Minutes:
Geoff Paul presented a report to the Board which provided an update in relation to planned and emerging development opportunities near the location of proposed Tindale Triangle junction improvements.
The Board had at previous meetings received updates in respect of the Tindale Triangle project as set out in the Town Improvement Plan, to undertake significant works to increase critical capacity to enable future development and to address traffic problems in the area.
More recently the Board had considered the progress made by the developer in respect of Auckland Retail Park, and the priorities and outcomes to be secured using Stronger Town Funding.
At the last meeting the Board agreed to request an extension to the Business Case submission deadline to 1 December 2022 to allow full consideration of matters relating to Auckland Retail Park and other growth opportunities in the area.
The Business Case summary would address the challenges highlighted at the last meeting:
· The proposed highway works required as part of the planning consent for the Retail Park and the S278 application by the developer to mitigate the impact of the development;
· whether there was an identified funding gap to provide financial support to secure the delivery of the scheme, and that
· current subsidy control considerations would be satisfied.
Officers had assessed the S278 agreement and were satisfied that the proposed highway works would discharge the planning condition. However the S278 proposal would not provide the long term network capacity improvements sought through the original Tindale Triangle project.
In terms of the Auckland Retail Park subsidy control considerations, scheme viability had been tested and following due diligence deliberations it was considered that there was an identified viability gap and a case for providing public sector financial support. Recent discussions had highlighted an overall viability gap of up to £3m to deliver the scheme. If the Board was minded to agree in principle to provide gap funding support it was suggested that the grant be capped at £3m, with the developer required to meet any additional costs.
Geoff Paul noted that the Board would be supporting retail and leisure in an out of town location which, although considered to be minimal, may have an impact on the town centre.
Graham Wood explained that to deliver the Retail Park development and the longer-term network solution an allocation in excess of the £2.75m that was available for the original Tindale Triangle project would be required. The original Heads of Terms agreement provided for a maximum of £4.75m, and to achieve this would require a re-allocation of funds.
David Land noted the point made regarding the potential impact of the Auckland Retail Park upon the town centre, however this was an important development in a location that was already developed as a retail centre. He envisaged that the town centre proposals would attract increased visitor numbers, and the retail development would be used by locals in the main.
Following a question from Natalie Davison-Terranova who asked which projects would be affected by the re-allocation of Funds, the Board was advised that budget re-allocation would be the subject of a further report.
David Land informed the Board that Bishop Paul Butler and Mike Matthews had confirmed their agreement to the recommendations in the report.
Following discussion the Board AGREED that
a) the current position regarding consideration of the proposed highway works associated with the new retail/leisure development, be noted;
b) the additional network capacity requirements required to meet projected traffic flows around the town, including housing trips, tourism trips and general background traffic growth, be noted;
c) the approach to progressing Tindale Triangle as an enhanced network solution beyond the current development mitigation, be endorsed;
d) the considerations in respect of the retail and leisure scheme regarding subsidy control, be noted;
e) Gap funding support of up to £3 million for the Auckland Retail Park be agreed in principle, subject to
· Any necessary change approvals
· Project budget reprofiling
· Business case assurance
· Developer agreement to meet any additional costs beyond £3million support
f) a further report outlining proposed project budget allocations to allow the enhanced interventions at Tindale Crescent to come forward.