsible procurement, • Workforce – fair work and developing local labour markets, • Land and Assets – social, ecological, financial and economic value gain for communities from land and assets, • Inclusive and plural ownership – supporting local and social enterprise, • Procurement supporting sustainable use of resources and local labour markets, with imbedded community benefits, • Regenerating brownfields, vacant and derelict land and assets for the benefit of local communities and business, • Creating opportunities for the growth and expansion of local business and social enterprise. • Connecting local community groups to own and maintain local assets, develop joint activities supporting wider community and collaborating on regeneration initiatives 144
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72 Great Harbour | Coastal Hub | FBC • Finance – financial gains work for local communities and business. within the local area. ED&R Regeneration Strategy (2020) Promotion of sustainable and inclusive economic development across North Ayrshire and region. Refreshed strategy promotes local action and recognises key role of tourism and place development. • Tourism-led regeneration based on utilising best place assets and sustainable destination creation stimulating inclusive growth and private investment. • Regenerating and bringing back in use brownfields, vacant and derelict land and assets. • Place based community engagement and CWB. North Ayrshire Regeneration Delivery Plan It sets out our priorities for delivering on these ambitions and to redevelop strategic regeneration sites and places, working in partnership with communities. It focuses on the delivery of physical regeneration across North Ayrshire in the period 2021 to 2026 and place-making by strengthening of regional / local economic activity to create more resilient communities. • Place based community engagement and CWB, • Tourism-led regeneration based on utilising best place assets and sustainable destination creation stimulating inclusive growth and private investment. Single Outcome Agreement Promoting economic equality and stronger, safer, healthier and more active communities. NAC are piloting within Locality Planning stronger links between LOIP and Place outcomes to support inclusive growth and stronger communities. • Place based community engagement, • Community Wealth building. Irvine Locality Partnership Action Plan (23/24) Irvine locality covers the key communities of Harbourside and Fullarton. Identified priorities relate to employment and economy, mental health, traffic and parking, influence and sense of control. Place and locality-based community engagement ensuring the local priorities are met and local groups have representation in decision-making. Local Development Plan (2019) It frames the policy and programme for planning and land use in North Ayrshire area. It supports regeneration of Harbourside and strengthening of Harbourside as a key location for destination development. Irvine Vision It identified 5 strategic project opportunities and drivers including Harbourside Great Harbour was identified as a priority place project for development and delivery of the Irvine Vision Making Waves Marine Tourism Action Plan Marine and Coastal Tourism activity is key to North Ayrshire, directly supporting local jobs, encouraging visitors and helping promote the area as a great place to work, live and play. The project is based on tourism- led regeneration creating opportunities for inclusive growth and enterprise activity relating to leisure within blue and green spaces. Great Harbour Masterplan (2024) Developed as part of Irvine Vision & AGD strengthens LDP in Irvine Harbourside area and provides framework for area development. Targets AGD investments to catalyse inward investment and identifies future opportunities for economic and social benefit. 145
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73 Great Harbour | Coastal Hub | FBC Maritime Mile Masterplan Place-making approach utilising investment to maximise the return on creation of a sustainable tourism destination with a range of activities and assets. Place-making based on best place assets with improved and inclusive connectivity and access to assets and activities. NAC Local Transport and Active Travel Strategy (2023-2028) Policy framework for connecting communities and promote active travel with priorities of: • Accessibility for all • Inclusive economy • Healthier communities. • Promoting modal shift by positive encouragement of active travel and reduced car dependency to reduce emissions and improve physical activity and healthy lifestyles, • Improved safety for all users, • Better traffic and parking management, • Improved sustainable access to assets and activity, but also to public transport for onward travel. NAC Vacant and Derelict Land Strategy (2023-2027) Promotes V&DL sites for future development and positive re-use, considering: • Priority based on best social impact and/or promoting community empowerment, • Simplification of planning process or de-risking, • Targeted funding. • Regenerating brownfields, vacant and derelict land and assets for the benefit of local communities and business, • De-risking and simplifying the planning process through the Great Harbour Masterplan (2024). NAC Water Safety Policy (2021) Sets management arrangements for open waters remaining under Council’s ownership considering all relevant legislation and H&S requirements. Details requirements for adequate signage, rescue equipment and edge protection • Consideration of the policy is required for all development along the harbourside, near the beach and the Boating Pond, • Improvements to existing signage, access and edge. NAC Open Space Strategy (2016-2026) Strategic framework for development and management of open space based on relevant legislation to ensure it’s accessible, inclusive, fit for purpose and enhancing quality of life while protecting and enhancing natural habitats. • Improved and inclusive access to open green and blue spaces promoting active travel, • Promotion of outdoor play and activity and wellness and wellbeing benefits of open space, • Enhanced biodiversity of the natural coastal habitat through landforms merging developments into the landscape, • Responding to climate change and protection of the dunes as natural flood protection. North Ayrshire Visitor Management Plan (2024) Strategic approach to managing the impact of tourism within North Ayrshire and identify actions and interventions to enhance visitor experience and support tourism business. Objectives: • Promote tourism destination and key assets, also through organised events to attract new audiences, • Development of the sustainable tourism destination with improved active travel connections between assets, activities and public transport, • Utilising best place assets to develop a unique place-based 146
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74 Great Harbour | Coastal Hub | FBC • Encourage sustainable visitor behaviour, • Create outdoor activity and new attractions to encourage visits. destination, • Create facilities for outdoor activity and new tourism attractions, • Develop events programme supporting destination and tourism economy. Strategic Tourism Infrastructure Development Plan – North Ayrshire Mainland Priorities for tourism infrastructure development over 5-7 years from December 2023. Objectives: • Identify and prioritise visitor economy infrastructure projects which will benefit from investment, • Support funding applications for infrastructure design and development projects, • Prioritise projects which alleviate pressures on infrastructure and communities, particularly in rural and coastal areas. Potential projects identified, subject to successful funding bids: • Requirement for motorhome facilities across North Ayrshire, including Irvine Harbourside, • Upgrading of slipway and water access, • Requirement for a range of street furniture, heritage and nature interpretation, and public washing facility for pets and equipment, • Utility and digital connections to support multi-use event space. • EV charging at Irvine Harbourside. Sustainable North Ayrshire Strategy (2024-2027) The Strategy provides the next iteration of the previous Environmental Sustainability and Climate Change Strategy – setting out revised strategic priorities and specific project actions across five workstreams of: Energy, Nature, Waste, Transport, Adaptation. It sets a vision for further carbon emission reduction to achieve net-zero status by 2030 by: • Inspiring positive behaviour change, • Maximise access to affordable renewable energy technology, • Adopt sustainable approach to construction of new assets, • Deliver inclusive and green economy based on the CWB principles. • Sustainable development of the communities and areas promoted through the Masterplan, • Sustainable design of new assets and tailored carbon management facilitating reduction of emissions, • Opportunities for innovation in renewable energy technologies. NAC Electric Vehicle Strategy (2021-20250) • Create a delivery plan for accessible network of EV charge points to meet future demand, • Contribute to reduction in carbon emission. Identified opportunities for EV charging points with related infrastructure to futureproof the improvements. North Ayrshire Naturally Active Strategy Policy framework to support more active, healthier communities (physical/mental) through access to outdoors and active travel Promoting active communities, walking, cycling and access to water 147
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75 Great Harbour | Coastal Hub | FBC 2.4 Other organisational strategies NAC Procurement Strategy 2023 - 2026 sets out the strategic procurement vision, mission and enablers and objectives for the period 2023 to 2026 and it applies to all NAC’s external expenditure on goods, services, works and social care. Together with the NAC Community Benefits in Procurement Policy (2023) it captures the priorities of the Community Wealth Building Strategy 2020-2025, Local Outcome Improvement Plans and the No One Left Behind Delivery Plan 2022- 2026. Part B: the case for change 2.5 Investment objectives NAC and the wider Ayrshire and Clyde Coast authorities seek to build on the special qualities of the Clyde and Coast in terms of its tourism offer developing the Clyde as a tourism destination of national and international value. The Clyde coast and marine tourism are well placed to contribute to the attractiveness of Scotland and to benefit from an increased share of national and international tourism activity with significant long-term economic benefits at national, regional and local levels. Irvine Harbourside, the Beach Park and coast are Irvine’s greatest asset. The Ayrshire Growth Deal (AGD) recognised the strength of the asset and its potential to support area transformation, Community Wealth Building, and drive growth and regeneration through investment and collaboration with key partners. The Growth Deal outlined a project with the working title – the Great Harbour – that identified investment in the Irvine Harbourside that supported place-making and development of the destination. The project will deliver a tourism destination supporting area regeneration bringing increased local spend in an area of significant deprivation and support both Harbourside and town centre regeneration in Irvine. Initial objectives presented in OBC have been developed with the steering group and through stakeholder workshops. The objectives are SMART (Specific, Measurable, Achievable, Relevant, Time-related) and can be linked to milestones or targets. These were verified through the development of the proposals and an extensive engagement with the area stakeholders, potential partners and general public, which confirmed the objectives remain valid as the proposals were not affected by major change, which focused on deliverability appraisal, setting a realistic cost envelope, reshaping partnership collaboration, securing community support, improving governance and management while protecting benefits. The overall aims of the investment were established to be: o To drive area wide, town and town centre regeneration in an area of significant and long-standing deprivation, o To support SME growth in tourism and support service sector industry with a strong focus on integrated destination development celebrating the coast and opportunities for marine tourism, o To delivering key elements of the Scottish Government supported Awakening the Giant strategy through a direct link with wider AGD work supporting Marine Tourism, o To invest in a key place asset, create a national waterfront tourism destination supporting tourism activity complimentary with regeneration and place-making for the Harbourside, creating a significant new waterfront destination on the West coast of Scotland. The project seeks to address long-standing issues facing Ayrshire’s economy supporting transformational, step change growth in an existing important sector both to Ayrshire, the Clyde and Scotland. 148
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76 Great Harbour | Coastal Hub | FBC Figure 17 Regional drivers to inclusive growth The SMART Investment objectives for this project are set out below. Table 15 Great Harbour SMART objectives Objective Specific Measurable (Coastal Hub) Achievable Relevant Time-bounded To unlock the economic growth potential &secure Community Wealth To secure sustainable and inclusive growth for Irvine Harbourside - an area of significant deprivation and with significant potential for place-making. Capital Spend - £4.6m Construction Sector jobs created – 25 CWB Measure Working to secure pan AGD approach to CWB. Market review and Proof of Concept Work by Moffat Centre supports projected visitor numbers. Working with partners to secure targeted CWB benefits. Project exploits the waterfront setting recognised as Irvine’s strongest place asset. Project programmed to be complete by 2027, impacts forecast to be attained in full by 2035. To secure area wide regeneration To generate inclusive growth and new jobs / GVA from destination and place- making. Specific outputs tabulated. Heritage sites restored – 1 site Roads - 830m2 Junction – 1 Paths & cycle ways – 5,071 m2 Employment will be generated by visitor related activity and by indirect off-site visitor spend. Analysis can track direct on-site jobs and use proxy spend to track off- site jobs. GVA will be estimated on sector average. Project programmed to be completed by 2027, impacts forecast to be attained in full by 2035. To address place infrastructure deficiencies To build a Clyde waterfront destination that supports new investment and creates a commercial climate for future investment Private sector investment - £3.5m No. of new housing starts 18 units Partnership arrangements exist to act as a catalyst for private investment. Engagement and work with existing businesses supports communication around local opportunities Location has seen very limited investment since IDC with public investment enabling private investment on defined sites. Project programmed to be completed by 2027, impacts forecast to be attained in full by 2035. 149
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77 Great Harbour | Coastal Hub | FBC To spread the benefits of economic development by Inclusive Growth & Community Wealth Building To work with Community Planning Partners and the parallel work in the LOIP. Integrated projects to secure jobs, develop access to jobs (construction, tourism) and build skills alongside community capabilities. Development space unlocked 1.7 acres No. of events - uplift 100% Events attendance – uplift 97% NAC will develop Employment and Skills development programme linking LOIP/Business Team, SDS and Employment Service Community Wealth Building will target specific needs /groups to ensure inclusive growth. NAC will develop Employment and Skills development programme linking LOIP/Business Team, SDS and Employment Service. Project programmed to be completed by 2027, impacts forecast to be attained in full by 2035. To enhance an existing Ayrshire coastal destination To build a Clyde waterfront destination and raise the quality of experience for both residents and visitors with a focus on the Maritime Mile Great Harbour annual visitors- 101,290 annual uplift from 750,000 baseline (Irvine Wide). Net GVA pa for local tourism economy £1.4m Market review and Proof of Concept Work by Moffat Centre supports projected visitor numbers. AGD investment provides catalyst for enhancement. Market review and Proof of Concept Work by Moffat Centre supports projected visitor numbers. Masterplan consultation feedback supports Great Harbour and Coastal Hub proposals. Project programmed to be completed by 2027, impacts forecast to be attained in full by 2035. The Investment objectives for this project are set out below including overall Great Harbour objectives and Phase 1 – Coastal Hub sub-objectives that are aligned with the Great Harbour objectives. Since the OBC, new data for measuring the impacts of the project have been developed and are stated below. It is the intention that the key data against which to measure the impact of the project will remain consistent across all phases of the Great Harbour project, so that each phase makes an individual contribution and with the Great Harbour project’s performance being represented by the aggregate of all three phases. The values presented below represent the Coastal Hub’s contribution to the key measures. Note that the Coastal Hub may not contribute to all key measures (i.e. these measures are relevant to phases 2 and/or 3 of the Great Harbour Project) Objective 1 Great Harbour: To unlock the economic potential within the Clyde Coast creating a regional destination at Irvine Harbourside that supports inclusive economic growth through an approach that focuses on Community Wealth Building. Coastal Hub: Support local economic growth through developing a regional coastal destination by constructing new high quality recreational assets. Key Data Against Which to Measure the Impact of the Project No Data Baseline Target 1. Capital Spend £0 £4.6m 2. Construction Sector Jobs created (gross PYEs) 0 25 3. CWB measure related to procurement 0 • 124 compulsory CB points provided by the Contractor • 2 project specific CB to support local community organisations or activities Objective 2 150
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78 Great Harbour | Coastal Hub | FBC Great Harbour: To secure area wide regeneration based on developing the special qualities of place alongside community participation within a place-based regeneration framework, building on the legacy of the Irvine Development Corporation. Coastal Hub: Support regeneration of the wider area across the entirely of Irvine Harbourside linking to the redevelopment of Maritime Mile and national Maritime Museum. Key Data Against Which to Measure the Impact of the Project No Data Baseline Target 1. Heritage sites restored 0 1 2. Transport infrastructure improved - roads - junction - cycle pathways 0 0 0 830m2 1 5,071 m2 Objective 3 Great Harbour: To address place infrastructure deficiencies that constrain investment developing the enabling infrastructure to address market failure created by commercial values that restrict private sector investment. Showcasing the potential through a high-quality approach to destination development. Coastal Hub: Build the required enabling infrastructure to make the area more attractive to private sector investment. Key Data Against Which to Measure the Impact of the Project No Data Baseline Target 1. Private sector investment 0 £3.8m (18% of the total estimated investment into 115 units on Portland Road Site which is estimated to be a £21.3m development) 2. Number of new housing starts 0 0 0 18 units (18% of the total number of 115 units identified on Portland Road Site within GH Masterplan and on Housing Land Audit) Objective 4 Great Harbour: To lock in at a local level, the benefits of economic development to ensure Ayrshire communities are actively engaged and supported through enterprise support, skills development, training, community enterprise supporting inclusive growth & community wealth building. Coastal Hub: Deliver local health and wellbeing benefits through providing recreational opportunities for all ages and increasing quality and use of public realm spaces. Key Data Against Which to Measure the Impact of the Project No Data Baseline Target 1. Number of startups 0 0 2. Development space unlocked (residential) 0 1.7 acres 151
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79 Great Harbour | Coastal Hub | FBC (18% of the area of the Portland Road site, approximately 9.3 acres total) 3. Development space unlocked (commercial) 0 0 4. Number of events per annum 15 (regular) 100% increase 5. Events attendance 27,000 97% increase Objective 5 Great Harbour: To enhance an existing Ayrshire coastal location celebrating a nationally significant approach to place quality and building a destination developed around a Maritime Quarter / Maritime Mile / National Maritime Museum creating a new profile, footfall and spend to the town and supporting wider Marine Tourism objectives. Coastal Hub: Increase visitors to Irvine and the Ayrshire regional by developing a regional visitor destination underpinned by recreational opportunities and a fit for purpose events space. Key Data Against Which to Measure the Impact of the Project No Data Baseline Target 1. Ayrshire annual visitors 750,000 101,290 uplift 2. Number of tourism businesses 0 0 3. Net additional GVA at Ayrshire level generated in the local tourism economy 0 £1.4m pa 2.6 Existing arrangements Irvine was developed as a New Town (1966-1996) and has excellent strategic transport / utility infrastructure. Irvine Bay Regeneration Company was set up in 2006, one of the second generation of Scottish URCs. The sites to the west and northwest of Irvine, adjacent to the Rivers Irvine and Garnock, represent a phase of the Irvine New Town that was never progressed. A Town Centre Audit of Irvine (2021 and subsequent revision of 2024) showed that Irvine is an ‘Interdependent town’ being somewhat reliant on other places, particularly for access to jobs (both in absolute number and in range). The audit identifies the need to focus investment activity in Irvine as the regional capital for North Ayrshire and notes the lack of a broader leisure mix in the town. The reports recognise the benefits that would be generated by attracting a wider mix of uses to the town – residential, leisure, cultural, business – which would help to sustain existing and grow future business activity. Importantly the town needs to: o re-assert its coastal relationship o re-discover its strongest assets in the Harbourside, River Irvine waterfront o promote and recreational tourism and active leisure on the Coast. The risk of long-term on-going impact of the pandemic and shift to hybrid and remote working models in some sectors on footfall and vacancy rates/trends has been highlighted, and the need for employment opportunities which takes advantage of the strong active travel connections has been noted, to support 20-minute neighbourhood principles. It has been recognised that those living in the town centre can aid vibrancy to the town and take advantage of being within walking distance to goods, services and employment opportunities, taking further advantage of the town’s good connections to the rail and bus network. Good green infrastructure has been noted, including nearby areas of Irvine Beach Park and the beach. These areas are an important asset which are enjoyed by residents and visitors all over North Ayrshire. The Council’s investment in the Harbourside as part of the Ayrshire Growth Deal will look to 152
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80 Great Harbour | Coastal Hub | FBC connect the Harbourside with the Town Centre and make the most of the connections available in the town. Irvine Harbourside is an important environmental and leisure asset, with the river and former wharves providing local moorings (circa 40 moorings fully registered and licensed) and providing berthage of historic vessels forming part of the exhibition of the Scottish Maritime Museum. Former industrial areas have been reclaimed to create the Beach Park, providing the whole town with an important greenspace resource and a popular space for events such as Radio 1 Roadshow and Making Waves. The Magnum Sports & Leisure Centre (1976-2016) was the largest in Europe and formed a regional anchor attraction for both leisure and events. Great Harbour project area falls within the lowest 5% SIMD. The project aims to stimulate socio- economic regeneration of the Irvine Harbourside area and secure its sustainable growth in the long term. Following on and utilising the work of the Irvine Bay Urban Regeneration Company (IBURC), which identified local opportunities and assets, and based on which also shaped the vision for transformational change, the GH project developed a detailed Masterplan and strategy for delivery of the regeneration programme. The Masterplan development was based on the Place Standard tool - which lets communities, public agencies, voluntary groups and others find those aspects of a place that need to be targeted to improve people's health, wellbeing and quality of life – and facilitated extensive engagement with Council Services, area stakeholders and public community to ensure local priorities are met. The project builds on the best place qualities and the strong connection to the harbour’s successful past. Although a popular destination for a short visit, Irvine Harbourside currently lacks the facilities and attractions to attract wider audiences and extend the visits, which the Great Harbour project aims to address based on the opportunities identified during the project development. 2.7 Business needs The need to regenerate the highly deprived area of Irvine Harbourside and utilise its tourism potential is being discussed for few decades, and in early 2000s Irvine Bay Urban Regeneration Company (IBURC) identified local opportunities and assets, and based on which also shaped the vision for transformational change. The Great Harbour Masterplan development refined this vision in the view of the AGD investment opportunity. The adopted LDP2 identifies Irvine Harbourside as a Strategic Development Area 4 (Policy 3)12 and the open green space of the Beach Park as a Strategic Tourism Asset. LDP2 supports the development of the comprehensive Masterplan for the area, which proposes best use of the Harbourside’s unique location, heritage and environment to create new opportunities for local people and attract new investment into the area. The LDP supports a range of uses proposed by the Masterplan, in particular: o New residential development, comprising both affordable and market housing; o A range of commercial leisure facilities, particularly those that enhance or develop the maritime tourism potential of the area; o Proposals that strengthen physical and digital links between the town centre and harbourside to enhance the vitality and vibrancy of town centre and harbourside; o Proposals that are in keeping with the character of the area as an edge of town centre location; o Proposals that result in the productive reuse of vacant land identified as development opportunities. 12North Ayrshire Adopted LDP2 153
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81 Great Harbour | Coastal Hub | FBC The Council priorities for 2023-28 of sustainability, wellbeing and empowering communities set out in the Council Plan aim to encourage better use of land and assets to bring more social and economic benefits for our residents, while supporting and promoting fair employment throughout the region. key to supporting what is known as a ‘wellbeing economy’ – an economy that delivers fair distribution of wealth and opportunities within a healthy environment. It is therefore a direct contributor to our vision of ‘A North Ayrshire that is fair for all’. Local priorities have been decided by the Irvine Locality Partnership based on the gathered local information, including national and local statistics and the views of local people through the people’s panel survey and by using the place standard tool. These are: o Employment and Economy o Mental Health o Traffic and Parking o Influence and Sense of Control Potential A Great Harbour regeneration project will offer various economic, social, and environmental advantages securing the sustainability of the area and community. These will affect the main areas of: Economic Growth o Job Creation: The project will generate employment opportunities, both directly in construction and ongoing operations, as well as indirectly in related industries such as hospitality, retail, and services. o Increased Tourism: A revitalised harbourside will attract tourists, boosting the local economy through increased spending on accommodations, dining, and entertainment. Destination marketing and promotion will support this outcome further. Commercial Development o New Business Opportunities: A regenerated harbourside will attract businesses both permanent and seasonal, such as restaurants, shops, and entertainment venues, leading to increased commercial activity. o Property Value Increase: As the area becomes more desirable, property values in the vicinity may rise, benefiting property owners and local government through increased tax revenue. Infrastructure Improvement o Enhanced Connectivity: Upgrading infrastructure in and around the harbourside may improve connectivity, making the area more accessible and facilitating smoother transportation of goods and people. o Active Travel: improved facilities promoting active travel will promote and help to improve health and wellbeing of residents and visitors, but foremost will make the area and its main assets inclusive and accessible removing barriers to access blue and green spaces. o Modern Facilities: Investing in modern facilities and amenities can attract businesses and residents, creating a vibrant and appealing environment. Cultural and Recreational Benefits o Community Spaces: Regeneration will provide spaces for community events, cultural activities, and recreational facilities, fostering a sense of community and enhancing the quality of life for residents. o Preservation of Heritage: The project will preserve and showcase the historical and cultural significance of the harbourside by restoring heritage assets and incorporating heritage interpretation, attracting visitors interested in the area's heritage. Environmental Sustainability 154
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82 Great Harbour | Coastal Hub | FBC o Green Initiatives: The project will incorporate environmentally sustainable practices, such as green spaces, energy efficient designs of new assets, contributing to the overall sustainability of the region and promoting the area as a sustainable destination. o Enhanced Biodiversity: By protection and improving of valuable natural habitats, the project will contribute to the conservation of local biodiversity, providing ecological benefits. Long-Term Investment o Attracting Investment: The project creates opportunities to attract private investment, demonstrating the potential for long-term returns and growth in the area. o Urban Renewal: The project will contribute to the overall urban renewal of the region, making it a more attractive place for businesses, residents, and investors. Public-Private Partnerships o Collaborative Development: Involving public-private partnerships can leverage the strengths of both sectors, leading to a more comprehensive and sustainable regeneration project. o Risk Mitigation: Shared responsibilities between the public and private sectors can help distribute risks and ensure the project's success. In summary, a Great Harbour regeneration project at Irvine Harbourside has the potential to create a thriving, economically vibrant, and sustainable community, making it a worthwhile investment for various stakeholders, including businesses, residents, and local governments. Consultation The Great Harbour project and Masterplan proposals build upon community engagement progressed during the Irvine Vision (2016) (Appendix Q) and the Irvine Harbourside Study (2017). Initial public consultation on the Great Harbour proposals took place over February and March 2022 and the feedback was then incorporated into the Masterplan proposals. The graphic below summarises the top priorities that emerged from the consultation in 2022 and how these were considered in the development of the Masterplan. Further public consultation on the Masterplan took place in March and April 2023. Similarly to the first phase of consultation, it followed a strategy based on the best practice process developed by NAC’s Communities Team and also incorporated ‘lessons learnt’ from the previous phase. A Stakeholder Reference Group (SRG) supported the shaping of the consultation methodology and verification of the consultation information material. The material and a survey were available online for the duration of the consultation and several drop-in events, walkarounds and direct presentations to stakeholder groups were also provided. The material was also displayed at Irvine Library and on the fencing opposite the Harbour Arts Centre with a QR code for direct access to the survey and paper survey forms made available at specific locations. The feedback has been incorporated into the Masterplan proposals and the Consultation Report. 155
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83 Great Harbour | Coastal Hub | FBC The majority of responses were supportive of all of the various proposals, recognising the opportunity for the regeneration of the Harbourside. There was overall support for improvements to the public realm and access along the Harbourside and for the proposed activity hubs. There was also overall support for the development of the Portland Road site, whilst there was a mix of views as to whether the Waterfront site should be developed for residential. Feedback suggested that there needs to be a clearer definition between what is being delivered through Ayrshire Growth Deal funding and what aspects will require other sources of funding. There was also a level of scepticism that all the projects could be delivered. In addition, the Council has received representation from NPL as landowner at Ardeer, concerned that Ardeer has not been included within the overall Masterplan and regarding the development of the waterfront housing site, which has now been removed from the proposals. The Masterplan was the subject of internal consultations with a range of Council services throughout its development, including Roads, Flooding, Streetscene, Waste, Planning, Regeneration, Tourism & Marine Tourism, Housing, Connected Communities, Property Management & Investment and Biodiversity. The final draft endorsed by the Cabinet and approved by the Planning Committee reflects the feedback received and is a framework for the development of the individual Great Harbour proposals. 2.8 Potential business scope and key service requirements The Great Harbour project along Irvine Harbourside is a key tourism led regeneration, placemaking and destination development project for Irvine and the wider Ayrshire Coast, which seeks to re-imagine and re-define what this area can be and create a new destination for the Ayrshire Coast that puts people first and reconnects them with the waterfront. It aims to enhance parks and greenspace, enhance local heritage and waterfront attractions, and create new ones, enable safe public access through the area for Figure 18 Great Harbour Masterplan consultation feedback summary 156
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84 Great Harbour | Coastal Hub | FBC residents and visitors, and provide improved access to the water for leisure and recreation. To support this ambition, a programme of events has been developed. The AGD investment will focus on the Maritime Mile. Starting at Irvine Railway Station, the aim is to make this a tourism destination stretching for a mile along Irvine’s Harbourside with a rich offer focusing on maritime, built and natural heritage, culture and arts, marine leisure and play. A series of riverside and coastal attractions will be created, accompanied by a great range of food and drink provision on the way – including a river-view restaurant at the new Maritime Heritage Hub, a potential coastal restaurant at the pierhead and a food court supporting seasonal pop-up provision at the restored Harbour Master’s Office. Three areas of activity/attraction within the Maritime Mile will be created to maximise the opportunity and experience for varied demographics: o Coastal Hub with a major new play facility at the Beach Park and improved outdoor facilities with longer-term plans for the landmark Pilot House and a café/restaurant facility; Figure 19 Coastal Hub concept design o Marine/Arts/Events Hub which will feature a new waterfront plaza helping to support events, improved access to marine facilities, and the redevelopment of the Harbour Master’s Office; o Maritime Heritage Hub which aims to create expanded facilities for the Scottish Maritime Museum. Figure 20 Maritime Mile and Marine, Arts and Events Hub - concept design 157
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85 Great Harbour | Coastal Hub | FBC Figure 21 Maritime Heritage Hub concept design It will be easily accessible, sustainable and safe. Irvine already has great rail links with Glasgow and Ayr. We’re working on improving public transport connectivity and want to limit vehicle traffic and parking along the harbourside to ensure a safe and enjoyable experience for visitors and residents and to encourage walking, wheeling and cycling. Visitor parking will be accessible off Beach Drive and Harbour Road. A 20mph zone and a raised riverside plaza mid-way is also proposed. We are also preparing an app showcasing all the points of interest and details of all the amenities along the way to help visitors in planning their visit and navigating the area. At the end of the Maritime Mile, we have our incredible five-milelong beach with its amazing views towards the west and stunning sunsets. We want to take advantage of this incredible natural setting and create something really special. 2.8.1 Detailed Great Harbour change outline This section describes the proposed scope for the Great Harbour project in relation to the above business needs and changes since submission of the OBC. Table 16 Great Harbour change outline FBC vs OBC changes Project element OBC FBC Justification SMM Gallery 1,200 – 1,400 m2 475 m2 • avoid need for Harbour Revision Order etc • reduce cost risk associated with high level of marine intervention • reduce maintenance liability • avoid development on land not in control of NAC/SMM • avoid complex construction on riverbed 3.5 story 1.5 story 2 galleries, storage, reception, kitchen upgrade 1 gallery, no storage, reception kitchen upgrade erected over extensive deck over the river land-based only building extensive deck for berthing heritage vessels dry dock for one/two heritage vessels £11-12m £5-6.5m (£1m AGD) 158
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86 Great Harbour | Coastal Hub | FBC Maritime Mile interventions into the river wall to create an unobstructed stepped access/ viewing at the Waterfront Plaza (HAC) reduced interventions in form of railed lookooteries/viewpoints • avoid H&S risk and liability • avoid cost of major interventions into the river wall • avoid need for relevant consenting improvements of access and connectivity from the Puffer’s Café to the Harbour Point geographical scope extended to include Montgomery St. and the train station underpass into access and connectivity improvements design • create unified design of public space from the train station to improve visitor experience while promoting active travel and public transport • utilise additional funding secured for access and traffic management improvements timber wharf excluded timber wharf included • provide cohesive design and extension of public space to accommodate active travel improvements • avoid H&S hazard and unpleasant fenced off area in front of the public space for undefined period of time affecting visitor experience new public pontoons excluded • avoid additional cost due to excessive inflation affecting marine infrastructure • avoid wider legal and harbour admin issues likely to affect timescales • avoid need for consenting process, like Harbour Revision Order not included introduced digital columns with a provision of CCTV, EV charging, wi-fi/network coverage • address public concerns of anti-social behaviour and improve monitoring and traffic and parking management • provide digital connectivity to support events and visitor experience not included Included Montgomery St connection and the public transport arrival point at the train station underpass • to facilitate new loop for NCN7 and active travel improvements connecting Harbourside and train station • appeal and wayfinding for public transport passengers Beach Pavilion market opportunity for private investment programmed after main AGD investment Work to date has considered redevelopment proposals to provide public amenities, 3rd sector community hub and a commercial restaurant • sustainable community/ commercial model responding to feedback and needs of the local community and business sector • revenue generation from 159
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87 Great Harbour | Coastal Hub | FBC space. Initial costs indicating additional funds of c. £2m/£2.5m required. commercial space for the maintenance and upkeep of the facility Future development opportunities Portland site - residential or commercial/leisure proposed for NAC/SLC/ private development no change supported by LDP2 and consultations Waterfront site – private residential development excluded • although supported by the LDP, though didn’t receive major support during consultations • low confidence in commercial viability Harbour Master’s Office restored and promoted for a commercial opportunity Harbour Master’s Office restored and promoted for leasing or commercial opportunity o legal issues complicating the disposal o strong community support to bring this heritage asset back in use o need to utilise allocated external funding not included gap site at 128 Harbour St – residential or commercial development o surplus to NAC requirement o interest expressed by private investors o revenue income Partnerships/ collaboration NPL Estates partner at OBC stage with MoU in place MoU expired and not extended o mutual understanding of the AGD vision lapsed o shared outcomes no longer achievable SMM assumed a partner to deliver SMM Gallery MoU signed in Feb 2024 defining the collaboration on development of the SMM Gallery project o shared vision for the GH project and commitment to deliver AGD outcomes and benefits o need for SMM to lead on the development with NAC support o need for SMM to raise funds in excess of £1m AGD allocation Crown Estate Scotland considered a potential funding partner Council wide MoU signed to define collaboration on various investments near or on land owned by CES o shared vision for the GH project and commitment to deliver AGD outcomes and benefits Sustrans considered a potential funding partner Sustrans awarded funding for initial design stages of Active Travel improvements confirmed interest in further the GH project and encouraged funding applications NLHF considered a potential funding partner NLHF confirmed as potential funding partner confirmed interest in the GH project at the Funders Showcase Event in 2023 and encouraged funding applications HES considered a potential funding partner HES confirmed as potential funding partner confirmed interest in the GH project at the Funders Showcase Event in 2023 and encouraged funding 160
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88 Great Harbour | Coastal Hub | FBC applications Considered through NPL partnership Scottish Land Trust confirmed as potential direct funding partner expressed interest in funding elements of play facilities and improvements to the Beach Park Creative Scotland considered a potential funding partner Creative Scotland confirmed as potential funding partner confirmed interest in the SMM Gallery project at the Funders Showcase Event in 2023 Museums Galleries Scotland considered a potential funding partner not confirmed didn’t attend the Funders Showcase Event but will be approached to explore interest in SMM Gallery project not considered Sport Scotland confirmed as funding partner expressed interest in funding elements of play facilities not considered NatureScot confirmed as supporting partner at the Funders Showcase Event in 2023 expressed commitment to support the GH project in their professional expertise and merit not considered Scottish Enterprise confirmed as supporting partner at the Funders Showcase Event in 2023 expressed commitment to support the GH project in their professional expertise and merit Visit Scotland considered a potential supporting partner Visit Scotland confirmed as supporting partner at the Funders Showcase Event in 2023 expressed commitment to support the GH project in their professional expertise and merit not considered Glasgow Caledonian University established as an informal partner collaboration on-going on destination development and promotion not considered Higher Education Panel (gathering researchers from several universities) established as an informal partner collaboration on-going on supporting the consultation process to engage underrepresented and hard to reach groups 2.8.2 Coastal Hub change outline The Coastal Hub also represents the geographical scope of the first phase of the development covered under this FBC. The relevant FBCs covering the remaining hubs will be submitted at later stages. The Coastal Hub, focusing on providing play and physical activity attraction within the Beach Park adjacent to the beach, offering to extend an informal play and outdoor activity into the ‘wellness hub’ of the wider green open space and the 5-mile-long beach. The hub will also provide better connectivity of the activity space with the Harbourside prioritising active travel over vehicle access considering increased number of families with young children, but also facilitating the new NCN7 loop connection. It will also celebrate the presence of the Pilot House, an important landmark for Irvine Harbourside and unique 161
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89 Great Harbour | Coastal Hub | FBC heritage asset by restoring it and making accessible for visitors with a new plaza setting. The potential for Pilot House to extend the maritime heritage offer of the Scottish Maritime Museum will be explored further at the later phases of the project, altogether with the potential comprehensive restoration of this unique heritage asset, subject to securing additional funding. The scope of physical works entails a comprehensive area upgrade including landscaping, road re- alignment, Pilot House repairs, construction of the play park and skatepark and potentially also a pump track and some additional improvements to the Beach Park to accommodate the events space infrastructure, improved picnic facilities and outdoor gym. Coastal hub will provide better access to the new activity area promoting play and physical activity, but also to the wider blue and green spaces promoting benefits for people wellbeing. The planning permission for the proposals was granted in January 2024 and full detail including all drawings are available to view at the planning portal13. Table 17 Coastal Hub change outline FBC vs OBC changes Project element OBC FBC Justification Play Park included Included and enhanced consultation feedback Skatepark not included included • Consultation feedback. Public expressed the wish to see the popular facility, previously removed due to wear and tear, to be reinstated. • Additional funding identified. Pump track not included Included in the design and to be separately costed in the tender returns but likely to require external funding. • Consultation feedback. • Gap on the market identified. • Additional funding identified. Green Gym not included included • Consultation feedback. • Additional funding identified. Picnic area upgrade considered Included and extended • Consultation feedback. • Additional funding identified. Events space considered without financial allocation Included comprehensive upgrade providing all necessary utilities. • Potential major income generator as evidenced in the past and most recently during successful Making Waves festival. • Proposal to create event space attractive for major event organisers including all necessary utilities. Digital infrastructure not included included • Consultation feedback highlighted concerns over anti-social behaviour within the area and the 13 24/00077/PP planning application 162
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90 Great Harbour | Coastal Hub | FBC need for increased surveillance and monitoring was identified. • The need for digital connectivity for the main events areas was identified to attract major event organisers. • Digital enhancement to tourism experience was highlighted as having potential to attract younger demographics, currently attracted only over limited times. • Additional funding secured to deliver digital infrastructure providing number of uses incl. AI based CCTV for traffic management and footwall tracking, environmental sensors, connectivity for visitors and event areas. NCN7 link not included included • Consultation feedback. • GH strategy focused on sustainable destination and active travel infrastructure. • Additional funding for design and feasibility secured. Traffic realignment Removal of roundabout Removal of roundabout and introduction of active travel infrastructure. Relocating HGV access to the events space away from pedestrianised areas around play activity. • Consultation feedback. • GH strategy focused on sustainable destination and active travel infrastructure. • Need for improved safety of play area users. • Better AT connectivity with the Harbourside encouraging wider area exploration. • Segregation of HGV access for events from play activity areas. Additional car park included Excluded but no impact expected due to the loss of this proposed car park. Strategic Environmental Assessment screening carried out for the GH Masterplan identified the risk of the new car park to the natural dune movement, which requires space to keep the line and perform as a flood defence. Pilot House Light clean included Full structural repair • Storm damage exposed 163
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91 Great Harbour | Coastal Hub | FBC structural issues requiring immediate attention. • Damage resulted directly from the storm was covered under insurance. Beach Pavilion Marketing included Redevelopment options considered for later phases. Estimated costs which are above the AGD allocation available towards this element of the Great Harbour project. The business case for the Beach Pavilion proposal requires further development including funding sources. • Identified major maintenance burden of a provision of public amenities required in the area due to predicted increased footfall. • The feasibility of a model of a shared community and commercial space is being carried out with a view of generating revenue for the upkeep of public amenities. Figure 22 Coastal Hub as proposed in OBC While the area of the main play park remains similar to the OBC proposals, the addition of the skatepark and potentially also a pump track (subject to additional external funding), will diversify the park's offerings and cater to a broader audience. The focus has also been placed on inclusive and accessible play and maximising the educational and developmental value of play, and providing a space where people of all abilities can engage in recreational activities. The skatepark and pump track target the youth demographic, fostering a vibrant and active community. Expanding play activities into the open green space of the Beach Park, complete with outdoor gym and picnic areas, further broadens the park's appeal and encourages longer visits for improved well-being. Responding to feedback from consultations, a nautical theme has been incorporated into the play facility to resonate with the local context. Drawing from Gaelic mythology, the concept of a Cìrein-Cròin, a sea serpent, enhances the educational aspect with a Gaelic interpretation. To create a fully immersive experience, all play facilities will be seamlessly integrated into the natural dune landscape by the landforms extending and enhancing biodiversity through carefully designed softworks and planting, including those attracting pollinators. This approach not only reduces costs associated with 164
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92 Great Harbour | Coastal Hub | FBC transporting and disposing of soil but also provides shelter from strong coastal winds, since the larger vegetation was not feasible for use in this location. Supporting these features with improved active travel infrastructure serves a dual purpose. Firstly, it promotes sustainable transportation, aligning with environmental goals. Secondly, it enhances connectivity between the harbourside and the Beach Park, encouraging visitors to explore the entire area seamlessly. With increased pedestrian traffic, traffic hierarchy is revised, removing the roundabout and discouraging follow on traffic to the Pierhead, while offering improved parking facilities at the Beach Drive carpark, which caters for motorhomes, horseboxes and busses/coaches with designated bays and drop-off points. The HGV access required for the events space has been separated from the main play activity area to ensure safety and efficient functionality. The OBC proposed a new car park behind the dunes to accommodate increased demand, with the current Beach Drive car park earmarked for waterfront residential development. However, feedback from consultations did not favour the waterfront development. Additionally, an environmental assessment conducted concerning the Great Harbour Masterplan highlighted the risk posed by the new car park to the natural movement of the dunes, which serve as both a buffer and flood defence. Taking all factors into account, the new car park was excluded from the plans, and efforts are focused on enhancing the capacity of the existing car park instead. The addition of the innovative digital infrastructure for improved monitoring and provision of digital uses like wi-fi and Augmenter Reality technology for enhanced AR experience proposed at later phase, will enhance visitor experience, but most importantly, it will provide the desirable function to the improved events space. Equipped with all necessary utilities, the events space has a potential to attract major events to the area providing revenue income to the Council and creating wider economic impact within the area. Figure 23 Coastal Hub as proposed in FBC 165
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93 Great Harbour | Coastal Hub | FBC 2.9 Main benefits criteria Table 18 Investment objectives Investment Objectives Great Harbour (original in OBC) New Investment Objectives for Coastal Hub Main Benefits Criteria by Stakeholder Group To unlock the economic potential within the Clyde Coast creating a regional destination at Irvine Harbourside that supports inclusive economic growth through an approach that focuses on Community Wealth Building Support local economic growth through developing a regional Coastal destination by constructing new high quality recreational assets Non-cash Releasing Benefits One-off construction sector impacts – GVA (Ayrshire businesses) Qualitative Benefits Preservation of listed pilot house (Ayrshire residents) Priming of pilot house for future community/commercial use (North Ayrshire Council) To secure area wide regeneration based on developing the special qualities of place alongside community participation within a place-based regeneration framework, building on the legacy on the Irvine Development Corporation Support regeneration of the wider area across the entirely of Irvine Harbourside linking to the redevelopment of Maritime Mile and national Maritime Museum Qualitative Benefits Pride of place (Ayrshire residents) Supporting ongoing investment in the harbourside (North Ayrshire Council) Supporting future leveraged private investment (North Ayrshire Council) Links with active travel routes to train station (Ayrshire residents) Contributing to more and longer visits (Ayrshire businesses) Improved cultural heritage offer and opportunities for engagement and learning experiences (Ayrshire Residents) Decontamination of public land (North Ayrshire Council) Carbon Benefits Carbon reduction impact of increase plant life (North Ayrshire Council) To address place infrastructure deficiencies that constrain investment developing the enabling infrastructure to address market failure created by commercial values that restrict private sector investment. Showcasing the potential through a high-quality approach to destination development Build the required enabling infrastructure to make the area more attractive to private sector investment. Non-cash Releasing Benefits Leveraged investment in private housing development resulting in one-off housing construction impacts, one-off home furnishing impacts and ongoing household spend impacts – GVA (North Ayrshire businesses) Qualitative Benefits Enhanced reputation for Ayrshire as a good place to do business (North Ayrshire Council) Prime the harbourside location future investment in marine 166
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94 Great Harbour | Coastal Hub | FBC leisure, hospitality businesses (North Ayrshire Council) To lock in at a local level, the benefits of economic development to ensure Ayrshire communities are actively engaged and supported through enterprise support, skills development, training, community enterprise supporting inclusive growth and community wealth building Deliver local health and wellbeing benefits through providing recreational opportunities for all ages and increasing quality and use of public realm spaces Non-cash Releasing Benefits Health benefits resulting from play park use (Ayrshire residents) Health benefits resulting from Skatepark and pump track use (Ayrshire residents) Health benefits resulting from Outdoor gym use (Ayrshire residents) Wellbeing impact from community use of events space (Ayrshire residents) Qualitative Benefits Diversion of car traffic away from park, increasing user safety (Ayrshire residents) To enhance an existing Ayrshire coastal location celebrating a nationally significant approach to place quality and building a destination around a Maritime Quarter/ Maritime Mile / National Maritime Museum /creating a new profile, footfall, and spend to the town supporting wide Marine Tourism objectives Increase visitors to Irvine and the Ayrshire regional by developing a regional visitor destination underpinned by recreational opportunities and a fit for purpose events space. Non-cash Releasing Benefits Increased activity in the Ayrshire visitor economy – GVA (Ayrshire businesses) Wellbeing impact from attendance at cultural events (Ayrshire residents) Wellbeing impact from attendance at sporting events (Ayrshire residents) Cash Releasing Benefits Income earned through fees/rents charged for commercial use of events space (North Ayrshire Council) Qualitative Benefits Increase in the quality of events that can be hosted (North Ayrshire Council) 2.10 Main risks Potential risks, such as construction delays or community resistance, are identified and accompanied by mitigation strategies. A risk assessment framework is established, emphasising the importance of adaptability and effective communication throughout the project lifecycle. The main business and service risks (design, build and operational over the lifespan of the scheme) associated with the scope for this project are shown below, together with their counter measures. The Great Harbour Risk Register (Appendix H) is an essential component of project management, especially in the context of a development project following the Green Book process focused on public sector investment appraisals. The risk register is a live document undergoing regular revisions and 167
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95 Great Harbour | Coastal Hub | FBC updates to identify, assess, and manage potential risks that could impact the successful delivery of the project and reflects the most current stage of the project. The first phase of the Great Harbour project, the Coastal Hub is regularly analysed against the identified risks at few different levels. The high-level project management team risks are included in the Great Harbour Risk Register while more detailed risk information is monitored through the Coastal Hub Project Risk Register and Coastal Hub Design Risk Register, both also provided in Appendix H . The main risks for the Coastal Hub project can be summarised in the table below. Table 19 Coastal Hub Main Risks Key Risk Mitigation Tender returns are higher than the available budget. Cost reports prepared at each design stage to monitor budget. The agreed budget does not meet client requirements / expectations. Potential delays to approvals/ progress. Available budget meets project requirements so far. Value engineering may be required following tender returns. The project does not achieve full NAC support, leading to potential delays to approvals / progress. Project has been subject to Gateway stages and NAC internal consultation. Programme has been amended to undertake Coastal Hub as Phase 1 following stakeholder feedback. The Great Harbour Masterplan has been approved by Cabinet and Planning Committee. The project does not secure AGD support, leading to potential delays to approvals / progress. The project’s Outline Business Case has been approved with subsequent changes evidenced. The programme deadline is not achieved – the play park completion in May 2025 is missed due to delays. So far, the Programme is on target, subject to tender award by 6 September 2024 There are delays to the project on site due to weather conditions. The project manager will work with the appointed contractor to sequence the works to help mitigate this risk. The project fails to meet public expectations. The public have supported upgrades to the Beach Park area as a priority. 2.11 Constraints The potential project constraints are linked to technical, consenting and licencing issues relating to the works associated with the quays, marine works and environmental issues. These are substantially mitigated by the fact that development is within the area under control of North Ayrshire Council. The site has no environmental designations but sits opposite a SSSI designated by Scottish Natural Heritage. The main constraints relate to: o Budgetary Constraints Limited financial resources put under pressure due to port-pandemic economic challenges and related inflation affected the scope and scale of the proposed works. The allocated budget had to be scrutinised and proposals reviewed to prioritise the elements based on deliverability and benefits. The need to secure additional funding increased and a strategy was established to identify and apply for potential funding, both internally and externally. This has been incorporated into the project development process to allow for alignment with funding timescales and requirements on the level of detail of the proposals. o Time Constraints 168
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96 Great Harbour | Coastal Hub | FBC Time pressures relating to the applications to external funding partners has an impact on the project programming as they require to be incorporated in sequencing work. o Regulatory and Permitting Constraints Obtaining necessary approvals, permits, and adhering to regulatory requirements can be time-consuming and may impose constraints on the project schedule. Since the post-OBC change in collaboration commitment from the NPL Estates, currently the Irvine Harbour Authority, the dependency related to the marine consenting, like Harbour Revision Order cannot be considered managed through the collaboration or partnership expressing shared vision. The consenting relating to the powers delegated to the Council are managed through the early engagement with relevant Council department and regular updating responding to feedback. This approach significantly shortens the approval process and ensures the favourable outcome. o Community Opposition Resistance or opposition from local communities can pose a significant constraint. Community concerns about changes to the environment, displacement, or disruptions can impact the project's social license to operate. Community based partnerships have been successfully developed gaining significant support for the proposals and improved confidence in delivery of the improvements. This was achieved through facilitating intensive engagement and creating platform to disseminate detailed information about the proposals and their wider impact within the area. o Environmental Constraints The environmental and ecological impact was investigated in more detail as the works relating to phase 1 were being developed and informed detailed proposals, which were amended to mitigate the negative impact where it was possible. In addition the construction process was adjusted to accommodate the conditions imposed by the findings. o Land Ownership and Acquisition Majority of the land within the project site is in NAC’s ownership and in the case of the phase 1, this is all land. There are however elements of the proposals located outwith NAC ownership Council’s Legal Team investigates the complexities to provide advice on action. Some land lays within Common Good and the statutory process will be required to approve the disposition. Other areas of interventions relate to the land in Crown Estate Scotland ownership, and NAC has recently renewed an MoU with CES to ensure collaboration in such instances for the benefit of the area and marine infrastructure. o Infrastructure Dependencies Dependencies on existing infrastructure, such as utility networks, transportation systems, or communication lines, can constrain the planning and execution of regeneration projects. The approach taken is to incorporate the adequate level and detail of site investigations in identified areas of potential risk during detailed design stages to reduce the risk at later construction stages, as these attract higher cost from the contractor. o Political and Policy Changes Shifts in political administrations has occurred during the development works, however the support for the project remained unchallenged. The GH Masterplan has been endorsed by the Cabinet in Dec 2023 and then approved by the Planning Committee in March 2024 providing a framework for the developments, both the ones funded by AGD investment and the future development opportunities. o Technical Challenges Unforeseen technical difficulties or challenges, such as geological issues, unstable soil conditions, or unexpected site conditions, can impact project timelines and costs. These will be managed through the 169
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97 Great Harbour | Coastal Hub | FBC application of the NEC4 contract model, which facilitates collaboration between all parties of the civils works and promotes early warning mechanism to allow for early mitigation. o Material Availability Shortages or fluctuations in the availability of construction materials can affect the project, leading to delays or increased costs. o Stakeholder Management Challenges in managing diverse stakeholders, including residents, businesses, and government entities, can constrain the project. Balancing conflicting interests and expectations is crucial. Stakeholder strategy developed for the project identifies the main area stakeholders and provides the adequate communication means. Internal stakeholders, namely Council officers with responsibilities within the project area or relating to the type of works proposed (incl. consenting) are engaged at early stages of development and updated regularly to ensure approval of the final proposals. o Economic Conditions Economic downturns or fluctuations in the real estate market can impact the financial viability and funding availability for these elements of the Great Harbour project relating to construction of the new premises. o Heritage and Preservation Constraints The need to preserve historical or cultural heritage can impose constraints on the types of changes that can be made, and these need to be considered carefully. o Risk Management Uncertainties and unforeseen risks, such as natural disasters, economic crises, or global events, can constrain the project's success and require robust risk management strategies. Effectively navigating these constraints requires thorough planning, risk assessment, stakeholder engagement, and adaptive project management strategies. We are adhering to addressing these challenges proactively to minimise any potential disruption and elevation of associated risks. 2.12 Dependencies Similarly to constraints, the potential project dependencies are linked to technical, consenting and licencing issues associated with the works but also to partnerships and collaborations, while the major dependency relates to the available budget, including successfully secured additional to AGD resources. The main dependencies are listed below: o consents and licencing o stakeholder engagement and partnership working with local groups/communities o concluding development agreement with project partners o availability of the additional external funding for delivery of some elements of the proposals o availability of the skilled and experienced consultants and contractors in relation to marine works o conditions of development and works related to the environmental impact. Following the OBC approval, the partnership arrangements relating to the Great Harbour project and its individual elements have been reevaluated mainly on the basis of financial commitment or real prospect of attracting financial contribution, wider community benefits and CWB. Subsequently the collaboration commitment from the NPL Estates has expired, while in case of SMM and CES has been reiterated. Additional partnership has been established with Sustrans and further potential expressed from other potential funders, including National Lottery, HES, Land Trust Fund, Sports Scotland. 170
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98 Great Harbour | Coastal Hub | FBC In addition, community-based partnerships have been successfully developed gaining significant support for the proposals and improved confidence in delivery of the improvements. This was achieved through facilitating intensive engagement and creating platform to disseminate detailed information about the proposals and their wider impact within the area. NAC is also collaborating with a few higher education institutions, mainly in areas of destination development, events and consultations. Following the post-pandemic economic challenges and related inflation, the allocated budget had to be scrutinised and proposals reviewed to prioritise the elements based on deliverability and benefits. The need to secure additional funding increased and a strategy was established to identify and apply for potential funding, both internally and externally. This has been incorporated into the project development process to allow for alignment with funding timescales and requirements on the level of details of proposals. The environmental and ecological impact was investigated in more detail as the works relating to phase 1 were developed and informed detailed proposals, which were amended to mitigate the negative impact where it was possible. In addition, the construction process was considered to accommodate the conditions imposed by the findings. 171
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99 Great Harbour | Coastal Hub | FBC 3. The Economic Case 3.1 Introduction Driving growth and securing additional economic activity and national, regional and local value, supports the regeneration of Irvine developing a destination with impact across Ayrshire and the wider Clyde. Following the approved OBC, North Ayrshire Council has explored further the opportunity to make a strategic contribution to national and regional economic performance and goals and to develop a new sense of place-based tourism and maritime heritage on its coast and as a key destination within the wider tourism offer (e.g. AGD Marine Tourism projects, North Ayrshire Coastal Path, the Coig routes). Adding value and developing the regional economy requires: o identification of new economic activity to support and facilitate the growth of existing businesses and support regeneration; o new place-based innovation supporting diversification of the economy; strengthening neighbourhoods and communities and building on the distinctiveness of place; and o investing in the enabling infrastructure to create additional capacity that can support sustainable economic activity and drive additional value (local, regional, national). NAC through the Growth Deal and with Ayrshire and Community Planning partners is advancing a series of transformational initiatives to ensure growth and enable economic re-structuring. These include business space, employment initiatives, digital initiatives, skills development and place-making. A Regional Skills Investment Plan for Ayrshire will be developed in the context of the Ayrshire Regional Economic Development Strategy which will take account of the long-term economic growth aspirations of the AGD. 3.2 Critical success factors In addition to the investment objectives set out in Section 2, several factors have been identified which are critical for the success delivery of the project, and therefore relevant in judging the relative desirability of the options. The partners considered the possible critical success factors (CSFs) suggested in the five-case model guidance and selected the CSFs that were most relevant to this project. The project’s critical success factors are presented in Table 20. Table 20 Critical success factors CSF Specific Measurable Achievable Relevant Time Bound Strategic Fit and Meets Business Needs The project will contribute to relevant national, regional and local economic development and skills policy priorities: Community Wealth Building Programme; Scottish Government Economic Strategy; Ayrshire Regional Economic Strategy; and Measurable through interim and ex-post evaluation The project been developed with input from key strategic partners and builds on the strategic case outlined in the Ayrshire Growth Deal (ADG) Heads of Terms. The project is addressing relevant national and regional policy priorities and an identified market opportunity in a growing and regionally significant sector – informed by market research, consultation and engagement with relevant local groups and communities, public The strategic fit and contribution will be clearly defined within the Strategic Case at project inception and as part of the ex-post evaluation, 2035 172
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100 Great Harbour | Coastal Hub | FBC Scottish Marine Tourism Strategy sector bodies and partners. Value for Money The project's preferred way forward/option is forecast to generate a positive Net Present Benefit of £49.9m. The options analysis sets out the anticipated returns based on HM Treasury Green Book recommended approaches to measurement - Cost Benefit Analysis (CBA). This will form part of the ongoing monitoring and reporting Based on project performance which has been informed by the forecast level of visitors, and end-users and expected level of leveraged private investment. Independent CBA that measures the impacts of the direct and follow-on activity based on HM Treasury guidance Targets to be achieved by 2035 Partner capacity and capability The project will be led by North Ayrshire Council (NAC) Measurable through ex- post evaluation NAC will utilise existing procurement, delivery, and management structures. The Management Case of this FBC presents an overview of how the project will be delivered. NAC has significant experience of delivering similar projects through its expertise across several partnership projects led by the Regeneration and PMI teams, like Millport CARS, Lochshore Park Hub. The project will be managed by a team consisting of Senior Responsible Officer, Programme Manager, Finance Manager, Senior Manager, and Project Manager Affordabili ty Delivery of the project within the requested AGD capital funding of £4.452m and an additional funding of £0.505m from potential partners. Through ongoing monitoring and financial appraisal Based on experience and discussion/agreement with partners on the capital costs, input costs for delivering service and costs of external consultants and generating a “successful” intervention Financial data will be reviewed and scrutinised by NAC as part of the due diligence assessment Project costs agreed at the outset and all AGD capital funding committed/spent by 2026 (end of the capital phase) Achievabil ity The project delivers against all targets (e.g. spend, timescales, impacts/benefits etc.) as outlined in the Investment Objectives Measured through ongoing monitoring and project expenditure data The activity proposed to be delivered through the ‘Coastal Hub” project was initially defined within the overall Great Harbour OBC and has since been refined through a series of public engagement and internal reviews with the project now guided by a Great Harbour Masterplan. This has been informed by consultation with key partners The project will be started by 2024 and complete by 2035 (completion of the last leveraged housing unit) 3.3 The long-listed options The approved Great Harbour OBC contained no formal appraisal of long list options for the Great Harbour Project. The scope and long-list / short-list options were developed with a strong spatial and regeneration focus, based on Irvine Harbourside, community and neighbourhood growth and inclusive, Community Wealth Building and partnership working. Early-stage Great Harbour proposals were developed by the project team in collaboration with Council Services, area stakeholders and the community to ensure local priorities were met. 173
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101 Great Harbour | Coastal Hub | FBC The Great Harbour proposals are closely aligned with the Local Development Plan and National Planning Framework and build upon community engagement progressed during the Irvine Vision (2016), Irvine Harbourside Study (2017) and utilising the previous work of Irvine Bay Urban Regeneration Company (IBURC), which identified local opportunities and assets. To help explain the rationale and methodology for the preferred way forward at OBC stage an assessment has been set out in the table below to provide further detail on consideration of a long list of options against the investment objectives. At the time of preparing the OBC, the critical success factors focussed on key deliverables related to direct AGD investment, indirect partner investment and future leverage investment. The option does not meet the criteria scores 0. The option partially meets the criteria scores 2 and the option satisfies the criteria scores 3. Table 21 Great Harbour long list options assessment Options: Option 1: Do nothing / business as usual. Option 2: Deliver coastal tourism priorities at other Ayrshire locations. Option 3: Deliver coastal tourism priorities at other North Ayrshire locations. Option 4: Deliver coastal tourism priorities at Irvine Harbourside. Investment Objectives 1. Unlock the economic growth potential & secure community wealth 0 0 0 3 2. Secure area wide regeneration 0 0 0 3 3. Address place infrastructure deficiencies 0 2 2 3 4. Spread the benefits of economic development by inclusive growth & community wealth building 0 2 2 3 5. Enhance an existing Ayrshire coastal destination 0 2 2 3 OBC Critical Success Factors – key deliverables Direct AGD Investment: • new waterfront destination • quays and waterfront boardwalk with marine access • slipway and active leisure marine access point • provision for play / leisure • town to waterfront gateways • site infrastructure • Coastal Path connections • community enterprise support programme 0 0 0 3 Indirect Partner Investment: • affordable homes (71 no.) • open market waterfront homes • a care and older people / special needs facility • enterprise and arts retail workshop facilities 0 2 2 3 Future Leverage Investment: •re-purposing of the Big Idea •hotel and related leisure / small conference / hospitality services •existing business investment for growth 0 2 2 3 Summary of reasons for discounting or carrying forward. Without AGD funding, there would be insufficient return/ rationale for the private sector to deliver the project, high levels of economic and social deprivation and There are no other credible alternative localities or destinations in Ayrshire that could provide the same scale of marine, land or transport infrastructure and that There are no other credible alternative localities or destinations in North Ayrshire that could provide the same scale of marine, land or transport North Ayrshire continues to experience challenges of deprivation and economic exclusion resulting that from long- term changes to its industrial base and industrial re-structuring. 174
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102 Great Harbour | Coastal Hub | FBC dereliction within the area would continue. Scot. Govt. economic policy prioritises investing in people, place, infrastructure assets and promoting inclusive growth. could be regenerated, to provide a similar boost to coastal tourism. infrastructure and that could be regenerated, to provide a similar boost to coastal tourism. The situation in Irvine and Harbourside is even more pronounced with over three-quarters of all data zones ranked in the bottom 15%. Summary 0 10 10 24 Outcome Carry forward. Discounted option. Discounted option. Carry forward. Detailed outcomes of options assessment Option 1 - Do nothing / business as usual. 1. Misalignment with Scottish Government Policy: • Policy Contradiction: Option 1 contradicts the Scottish Government's focus on investing in people, places, infrastructure, and promoting inclusive growth. Choosing to "do nothing" would undermine these priorities and weaken the alignment with national economic objectives. • Missed Inclusive Growth Opportunities: The status quo would perpetuate economic and social inequalities, failing to deliver the inclusive growth that is central to government policy. 2. Continuation of Economic and Social Deprivation: • Persistent Deprivation: Without intervention, economic and social deprivation will persist, exacerbating issues such as unemployment, poverty, and poor living conditions in the area. • Negative Social Outcomes: Ongoing deprivation could lead to worsening health, lower educational outcomes, and higher crime rates, increasing the burden on public services and social costs. 3. Insufficient Private Sector Incentive: • Lack of Viability: Without AGD funding, the project lacks sufficient return for private investors, making it economically unviable and leading to continued underinvestment. • Market Failure: The absence of public intervention would exacerbate market failure, where private sector investment alone cannot address the socio-economic needs of the area. 4. Missed Infrastructure and Development Opportunities: • Infrastructure Decay: Continuing with the status quo risks further deterioration of infrastructure, reducing the area’s attractiveness for businesses and residents. • Lost Economic Growth: The lack of investment means missing out on potential economic growth, job creation, and improved living standards. 5. Negative Impact on Public Perception and Investor Confidence: • Erosion of Public Trust: Inaction could lead to public perception of neglect, eroding trust in government and reducing community support for future initiatives. • Deterrent to Investment: A lack of government action may signal that the area is not a priority, deterring future private investment and deepening economic challenges. 6. Opportunity Cost of Inaction: • Forgone Benefits: Doing nothing results in missed economic and social benefits, such as job creation, better infrastructure, and increased economic activity. 175
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103 Great Harbour | Coastal Hub | FBC • Long-Term Decline: Inaction could lead to a downward economic spiral, making future recovery more difficult and costly. Conclusion: Option 1, "Do Nothing/ business-as-usual," is not a viable option. It fails to align with Scottish Government priorities, perpetuates deprivation, and lacks the necessary incentives for private investment. The long-term consequences, including infrastructure decay and missed growth opportunities, far outweigh any short-term savings. Therefore, this option should be discounted in favour of proactive approaches that support sustainable, inclusive economic growth. Note: While this option is discounted as a viable option, it has been carried forward for appraisal as the business-as-usual case for comparison purposes. Option 2 - Deliver coastal tourism priorities at other Ayrshire locations 1. Lack of Suitable Alternative Locations: • No Comparable Sites: There are no other locations in Ayrshire that offer the same scale of marine, land, or transport infrastructure as the proposed site. Other areas lack the necessary facilities and potential for regeneration to deliver a comparable impact on coastal tourism. • Inadequate Infrastructure: Alternative sites would require significant investment to develop the infrastructure needed, making them less feasible and less cost-effective. 2. Reduced Potential for Economic Impact: • Lower Tourism Potential: Other locations are unlikely to attract the same level of tourist interest or provide the same economic benefits due to their smaller scale and less developed infrastructure. • Limited Regeneration Opportunities: The chosen site offers unique regeneration opportunities that other locations cannot match. Focusing on less suitable areas would result in a lower return on investment and diminished economic impact. 3. Failure to Maximise Coastal Tourism Growth: • Missed Growth Opportunities: Choosing an alternative location would mean missing out on the full potential for coastal tourism growth that the proposed site can deliver. The unique attributes of the selected site cannot be replicated elsewhere in Ayrshire. • Suboptimal Use of Resources: Redirecting efforts to less suitable locations would not optimise the use of resources, leading to subpar outcomes in terms of tourism development and economic growth. 4. Strategic Misalignment: • Inconsistent with Strategic Aims: The proposal to focus on another location does not align with the strategic aims of maximising tourism potential and economic regeneration. The selected site has been identified as the most suitable for delivering these goals, and diverting attention elsewhere would dilute the effectiveness of the strategy. • Loss of Competitive Advantage: The chosen site offers a competitive advantage in attracting visitors and investors. Shifting focus to a less suitable location would reduce Ayrshire’s appeal as a premier coastal tourism destination. 5. Higher Risk of Project Failure: 176
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104 Great Harbour | Coastal Hub | FBC • Increased Risk: Developing coastal tourism in less suitable locations increases the risk of project underperformance or failure, due to the lack of necessary infrastructure and lower tourist appeal. • Uncertain Outcomes: The uncertainty associated with developing alternative sites makes this option riskier, with potentially lower economic returns and greater challenges in achieving project objectives. Conclusion: Option 2, "Deliver Coastal Tourism Priorities at Other Ayrshire Locations," is not a viable alternative. Other locations in Ayrshire do not offer the same scale of infrastructure or potential for regeneration, resulting in reduced economic impact and higher risks. The selected site is uniquely positioned to maximise coastal tourism growth, and shifting focus to less suitable areas would undermine the strategic goals of the project. Therefore, this option should be discounted in favour of focusing on the most suitable location that can deliver the intended economic and tourism benefits. Option 3: Deliver coastal tourism priorities at other North Ayrshire locations 1. Lack of Suitable Alternative Locations: • No Comparable Sites: There are no other locations in North Ayrshire that offer the same scale of marine, land, or transport infrastructure as the proposed site. Other areas lack the necessary facilities and potential for regeneration to achieve a similar boost in coastal tourism. • Inadequate Infrastructure: Alternative locations would require substantial investment to develop the necessary infrastructure, making them less feasible and more costly. 2. Reduced Potential for Economic Impact: • Lower Tourism Appeal: Other locations in North Ayrshire are unlikely to attract the same level of tourist interest or provide equivalent economic benefits due to their smaller scale and less developed infrastructure. • Limited Regeneration Potential: The proposed site offers unique opportunities for regeneration that other locations cannot match. Focusing on less suitable areas would result in a lower return on investment and diminished economic impact. 3. Failure to Maximise Coastal Tourism Growth: • Missed Growth Opportunities: Opting for another location would mean missing out on the full potential for coastal tourism growth that the proposed site offers. The unique attributes of the selected site cannot be replicated elsewhere in North Ayrshire. • Suboptimal Resource Use: Redirecting efforts to less suitable locations would not optimise resource allocation, leading to subpar outcomes in tourism development and economic growth. 4. Strategic Misalignment: • Inconsistency with Strategic Goals: The option to focus on another location does not align with the strategic objectives of maximising tourism potential and driving economic regeneration. The proposed site has been identified as the most suitable for achieving these goals, and diverting resources elsewhere would weaken the overall strategy. • Loss of Competitive Edge: The selected site offers a competitive advantage in attracting visitors and investment. Shifting focus to a less suitable location would reduce North Ayrshire’s appeal as a leading coastal tourism destination. 5. Higher Risk of Project Underperformance: 177
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105 Great Harbour | Coastal Hub | FBC • Increased Risk: Developing coastal tourism in less suitable locations increases the risk of project underperformance or failure, due to the lack of necessary infrastructure and lower tourist appeal. • Uncertain Outcomes: The uncertainty associated with developing alternative sites makes this option riskier, with potentially lower economic returns and greater challenges in achieving project objectives. Conclusion: Option 3, "Deliver Coastal Tourism Priorities at Other North Ayrshire Locations," is not a viable alternative. Other locations in North Ayrshire do not offer the same scale of infrastructure or potential for regeneration, leading to reduced economic impact and higher risks. The selected site is uniquely positioned to maximise coastal tourism growth, and shifting focus to less suitable areas would undermine the strategic goals of the project. Therefore, this option should be discounted in favour of concentrating efforts on the most suitable location to deliver the intended economic and tourism benefits. Option 4: Deliver coastal tourism priorities at Irvine Harbourside (Coastal Hub) 1. Addressing Severe Deprivation: • High Levels of Deprivation: Irvine Harbourside is significantly affected by deprivation, with over three-quarters of its data zones ranked in the bottom 15% for economic and social indicators. This makes it a critical area for targeted investment to address long-standing issues of poverty and economic exclusion. • Targeted Regeneration: Focusing on Irvine Harbourside aligns with the need to tackle deprivation head-on. Investment in coastal tourism here could serve as a catalyst for broader regeneration, improving living standards and economic opportunities for the local community. 2. Revitalising an Area Affected by Industrial Decline: • Legacy of Industrial Restructuring: North Ayrshire, particularly Irvine, has faced significant challenges due to the decline of traditional industries and subsequent restructuring. This has led to long-term economic challenges, including high unemployment and limited economic diversification. • Opportunity for Economic Renewal: By prioritising coastal tourism development at Irvine Harbourside, the area could transition from its industrial past to a vibrant tourism hub, creating new jobs and stimulating economic growth. This would help mitigate the adverse effects of industrial decline and support the local economy's recovery. 3. Maximising the Potential of Existing Infrastructure: • Strategic Location: Irvine Harbourside benefits from existing infrastructure that can be leveraged to support coastal tourism development. This includes marine facilities, transport links, and historical assets that make it an attractive destination for tourists. • Cost-Effective Development: Utilising and enhancing existing infrastructure at Irvine Harbourside present a cost-effective approach to development, reducing the need for extensive new investments while maximising the potential of the area. 4. Aligning with Strategic Economic Goals: • Supporting Inclusive Growth: Developing coastal tourism at Irvine Harbourside aligns with broader strategic goals of promoting inclusive growth. This initiative would help ensure that the benefits of economic development are felt across the community, particularly in a high- deprivation area. 178
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106 Great Harbour | Coastal Hub | FBC • Boosting Regional Competitiveness: Investing in Irvine Harbourside would enhance North Ayrshire’s competitiveness as a coastal tourism destination, attracting visitors, businesses, and investment to the region. 5. Significant Potential for Social and Economic Impact: • Job Creation and Economic Opportunities: Coastal tourism development at Irvine Harbourside is likely to generate significant employment opportunities, particularly in sectors such as hospitality, retail, and leisure. This could help reduce unemployment and underemployment in the area. • Improving Quality of Life: Beyond economic benefits, regenerating Irvine Harbourside would improve the overall quality of life for residents by revitalising the area, enhancing public spaces, and providing new amenities. Conclusion: Option 4, "Deliver Coastal Tourism Priorities at Irvine Harbourside," is a compelling choice that addresses the severe deprivation and economic challenges faced by the area. By focusing on Irvine Harbourside, the project aligns with strategic goals of inclusive growth and economic renewal, while leveraging existing infrastructure to create a cost-effective and impactful development. The potential for significant social and economic benefits, including job creation and community revitalisation, makes this option well- suited to deliver lasting improvements for North Ayrshire. Therefore, Option 4 referred to as the Coastal Hub, should be carried forward as the preferred option in the economic business case.T Preferred way forward The preferred way forward at OBC stage was to develop a Proof of Concept to a comprehensive Masterplan, providing a framework for development opportunities, identifying the best areas for AGD catalyst investment, de-risking and providing design guidance for private investment opportunities. This has been advanced through specialist analysis and stakeholder engagement. The Great Harbour Masterplan was endorsed by North Ayrshire Council’s Cabinet in December 2023 and approved by Planning Committee in April 2024 as a material consideration in the determination of future planning applications. It is now a framework to guide future investment and define the quality and character of future changes to the area, providing increased confidence on the programme of development taking place through the Ayrshire Growth Deal and beyond. The Business-as-Usual Option is carried forward to establish the baseline benefits and costs associated with the counterfactual and to enable the calculation of Net Additional benefits and costs. 3.4 Short-listed options The short-listed options shown within the approved OBC relate to the overall Great Harbour project and are detailed below. The short-list options have been developed with a strong spatial and regeneration focus based on Harbourside, community and neighbourhood inclusive growth, Community Wealth Building and partnership working. The short-listed options consider proposals for the scope of activity to be delivered, the level of investment likely to be required and timescales for delivery. The 4 shortlisted options are presented below: 179
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107 Great Harbour | Coastal Hub | FBC Table 22 Options appraisal Options 1 Do Nothing Options 2 Core Site Physical Enhancement Harbourside Options 3 Promoting a Regeneration Partnership for Harbourside Options 4 Extended Regeneration Partnership: Harbourside- Ardeer Scope: Existing Provision • Limited local investments associated with property and local commercial activity • Negates partnership arrangement with NPL. Scope: Place Enhancement • Maritime Mile – Place Quality • Support for Enterprise • Investment Platforms • Animation / Events • Community Outcomes Scope: Destination Development • Maritime Mile – Place Quality • Waterfront Village • SMM & Arts Cultural Offer • Investment Platforms • Housing (Private/Social) • Community Regen / CWB & Outcomes • Marine Hub for Clyde & Connections to Coig Scope: Ardeer Unlocking Regional Growth • Ardeer Access • Big Idea – Resort Village • Maritime Mile • Resort Village • Investment Platforms • Housing • Community Outcomes Investment Level: AGD-NAC: £0 Partnership Funding: £0 Leverage: £0 Investment Level: AGD-NAC: £10+million Partnership Funding: £0 Leverage: £16-18million Investment Level: AGD-NAC: £14million Other Funding: £2million Leverage: £85-100million Investment Level: AGD-NAC: £14+million Other Funding: £10million Leverage: £100-140million Delivery Timescale: AGD Funded Elements Leverage Elements Delivery Timescale: 2022-2023 2023-2030 Delivery Timescale: 2022-2025 2020-2035 Delivery Timescale: 2022-2028 2020-2040 The OBC’s assessment of the short-listed options was based on a quantitative scoring exercise led by project board members and the project team. Each short-listed option was assessed and scored against the following evaluation criteria: • Economic performance • Assessment of expected impacts and benefits • Assessment of project risk Assessment and scoring were assisted by input from the Great Harbour Board, Scottish Government, Scottish Enterprise, Visit Scotland and consultation with private, community and 3rd sector partners and stakeholders. through the NAC Tourism Industry work and further informed by Proof-of-Concept studies undertaken by the Moffat Centre. Project board members together with the project team and key stakeholders over a series of facilitated workshops evaluated and scored the primary options. Each option as scored on a scale of 1 to 5 with 5 representing the highest possible score. Individual scores were then summed to select the preferred option based on the highest overall score. The summary result is tabulated below: 180
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108 Great Harbour | Coastal Hub | FBC Table 23 Short list option assessment Evaluation Results Options 1 Options 2 Options 3 Options 4 (scored 1-5 with 5 best) Do Nothing Core Site Physical Enhancement Promoting a Regeneration Extended Regeneration Harbourside Partnership for Partnership: Harbourside Harbourside-Ardeer Economic appraisals 2 1 4 4 Impacts/ Benefits 2 2 4 4 Risk appraisal 4 2 2 1 Overall Score 8 5 10 9 Option Ranking 3 4 1 2 Option Selection Retained for comparison Rejected Recommended Rejected 3.4.1 Preferred option The assessment concludes that the Regeneration Partnership approach as outlined in Option 3 is the preferred way forward and will undergo a detailed and rigorous economic appraisal. Note that Option 1, the do-nothing option has been retained for comparison purposes as it represents the business-as-usual option which enables the calculation of net additional benefits. 3.4.2 Preferred option development Since the approval of the Great Harbour OBC, the preferred option underwent thorough examination and refinement during the development of the Masterplan and FBC. This has resulted in an agreed-upon phased approach to procurement and delivery. The changes to the scope of the Great Harbour proposals are described under section 2.8. including justification for change. The first phase of the Great Harbour project will deliver the Coastal Hub, focusing on providing play and physical activity within the Beach Park adjacent to the beach, extending an informal play and outdoor activity into the ‘wellness hub’ of the wider green open space and the 5-mile-long beach. The hub will also provide better connectivity of the activity space with the Harbourside prioritising active travel over vehicle access, considering the increased number of families with young children, but also facilitating the new NCN7 loop connection. It will also celebrate the presence of the Pilot House (Boyd’s automatic tide signalling apparatus), an important local landmark and unique heritage asset (category B listed), by restoring it and making it accessible for visitors within a new plaza setting. The potential for the Pilot House to extend the maritime heritage offer of the Scottish Maritime Museum will be explored further at the later phases of the project, altogether with the potential comprehensive restoration of this unique heritage asset, subject to securing additional funding. The scope of physical works entails a comprehensive area upgrade including landscaping, road re- alignment, Pilot House repairs, construction of the play park and skatepark and potentially also a pump track (subject to additional external funding ) and some additional improvements to the Beach Park to accommodate the events space infrastructure, improved picnic facilities and outdoor gym. The Coastal Hub will provide better access to the new activity area promoting play and physical activity, but also to the wider blue and green spaces promoting wellbeing benefits for local residents and visitors. Within the approved OBC an Economic Impact Assessment was completed for the Great Harbour project based on the original scope of works. Within this FBC the economic appraisal is updated considering the following: • Changes in UK and Scottish Governments’ preferred method for economic appraisal from an Economic Impact Assessment to Cost Benefit Analysis 181
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109 Great Harbour | Coastal Hub | FBC • The established 3-phased approach to procurement and delivery of the Great Harbour The economic appraisal within this FBC is now an HM Treasury Greenbook compliant Cost Benefit Analysis for Phase 1 of the Great Harbour Project – The Coastal Hub. In the subsequent FBCs for phases 2 and 3, additional CBAs will be carried out so that in aggregate a revised CBA for the Great Harbour Project in its entirety will be completed. 3.5 The procurement process To establish the most appropriate procurement route an options appraisal was carried out with input from Council teams with relevant expertise and experience. This was supported by a lessons learnt log, collating relevant experience on similar projects delivered by the Council. The process established the preferred option to appoint a main contractor for the entirety of the works and to allow for subcontracting and managing any specialist contractors required to deliver specific works packages. This was deemed the most advantageous option, ensuring budget flexibility and control between work packages, better planning of works and site management, and effective use of resources. Adhering to the Community Wealth Building principles, a list of local contractors was collated to allow the main contractor to consider their appointment for any relevant works. The procurement is being carried out in three stages on Public Contracts Scotland as listed below: 1. first stage involving a Procurement Information Notice (PIN) to gauge an initial interest and sector capacity to deliver work, 2. second stage verified contractors’ capacity and capability to deliver service within the timescale, 3. third stage involved inviting shortlisted bidders to submit full financial and quality bids. NEC4 Construction and Engineering Contract with Option B will be used to promote collaboration, early warnings and arbitration. The designer developing the proposals is taking on the role of Contract Administrator and Principal Designer in relation to the civil contract to ensure continuity. 3.5.1 Coastal Hub long list criteria PIN notice was issued in Jan/Feb to gauge an initial interest and sector capacity to deliver work. This resulted in 24 expressions of interest and 6 full submissions received, which confirmed the capacity and capability of delivery within the timescales. The second stage was carried out in March/April 2024 and was a selection process, where the bidders’ capability, capacity and experience to perform the contract was assessed via the SPD (Scotland). i.e. the SPD (Scotland) is used to shortlist bidders. This meant the number of bidders could be reduced at the selection stage. Eight bidders submitted bids answering 4 quality questions. As a result of this stage process, five bidders were shortlisted and invited to the next stage. 3.5.2 Coastal Hub long list The level of information provided regarding the procurement process has been informed by discussions with NAC’s Corporate Procurement Unit and is in accordance with the Council’s Standing Order. The 182
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110 Great Harbour | Coastal Hub | FBC Council’s Corporate Procurement Unit has advised that details of the bidders, their final costs and the evaluation scores, must be kept confidential prior to the award of the tender, as this would be a breach of the Council’s Standing Orders. Details of the contract award will be published on Public Contracts Scotland and North Ayrshire Council’s contract register when the successful bidder is awarded. 3.5.3 Coastal Hub short list criteria The third stage was carried out in July 2024 with an Invitation to Tender issued to the bidders shortlisted at stage 2 and the bids were assessed to determine the most economically advantageous tender, the basis of contract award. The full bid comprised of a technical bid with the proposed financial submission against the Bills of Quantities, and the quality submission, with additional Client Appraisal Questionnaire (pass/fail) in relation to the project examples submitted at previous stage. 3.5.4 Coastal Hub short list An evaluation and scoring of quality bids were carried out individually by four members of the project team, including a professional advisor appointed to develop the tender specifications. The financial bids were evaluated by the Council’s QS team and resulted with the shortlist, which was then discussed at the consensus meeting and the BAFO agreed. 3.6 Economic appraisal As noted in section 3.4.2, this economic appraisal represents a revised approach, bringing it in line with the latest HM Treasury Greenbook guidance. The economic appraisal presented in this FBC is a Cost Benefit Analysis on Phase 1 – The Coastal Hub. This compares to the Great Harbour OBC’s Economic Impacts Assessment which was carried out on the Great Harbour Project as whole. As Phases 2 and 3 are further developed, the Respective FBCs will contain CBAs for each subsequent phase, in effect building up to a CBA for the entirety of the Great Harbour Project. Due to the ongoing procurement exercises and commercially sensitive information that cannot yet be communicated, the economic appraisal considers a business-as-usual case, and the Coastal Hub option with the selection of a preferred bidder as discussed in section 3.5. If and when required, the economic appraisal will be extended to consider the alternative procurement routes/alternative bidders, although this is likely to affect costs/timescales rather than have any significant impact on the project’s benefits. 3.6.1 Introduction This section provides a detailed overview of the main costs and benefits associated with project’s preferred way forward and the business-as-usual option. The economic appraisal has considered costs and benefits at the following geographic levels of analysis: o Ayrshire; o Scotland; and o United Kingdom. A detailed presentation of all benefit and cost lines can be found in the Technical Economic Appendix I. Technical Note 183
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111 Great Harbour | Coastal Hub | FBC This cost-benefit analysis has employed appraisal techniques that are consistent with those outlined in HM Treasury Green Book (HM Treasury, 2022). It considers the range of socio-economic impacts that the project is forecast to generate at the Ayrshire, Scotland and UK geographic levels up to 2048 (25-year project appraisal period). The appraisal further considers the following: o constant prices – all monetary values are expressed as a constant price i.e. expressed as a ‘real price’ for that specific time period. The Office for National Statistics (ONS) publishes time-series data for a series of price indices, and we apply the Gross Domestic Product (GDP) deflator to present all figures in constant prices. All monetary values are therefore presented in 2024 prices. Note that this treatment of financial values differs from that of the Financial Case. In this economic case there is no application of inflation, i.e. prices are presented as “real” values. The Financial case presents “nominal prices” with annual inflation rates applied.; and o present values – considers the Social Time Preference Rate (STPR) of consumption, i.e. the rate used for discounting future benefits and costs. We use the HM Treasury recommended discount rate of 3.5% to convert all costs and benefits to ‘present values’, so that they can be compared. 3.6.2 Estimating benefits The main benefits have been aligned with the investment objectives. Within the assessment there are two main stakeholder groups that will benefit from the project – direct beneficiaries: the project owners – North Ayrshire Council and indirect beneficiaries: Ayrshire residents and Ayrshire businesses. As per HM Treasury Green Book guidance, the benefits have been considered as: o Cash-releasing – benefits that generate a direct monetisable effect, for example, capital or revenue funding, increased turnover/revenue, cost saving/efficiencies; o Non-cash releasing – benefits that generate an indirect but monetisable effect, for example, improved efficiency or productivity (measured through increased salaries and/or GVA) or social benefits, for example, health benefits of exercise or wellbeing benefits of attending events; and o Qualitative – wider impacts and benefits (both quantitative and non-quantifiable), for example, improved social outcomes, contribution towards policy priorities, and supporting regeneration. o Distributional – a quantitative distributional analysis (i.e. employing welfare weighting – relative value of jobs/income based on their geographic distribution) has not been carried out, though distributional impacts have been considered. Within Irvine 50% of datazones fall within the top 20% most deprived areas in Scotland. Therefore, the project has the potential to bring disproportionately beneficial impacts to Irvine considering the economic and health and housing impacts delivered by the project. Cash Releasing Benefits The cash releasing benefits assessed in the economic appraisal include: o commercial income earned by North Ayrshire through fees/rental of the newly created events space. Carbon Benefit The carbon benefits assessed in the economic appraisal include: o carbon influence - Market valuation of the reduction in ongoing carbon emissions due to increase plant life. 184
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112 Great Harbour | Coastal Hub | FBC Non-Cash Releasing Benefits The non-cash releasing benefits assessed in the economic appraisal include: Economic Benefits o GVA generated by increased visitors and increased visitor spend within the local tourism economy; o GVA generated by one-off household furnishing expenditure for new housing unit occupants; and o GVA generated by ongoing annual household expenditure by new housing unit occupants. Social Benefits o Social value associated with health benefits of play park users; o Social value associated with health benefits of skatepark and pump track users; o Social value associated with health benefits of outdoor gym users; o Social value associated with wellbeing impacts of events attendance; o Social value associated with wellbeing impacts of community groups participation; and o Social value associated with wellbeing impacts of sports events attendance and participation. Land Value Benefits o Land value uplift associated with the Portland site housing development. Please note that the annualised benefits for each option are presented within Technical Economic Appendix I whilst the section below present the total impacts/benefits (discounted and non-discounted). The main benefits of the project are outlined in table below. The main beneficiaries have been defined as direct to North Ayrshire Council and indirect to Ayrshire residents and Ayrshire businesses. Table 24 Coastal Hub main benefits Type Direct Indirect Cash releasing Income earned through fees/rents charged for commercial use of events space N/A Non-cash releasing N/A Leveraged investment in private housing development resulting in one-off home furnishing impacts and ongoing household spend impacts – GVA Health benefits resulting from play park use Health benefits resulting from Skatepark use Health benefits resulting from Outdoor gym use Wellbeing impact from community use of events space Increased activity in the Ayrshire visitor economy – GVA Wellbeing impact from attendance at cultural events Wellbeing impact from attendance at sporting events Land Value Uplift from housing development Carbon Benefit N/A Carbon reduction impact of increase plant life Qualitative (or non- quantifiable) Priming of pilot house for future community/commercial use Supporting ongoing investment in the harbourside Supporting future leveraged private investment Preservation of listed pilot house Increased pride of place Links with active travel routes to train station Contributing to more and longer visits 185
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113 Great Harbour | Coastal Hub | FBC Decontamination of public land Enhanced reputation for Ayrshire as a good place to do business Prime the harbourside location future investment in marine leisure, hospitality businesses Increase in the quality of events that can be hosted Improved cultural heritage offer and opportunities for engagement and learning experiences Diversion of car traffic away from park, increasing user safety 3.6.3 Estimating costs The costs associated with the project are considered below: o Capital cost of the construction of the Coastal Hub (playpark, skatepark, gym, events space improvements, surfacing and landscaping works, restoration of the pilot house and other infrastructure). o Ongoing operational costs cost associated with the maintain of the Coastal Hub (mainly ongoing landscaping care, inspection and maintenance of skatepark, playpark, and gym equipment). The capital costs have been developed by the lead organisation and are based on RIBA Stage 4 cost estimates. The ongoing operational costs are based on the project’s financial model and are adjusted for inflation. We have also considered the following adjustments to costs: o Cost of risk retained – based on RIBA Stage 4 cost items, the scale of the of impact associated with item risk and the probability of the risk occurring; o Optimism bias – assessed at 10% HM Treasury Greenbook suggests optimism bias for capital projects to be assessed at 2%-40%. Given the extent on project development work already completed (at the RIBA Stage 4) there is a level of cost certainty. We note that built into the cost estimates are contractor preliminaries and contingencies. It is therefore felt that a 10% optimism bias is an appropriate assessment; and o Carbon costs –The assessment of carbon emissions cost has been prepared in line with HM Treasury Greenbook Guidance and considers the cost of carbon associated with capital phase of the project (Embodied Carbon) and the cost of carbon associated with the ongoing operation of the project (Operational Carbon). The valuation of costs is based on an independent carbon emissions analysis from Climate Positive Design consultants. A detailed presentation of these costs can be found in Technical Economic Appendix I. Further, the monetisation of expected project’s embodied and operational carbon emissions has been included as cost lines within the net present value calculation. Further detail on the methodology to monetise carbon emissions can be found in Technical Economic Appendix. In addition to the quantified project costs, the following qualitative project costs have been identified. Table 25 Qualitative project costs Description Assumptions Mitigation Plan Timescales Qualitative Project cost 1 Disruption for local people and businesses as a result of the construction works and operation of the completed development. The construction and operation of the project will have some negative impacts on local people and businesses through increased noise, traffic and temporary loss of park amenity Timetable construction activity to avoid early/late hours and weekend working. Project cost during the construction period (2024 – 2026) for the Growth Deal/public sector funded element and 2030 - 2034 for the follow-on housing investment. 186
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114 Great Harbour | Coastal Hub | FBC Qualitative Project cost 2 Disruption for local people due to larger scale events being held at the park Events held at the park may increase levels of noise pollution, put pressure on local facility, roads, public transport, waste services, etc. NAC should ensure additional resources and infrastructure are put in place for the area to be able to host a large number of people for their own events and contractually require third party events to do the same. Project disbenefit to last from project development completion to the end of the appraisal period (2027 to 2048) 3.6.4 Net present value benefits findings Tables below present the results of the economic appraisal, reporting the total undiscounted and the total net present value benefit of each of the four short-listed options. Note that the results represent cumulative values assessed over a 25-year project appraisal period (consistent with capital project appraisals). Results are presented for all three geographic levels of analysis. Figures are presented in £m, rounded to the nearest £0.1m and present values are discounted at a rate of 3.5%. Note that the cost sand benefit lines presented in Tables 26, 27, and 28 correspond directly to the benefits and costs listed in section 3.6.2. Table 26 Results of Economic Appraisals – Ayrshire Business-as-usual Case 25-year Undiscounted (£m) 25-year Net Present Value (£m) Capital £0.0 £0.0 Cost of Risk Retained £0.0 £0.0 Optimism Bias £0.0 £0.0 Operational £0.3 £0.2 Carbon (Embodied and Operational) £0.0 £0.0 Project Costs £0.3 £0.2 Cash releasing benefits £0.1 £0.1 Carbon influence £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £0.1 £0.1 Social benefits £29.3 £20.0 Economic benefits £5.3 £3.1 Land value benefits £1.4 £1.0 Non-cash releasing benefits £36.0 £24.1 Net Benefit (Non-cash releasing benefits minus Net cost) £35.9 £24.1 Coastal Hub Option 25-year Undiscounted (£m) 25-year Net Present Value (£m) Capital £4.6 £4.5 Cost of Risk Retained £0.3 £0.2 Optimism Bias £0.5 £0.4 Operational £0.4 £0.2 Carbon (Embodied and Operational) £0.4 £0.3 187
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115 Great Harbour | Coastal Hub | FBC Project Costs £6.0 £5.8 Cash releasing benefits £0.2 £0.2 Carbon influence £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £5.8 £5.6 Social benefits £54.9 £36.3 Economic benefits £32.1 £19.3 Land value benefits £1.6 £1.2 Non-cash releasing benefits £88.6 £56.9 Net Benefit (Non-cash releasing benefits minus Net cost) £82.9 £51.3 Table 27 Key Results of Economic Appraisals – Scotland Counterfactual Case 25-year Undiscounted (£m) 25-year Net Present Value (£m) Capital £0.0 £0.0 Cost of Risk Retained £0.0 £0.0 Optimism Bias £0.0 £0.0 Operational £0.3 £0.2 Carbon (Embodied and Operational) £0.0 £0.0 Project Costs £0.3 £0.2 Cash releasing benefits £0.1 £0.1 Carbon influence £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £0.1 £0.1 Social benefits £22.0 £15.0 Economic benefits £3.1 £1.8 Land value benefits £1.4 £1.0 Non-cash releasing benefits £26.5 £17.9 Net Benefit (Non-cash releasing benefits minus Net cost) £26.3 £17.8 Coastal Hub Option 25-year Undiscounted (£m) 25-year Net Present Value (£m) Capital £4.6 £4.5 Cost of Risk Retained £0.3 £0.2 Optimism Bias £0.5 £0.4 Operational £0.4 £0.2 Carbon (Embodied and Operational) £0.4 £0.3 Project Costs £6.0 £5.8 Cash releasing benefits £0.2 £0.2 188
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116 Great Harbour | Coastal Hub | FBC Carbon influence £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £5.8 £5.6 Social benefits £41.6 £27.6 Economic benefits £24.8 £14.9 Land value benefits £1.6 £1.2 Non-cash releasing benefits £68.0 £43.7 Net Benefit (Non-cash releasing benefits minus Net cost) £62.2 £38.2 Table 28 Key Results of Economic Appraisals – UK Counterfactual Case 25-year Undiscounted (£m) 25-year Net Present Value (£m) Capital £0.0 £0.0 Cost of Risk Retained £0.0 £0.0 Optimism Bias £0.0 £0.0 Operational £0.3 £0.2 Carbon (Embodied and Operational) £0.0 £0.0 Project Costs £0.3 £0.2 Cash releasing benefits £0.1 £0.1 Carbon influence £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £0.1 £0.1 Social benefits £19.8 £13.5 Economic benefits £0.0 £0.0 Land value benefits £1.4 £1.0 Non-cash releasing benefits £21.2 £14.6 Net Benefit (Non-cash releasing benefits minus Net cost) £21.1 £14.5 Coastal Hub Option 25-year Undiscounted (£m) 25-year Net Present Value (£m) Capital £4.6 £4.5 Cost of Risk Retained £0.3 £0.2 Optimism Bias £0.5 £0.4 Operational £0.4 £0.2 Carbon (Embodied and Operational) £0.4 £0.3 Project Costs £6.0 £5.8 Cash releasing benefits £0.2 £0.2 Carbon influence £0.0 £0.0 189
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117 Great Harbour | Coastal Hub | FBC Net cost (project costs less cash releasing benefits less carbon influence) £5.8 £5.6 Social benefits £37.4 £24.8 Economic benefits £0.0 £0.0 Land value benefits £1.6 £1.2 Non-cash releasing benefits £39.1 £26.1 Net Benefit (Non-cash releasing benefits minus Net cost) £33.3 £20.5 3.6.5 Benefits to cost ratios o The Benefit to Cost Ratio (BCR) – which measures Net Benefits against Net Costs; and o The net additional Benefit to Cost Ratio (NABCR) – which measures the Net Additional Benefits (i.e. the Net benefits generated by the Coastal Hub option less the Net Benefits generated under the business-as-usual case) against the Net Additional Cost (i.e. The Net Costs incurred under the Coastal Hub option less the net costs incurred within the business-as-usual case. The tables below presents the BCR and NABCR for all options at the Ayrshire, Scotland and UK levels. Note that the total benefit is equal to the present value of cash releasing benefits plus non-cash releasing benefits and total cost is equal to the present value of the project costs as defined previously. Table 29 Benefit to cost ratios Business As Usual Coastal Hub Option Region Total Benefit Total Cost BCR Total Benefit Total Cost BCR Ayrshire £23.2 £0.2 136.0 £55.8 £5.8 9.7 Scotland £16.9 £0.2 99.2 £42.7 £5.8 7.4 UK £13.2 £0.2 79.8 £25.0 £5.8 4.3 Table 30 Net Additional BCR for the Coastal Hub Option Region Net Add Benefit Net Add. Cost NABCR Ayrshire £32.6 £5.6 5.8 Scotland £25.7 £5.6 4.6 UK £11.4 £5.6 2.0 3.6.6 Option appraisal conclusions Business-as-usual Case: at all geographic levels of analysis the business-as-usual case delivers positive net present value benefits primarily driven by the no capital input required and a low, but steady level of social benefits associated with use of the coastal hub area as current. We note that the BCR for the BAU case is very high – ranging from 79.8 to 136.0. However, to put this into context, the high BCRs are driven by the lack of any capital expenditure within this option. Further to this, the BAU fails to address any of the business and project objectives to any significant extent. Coastal Hub Option: at all geographic levels of analysis the Coastal Hub option delivers positive net present value benefits, driven by significant social benefits and economic benefits. When considering the BCR the project is expected to deliver a strong positive return at all geographies. When considering the NABCR, the project is expected to deliver positive socioeconomic return at all geographic levels. At three 190
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118 Great Harbour | Coastal Hub | FBC Ayrshire level the NABCR is 5.8, meaning that for every additional £1 of public expenditure, the project will generate £5.80 in additional net socioeconomic benefit. 3.7 Qualitative benefits appraisal This section evaluates each option against a set of identified qualitative benefits. 3.7.1 Methodology The qualitative benefits that are likely to be generated through the each of the options have been discussed and agreed as part of a qualitative scoring workshop held virtual on MS Teams on 15 April 2024, attended by representative of the NAC Project Team and appointed economic consultancy EKOS. The benefits have been assessed against each of the five investment objectives. A weighting has been assigned to each objective based on “relative importance” or the likely magnitude of the qualitative impacts on the identified stakeholders and beneficiaries. The relative importance was determined at the workshop with input from the ANS project team based on their community and stakeholder engagement and consultations, local expertise and input from EKOS based on their experience in developing Growth Deal OBC/FBCs across Scotland. 3.7.2 Qualitative benefits criteria The table below presents the qualitative benefits criteria for each investment objective. Table 31 Qualitative benefits criteria Investment Objectives Qualitative Benefits Weight Support local economic growth through developing a regional Coastal destination by constructing new high quality recreational assets Preservation of listed pilot house Priming of pilot house for future community/commercial use 10% Support regeneration of the wider area across the entirely of Irvine Harbourside linking to the redevelopment of Maritime Mile and national Maritime Museum Pride of place (Ayrshire residents) Supporting ongoing investment in the harbourside (North Ayrshire Council) Supporting future leveraged private investment (North Ayrshire Council) Links with active travel routes to train station (Ayrshire residents) Contributing to more and longer visits (Ayrshire businesses) Improved cultural heritage offer and opportunities for engagement and learning experiences (Ayrshire Residents) Decontamination of public land (North Ayrshire Council) 35% Build the required enabling infrastructure to make the area more attractive to private sector investment. Enhanced reputation for Ayrshire as a good place to do business Prime the harbourside location future investment in marine leisure, hospitality businesses 25% Deliver local health and wellbeing benefits through providing recreational opportunities for all ages and increasing quality and use of public realm spaces Diversion of car traffic away from park, increasing user safety 10% Increase visitors to Irvine and the Ayrshire regional by developing a regional visitor destination underpinned by recreational Increase in the quality of events that can be hosted Showcase for the development of new local events 20% 191
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119 Great Harbour | Coastal Hub | FBC opportunities and a fit for purpose events space. 3.7.3 Qualitative benefits scoring The scoring of each of the Coastal Hub option and counterfactual options against the benefit criteria was carried out on a scale of 0 to 9 (0 being the lowest score and 9 being the highest score achievable). Each option was considered against the sets of qualitative benefits relating to each investment objective, first considering if the activities carried out under each option deliver each qualitative benefit, and second to what degree or how well each qualitative benefit will be delivered. Scoring was agreed in collaboration with all project partners. The weighted score is derived by standardising the raw scores based on the weights described in the tables above. The weights are multiplied by the maximum total raw score of 45 to derive a maximum weighted score for each benefit criterion. The achieved raw score is divided by 9 (to determine the proportion of the criterion specific maximum weighted score achieved) and then multiplied by the maximum weighted score. Table 32 Weighted scoring example Benefit Criteria Max Total Raw Score Weight Max Weighted Raw Score Coastal Hub Option Raw Score Coastal Hub Option weighted score Inv. Obj. 2 45 35% 15.75 (35% * 45) 8 out of 9 10 [(8/9) * 15.75] Benefits scores were allocated on a range of 0-9 for each option and agreed by discussion by the workshop participants to confirm that the scores were fair and reasonable. 3.7.4 Analysis of key results The table below presents the raw and weighted qualitative benefits scores for each option. Table 33 Benefits Appraisal Results Benefit Criteria and Weight Business-as-usual Coastal Hub Raw (R) and weighted (W) scores R W R W Investment objective 1 0 0 7 3.5 Investment objective 2 2 3.5 9 15.75 Investment objective 3 0 0 8 10 Investment objective 4 0 0 9 4.5 Investment objective 5 3 3 8 8 Total 5 6.5 41 41.75 Rank 2 1 The key considerations that influenced the scores achieved by the various options were as follows: Business-as-usual Case: This option ranks second of two as it delivers very little in terms of qualitative benefits. The area as current still offers some recreational benefit and can continue to host some events even in the absence of investment. Wider regeneration projects could still tap into and link with the current park and events area. However overall benefits would be limited. Coastal Hub option: This option ranks first as it is expected to deliver the highest level of qualitative benefits. The capital investment will deliver the restoration and preservation of the listed pilot house, create new and improved recreational facilities for residents and visitors, leverage further investment, 192
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120 Great Harbour | Coastal Hub | FBC and link strongly with the wider regeneration of the Irvine Harbourside to create a strong overall offer able to host large scale events to the benefit the local economy. 3.8 Risk appraisal – unquantifiables This section assesses the unquantifiable risks associated with each option. 3.8.1 Methodology The table below provides a qualitative appraisal of risk against the following broad categories – business risk, service risk, and external systemic and catastrophe risk. The risks for each option have been scored to give an overall risk rating score based on the following: o probability (i.e. how likely they are to occur) – scored 1 to 5, with 1 being low probability to 5 being high probability (a); o impact (i.e. what effect it will have on the successful delivery of the project/ option and achieving the investment objectives) – scored 1 to 5, with 1 being low impact and 5 being high impact (b). Overall risk rating score (c) = probability (a) * impact (b) 3.8.2 Risk scores The raw and weighted scores are presented in Table 34 below. Table 34 Summary of the risk appraisal results Preferred Option BaU Case Prob Impact Score Prob Impact Score Business risk Reputational risk The risk that there will be an undermining of residents’/media’s perception of North Ayrshire Council to deliver local amenities and benefits 1 3 3 3 3 9 Service risk Design risk Design cannot deliver the services to the required quality standards – poorly designed playpark, skatepark, outdoor gym 2 4 8 4 4 16 Capital risk Installation of new kit/equipment is not completed on time, to budget and to specification. 1 4 4 0 4 0 Programme intelligence risk Initial scoping works are inadequate, and costs and timescales change 0 2 0 0 2 0 Operational risk Operating costs increase from budget and that project cannot be delivered as intended. 1 3 3 0 3 0 Demand risk Demand for service (residents and visitors) does not match the levels assumed within the business case. 1 2 2 2 2 4 Maintenance risk Maintenance and repair vary from budget. 3 3 9 1 3 3 193
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121 Great Harbour | Coastal Hub | FBC Technology risk Changes in technology result in services being provided using sub-optimal technical solutions. 0 0 0 0 0 0 Funding risk The value of funding leveraged from all public sources varies from the levels forecast. 2 3 6 0 3 0 Funding risk The value of private sector finance leveraged varies from the levels forecast. 1 1 1 0 1 0 Funding risk Availability of funding or delays in decision- making leads to delays and reductions in scope as a result of reduced monies. 2 2 4 0 2 0 External systemic and catastrophe risks Policy risk Changes in policy leading to unforeseen changes in priorities – i.e. partners no longer support the programme. 1 2 2 1 2 2 Technological disruption risk New techniques emerging that completely transform the way things are done. 1 1 1 1 1 1 Macro- economic shocks Unforeseen implications e.g. global financial markets - cost of living crisis, inflation, energy costs etc 2 3 6 2 3 6 Total 48 37 Our key observations from the qualitative risk scoring exercise are provided below. Buisness-as-usual case: Overall, this is the less risky option, however, doing nothing is not risk free. In particular, this option carries the greater reputational risk as it may be perceived that the NAC is unwilling or unable to deliver key regeneration projects in areas of need. There is also risk in lack of investment as the area could further deteriorate having negative knock-on impacts on local amenity and recreational value, ability to host events, and increased maintenance and repair costs in the future. Coastal Hub option: Compared to the buisness-as-usual case, this option carries more risk overall, particularly related to risks of capital spend, funding, deliverability and demand. Of note, are the capital and operational risks and demand risks. Any increase in the former two or decline in the latter would negatively affect the socioeconomic performance and returns associated with the project. 3.9 The preferred option The table below summarises the ranking for each option in terms of performance in the net present benefit, qualitative benefits and risk appraisals. Table 35 Summary of overall results Evaluation Results Buisness-as-usual Case Coastal Hub Option Economic Appraisal 2 1 Qualitative Benefits 2 1 Risk 1 2 Total Score 5 4 Overall Ranking 2 1 The Coastal Hub option scores the highest overall when considering the economic and qualitative benefit appraisals. Although it is riskier than the business-as-usual case, when considering the expected benefits, the Coastal Hub option ranks higher and is the preferred option. 194
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122 Great Harbour | Coastal Hub | FBC 3.10 Sensitivity analysis It is good practice to include an element of sensitivity analysis within the economic appraisal and we have considered two approaches: o switching values – the % change required within the costs or benefits of the alternative options to equal that of the preferred option; and o scenario planning – adjusting (cost and benefit) parameters within the cost-benefit model to assess the scale of impact on the preferred option. This also helps to identify where any additional mitigating actions need to be considered. 3.10.1 Results of switching values Table below presents the percent change in each cost and benefit line required to equate it to the Coastal Hub option (preferred option). Note that this analysis is done at the 25-year time horizon. Table 36 Switching values Change in Costs and Benefits Business-as-usual Case Coastal Hub Option Project costs 3,278% £5.8 Cash releasing benefits 73% £0.2 Non releasing cash benefits – Ayrshire 136% £56.9 Non releasing cash benefits – Scotland 145% £43.7 Non releasing cash benefits - UK 79% £26.1 Net present value benefit – Ayrshire 113% £51.3 Net present value benefit – Scotland 115% £38.2 Net present value benefit – UK 41% £20.5 3.10.2 Key observations The key observations from the switching value analysis are that the net present value benefit delivered by the business-as-usual case would need to increase by 41% at the UK level, 115% at the Scotland level and 113% at the Ayrshire level. 3.10.3 Results of scenario planning The scenario planning analysis presents the expected net present benefit generated by the preferred option under the following scenarios: 1. 40% increase in the capital costs (in additional cost of risk retained and optimism bias already included); 2. 50% reduction in user of the playpark, skatepark and outdoor gym, a 50% reduction in visitor uplift and 50% reduction in events increases. 3. Worst case scenario – combination of scenarios 1 and 2. Note that the scenario planning analysis assesses impacts over the 25-year appraisal period. The table below present the results of the scenario planning (discounted values). Note that the baseline results of the business-as-usual case are presented for comparison purposes. 195
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123 Great Harbour | Coastal Hub | FBC Table 37 Summary of scenario planning results Coastal Hub Option Coastal Hub Option Scenario 1 (£m) Coastal Hub Option Scenario 2 (£m) Coastal Hub Option Scenario 3 (£m) Ayrshire Capital £6.3 £4.5 £6.3 Cost of Risk Retained £0.2 £0.2 £0.2 Optimism Bias £0.6 £0.4 £0.6 Operational £0.2 £0.2 £0.2 Carbon (Embodied and Operational) £0.3 £0.3 £0.3 Project Costs £7.7 £5.8 £7.7 Cash releasing benefits £0.2 £0.2 £0.2 Carbon influence £0.0 £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £7.6 £5.6 £7.6 Social benefits £36.3 £18.2 £18.2 Economic benefits £19.3 £11.5 £11.5 Land value benefits £1.2 £1.2 £1.2 Non-cash releasing benefits £56.9 £31.0 £31.0 Net Benefit (Non-cash releasing benefits minus Net cost) £49.3 £25.4 £23.4 Scotland Capital £6.3 £4.5 £6.3 Cost of Risk Retained £0.2 £0.2 £0.2 Optimism Bias £0.6 £0.4 £0.6 Operational £0.2 £0.2 £0.2 Carbon (Embodied and Operational) £0.3 £0.3 £0.3 Project Costs £7.7 £5.8 £7.7 Cash releasing benefits £0.2 £0.2 £0.2 Carbon influence £0.0 £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £7.6 £5.6 £7.6 Social benefits £27.6 £13.9 £13.9 Economic benefits £14.9 £8.5 £8.5 Land value benefits £1.2 £1.2 £1.2 Non-cash releasing benefits £43.7 £23.7 £23.7 Net Benefit (Non-cash releasing benefits minus Net cost) £36.2 £18.1 £16.1 UK Capital £6.3 £4.5 £6.3 Cost of Risk Retained £0.2 £0.2 £0.2 196
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124 Great Harbour | Coastal Hub | FBC Optimism Bias £0.6 £0.4 £0.6 Operational £0.2 £0.2 £0.2 Carbon (Embodied and Operational) £0.3 £0.3 £0.3 Project Costs £7.7 £5.8 £7.7 Cash releasing benefits £0.2 £0.2 £0.2 Carbon influence £0.0 £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £7.6 £5.6 £7.6 Social benefits £24.8 £12.5 £12.5 Economic benefits £0.0 £0.0 £0.0 Land value benefits £1.2 £1.2 £1.2 Non-cash releasing benefits £26.1 £13.8 £13.8 Net Benefit (Non-cash releasing benefits minus Net cost) £18.5 £8.2 £6.2 Figures presented in millions and rounded to nearest £0.1m. Figures discounted at 3.5%. Table 38 Summary of scenario planning results – Business as Usual Case Business as Usual (£m) Scenario 1 Business as Usual (£m) Scenario 2 Business as Usual (£m) Scenario 3 Ayrshire Capital £0.0 £0.0 £0.0 Cost of Risk Retained £0.0 £0.0 £0.0 Optimism Bias £0.0 £0.0 £0.0 Operational £0.2 £0.2 £0.2 Carbon (Embodied and Operational) £0.0 £0.0 £0.0 Project Costs £0.2 £0.2 £0.2 Cash releasing benefits £0.1 £0.1 £0.1 Carbon influence £0.0 £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £0.1 £0.1 £0.1 Social benefits £20.0 £10.0 £10.0 Economic benefits £3.1 £3.1 £3.1 Land value benefits £1.0 £1.0 £1.0 Non-cash releasing benefits £24.1 £14.1 £14.1 Net Benefit (Non-cash releasing benefits minus Net cost) £24.1 £14.1 £14.1 Scotland Capital £0.0 £0.0 £0.0 Cost of Risk Retained £0.0 £0.0 £0.0 Optimism Bias £0.0 £0.0 £0.0 Operational £0.2 £0.2 £0.2 197
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125 Great Harbour | Coastal Hub | FBC Carbon (Embodied and Operational) £0.0 £0.0 £0.0 Project Costs £0.2 £0.2 £0.2 Cash releasing benefits £0.1 £0.1 £0.1 Carbon influence £0.0 £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £0.1 £0.1 £0.1 Social benefits £15.0 £7.5 £7.5 Economic benefits £1.8 £1.8 £1.8 Land value benefits £1.0 £1.0 £1.0 Non-cash releasing benefits £17.9 £10.4 £10.4 Net Benefit (Non-cash releasing benefits minus Net cost) £17.8 £10.3 £10.3 UK Capital £0.0 £0.0 £0.0 Cost of Risk Retained £0.0 £0.0 £0.0 Optimism Bias £0.0 £0.0 £0.0 Operational £0.2 £0.2 £0.2 Carbon (Embodied and Operational) £0.0 £0.0 £0.0 Project Costs £0.2 £0.2 £0.2 Cash releasing benefits £0.1 £0.1 £0.1 Carbon influence £0.0 £0.0 £0.0 Net cost (project costs less cash releasing benefits less carbon influence) £0.1 £0.1 £0.1 Social benefits £13.5 £7.8 £7.8 Economic benefits £0.0 £0.0 £0.0 Land value benefits £1.0 £1.0 £1.0 Non-cash releasing benefits £14.6 £8.8 £8.8 Net Benefit (Non-cash releasing benefits minus Net cost) £14.5 £8.7 £8.7 Figures presented in millions and rounded to nearest £0.1m. Figures discounted at 3.5%. The table below presents the BCRs and NABCRs for each option under each sensitivity scenario. Table 39 Summary of scenario planning results (BCRs) Business As Usual Coastal Hub Option Region Total Benefit Total Cost BCR Total Benefit Total Cost BCR Increase in Capital Costs Ayrshire £23.2 £0.2 136.0 £55.8 £7.6 7.2 Scotland £16.9 £0.2 99.2 £42.7 £7.6 5.5 UK £13.2 £0.2 79.8 £25.0 £7.6 3.2 Reduction in Benefits Ayrshire £13.2 £0.2 77.3 £29.9 £5.6 5.2 198
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126 Great Harbour | Coastal Hub | FBC Scotland £9.4 £0.2 55.1 £22.6 £5.6 3.9 UK £6.9 £0.2 40.2 £12.7 £5.6 2.2 Worst-Case Scenario Ayrshire £13.2 £0.2 77.3 £29.9 £7.6 3.9 Scotland £9.4 £0.2 55.1 £22.6 £7.6 2.9 UK £6.9 £0.2 40.2 £12.7 £7.6 1.6 Figures presented in millions and rounded to nearest £0.1m. Figures discounted at 3.5% Table 40 Summary of scenario planning results (NABCRs) Net Additional BCR Region Net Add. Benefit Net Add. Cost NABCR Increase in Capital Costs Ayrshire £32.6 £7.6 4.3 Scotland £25.7 £7.6 3.4 UK £11.4 £7.6 1.5 Reduction in Benefits Ayrshire £16.6 £5.6 3.0 Scotland £13.1 £5.6 2.3 UK £5.7 £5.6 1.0 Worst-Case Scenario Ayrshire £16.6 £7.6 2.2 Scotland £13.1 £7.6 1.7 UK £5.7 £7.6 0.8 Figures presented in millions and rounded to nearest £0.1m. Figures discounted at 3.5%. 3.10.4 Key observations The Coastal Hub option continues to generate a higher NPV benefits than the baseline business-as-usual case under many sensitivity scenarios. Where it falls short are at the UK level of analysis under scenarios 2 and 3 (partly driven by the technical requirements of assessing benefits at the UK level) and under scenario 3 at the Scotland and Ayrshire level, albeit just slightly below that of the baseline business-as- usual case. When considering the BCRs, the Coastal Hub option continues to deliver a BCRS and NABCRS greater than 1 across all scenarios and geographies except for the UK levels under the worst-case scenario. Overall, the project is resilient in terms of quantifiable socioeconomic benefits, and it would take a significant decrease in the expected project benefits for the project to fail to generate positive socioeconomic returns at the UK level. 3.11 Preferred option Based on the analyses and appraisal presented within this Economic Case we confirm that the Coastal Hub Option is the preferred option. 199
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127 Great Harbour | Coastal Hub | FBC 4. The Commercial Case 4.1 Introduction The improved Beach Park, featuring a state-of-the-art regional play facility, positions Irvine as a family- friendly destination, also appealing to a wider demographic with the added provision of the skatepark, pump track (subject to additional external funding) and outdoor gym. As the first phase of the wider Great Harbour project and development of the new sustainable destination, the Maritime Mile, this enhancement is expected to elevate Irvine‘s image and attract events, contributing to increased tourism and commercial opportunities. Further opportunities for private investment are identified within the Great Harbour Masterplan and sites ‘de-risked’ to attract investment. Several informal discussions are on-going with private developers seeking commercial opportunities within the area triggered by the new tourism destination being delivered on Irvine Harbourside. The Coastal Hub Project represents a significant endeavour within Irvine's broader development strategy of the Great Harbour, aimed at revitalising the town’s coastal area and fostering economic growth. This comprehensive economic viability analysis delves into the project's potential to stimulate tourism, catalyse business expansion, and deliver sustainable returns for stakeholders, offering insights into its commercial feasibility and long-term impact. Stimulating Tourism Central to the economic viability of the Coastal Hub Project is its ability to attract tourists and enhance visitor experiences. Through the development of diverse attractions, including a state-of-the-art play facility, skatepark, pump track, and outdoor gym, the project aims to position Irvine as a magnet for families, adventurers, and leisure seekers. By offering a compelling mix of recreational activities and amenities, the project anticipates a steady influx of tourists, thereby bolstering footfall, hotel occupancy rates, and spending in local businesses. The enhanced events space equipped with necessary utilities and improved access, creates an attractive venue for large-scale event organisers, as tested during the Making Waves Festival. It will serve as a magnet for tourists, offering a diverse range of entertainment and cultural experiences. By hosting a variety of events, including concerts, festivals, and community gatherings, the arena will attract visitors from near and far, bolstering footfall and spending in local businesses. Moreover, the events area complements the project's other attractions and facilities creating a vibrant hub of activity that appeals to a wide range of demographics and interests. Catalysing Business Growth The economic impact of the Coastal Hub extends beyond the tourism sector, catalysing business growth and entrepreneurial activity throughout Irvine and its surrounding areas. With increased foot traffic in the Beach Park area, local businesses stand to benefit from heightened patronage, particularly in sectors such as hospitality, retail, and recreational services. Moreover, the project's strategic location within the wider Great Harbour area is expected to attract private developers and investors, further stimulating commercial development and job creation in the area. The enhanced events area plays a vital role in catalysing business growth and economic development within Irvine and its surrounding areas. As a focal point for entertainment and cultural activities, the space drives demand for hospitality services, retail outlets, and recreational facilities, creating opportunities for local businesses to thrive. Additionally, the hosting of large-scale events and festivals attracts private investors and developers, spurring commercial development and job creation in the area. By positioning Irvine as a premier events destination, the arena contributes to the Irvine’s reputation as a vibrant and dynamic economic hub. 200
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128 Great Harbour | Coastal Hub | FBC Delivering Sustainable Returns A key consideration in evaluating the economic viability of the Coastal Hub Project is its capacity to deliver sustainable, long-term returns for stakeholders. Leveraging a mix of public and private funding sources, including government grants, private investments, and strategic partnerships, the project aims to ensure prudent allocation of resources and maximise returns on investment. By integrating digital infrastructure and innovative technologies, such as AR experiences and public Wi-Fi, the project enhances operational efficiency and cost-effectiveness, while futureproofing against evolving market dynamics and consumer preferences. Additionally, the events area’s flexibility to host a variety of events throughout the year enhances its revenue-generating potential, ensuring long-term viability and financial sustainability. Furthermore, strategic partnerships with event organisers and sponsors enhance the spaces commercial appeal and contribute to its success as a premier events space. Strategic Partnerships Strategic partnerships play a pivotal role in enhancing the commercial viability of the Coastal Hub project, enabling access to expertise, resources, and funding opportunities. Leveraging partner funding, digital infrastructure is seamlessly integrated into the project, enhancing visitor experiences and operational efficiency. Furthermore, collaborations with equipment manufacturers and suppliers ensure timely delivery and quality installation of play equipment, skatepark features, and the pump track, enhancing the project's competitiveness and appeal. Collaborations with event organisers, sponsors, and promoters ensure a diverse lineup of events that appeal to a broad audience, maximising attendance and revenue opportunities. Additionally, partnerships with local businesses and vendors create synergies that enhance the overall visitor experience, fostering repeat visitation and long-term patronage. The Coastal Hub Project holds significant promise as a catalyst for economic growth and development in Irvine and its surrounding areas. By stimulating tourism, catalysing business expansion, and delivering sustainable returns for stakeholders, the project embodies Irvine's commitment to innovation, prosperity, and community well-being. As the project progresses, continued monitoring and evaluation will be essential to ensure its long-term success and alignment with broader economic objectives. 4.2 Required services The Coastal Hub project aims to transform the current landscape, transitioning it from one defined by road infrastructure and car parks to a pedestrian-oriented environment that seamlessly integrates with the surrounding natural and historic assets. By establishing direct connections between the destination play area and the broader beach park amenity space, including walking routes, a boating pond, as well as providing a direct link to the beach, and barrier-free access to the historic Pilot House building, Harbour Point, and onward to the Town Centre, the project seeks to enhance accessibility and promote active travel. Key features of the Coastal Hub include the creation of new footpaths and cycling paths, redesigning the road leading to Harbour Point to prioritise pedestrian safety and comfort, and implementing pedestrian crossings. These improvements aim to encourage pedestrian traffic, accommodate increased footfall, and promote cycling as a sustainable mode of transportation. At the heart of the project is the development of a high-quality play area designed to cater to a diverse range of ages and interests. From traditional play equipment to natural play elements, interactive environments, interpretive displays, skate areas, and a pump track, the play area will offer a multifaceted and engaging experience for visitors, establishing itself as a prominent destination within the community. Situated within a flat landscape with natural enclosure to the south and overlooking by the Billy Bing hill to the north, the Coastal Hub site encompasses various assets, including the southern end of the harbour 201
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129 Great Harbour | Coastal Hub | FBC side walkway, the large Beach Park car park, the Pilot House, and an amenity grass area. Currently, the site is divided by the Beach Drive carriageway and a roundabout, posing barriers to pedestrian connectivity between the car park, waterfront, and beach. Through thoughtful design and strategic interventions, the Coastal Hub project seeks to overcome these barriers, fostering greater cohesion and accessibility throughout the area. Overall, the Coastal Hub project represents a transformative endeavour that not only improves the physical environment but also fosters community engagement, promotes active lifestyles, and enhances the overall attractiveness of the area as a destination for residents and visitors alike. The Coastal Hub physical improvement works are focusing on integrating play with the landscape to provide a fully immersive experience for a range of users. The works include the play park, skatepark and potentially also a pump track (subject to additional external funding) within the Beach Park, landscaping and road and paths alignment between the Beach Park and the Harbour with associated enabling works, and infrastructure connectivity for the events area. Due to the complexity and variety of work packages differing in type, the service of a principal contractor is required to programme and manage the works. The pump track has been included within the tender to be costed separately, in order to determine whether it could be funded from the budget. If this is not possible then an application will be made to SportScotland in September 2024 and consultants are currently preparing cost information to support any required applications. The play equipment for the play park, the skatepark and the pump track are specialist packages of work which will be subcontracted by the main contractor for the manufacture and installation of the equipment and features, with fixed lump sum allocations within the contract, as these types of facilities are designed and constructed to set budgets. The Play Park is the focal point of the works and is the first milestone to be delivered as part of the works. Additional work Several additional works have been planned or delivered by the Council within the area independently to support and enhance AGD proposals, based on the feedback received during public and stakeholder consultations. These include: • Digital infrastructure – a series of multiuse columns within the Great Harbour project area utilising partner funding, with 4 columns located to serve the Coastal Hub and provide the mixture of uses, such as lighting, CCTV monitoring, weather monitoring, public information, public wi-fi supporting additional Augmenter Reality experience for STEM and heritage trails proposed for later phase, small cell 5G supporting events; • Outdoor Gym – located near the Boating Pond opposite the proposed play park area to enhance the physical activity opportunity for older age groups within the ‘wellness hub’ of the Beach Park; and • Boating Pond picnic area improvements – utilising partner funding to provide better facilities for the enjoyment of the outdoors, encouraging longer stays. 4.3 Agreed risk transfer The general principle is to ensure that risks should be passed to the “party best able to manage them”, subject to value for money (VFM). The potential allocations of risks are tabulated below. All design services include collateral warranties and are covered by professional indemnity insurances. Under the NEC4 Engineering and Construction Contract with option B, risk transfer occurs through several mechanisms inherent in the contract's structure. Option B, commonly known as the "priced 202
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130 Great Harbour | Coastal Hub | FBC contract with bill of quantities," involves payment based on a pre-agreed target cost plus a fee. Here's how risk transfer takes place under this contract option: Cost Management and Risk Sharing | The contractor under option B is reimbursed for their actual costs incurred in executing the works, including labour, materials, and other defined costs, up to the pre- agreed target cost. Any costs incurred above the target cost are borne by the contractor, incentivising them to manage costs effectively and minimising the employer's exposure to cost overruns. This transfer of cost risk from the employer to the contractor encourages the latter to implement efficient cost control measures throughout the project duration. Shared Risk Allocation | The NEC4 contract emphasises collaborative risk management through shared risk allocation between the employer and the contractor. While the contractor bears the risk of cost overruns beyond the target cost, the employer shares the risk of cost savings under the "pain/gain share" mechanism. This approach fosters a collaborative environment where both parties are incentivised to work together to manage risks and deliver the project within the agreed budget. Compensation Events | The NEC4 contract provides a mechanism for addressing unforeseen events or changes that may impact the project's cost or schedule, known as Compensation Events. These events entitle the contractor to additional time and/or money to compensate for the impact of the event. However, not all Compensation Events result in additional payment; some may have a neutral or even beneficial effect on the target cost, depending on their nature and impact. This mechanism ensures that risk associated with unforeseen events is appropriately allocated between the employer and the contractor. Early Warning System | The NEC4 contract includes an Early Warning system, which requires both parties to notify each other promptly of any issues or risks that may affect the project's cost, schedule, or quality. This proactive approach to risk management enables early identification and mitigation of potential risks, reducing the likelihood of disputes and minimising the impact of risks on project outcomes. By fostering open communication and collaboration, the Early Warning system facilitates effective risk transfer and management throughout the project lifecycle. Considering the above, risk transfer occurs through a combination of cost management mechanisms, shared risk allocation, Compensation Events, and proactive risk management practices. By promoting collaboration, transparency, and effective risk management between the employer and the contractor, the contract facilitates the successful delivery of projects while minimising disputes and maximising value for all parties involved. It has been agreed that service risks in the design, build and operational phases will be apportioned as follows: Table 41 Risk transfer matrix Risk Category Potential allocation Council Designer/ Consultant Contractor Users 1. Design risk 2. Construction and development risk 3. Transition and implementation risk 4. Availability and performance risk 203
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131 Great Harbour | Coastal Hub | FBC 5. Operating risk 6. Variability of revenue risks 7. Termination risks 8. Technology and obsolescence risks 9. Control risks 10. Residual value risks 11. Financing risks 12. Legislative risks 13. Other project risks - environmental 14. Other project risks - stakeholder 15. Other project risks – supply chain 16. Other project risks - market 17. Other project risks - political 18. Other project risks - legal 19. Other project risks – H&S 20. Other project risks - quality 21. Other project risks - reputation 22. Other project risks - force majeure 4.4 Agreed charging mechanisms The model contract selected for the Coastal Hub civils is NEC4 Engineering and Construction Contract (Option B – with Bill of Quantities). At its core it encourages collaboration and follows the principles of partnership and provides comprehensive risk management mechanisms, including early warnings, multilevel risk registers with monitoring process. Option B of the contract indicates the charging mechanism based on bill of quantities. A professional advisor has been appointed to manage the construction works and contract on behalf of the council and provide a Principal Designer service within the meaning of the CDM 2015 regulations. In addition, project management will be overseen by North Ayrshire Council’s internal PMI team, which will also provide the services of the Clerk of Works and Quantity Surveyor for cost control and interim works evaluation and certification for the purpose of invoicing. Under the NEC4 Engineering and Construction Contract with option B, the concept of transferring risk is inherently tied to the payment mechanism, as both elements are integral to the contract's overarching objective of promoting collaboration, transparency, and risk management between parties. Target Cost and Risk Transfer Option B of the NEC4 contract utilises a target cost mechanism, where the contractor is reimbursed for their actual costs plus a fee, subject to a target cost. Any savings or overruns relative to the target cost are shared between the employer and the contractor according to a pre-agreed formula. This mechanism inherently transfers certain risks from the employer to the contractor. For example, the contractor 204
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132 Great Harbour | Coastal Hub | FBC assumes the risk of cost overruns up to the agreed target cost, incentivising them to manage costs efficiently to maximise their fee. Risk Management Through Defined Cost Within the NEC4 framework, the term "Defined Cost" encompasses various elements of expenditure incurred by the contractor, including labour, materials, subcontractor costs, and other defined items. By defining the reimbursable costs in detail, the contract promotes transparency and accountability in cost management, facilitating effective risk identification and allocation. Contractors are incentivised to manage these costs diligently, as any cost overruns directly impact their fee under the target cost mechanism. Early Warning and Risk Allocation The NEC4 contract emphasises proactive risk management through the Early Warning process, wherein parties are required to notify each other of any potential risks or issues that may impact the project's time, cost, or quality. This enables timely mitigation measures to be implemented, minimising the likelihood and impact of risks. By facilitating open communication and collaboration, the contract promotes a shared understanding of risks and encourages parties to work together to address them effectively. Risk Sharing Through Compensation Events Compensation Events, as defined under the NEC4 contract, represent events that entitle the contractor to additional time and/or money due to circumstances beyond their control. The contract sets out a clear process for assessing and compensating the contractor for these events, thereby promoting fairness and transparency in risk allocation. By providing a mechanism for addressing unforeseen events, the contract mitigates the risk of disputes and encourages parties to work collaboratively to resolve issues. In summary, the NEC4 Engineering and Construction Contract with option B integrates risk transfer mechanisms with the payment mechanism to promote effective risk management and collaboration between parties. By aligning incentives, promoting transparency, and providing clear processes for addressing risks, the contract facilitates the successful delivery of projects while minimising disputes and maximising value for all stakeholders involved. 4.5 Agreed contract length The contract is anticipated to commence on 7 October 2024 with an anticipated duration of 74 weeks. The table below highlights some of the key dates that are required to be met during the contract period: Table 42 Coastal Hub contract key dates Milestone/Key Date Anticipated delivery date Contract Commencement 7th October 2024 Play Park completed (Key Date) 30th June 2025 Completion 6th April 2026 Defects / Maintenance Period (1 Year Post Completion) 6th April 2027 4.6 Key contractual clauses The contractor will act as Principal Contractor as defined by the Construction (Design and Management) Regulations 2015. Works will include but not be limited to the following: 205
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133 Great Harbour | Coastal Hub | FBC • Undertake dilapidation survey of all existing roads, paths, fences, gates and walls within the site and at junctions with adjoining highways. • Obtain current utilities records. • Service alterations and their co-ordination with public utilities and site users. • Mobilise and set up safe routes to be shared with park users to enclosed live working areas. • Set up welfare facilities, site offices, staff parking and material storage areas. • Site clearance of fences, planting and signage. • Install new drainage systems including managing existing surface water within the site boundaries • Diversion of existing sewer • Creation of new carriageway and footway areas • Lining of existing car parks • Hard landscaping including new and upgraded paths, walls, steps, paving etc • Soft landscaping (shrubs / grasses etc) • New Play Area • New Pump (subject to funding) and Skate Track • Improvements to the historic building - Pilot House • Installation of street furniture, signage and fencing • De-mobilise and clear site. Protocols to ensure the safety of the public will require to be implemented. Typically, this will include physical segregation at working areas which will be construction sites, vehicle speed restrictions and use of banksman to escort vehicles. The contractor will be responsible for the management of all traffic management for the duration of the works. Further details are bound by the contract and contain commercially sensitive information, which cannot be shared. 4.7 Personnel implications (including TUPE) TUPE – the Transfer of Undertakings (Protection of Employment) Regulations 1981 will not apply to this investment because it does not involve the transfer of an undertaking or part of an undertaking as defined by the regulations. There are no personnel implications there is no change of employer resulting from a transfer of ownership or outsourcing arrangement. The involvement of contractors, subcontractors, and consultants is primarily governed by contractual agreements. Therefore, the investment in the Coastal Hub project is unlikely to trigger the application of TUPE regulations. 4.8 Procurement route and implementation timescales To establish the most appropriate procurement route, an options appraisal was carried out with input from Council teams with relevant expertise and experience. This was supported by lessons learnt log collecting relevant experience on similar projects delivered by the Council. The process established the preferred option to appoint a main contractor for the entirety of the works required and to allow for subcontracting and managing any specialist contractors required to deliver works. This is deemed the most advantageous option, ensuring budget flexibility and control between work packages and better planning of works and site management, and effective use of resources. 206
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134 Great Harbour | Coastal Hub | FBC The alternative option would require individual tender exercises for each specialist package of works, i.e. play, groundworks, hardworks, softworks etc, and subsequently individual contracts. Due to the limited availability of NAC resources, there is not sufficient in-house provision to provide simultaneously adequate multiple procurement services and contract management and coordination without extending project timescales. As a mitigation, additional consultancy would require to be commissioned, which would increase the overall cost. However experience gathered on other NAC projects suggests that this option would increase the risk of more inefficient budget management and the risk of delays, as it would provide less scope for budget or programme realignment between varied contractors. In this respect, this option is not supported. Adhering to the CWB principles, a list of local contractors was collated to allow the main contractor to consider their appointment for any relevant works. NEC4 Construction and Engineering Contract with Option B will be used to promote collaboration, early warnings and arbitration. The procurement was carried out in accordance with the NAC Procurement Strategy 2023 -2026. The procurement process was carried out in three stages on Public Contracts Scotland, as listed below: • first stage: involving a Procurement Information Notice (PIN) to gauge an initial interest and sector capacity to deliver work; • second stage: verified contractors’ capacity and capability to deliver service within the timescale; and • third stage: involved inviting shortlisted bidders to submit full financial and quality bids. PIN notice was issued in Jan/Feb to gauge an initial interest and sector capacity to deliver work. This resulted in 24 expressions of interest and 6 full submissions received, which confirmed the capacity and capability of delivery within the timescales. The second stage was carried out in March/April 2024 and was a selection process, where the bidders’ capability, capacity and experience to perform the contract was assessed via the SPD (Scotland). i.e. the SPD (Scotland) is used to shortlist bidders. This meant the number of bidders could be reduced at the selection stage. Five bidders were shortlisted and invited to the next stage. The third stage was carried out in July 2024 with Invitation to Tender issued to the bidders shortlisted at stage 2 and the bids were assessed to determine the most economically advantageous tender, the basis of contract award. The full bid comprised of a technical bid with the proposed financial submission against the Bills of Quantities, and the quality submission, with additional Client Appraisal Questionnaire (pass/fail) in relation to the project examples submitted at previous stage. NEC4 Construction and Engineering Contract with Option B will be used to promote collaboration, early warnings and arbitration. The designer developing the proposals is taking on the role of Contract Administrator and Principal Designer in relation to the civil contract to ensure continuity. The planning permission for the proposals was granted in January 202414. 14 24/00077/PP planning application 207
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135 Great Harbour | Coastal Hub | FBC An evaluation and scoring of quality bids were carried out individually by four members of the project team, including a professional advisor appointed to develop the tender specifications. The financial bids were evaluated by the Council’s QS team and resulted with the shortlist, which was then discussed at the consensus meeting and the BAFO agreed. Implementation timescales relating to the Coastal Hub construction works are as follows: 07/10/2024 – construction contract award 11/11/2024 – site start 30/06/2025 – play park completion [milestone] 06/04/2026 – practical completion 06/04/2027 – end of defect liability period and retention period 10/05/2027 – evaluation report Table 43 Coastal Hub programme Great Harbour | Phase 1 | Coastal Hub STAGE Detailed Design Technical Design Tender FBC approval Construction Defect period critical milestone Q3 23/24 27/11/2023 PIN Q4 23/24 Q1 24/25 17/05/2024 10/04/2024 Q2 24/25 26/07/2024 07/10/2024 Q3 24/25 11/11/2024 Q4 24/25 Q1 25/26 30/06/2025 Q2 25/26 Q3 25/26 Q4 25/26 Q1 26/27 06/04/2026 Q2 26/27 Q3 26/27 Q4 26/27 Q1 27/28 04/04/2027 Contract Exit Strategy Contract Exist Strategy is provided in Appendix O. 4.9 FRS 5 accountancy treatment It is envisaged that the assets underpinning the delivery of the service will be on the balance sheet of the organisation should the development remain in the ownership of NAC. 208
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136 Great Harbour | Coastal Hub | FBC 4.10 Subsidy Control The Coastal Hub phase of the project is being delivered directly by NAC and the works will directly benefit the local community - there is no financial assistance being granted as part of this phase of the Great Harbour project. In terms of subsequent phases, it has been identified that the planned grant of AGD funds from NAC to the Scottish Maritime Museum as part of Phase 3 – the Maritime Heritage Hub, will be subject to subsidy control considerations. As a condition of the grant from NAC, SMM will require to ensure that the grant funds are utilised in accordance with subsidy control legislation. 209
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137 Great Harbour | Coastal Hub | FBC 5. The Financial Case 5.1 Introduction Great Harbour The financial projections demonstrate a sustainable funding model, considering both initial development costs and long-term maintenance. The proposed investment in the Great Harbour project was £16.0 million at Outline Business Case stage in June 2021 invested in phases. This included an uncommitted sum of £2m from NPL which is no longer relevant to the currently developed project. The overall budget available to the project is £14m from the Ayrshire Growth Deal, plus a number of small-scale committed funds. The phasing has been revised and updated following the post-OBC development including finalising the Masterplan, development frameworks and intensive consultations with relevant services, professionals, stakeholders and the local community. The proposed phasing reflects the deliverability assessed against timescales and maximum opportunities for partnership funding. Technical Note: This financial analysis adheres to the appraisal techniques outlined in the HM Treasury Green Book (HM Treasury, 2022) and the financial case incorporates the following: • Nominal Prices: All monetary values are presented in nominal terms, reflecting their actual value at the time of expenditure and including the effects of annual inflation. By using nominal prices, the financial case provides a realistic view of financial flows, accounting for inflation in budgeting and cash flow projections. • Construction Inflation (Coastal Hub): The value of construction contract is based on the actual tender prices received, therefore does not require construction inflation. The model contract used is the NEC4 Engineering and Construction Contract with Option B, which operates on a fixed-price basis for the agreed scope of work, meaning the prices set out in the Bill of Quantities are fixed and do not adjust for inflation over the course of the project. Table 44 Great Harbour project phasing Great Harbour Phase Programme Phase 1 Phase 2 Phase 3 TOTAL Scope Project management Coastal Hub Maritime Mile hubs connections Maritime Heritage Hub Development Play Park Marine & Arts Hub Harbour Master's Office marketing Masterplan Pilot House plaza Transport and parking remodelling Gap site marketing (between 128 and 138 Harbour Street) Events space at the Beach Park Active travel infrastructure Pilot House restoration* Digital network infrastructure Harbour Master's Office restoration Residential - Portland site marketing* Beach Park access Public/events spaces AGD budget [M] £1.091 £5.010 £5.809 £2.090 £14.000 Additional funding [M] £0.130 £0.154 £0.636 £0.000 £0.920 210
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138 Great Harbour | Coastal Hub | FBC committed additional NAC £0.130 £0.023 - - £0.153 Sustrans - - £0.079 - £0.079 VDLF - - £0.158 - £0.158 DIST - - £0.392 - £0.392 CLF - - £0.007 - £0.007 CLCF** - £0.131 - - £0.131 TOTAL committed £1.221 £5.164 £6.445 £2.090 £14.920 Additional funding [M] £0.000 £0.365 £0.042 £5.525 £5.932 potential sources Sport Scotland Sustrans NLHF CLCF additional NAC HES other other additional NAC TOTAL proposed investment [M] £1.221 £5.529 £6.487 £7.615 £20.852 *Subject to additional funding secured ** Funding not committed with sources identified, included within tender to generate competitive pricing Phase 1 - Coastal Hub Phase 1 relates to the Coastal Hub diverse ‘play activity’ within the area of the Beach Park and Pierhead/ Harbour Point with wider improvements of access to the open green space of the Beach Park for increased wellbeing benefits for local residents and visitors. Project costs account for whole life costs and the breakdown for the Coastal Hub is shown below. Table 45 Phase 1 FBC costings Service (RIBA stage of works) Timescales Total GH phase 1 development (stage 0-4) Nov 2021 – May 2023 GH phase 1 delivery (stage 5-6) · Consultancy · Civils · Contingency May 2023 – April 2026 Defects Period/ Evaluation (stage 7) April 2026 – April 2027 Community fund May 2023 – April 2026 £25,000 TOTAL Coastal Hub £5,164,233 DEDUCTIONS PBIF - committed £22,625 CLCF - potential £131,251 TOTAL AGD £5,010,357 211
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139 Great Harbour | Coastal Hub | FBC 5.2 Impact on the organisation’s income and expenditure account Similar to the overarching Great Harbour project, the Coastal Hub was designed to balance high-quality public spaces and amenities with future maintenance considerations, including resource pressures. While addressing maintenance requirements creates employment opportunities, the design also considers layouts, materials, and finishes to minimise and simplify future maintenance burdens, ultimately contributing to long-term affordability. The capital costs are outlined in the tables below. Summary of financial appraisal – draw down profile Coastal Hub Table 46 Coastal Hub Funding FUNDED BY Capital Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 UK Gov 0 Scottish Gov 4,774,005 1,377,972 2,659,976 736,057 Regional Partners 236,352 1,300 0 237,533 -2,481 AGD TOTAL 5,010,357 0 0 1,300 0 237,533 1,375,491 2,659,976 736,057 0 0 0 PBIF 22,625 22,625 Funding tbc - Pump Track* 131,251 131,251 PROJECT TOTAL 5,164,233 0 0 1,300 0 260,158 1,506,742 2,659,976 736,057 0 0 0 * Funding not committed with sources identified, included within tender to generate competitive pricing Great Harbour Table 47 Great Harbour Funding FUNDED BY Capital Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 UK Government 0 Scottish Government 9,000,000 1,377,972 4,044,350 2,194,902 1,382,775 0 0 Regional Partners 5,000,000 31,401 99,670 138,253 213,262 305,307 93,689 99,536 253,849 2,168,325 1,544,203 52,505 AGD TOTAL 14,000,000 31,401 99,670 138,253 213,262 305,307 1,471,661 4,143,886 2,448,751 3,551,100 1,544,203 52,505 VDLF 157,500 20,722 211 5,446 131,122 CFCR - Staffing 112,226 26,995 41,959 43,272 CFCR - Other 17,800 17,800 CLF 7,230 7,230 Sustrans 78,823 28,750 50,073 PBIF 22,625 22,625 5G SIPP 392,000 392,000 TBC FUNDING - PUMP TRACK 131,251 131,251 PROJECT TOTAL 14,919,455 31,401 99,670 193,200 301,982 426,723 2,126,034 4,143,886 2,448,751 3,551,100 1,544,203 52,505 * Funding not committed with sources identified, included within tender to generate competitive pricing 212
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140 Great Harbour | Coastal Hub | FBC Summary of financial appraisal – planned project delivery/spend Coastal Hub Table 48 Coastal Hub Spend Profile EXPENDITURE Capital Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Coastal Hub 5,164,233 0 0 1,300 0 260,158 1,506,742 2,659,976 736,057 0 0 0 Total 5,164,233 0 0 1,300 0 260,158 1,506,742 2,659,976 736,057 0 0 0 Great Harbour Table 49 Great Harbour Spend Profile EXPENDITURE Capital Expenditure 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Programme 1,220,907 31,401 99,670 163,948 246,631 111,043 96,170 99,536 103,020 106,626 110,358 52,505 Phase 1 Coastal Hub 5,164,233 0 0 1,300 0 260,158 1,506,742 2,659,976 736,057 0 0 0 Phase 2 Maritime Mile (Marine & Arts Hub) 6,444,314 0 0 27,952 55,351 55,522 523,122 1,384,374 1,609,674 1,354,474 1,433,845 0 Phase 3 Maritime Heritage Hub 2,090,000 0 0 0 0 0 0 0 0 2,090,000 0 0 Great Harbour Total 14,919,455 31,401 99,670 193,200 301,982 426,723 2,126,034 4,143,886 2,448,751 3,551,100 1,544,203 52,505 5.3 Impact on the balance sheet One crucial aspect when assessing the economic viability of the Coastal Hub project is its ability to yield sustainable, long-term returns while remaining affordable. Through a blend of public and private funding sources, including government grants, private investments, and strategic partnerships, the project aims to allocate resources wisely and maximise returns on investment. By integrating digital infrastructure and innovative technologies like Augmented Reality experiences and public Wi-Fi, the project not only enhances operational efficiency but also focuses on cost-effectiveness, ensuring affordability. This approach also futureproofs the project against evolving market dynamics and consumer preferences. Additionally, the events space’s flexibility to host various events throughout the year enhances its revenue-generating potential, thus ensuring long-term affordability and financial sustainability. The redevelopment of the Beach Pavilion at the later phases, adopts a model where community amenities such as toilets and communal spaces are sustained by revenue generated from the commercial rental of the restaurant, fostering affordability in the long term. Thoughtful planning for sustainability, adaptability, and resilience further ensures the project's long-term affordability, including strategies for ongoing maintenance, community involvement, and continuous improvement. 5.4 Overall affordability The total cost of the phase 1 of the Great Harbour project, the Coastal Hub is £5.164m with £5,010m from Ayrshire Growth Deal, £22,625 from the Place Based Investment Fund (approved and spent) and external funding of £131,251, which is estimated to be required to deliver the pump track. This sum 213
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141 Great Harbour | Coastal Hub | FBC includes cost of development and delivery of the Coastal Hub along with a 10% contingency of the civils contract, which is deemed appropriate for this stage of the project. The expenditure is spread over the 18-month construction contract. The AGD investment into Phase 1 represents 33% of the total Great Harbour budget. Along with the programme cost, including Great Harbour development and overall management costs at 6.6%, it reflects a proportionate spend relative to the scope of physical works and geographical area. Table below captures all these elements. Table 50 Phase 1 FBC costings Service (RIBA stage of works) Timescales Total GH phase 1 development (stage 0-4) Nov 2021 – May 2023 GH phase 1 delivery (stage 5-6) · Consultancy · Civils · Contingency May 2023 – April 2026 Defects Period/ Evaluation (stage 7) April 2026 – April 2027 Community fund May 2023 – April 2026 £25,000 TOTAL Coastal Hub £5,164,233 DEDUCTIONS PBIF - committed £22,625 CLCF - potential £131,251 TOTAL AGD £5,010,357 While Phase 3 of the Great Harbour project has a defined allocation with limited flexibility, Phase 2 offers potential for more flexibility and value engineering opportunities. This flexibility will help adjust the overall Great Harbour budget allocations between phases if necessary. Furthermore, the Leverage Funding Strategy has been developed to maximise funding opportunities from internal and external sources. The project has been the subject of consultation with all relevant services to minimise maintenance and upkeep burdens. The construction contract includes initial 12-month maintenance period, and a detailed Coastal Hub Maintenance Plan (Appendix M) has been prepared. This plan will be updated post- construction, to capture all relevant maintenance and repair regime requirement with identified processes and timescales to assist relevant services and to ensure adequate revenue allocations are put in place. North Ayrshire Council will deliver and fund the ongoing maintenance of the Coastal Hub facilities. While the Great Harbour project will create several revenue generating opportunities, the Coastal Hub focuses on the improvements to the events space as its main revenue generating element. These improvements aim to make it more attractive for major events organisers and better equipped with necessary utilities for all events. The Maritime Mile Events Programme has been developed to promote and test all the events areas along the Maritime Mile, including the upgraded events space as part of the Coastal Hub development. In conclusion, the Great Harbour project's affordability is assured through strategic financial planning, secured funding, and proactive cost management. With full funding for Phase 1, a balanced allocation of 214
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142 Great Harbour | Coastal Hub | FBC resources, and the flexibility to adjust budget allocations as needed, the project remains financially sound. Additional funding opportunities and a detailed maintenance plan further ensure long-term financial stability. By focusing on revenue-generating improvements, particularly in the events space, the project is poised to generate sustainable income, solidifying its financial viability and success. ASSURANCE STATEMENT This is to confirm that the financial profile for the project outlined in Section 5.2 above reflects the position of North Ayrshire Council as at the date stated below. Name of Council’s S95 Officer in block capitals: Signed: Date 215
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143 Great Harbour | Coastal Hub | FBC 6. The Management Case 6.1 Introduction The management plan for the Great Harbour project is intricately designed around a robust governance structure that ensures accountability and oversight throughout the project lifecycle. This plan meticulously outlines project milestones and gateways, serving as checkpoints for monitoring progress and obtaining approvals at critical junctures. These milestones and gateways align closely with RIBA Work Stages, providing a clear framework for project progression. Divided into three distinct phases, the management plan delineates the work into manageable segments, each corresponding to specific procurement requirements and types of activities. Additionally, these phases account for dependencies such as partnerships and regulatory consenting processes, ensuring seamless coordination across various stakeholders. To ensure thorough scrutiny and decision-making at key junctures, the management plan incorporates a three-level gateway review process. This includes evaluation by the Project Board, Executive Leadership Team (ELT), and ultimately, North Ayrshire Council’s Cabinet, ensuring that decisions are made with comprehensive consideration and adherence to project objectives. Given the complexity and expansive geographical scope of the Great Harbour project, a phased delivery approach is deemed necessary. This phased delivery strategy is guided by predefined milestones and gateways, allowing for incremental progress and adaptation to evolving circumstances. This approach is particularly evident in the submission of the Full Business Cases (FBCs), with each submission focusing on specific phases of the project. This current Full Business Case, focuses on the delivery of the Coastal Hub as a first phase and also provides an update on the overall Great Harbour Programme, following the approval of the Outline Business Case (OBC) in June 2021. While the OBC emphasised the development of activity hubs with individual growth potential and enhanced connectivity, the delivery phasing strategy must carefully consider various factors. These factors include the nature of construction works proposed, procurement requirements, budget constraints, timelines for securing external funding, readiness of partner organisations, and internal approval processes. By integrating these considerations into the delivery phasing, the management plan ensures alignment with project objectives while mitigating risks and optimising resource utilisation. The details of phasing with associated timescales are described within previous Sections of the FBC and outlined in Table 51. The scope of the phasing with allocated budgets are presented in Table 52. 216
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144 Great Harbour | Coastal Hub | FBC Table 51 Great Harbour Milestones Great Harbour Gateway | Milestone Phase 1 Phase 2 Phase 3 RIBA Stage 0 Establishment of project governance and Strategic Business Case 0 - Strategic Definition 1 Sign-off concept delivery/ objectives and Outline Business Case development 1 - Preparation & Briefing 2 - Concept Design OBC submission to PMO & Govt(s) - OBC approved by Government - 2 Completion of the detailed design 27/11/2023 09/12/2024 Q2 26/27 2 - Concept Design 3 - Developed Design Statutory Consents 31/01/2024 16/06/2025 Q2 27/28 3 Completion of Technical Design 20/05/2024 16/06/2025 Q2 27/28 4 - Technical Design Completion of Construction Tender 26/07/2024 18/08/2025 Q3 27/28 Internal sign-off of FBC (Cabinet) 27/08/2024 22/07/2025 Q2 27/28 - FBC Submission 10/06/2024 01/07/2025 Q2 27/28 - FBC approved by Economic Joint Committee 04/09/2024 26/08/2025 Q2 27/28 - EJC Update (evidence of tender) 06/09/2024 06/09/2025 Q3 27/28 - 4 Construction start 07/10/2024 06/09/2025 Q3 27/28 5 - Manufacturing & Construction 5 Construction complete and Handover 06/04/2026 06/08/2027 Q2 28/29 6 - Handover 6 Retention/Reporting outputs/outcomes/CWB incl. AGD Evaluation/Monitoring 06/04/2027 06/08/2028 Q2 29/30 7 - Use RAG STATUS Green = on track Amber = subject to change/potential delay 217
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145 Great Harbour | Coastal Hub | FBC Table 52 Great Harbour project phasing Great Harbour Phase Programme Phase 1 Phase 2 Phase 3 TOTAL Scope Project management Coastal Hub Maritime Mile hubs connections Maritime Heritage Hub Development Play Park Marine & Arts Hub Harbour Master's Office marketing Masterplan Pilot House plaza Transport and parking remodelling Gap site marketing (between 128 and 138 Harbour Street) Events space at the Beach Park Active travel infrastructure Pilot House restoration* Digital network infrastructure Harbour Master's Office restoration Residential - Portland site marketing* Beach Park access Public/events spaces AGD budget [M] £1.091 £5.010 £5.809 £2.090 £14.000 Additional funding [M] £0.130 £0.154 £0.636 £0.000 £0.920 committed additional NAC £0.130 £0.023 - - £0.153 Sustrans - - £0.079 - £0.079 VDLF - - £0.158 - £0.158 DIST - - £0.392 - £0.392 CLF - - £0.007 - £0.007 CLCF** - £0.131 - - £0.131 TOTAL committed £1.221 £5.164 £6.445 £2.090 £14.920 Additional funding [M] £0.000 £0.365 £0.042 £5.525 £5.932 potential sources Sport Scotland Sustrans NLHF CLCF additional NAC HES other other additional NAC TOTAL proposed investment [M] £1.221 £5.529 £6.487 £7.615 £20.852 *Subject to additional funding secured ** Funding not committed with sources identified, included within tender to generate competitive pricing 6.2 Programme management arrangements The Great Harbour project is an integral part of the Tourism Programme, which comprises of a portfolio of projects that build on and strengthen the existing tourism offer to make Ayrshire a highly desirable place to visit and live, work and invest in. Total programme funding of £23.5 million, with £18.5 million from Scottish Government and £5 million from North Ayrshire Council will deliver two major tourism projects, Marine Tourism and The Great Harbour. 218
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146 Great Harbour | Coastal Hub | FBC The projects associated with these themes focus on key sectors and strategic sites across Ayrshire, as well as digital infrastructure, skills, community wealth building and transport – all of which will combine to facilitate sustained recovery and renewal of the regional economy. The majority of projects focus on infrastructure investment designed to act as a catalyst for business growth and are complemented by a Skills and Inclusion Programme and a Community Wealth Building Programme to ensure maximum benefit for Ayrshire communities, both resident and business, from large scale capital expenditure. The Ayrshire Economic Joint Committee, a collaborative body comprising of Elected Members, representatives from Scottish Enterprise, Skills Development Scotland, business and education and promoting economic development and growth within the Ayrshire region, has a crucial role in coordinating efforts to support economic growth and prosperity in the region, leveraging partnerships, resources, and expertise to achieve its objectives. The Committee oversees the strategic planning at regional level and builds partnerships and collaborations among local governments, businesses, educational institutions, and other relevant organisations. By bringing together diverse stakeholders, the AEJC can leverage resources and expertise to support economic initiatives. To ensure the Great Harbour project aligns with the strategic goals and objectives of the overall programme, a dedicated Programme Manager was appointed as part of the Ayrshire Growth Deal delivery team at North Ayrshire Council, overseeing the governance and reporting of all projects. The Programme Manager provides regular updates and reports to the Council’s Executive Leadership Team and Ayrshire Growth Deal Project Management Office and maintains documentation relating to project activities, decisions and outcomes and provides project assurance. The Programme Manager also works closely with a dedicated Finance Manager to ensure that reporting is supported by relevant financial information and evidence. The governance for the AGD programme includes the following: o The Ayrshire Economic Joint Committee – comprising Elected Members, representatives from SE, SDS, business and education, o The Ayrshire Economic Partnership Board – comprising Elected Members representatives from public sector partners including SE, SDS, HIE, VisitScotland, HE, FE, the third sector and the business community. These committees have oversight of the AGD both at a programme level and in terms of approval of detailed business cases for individual projects as well as continued monitoring and evaluation of the AGD programme post Deal document sign off. The projects also have internal Gateway Review Boards to monitor and review progress and reach agreement on key aspects of the project. 6.3 Project management arrangements The project will be managed in accordance with PRINCE 2 methodology ensuring: o Continued Business Justification: Ensure that the project remains justifiable throughout its lifecycle. o Learn from Experience: Use lessons from previous projects to improve current and future projects. o Defined Roles and Responsibilities: Clearly define and communicate the roles and responsibilities of everyone involved in the project. o Manage by Stages: Divide the project into manageable stages to facilitate control and review. o Manage by Exception: Empower management to focus on exceptions while the project team manages day-to-day activities. o Focus on Products: Define and manage the project in terms of deliverable products. 219
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147 Great Harbour | Coastal Hub | FBC Green Book Business Case model ensures the project is justifiable and aligned with business objectives and provides monitoring and change control over scope vs benefits and objectives. The project is based on plans developed from the vision into a brief, which then was captured into a Masterplan providing a framework for varied elements of the AGD investment but also for future opportunities, supporting sustainable growth of the area and the community. Further development is based on a phased implementation plan, which ensures efficient use of resources and minimises disruptions to the community. The development timeline includes milestones emphasising a commitment to timely delivery. The risks are identified, weighted and assessed regularly to ensure adequate and timely management and mitigation. Roles and responsibilities are clearly identified. The governance structure aims to create a clear hierarchy of decision-making while ensuring that stakeholders are appropriately engaged and informed throughout the project lifecycle. Roles and responsibilities relating to the governance structure are clearly identified and they are presented in table below. Table 53 Great Harbour project management roles and responsibilities Body Responsibility Members Process Cabinet as required Represents the highest level of governance and strategic decision-making for the project. Leader of the Council Cabinet Members (6) It involves key executives and senior leaders presenting the recommendations on the project for approval or endorsement when required. Planning Committee Discharges the Council's functions as Planning Authority in relation to the Town and Country Planning Committee Members (8) It involves senior leaders presenting the recommendations on the project for approval when required. Planning Committee AEPB / AEJC PMO Cabinet GH Project Board Stakeholders Partners G&I risks & finance monitoring Project Management ELT Figure 24 Great Harbour governance structure 220
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148 Great Harbour | Coastal Hub | FBC as required (Scotland) Act 1997 and other relevant statutes. Executive Leadership Team (ELT) bi-monthly Acts as AGD Programme Board and is the central coordination point between the Cabinet and the Project Board. They ensure alignment between project objectives and organisational strategy and define support required from other NAC services. Chief Executive Officer Executive Director – Place Executive Director – Communities and Education Head of Service – Finance Head of Service – Democratic Services Head of Service – People and ITC It involves senior leaders presenting regular project updates and recommendations on the project for approval when required. Project Board monthly Responsible for overseeing the project's progress, providing guidance, and making key decisions. It serves as the link between the ELT and Project Management Team. It monitors progress and provides resolution of design, technical cost and funding matters. Senior Manager – Growth and Investment (Chair) Project Manager – Growth and Investment Programme Manager – Growth and Investment Finance Manager Representatives from relevant Council Services as needed Relevant Project partners as needed Subject matter experts as needed - main project activity update - risk register and early warnings - issues for escalation or approval of a higher body - financial projections and spend review - funding update - stakeholder and partner engagement update - actions tracker Project Management Team Responsible for day-to-day project execution and implementation. They regularly report to the Project Board and ensure that project activities align with organizational goals. Also responsible for communication, stakeholder and partner management and engagement. Senior Manager – Growth and Investment Project Manager – Growth and Investment Finance Manager Focused discussions on most urgent issues and actions to monitor progress and resolve challenges. weekly Stakeholders A range of internal and external stakeholders and project partners have an interest in the project's success. They provide input, feedback, and support throughout the project lifecycle. Internal stakeholders: PMI, Legal, Planning, Regeneration, Active Travel, Roads, Flooding, Streetscene, Rangers, Communities, Estates, Business Growth, Waste Management, Biodiversity External stakeholders: - Irvine Planning Partnership - Irvine Community Council - Heritage and culture focus group - Water and outdoor sports and activity focus group - Active travel focus group - Local Businesses - Events organisers - Irvine Harbour Company/ NPL Estates - Transport Scotland 221
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149 Great Harbour | Coastal Hub | FBC - Network Rail - NatureScot - Scottish Maritime Museum - Sustrans - Historic Environment Scotland - National Lottery - Scottish Landfill / Land Trust - Sport Scotland - Cycling Scotland - Strathclyde Partnership for Transport - Scottish Government - UK Government DSIT - Police Scotland - Scottish Enterprise - VisitScotland Communication and Engagement The Stakeholder Engagement and Public Consultation Strategy (Appendix A) has been developed to ensure all area stakeholders and parties with invested interest are captured and actively engaged and that the proposals meet local needs and priorities. In accordance with best practice developed by the Council’s Communities Team, a Stakeholder Reference Group was created with representation from all community groups within the project area to guide communication, dissemination of information and engagement strategy, particularly during the development of the public consultations. Several of focus groups have been established reflecting specific aspects of the proposals. The strategy also provides the plan of communication and dissemination of information at different stages of the development process. The outline is captured on the Table 47 below. Table 54 Outline of Communication Strategy stage audience/ means method MASTERPLAN focus groups • discussion at meetings and workshops Stakeholder Reference Group • discussions and review of consultation material public consultations • online survey • paper forms available at the HAC on the Harbourside, local library and the Council HQ • consultation events with information boards and Project Team in attendance • Information Boards displayed on the Harbourside • walkarounds • presentation • competitions for education sector gathering feedback Press Releases • regular updates throughout the development informing of the progress and milestones achieved NAC Social Media channels • regular updates throughout the development informing of the progress and milestones achieved higher education • engagement support with hard-to-reach groups • destination development DETAILED DESIGN DEVELOPMENT focus groups • events testing existing conditions and recording barriers for users • discussions at meetings and workshops • competitions and projects for education sector exploring potential for education activity 222
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150 Great Harbour | Coastal Hub | FBC Press Releases • regular updates throughout the development informing of the progress and milestones achieved NAC Social Media channels • regular updates throughout the development informing of the progress and milestones achieved higher education • destination development • promotional events CONSTRUCTION focus groups • events testing improved facilities and showcasing destination • projects and events for education testing improved facilities and showcasing destination Press Releases • regular updates throughout the development informing of the progress and milestones achieved • promotion of the destination NAC Social Media channels • regular updates throughout the development informing of the progress and milestones achieved • promotion of the destination higher education • destination development • promotional events 6.3.1 Project reporting structure Progress reporting relating to the GH project is represented by the governance structure and communication strategy described in previous paragraphs. The organisational reporting structure, which reflects the escalation procedure and the early warning process, is outlined on the diagram below. Figure 25 Organisational reporting structure 6.3.2 Project roles and responsibilities The roles and responsibilities associated with the project governance and progress reporting are described in previous paragraphs. The roles and responsibilities directly linked to the GH project management team are captured in the Table 55 below. Project Manager Kasia Smith Senior Manager Marnie Ritchie Head of Service Louise Kirk Executive Director Place Service Russell McCutcheon Chief Executive Officer Craig Hatton 223
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151 Great Harbour | Coastal Hub | FBC Table 55 Great Harbour project team roles and responsibilities Role Person Organisation Main responsibilities Senior Responsible Officer Louise Kirk Head of Service Economic Development, Growth and Regeneration NAC • strategic leadership and direction • accountability for delivery of outcomes, benefit realisation within time and budget • high level stakeholder engagement with key partners and government representatives • establishment of effective governance and decision-making process • quality assurance • oversight of risk management • benefit management • performance monitoring and reporting Programme Manager Lisa Jamieson Strategy and Programme Manager NAC G&I • strategic planning to achieve programme objectives • programme design and implementation • stakeholder management (project teams, PMO) • resource management • programme risk management • regular reporting to CEO and PMO Finance Manager Keith Macdonald Strategic Project Finance Manager NAC Finance • financial planning and analysis to forecast budget and cashflow for financial modelling • financial risk management to ensure risk mitigation and financial stability throughout project lifecycle • financial reporting to CEO and PMO • financial governance and compliance • cross-functional collaboration to ensure alignment of financial objectives with overall project goals and objectives Senior Manager Marnie Ritchie Interim Senior Regeneration Manager NAC G&I • team management and leadership • oversight of project planning, risk management, quality assurance and stakeholder engagement • project control and monitoring against plans and objectives • change management • resource management • reporting to SRO Project Manager Kasia Smith Regeneration Manager NAC G&I • management of all activities relating to project development and delivery • procurement strategy development/ appraisal • management of consultants and specialist input • financial monitoring and spend recording • stakeholder engagement • fundraising • change and risk management and recording • cross service collaboration • communications management • preparation of plans for development and delivery • preparation of all project documentation • quality assurance • Reporting to SM 224
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152 Great Harbour | Coastal Hub | FBC 6.3.3 Project plan AGD Implementation Plan 2022 outlines the detail of how each project within the Ayrshire Growth Deal is expected to be implemented and is subject to annual review and update. It contains key milestones, outputs, outcomes and risks associated with the development and delivery of each Growth Deal project. Table 56 Great Harbour Milestones Great Harbour Gateway | Milestone Phase 1 Phase 2 Phase 3 RIBA Stage 0 Establishment of project governance and Strategic Business Case 0 - Strategic Definition 1 Sign-off concept delivery/ objectives and Outline Business Case development 1 - Preparation & Briefing 2 - Concept Design OBC submission to PMO & Govt(s) - OBC approved by Government - 2 Completion of the detailed design 27/11/2023 09/12/2024 Q2 26/27 2 - Concept Design 3 - Developed Design Statutory Consents 31/01/2024 16/06/2025 Q2 27/28 3 Completion of Technical Design 20/05/2024 16/06/2025 Q2 27/28 4 - Technical Design Completion of Construction Tender 26/07/2024 18/08/2025 Q3 27/28 Internal sign-off of FBC (Cabinet) 27/08/2024 22/07/2025 Q2 27/28 - FBC Submission 10/06/2024 01/07/2025 Q2 27/28 - FBC approved by Economic Joint Committee 04/09/2024 26/08/2025 Q2 27/28 - EJC Update (evidence of tender) 06/09/2024 06/09/2025 Q3 27/28 - 4 Construction start 07/10/2024 06/09/2025 Q3 27/28 5 - Manufacturing & Construction 5 Construction complete and Handover 06/04/2026 06/08/2027 Q2 28/29 6 - Handover 6 Retention/Reporting outputs/outcomes/CWB incl. AGD Evaluation/Monitoring 06/04/2027 06/08/2028 Q2 29/30 7 - Use RAG STATUS Green = on track Amber = subject to change/potential delay Red = Project slippage 225
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153 Great Harbour | Coastal Hub | FBC Table 57 Great Harbour Programme Great Harbour | Phase 1 | Coastal Hub STAGE Detailed Design Technical Design Tender FBC approval Construction Defect period critical milestone Q3 23/24 27/11/2023 PIN Q4 23/24 Q1 24/25 17/05/2024 10/04/2024 Q2 24/25 26/07/2024 07/10/2024 Q3 24/25 11/11/2024 Q4 24/25 Q1 25/26 30/06/2025 Q2 25/26 Q3 25/26 Q4 25/26 Q1 26/27 06/04/2026 Q2 26/27 Q3 26/27 Q4 26/27 Q1 27/28 06/04/2027 6.4 Use of special advisers Although the Project Management Team operating within the Council's structure is responsible for managing the development and delivery of proposals, the complexity of the project and its extensive scope across various types of work necessitate specialist input throughout the proposal development process. A phased development approach is proposed to promote sustainable resource utilisation and minimise disruption to users and residents. Drawing from lessons learnt from past regeneration projects managed by the Council, the preference is for the engagement of multidisciplinary design consultancy teams. Accessing various frameworks available to the Council enhances appointment efficiency and cost- effectiveness, further streamlining the process. Contract administration and QS services are provided in- house. The Table 58 below lists the professional expertise required at different stages and appointed consultants. Table 58 Great Harbour professional advisors stage advisor expertise MASTERPLAN Ironside Farrar • urban planning • Masterplanning • public engagement PHASE 1 – Coastal Hub DESIGN Ironside Farrar • landscape architecture • civil engineering • geotechnical engineering • lighting design • ecology • planning • play 226
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154 Great Harbour | Coastal Hub | FBC • signage and graphic design PHASE 1 – Coastal hub CONSTRUCTION Ironside Farrar • contract administration • Principal Designer PHASE 2 – Maritime Mile DESIGN TBC • landscape architecture • architecture • urban design • public engagement • civil engineering • geotechnical engineering • lighting design • ecology • transport planning • signage and graphic design PHASE 2 – Maritime Mile CONSTRUCTION TBC • contract administration • Principal Designer PHASE 3 – Maritime Heritage Hub DESIGN partner led • architecture • urban design • public engagement • civil engineering • geotechnical engineering • lighting design • ecology • transport planning • signage and graphic design PHASE 3 – Maritime Heritage Hub CONSTRUCTION partner led • contract administration • Principal Designer EVALUATION TBC • economic impact • financial analysis • benefits realisation The specialist advice relating to phase 1 - the Coastal Hub, is outlined in Table 59 below. Table 59 Coastal Hub professional advisors Specialist Area Advisor Financial in-house Technical Ironside Farrar Stantec UK Applied Ecology GM Civil& Structural Consulting Engineers RPS Consulting Aspect Land & Hydrographic Survey Procurement and legal in-house Business assurance in-house Other - Planning in-house Ironside Farrar 227
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155 Great Harbour | Coastal Hub | FBC 6.5 Arrangements for change management Change control is essential for maintaining the integrity and stability of project especially in environments where even minor changes can have significant implications. It helps prevent unauthorised or unmanaged changes, minimises disruptions, and ensures that changes align with project objectives and stakeholder expectations. Changes to the Great Harbour project are managed by the process designed to capture early warnings, evaluate the associated risks and impact and provide mitigation options. The associated approval process ensures revision of options and that changes are necessary, beneficial, and do not have adverse effects on the project or system. The changes are captured in the FBC for the final review and decision of the AEJC. The change control process will be managed by NAC. Arrangements for change management are set out within the Ayrshire Growth Deal Governance Document and summarised in the flow chart below. Figure 26 Great Harbour Change Control process 228
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156 Great Harbour | Coastal Hub | FBC 6.6 Arrangements for benefits realisation The AGD Benefits Realisation Plan (Appendix F) sets out how the Deal outcomes will be monitored against alignment with delivery plans and AGD objectives and how the impacts will be captured and reported. It defines a set of reporting principles, including: adherence to the overarching principles of Government best practice in project delivery; selecting common monitoring and evaluation (M&E) approaches that best measure progress in meeting AGD objectives and impacts; and, going forward, continually updating this Plan and using any other new measures that will help assess and support the better management of AGD activities and impacts. Benefits Realisation Guidance (Appendix G) identifies all the types of outputs, outcomes, impacts and community benefits that are likely to be generated across the six AGD project themes and includes pro formas for each project outlining the approach to monitoring and evaluation of relevant outputs, outcomes, impacts and community benefits. The benefits generated by the project are summarised in the benefits realisation matrix. The benefits fall into the following categories: o Infrastructure Enabling Infrastructure creating destination o Investment Partner and leveraged investment o Employment Construction and Tourism related jobs o Community Regeneration and community capacity and levels of participation o Enterprise Enterprise activity (business/3rd sector /community) o Environmental Enhanced public realm / waterfront / biodiversity o Marine Access Barrier free access o Heritage build and natural heritage enhancement o Other Active Travel / Traffic Management The analysis of benefits has been prepared in line with the emerging AGD Growth Deal Assurance Framework. The benefits are closely linked to the project objectives which put enterprise, regeneration and place development as key objectives. Regional Community Benefits Statement (Appendix L) was also prepared to support the procurement, record and track pledged community benefits. Project specific indicators are listed in tables below: Outputs Table 60 Great Harbour Outputs ID Description Phase 1 timescale AGD/O/2 Construction Jobs Output 26/27 AGD/O/1 Direct/Indirect Jobs 29/30 AGD/O/7 New or upgraded roads/junctions/cycle pathways 26/27 AGD/O/9 Development space unlocked 29/30 AGD/O/10 Reduced vacant & derelict land 29/30 AGD/O/13 Visitors 29/30 AGD/O/14 Start-Ups 29/30 AGD/O/16 Leverage: (including LA, HE/FE, Private Sector and any other leverage) 26/27 229
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157 Great Harbour | Coastal Hub | FBC AGD/O/17 Income Levels 29/30 AGD/O/18 Heritage asset restored or brought back to use 26/27 Outcomes Table 61 Great Harbour Outcomes ID Description Phase 1 timescale AGD/OT/1 Job Levels (new and maintained) 26/27 AGD/OT/2 Development Space uptake 29/30 AGD/OT/5 Increase in Visitor Spend 29/30 AGD/OT/6 Start-up performance/survival 29/30 AGD/OT/7 Additional Investment (including Foreign Direct Investment) 26/27 AGD/OT/10 Heritage asset restored or brought back to use 26/27 Impacts Table 62 Great Harbour Impacts ID Description Phase 1 timescale AGD/I/1 Net Job Levels (new and maintained) 26/27 AGD/I/5 Follow on investment 29/30 AGD/I/6 Reduced levels of deprivation within the region 29/30 AGD/I/7 Increased income levels 29/30 AGD/I/8 Heritage asset restored or brought back to use 26/27 Community Benefits Table 63 Great Harbour Community Benefits ID Description Phase 1 timescale AGD/CB/O/4 Schools Outreach 26/27 AGD/CB/O/5 CWB Support Places 26/27 AGD/CB/O/8 Uplifts in regional supplier spend 26/27 AGD/CB/O/17 Site visits by College or University 26/27 AGD/CB/O/21 Softer community benefits delivered to Ayrshire as part of the project: · Sponsorship of local events/community clubs; · Donations of equipment/goods/materials; · Volunteering at community events; · Supporting our older people and adults (e.g. day trip, coffee morning) · Assisting with community projects (e.g., painting, grass cutting); and 26/27 230
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158 Great Harbour | Coastal Hub | FBC · Assisting with education projects (e.g. STEM). In accordance with the NAC Community Benefits in Procurement Policy (2023) the high value of this civils contract attracts mandatory community benefits clauses and the submission of the relevant offer from all bidders at the procurement process, which becomes a contractual obligation at the contract award. Failure to meet the criteria results in the bid being excluded from the procurement exercise. A range of community benefits is proposed at tender stage with an aim to improve socio-economic and environmental outcomes of the procurement process. A point-based system allows for the calculation of relevant level of benefits based on the contract value. The bidders may choose from the support offer relating to employment, skills, Small-Medium-sized Enterprises, Third Sector Organisations, education and the Community Wish List collating wishes from local community groups. A range of community benefits will be delivered through outreach activities involving schools, higher education institutions and community groups. A working relationship with local primary and secondary schools and local youth groups has been established as part of the Stakeholder Engagement and Public Consultation Strategy (Appendix A) to facilitate exchange of information on the project and its progress and to gather feedback from students and young people. These included a design competition for the proposed new play park and a competition for its name. In addition, through collaboration with Glasgow Caledonian University (GCU), a long-term partnership has been established which facilitates working together on understanding principles of sustainable tourism development. GCU runs student field trips to Irvine Harbour on their undergraduate programme, where second years students are able to see first-hand development of the destination in progress. GCU academics have research interests in sustainable tourism and events and seek to develop studies which are directly relevant to the aims of the development, and they will work with North Ayrshire Council on gaining insights to guide development. In addition, student projects including undergraduate and post- graduate dissertations will work on specific challenges relating to the development. Many community groups are involved in the development of the proposals through dedicated workshops, stakeholder reference groups, heritage, history and arts focus group and other stakeholder engagement activities. Actively involved groups include Irvine Burns Club, Irvine Lasses Burns Club, Irvine Carters Society, Coastwatch, Irvine Clean Up Crew, Irvine Sub-Aqua Club, Irvine Water Sports Club, Irvine Royal Academy, Irvine Community Council, Irvine Locality Planning Partnership, Irvine Youth Forum. The area stakeholders also include the Harbour Arts Centre, local business owners, local schools, local artists at WASP studios and Irvine Incorporated Trades. Coastal Hub budget has an allowance of £25k towards the Community Fund to support outreach initiatives. A range of events is proposed for delivery alongside the physical works aiming to promote the project, contribute to the outreach and offer further benefits. A list of selected activities and events is outlined below and detailed within the Maritime Mile Events Programme (Appendix D) : • Selkie recycling project 'Seaside Squad' for local primary school • Crazy golf design and build project for local college • Blue & Green weekend focusing on outdoor activities on water and within the Beach Park • Varied student-led events providing work experience • Wellbeing in blue and green spaces conference • Grants for community-led events promoting the project or utilising its assets. 231
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159 Great Harbour | Coastal Hub | FBC 6.7 Carbon Management Carbon management forms an integral part of the overarching approach to the sustainability strategy of the Great Harbour project throughout its lifetime, from design, through construction to the end product, as a physical asset but also as a sustainable destination, encouraging and promoting positive behaviours and choices. This approach is outlined on the graphic below. Figure 27 Great Harbour sustainability approach This approach integrates Just Transition principles with other pertinent policies at national, regional, and local levels, as detailed in section 2.2, ensuring alignment with the local context and maximising opportunities presented by the project’s unique characteristics. All stages of the project consider social and economic sustainability through NAC’s Community Wealth Building Strategy 2020-2025, as well as environmental sustainability in line with the Climate Change Act 2019, Scotland’s net zero targets and NAC’s Sustainable North Ayrshire Strategy 2024-2027. This includes: o consideration of the transition to the circular economy by promoting reduce, repair, reuse and recycle initiatives, o incorporation of output from community consultation, o being considerate of the local area, wildlife and environment, o creating accessible and inclusive spaces. In addition, flood protection and biodiversity considerations are implemented alongside the future maintenance requirements affecting resources. Best practice based on the PAS 2080: Carbon Management in Infrastructure for infrastructure projects and RICS Whole Life-Cycle Carbon Professional Statement for buildings projects will be implemented across all of the Great Harbour projects to ensure adequate measuring, monitoring, reduction, and offsetting of carbon emissions. The carbon statement submitted previously through the ‘decarbonising the deal’ exercise, presented overall approach and categorisation, and is the baseline to monitoring and managing the carbon emissions of the project. It is provided below for information. 232
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160 Great Harbour | Coastal Hub | FBC Table 64 Great Harbour initial carbon statement Item Project Owner Response A - Leads to wider carbon emissions reductions; B - Will have a negligible effect on wider carbon emissions; or, C - Leads to an increase in wider carbon emissions 1. Project Name The Great Harbour 2. Deal Region Ayrshire 3. Brief Description of Project Part of expansive investment programme to secure The Great Harbour as a major regional tourism destination 4. Expected Carbon Emissions Impact CONTROL Category (1-5) 3 - Cap + then Zero 5. Expected Carbon Emissions Impact INFLUENCE Category (A-C) B 6. Justification of Expected Carbon Emissions Impact Category e.g. a short narrative outlining the key carbon emission sources and their relationship to capital and operational net zero following the Deals Carbon Emissions Impact Categorisation Process. Capital carbon through the construction process of the proposed Play Park, carparking facilities and SMM Gallery, restoration of the Pilot House and Harbour Master's Office, public realm improvements and active travel and traffic management improvements. Operational carbon of the historic properties - Pilot House and HMO due to the limited energy efficiency measures possible to apply. Measures to be applied to minimise capital carbon: subcontracting local trades, use and re-use of materials as local as possible with the early design stages informed by local availability. Measures to be applied to minimise operational carbon: use and/or incorporation of permeable surfaces, renewable energy sources adequate to local conditions, high energy efficiency designs, re-use and adaptations before complete replacement is considered; introduction of the active travel routs, EV charging points and reallocating parking away from the main tourism area. 7. Could the Carbon Emissions Impact Category be improved? e.g. from Category 4B to Category 3A Yes, further specifications could be applied through construction process, but the cost is likely to be prohibitive, e.g. permeable surfaces instead of traditional, like tarmac. Additionally recycled materials tend to be of much higher cost due the resourcing process (labour intensive) and not always at lower carbon impact. This will be assessed throughout the project lifetime and considered for individual elements/projects. 8. Could the carbon performance of the project be improved? e.g. reducing emissions further, achieving net zero faster. Yes, but as described above it is likely to be cost prohibitive. 9. How will carbon be managed? e.g. through PAS 2080: Carbon Management in Infrastructure for infrastructure projects or the RICS Whole Life-Cycle Carbon Professional Statement for buildings projects PAS 2080: Carbon Management in Infrastructure for infrastructure projects RICS Whole Life-Cycle Carbon Professional Statement for buildings projects 233
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161 Great Harbour | Coastal Hub | FBC 10. What other carbon savings are expected to result from the project? e.g. wider carbon savings across the economy resulting from project output Further carbon savings will be identified at the more detailed design stages of the project and its elements. There will be, however several opportunities for indirect benefits, like: - good practise examples e.g., by use of renewables, - enabling initiatives e.g., installation of the fixings for PVC on restored properties proposed for sale to a third party - education, e.g. use of recycled materials The Coastal Hub has a Carbon Management Plan (Appendix K) developed by a specialist consultant and reviewed regularly throughout the design stages. The construction work will be monitored against the plan to allow for identification of further carbon emission reductions. Additionally, it will undergo a 12- month performance evaluation post construction. The Carbon Management Plan is based on the consultation with the Scottish Government’s Sustainable Development Manager for the Town Region and Growth Deals and captures the following: o Review of the OBC to establish and agree how PAS 2080 will be used to manage whole life carbon on the project. o Identify the most appropriate carbon measurement tools and databases to allow estimation of whole life carbon at this project stage. o Compile a whole life carbon baseline relating to the current design with appropriate referencing, assumptions and likely degree of accuracy. This carbon baseline should use standard Life Cycle Assessment modules A-D as included in PAS 2080. Reference should also be made to emissions that can be controlled and those that can be influenced. o Use the BEIS carbon values (£/tonne CO2e) to estimate the economic value of potential carbon emissions associated with the project, over the same period as the economic case (AGD Funded Elements – 2026, Leverage Elements - 2036). o Develop a management plan including monitoring and evaluation, based on the above, using PAS 2080: Carbon Management in Infrastructure for the overarching project and the RICS Whole Life- Cycle Carbon Professional Statement where appropriate for buildings projects, for inclusion in the forthcoming project Masterplan. o Identify any project elements which at this stage may lead to ongoing carbon emission increases and outline possible ways in which these could be mitigated to become operationally net zero. Identify further opportunities for carbon reduction with indication of relevant funding sources, if likely to bear higher cost. o Include the above in a report that may be used as a guide for all project stakeholders on how whole life carbon will be managed on the project using PAS 2080. The report will include an Executive Summary which may be used in the main body of the forthcoming Masterplan. This comprehensive strategy ensures that carbon management remains a central focus, aligning with industry best practices and sustainability objectives for the Great Harbour developments. 6.8 Arrangements for risk management Risk management is crucial for any project, but particularly important for a project of a such complex nature and involving multiple stakeholders. A Risk Register15 for the Great Harbour project has been created and presented in the OBC following the risk assessment to identify potential risks and uncertainties associated with the GH project. It was developed based on the feedback from the identified project main stakeholders. Two levels of risk control and mitigation are also introduced and the owner of 15 Great Harbour Risk Register – Appendix H 234
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162 Great Harbour | Coastal Hub | FBC each risk identified. Lessons Learnt collated from previous projects delivered by the Council were valuable in informing the risk register development and risk management practice. It has been regularly monitored and reviewed to capture changing circumstances as the project progressed through development stages. It allocates risks to three categories, including delivery, financial and communications, at three levels, including strategic, corporate and operational. Each phase of the Great Harbour development will have a dedicated project, designers and construction risk registers, all regularly monitored and updated monthly and reviewed at the completion of each RIBA stage to reassess risk exposures and adjust risk management strategies as needed. Under the NEC4 model contract used for the appointment of the professional advisor and also the contractor for the Coastal Hub, an early warning process is utilised to proactively identify and manage risks and issues that may arise during the project lifetime. By encouraging open communication among all project stakeholders, including the client, contractor, and subcontractors, the early warning process aims to identify potential problems as early as possible, allowing for timely resolution and mitigation actions to be implemented. This improves collaboration, transparency, proactive and early risk mitigation and associated cost savings. The Great Harbour Risk Register is an essential component of project management, especially in the context of a development project following the Green Book process focused on public sector investment appraisals. The risk register is a live document undergoing regular revisions and updates to identify, assess, and manage potential risks that could impact the successful delivery of the project and reflects the most current stage of the project. The main risks relating to Great Harbour project are detailed in section 2.9. The Coastal Hub risks are tracked at various levels, including project management risks, design risks and contractor’s construction risks. These are outlined in Appendix H. 6.9 Arrangements for contract management The use of NEC4 model contract is promoted by the professional services frameworks available to the Council to facilitate collaboration and arbitration. Due to limited in-house resources in contract management, particularly relating to the NEC4 model contract, the project lead underwent training in professional services and engineering and construction contracts. The project lead will oversee professional services contracts with support from the PMI team, including QS services. Construction works are packaged based on type of work and will be tendered as a combined opportunity for a principal contractor to manage individual work packages, delivered either by their in-house teams or subcontracted. This approach ensures increased flexibility in resource and financial management, allowing for resource and funds reallocation as needed, such as for value engineering or mitigating unforeseen circumstances. The main construction contract will be overseen by the professional advisor and scrutinised by NAC PMI team and QS. Smaller scale ancillary work and services not covered in the main contract will be appointed from relevant frameworks or tendered and managed by the project lead with support from PMI team. Ironside Farrar, a multidisciplinary professional services team appointed from the Scotland Excel Engineering and Technical Consultancy Framework 0820, is tasked with developing the design and administering the civils contract for the Coastal Hub (GH phase 1). The Table 64 below details the roles and responsibilities related to management. 235
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163 Great Harbour | Coastal Hub | FBC Table 65 Coastal Hub contract management Role Advisor/contractor Contract management Design RIBA stages 2-4 Ironside Farrar in-house Procurement in-house N/A Construction TBC Ironside Farrar Principal Designer Ironside Farrar in-house Clerk of Works NAC framework in-house QS in-house N/A 6.10 Arrangements for post project evaluation The arrangements for post implementation review (PIR) and project evaluation review (PER) have been established in accordance with best practice and are as follows. 6.10.1 Post implementation review (PIR) PIR will be carried out at RIBA work stage 7 respectively for each construction contract by the consultants respectively responsible for contract management. In relation to the phase 1, the Coastal Hub, this involves one civils contract with several deliverables. In addition to assessing whether the objectives have been achieved, it will also identify lessons learned, successes and challenges, and determine areas for improvement for future phases. In addition, a Great Harbour project wide review will be carried out following the completion of the last phase of the development by the project team with expert input if required. 6.10.2 Project evaluation review (PER) PER is included within the quality control mechanism for each contract and is assessed systematically and reviewed at the completion of each RIBA stage of work to identify strengths and weaknesses in project management practices, learn from past experiences, and improve the project team’s ability to deliver successful projects in the future. The final review for each phase of developments will be carried out at RIBA work stage 7 by the project team. 6.11 OGC Gateway review arrangements The Office of Government Commerce (OGC) Gateway Process is designed to provide independent guidance to Senior Responsible Owners (SROs), programme and project teams and to the departments who commission their work, on how best to ensure that their programmes and projects are successful. This process examines programmes and projects at key decision points in their lifecycle. It looks ahead to provide assurance that they can progress successfully to the next stage. These key stages or ‘Gates’ are: Table 66 Coastal Hub Gateways Gate RIBA Stage of Work Great Harbour Project Board Date Gate 0 – Strategic Assessment 0 – Strategic Definition 1 – Preparation and Brief pre OBC pre OBC Gate 1 – Business Justification 2 – Concept Design pre OBC pre OBC 236
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164 Great Harbour | Coastal Hub | FBC Gate 2 – Delivery Strategy 3 – Detailed Design • GH Masterplan report • Detailed design report 30/11/2023 Gate 3 – Investment decision 4 – Technical Design Tender for works • Technical design report • Tender report 23/06/2024 Gate 4 – Ready for Service 5 – Construction 6 – Handover Post construction report Sept 2027 Gate 5 – Benefits Realisation and Operational Review 7 – Defect Period Evaluation Post delivery evaluation repots Oct 2028 In terms of Phase 1 and this specific FBC, the internal Project Board was presented with a progress report at the completion of each RIBA work stage, which was discussed at a dedicated Gateway Board meeting with feedback implemented at the subsequent development stage. The Gate 3 Stage falls at the completion of the tender stage for the civils contract. A dedicated Gateway Board will be organised to discuss tender report and its findings. Gate 4 will take place at the RIBA works Stage 5/6 Handover and adequate arrangements will be put in place for reporting and a Gateway Project Board meeting according to the project programme detailed in section 6.3.3. The Gateway project board relating to Gate 5 will be addressed in accordance with the arrangements for project evaluation described in section 6.10 and with the arrangements for benefit realisation in section 6.6. 6.12 Contingency plans In the event that this project fails, governance arrangements are in place to allow the Council to agree an appropriate way forward with the PMO and Governments to ensure that there is limited impact on the Ayrshire Growth Deal. Signed: Date: Senior Responsible Owner Project Team 237
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165 Great Harbour | Coastal Hub | FBC Part C Appendices 238
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166 Great Harbour | Coastal Hub | FBC Appendix A | Stakeholder Engagement and Public Consultation Strategy 239
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167 Great Harbour | Coastal Hub | FBC Appendix B | Great Harbour Project Governance Structure 240
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168 Great Harbour | Coastal Hub | FBC Appendix C | Leverage Funding Strategy 241
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169 Great Harbour | Coastal Hub | FBC Appendix D | Maritime Mile Events Programme 242
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170 Great Harbour | Coastal Hub | FBC Appendix E | Making Waves Festival – Economic Impact Assessment – October 2022 243
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171 Great Harbour | Coastal Hub | FBC Appendix F | AGD Benefits Realisation Plan 2022 244
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172 Great Harbour | Coastal Hub | FBC Appendix G | Benefits Realisation Guidance 245
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173 Great Harbour | Coastal Hub | FBC Appendix H | Great Harbour Risk Register Great Harbour Risk Register Coastal Hub Project Risk Register Coastal Hub Design Risk Register 246
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174 Great Harbour | Coastal Hub | FBC Appendix I | Coastal Hub Technical Economic Appendix 247
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175 Great Harbour | Coastal Hub | FBC Appendix J | AGD Implementation Plan 2022 248
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176 Great Harbour | Coastal Hub | FBC Appendix K | Coastal Hub Carbon Management Plan 249
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177 Great Harbour | Coastal Hub | FBC Appendix L | AGD Regional Community Benefits Statement 250
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178 Great Harbour | Coastal Hub | FBC Appendix M | Coastal Hub Maintenance Plan 251
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179 Great Harbour | Coastal Hub | FBC Appendix N | Coastal Hub Site Plan 252
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180 Great Harbour | Coastal Hub | FBC Appendix O | Contract Exit Strategy 253
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181 Great Harbour | Coastal Hub | FBC Appendix P | Irvine Town Centre Audit 254
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182 Great Harbour | Coastal Hub | FBC Appendix Q | Irvine Vision report 255
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183 Great Harbour | Coastal Hub | FBC Appendix R | Great Harbour Masterplan – Strategic Ecological Assessment – Pre-screening Notification 256
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184 Great Harbour | Coastal Hub | FBC Appendix S | Coastal Hub - Equality Impact Assessment 257
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