Agenda item

            The Director of Property and Projects reminded the Committee that, as part of the Council’s Investment Programme, there was a commitment to pursuing European Regional Development funding in support of the City’s economic infrastructure.  That included the development of a green business park on the North Foreshore and an Innovation Centre at Springvale.  In this regard, the Council had submitted to the Department of Enterprise, Trade and Investment an application for funding, through the European Regional Development Funding Programme, for infrastructure on the North Foreshore, and it was anticipated that a reply as to whether or not the bid had been successful would be received by April, 2013.  In addition, an application for the development of an Innovation Centre would be submitted in 2013 in line for the deadline for submissions to the aforementioned Department to allow sufficient planning and construction time.

            The Director pointed out that applications through the Fund had to be contractually committed between the grant recipient, that is, the Council, and the grant funder, the Department of Enterprise, Trade and Investment, by 31st December, with all projects which were approved for funding having been completed with all the requisite paper work submitted by 31st December, 2015.

            The Director of Property and Projects explained that the projected costs for the delivery of the projects exceeded the legislative procurement thresholds contained within the European Directive for Service Contracts.  Consequently, these contracts would be required to be advertised in the European Journal, which typically took three months to process from preparation of documentation through to the award of the contracts. 

            He pointed out that the Planning Service had indicated that the projects would be dealt with within the Belfast office and it was reasonable to programme for a six month turnaround time.  However, it was known that both sites had inherent contamination issues which would require detailed analysis and a requirement to satisfy the Northern Ireland Environment Agency.  In addition to those delays, because the projects were being funded through the Central Government structures, the Central Procurement Directorate rules would likely apply.  That would inevitably lengthen the process by restricting the use of procurement frameworks which it had previously approved and dictating the forms of contract.

            In order to expedite these projects and achieve the delivery date of December, 2015, it would advantageous to appoint an integrated design team through an appropriate European Journal qualifying competition method.  It was proposed that those appointments would be subject to relevant break clauses and would be restricted to achieving full Planning Permission for the proposals should insufficient funding not materialise.

            The Director reminded the Committee that, at its meeting on 21st September, it had been advised that it was initially anticipated that the Innovation Centre would be released as a development brief.  However, subsequent legal advice now meant that the Council must lead on the project if it was to avoid the “State Aid” regulations.  In order for the Innovation Centre to be provided, it first needed to be successful in attracting Regional Development funding.  However, there was a risk that even if it was successful a combination of procurement, planning timescales and mitigating contamination measures would restrict the opportunity for delivery.  The North Foreshore infrastructure, whilst also subject to a bid for funding, had less risk attached to it.  That was because it would always have to be developed in order to make the site viable and attract investors into the Green Business Park.  The Director indicated that a reasonable budget for progressing the applications to full planning stage would be required.

            After discussion, the Committee agreed to approve, prior to confirmation of funding:

(i)      the appointment of an integrated design team for the North Foreshore road infrastructure as detailed in the report; and

(ii)     the appointment of an integrated design team for an Innovation Centre at Springvale as set out in the report.