Agenda item

Joint Report of the Corporate Director of Regeneration, Economy and Growth and the Corporate Director of Resources

The Cabinet considered a joint report of the Corporate Director of Regeneration, Economy and Growth and the Corporate Director of Resources which sought approval of the Outline Business Case for the development of the Aykley Heads site and to proceed with the procurement of a Joint Venture partner to develop the site. The Corporate Director placed on record, her thanks to Susan Robinson for leading on the project along with Tony Foster and Bev Bantham, Partners Addison Young and Durham University for their support in developing this exciting proposition for County Durham  (for copy of report see file of minutes).

Councillor E Scott, informed Cabinet that the report set out the case for the development of the Aykley Heads site. The vision, skills and hard work of the team that brought the project forward should not be underestimated. The vision for Aykley Heads would provide a unique opportunity to deliver more and better jobs in a high quality location. The outline business case attached to the report set out the proposed approach and would build on the existing partnership with Durham University.

Councillor R Bell, informed Cabinet that the review of accommodation strategy in 2021 resulted in a revised alternative strategy. This resulted in the disposal of the building on The Sands which resulted in a £70m net capital receipt for the Council. The disposal of the Sands and the alternative strategy would make an overall saving of around £22m from the original strategy and still allowed for the Aykley Heads site to be become a Strategic Employment site and for Aykley Heads to form part of the Durham Innovation District. The outline business case was transparent in articulating any risks to the Council and the full business case would set out any financial commitment required in the future.

Councillor M Wilkes, Cabinet Portfolio Holder for Neighbourhoods and Climate Change commented that the previous Labour administration talked about the regeneration of the Aykley Heads area but had no real strategy and built a HQ at the Sands which was a waste of taxpayers money. Councillor Wilkes, referring to the sale of the HQ had saved tens of millions compared to Labour’s HQ policy as a result. In doing so the Council were ensuring that the University Business School could stay and prosper in the City, and that one of our best businesses could continue to expand and stay in Durham.

The Council’s plans for Aykley Heads to become a true innovation district would seamlessly connect Aykley Heads with the City. The Council’s investment in the DLI, and ensuring that the council were at the heart of the district helped pump prime it too.

In considering the investment being made across the county, including at Netpark, our commitment to the Combined Authority and the investment that would bring, the Joint Administration demonstrated that they were ‘getting on with the job’ of lifting our economy up after decades of under performance, investing across the whole county.

Councillor Wilkes applauded and supported the plans to regenerate where Labour had failed, and thanked officers for yet more positive hard work and looked forward to seeing a sustainable internationally recognised innovation centre bringing high value jobs to our County.

Resolved:

That the recommendations in the report be approved.