Scunthorpe town centre vibrancy

Part 1 – Gateway

Applicants will be asked a series of questions to ensure that they have met all the eligibility requirements for the bid type. This information sits outside the scoring framework but will affect how the bid is processed. The application will not be able to proceed until all the relevant eligibility checks have been met.

Applicant details

2.1.5 Did you respond ‘Yes’ to all the above? If so, the planned activities meet all four key characteristics which indicates it would be considered a subsidy.

YES

Even though the answer to all of the above questions in respect of incentivising a future commercial use of void units (Intervention 1) and the improvements to the current Transport Hub (Intervention 2) was yes, the subsidy regime allows for certain types of financial assistance to be considered exempt to the rules on subsidy within the Trade cooperation Agreement (TCA).

The most relevant for incentivising a future commercial use of void units (Intervention 1) by way of grant and the improvements to the current bus station (Intervention 2 – Transport Hub) would be allowing small amounts of financial assistance (which are equivalent to the de minimis provisions under the State aid rules).

Subsidy which meets the criteria in the TCA for small amounts of financial assistance is wholly exempt from the rest of the TCA subsidy rules. For example, it does not have to be assessed against the six general subsidy principles in Article 366. The threshold permits subsidy of up to 325,000 Special Drawing Rights.

Incentivising a future commercial use of void units (Intervention 1)

In respect of the incentivising a future commercial use of void units (Intervention 1), it is intended that the provision of any grant to an economic actor will be in accordance with a grant policy and criteria which is likely to meet the definition of small amounts of financial assistance. However, the Council recognise that the subsidy rules do not provide scope to be applied on a “per scheme” basis therefore as part of the grant process, it will, upon receipt of an application:

YES

Even though the answer to all of the above questions in respect of incentivising a future commercial use of void units (Intervention 1) and the improvements to the current Transport Hub (Intervention 2) was yes, the subsidy regime allows for certain types of financial assistance to be considered exempt to the rules on subsidy within the Trade cooperation Agreement (TCA).

The most relevant for incentivising a future commercial use of void units (Intervention 1) by way of grant and the improvements to the current bus station (Intervention 2 – Transport Hub) would be allowing small amounts of financial assistance (which are equivalent to the de minimis provisions under the State aid rules).

Subsidy which meets the criteria in the TCA for small amounts of financial assistance is wholly exempt from the rest of the TCA subsidy rules. For example, it does not have to be assessed against the six general subsidy principles in Article 366. The threshold permits subsidy of up to 325,000 Special Drawing Rights.

Incentivising a future commercial use of void units (Intervention 1)

In respect of the incentivising a future commercial use of void units (Intervention 1), it is intended that the provision of any grant to an economic actor will be in accordance with a grant policy and criteria which is likely to meet the definition of small amounts of financial assistance. However, the Council recognise that the subsidy rules do not provide scope to be applied on a “per scheme” basis therefore as part of the grant process, it will, upon receipt of an application:

– write to all applicants:

• explaining that it is considering providing support of the amount requested within the grant application under the rules in the TCA permitting small amounts of financial assistance of up to 325,000 Special Drawing Rights; and
• request details of what financial assistance has been provided in the two previous financial years under both the State aid de minimis rules and the TCA provisions for small amounts of financial assistance.

If, on reviewing the response, it appears that:

1.  the “small amounts” threshold will not be exceeded, notify the applicant in writing that any grant will be provided under the provisions of small amounts of financial assistance and that they must keep the notice for ten years and produce it to any other public body seeking to rely on the same exception; or
2. that the small amounts of financial assistance cannot be relied upon then the Council would look to either:

a) not grant the subsidy: or
b) consider whether the grant could be provided consistently with the general TCA principles.

Furthermore, the grant policy and criteria under which an application can be made will ensure that those receiving the grant do not pay no more than typical market rates/charges for any contractors or consultants which they may use to upgrade or repurposes a void unit.

Improvements to the current bus station/Transport Hub (Intervention 2)

In respect of the Improvements to the current bus station (Intervention 2), the Council wish to upgrade the bus station stands, create a new public waiting area with new kiosk and provide real time passenger information. The proportion of the grant proposed to be used for the improvements to the bus station stands, new public waiting area with new kiosk and real time passenger information stands has been initially costed to be £2.8m.

Under the lease arrangement with  xxxx information redacted, the Council are responsible for the maintenance and repair of the bus station where these improvements will be made. The Council do not consider, in respect of these elements of the interventions, an “economic advantage” will be conferred on the Council or any other third party. At this level, the subsidy rules will therefore not be engaged. As a result, there is no need to consider any of the other “no subsidy” arguments, for example, whether the Council is acting as an “economic actor”, as it is unlikely the Council would be seen as acting in such a capacity. This would be on the basis that improvements to the bus station stands, new public waiting area with new kiosk and real time passenger information stands are likely to be classified as public infrastructure. It will be for public use. It will contribute to improve access, promote sustainable travel post-covid and to improve the overall visitor experience to drive footfall. It will also contribute directly to the Levelling Up Missions to improve Pride in Place, Wellbeing, Health, Transport Infrastructure, Skills and Productivity. Therefore, the grant is considered to be public realm infrastructure which is an exempt category under the retained general block exemptions, under competition law.

The other proportion of the grant is being proposed to refurbish office space within an existing building at the bus station.  xxxx information redacted

Subsidy which meets the criteria in the TCA for small amounts of financial assistance is wholly exempt from the rest of the TCA subsidy rules. For example, it does not have to be assessed against the six general subsidy principles in Article 366. The threshold permits subsidy of up to 325,000 Special Drawing Rights.

Therefore, the subsidy principle questions have focussed specifically on the demolition and redevelopment of the Market Hill site and not on the proposed grant scheme to incentivise future commercial use of void units (Intervention 1) or on the improvements to the current Transport Hub (Intervention 2) for the reason outlined above – i.e., because these interventions are considered to fall within the ‘small amounts’ rule. Equally, the proposals for the regeneration of the department store have not been considered in respect of the subsidy principles at this stage as not all 4 of the key characteristics have been met for this measure.

Notwithstanding the above, the subsidy principles have been considered in the overall design of all elements of this bid, with respect to the clear identification of the market failures, the proportionality of the response and the alignment with policy objectives to bring about a clear change that would not be delivered without the interventions. This is articulated throughout the strategic, economic and financial cases and in the supporting appendices.

2.2 Please demonstrate how the direct award of LUF monies from UK Government to you (as the applicant) has been considered under each of the subsidy principles.

This will involve consideration of the how the subsidy can be provided in accordance with the following Subsidy Control principles listed in the Subsidy Control Bill:

If the proposed LUF activities do represent a subsidy and all principles have been met, the LUF application will be considered compliant.

Please separate your response where there are multiple awards of subsidy.

2.2.1 Subsidies should pursue a specific public policy objective to remedy an identified market failure or to address an equity rationale such as social difficulties or distributional concerns (“the objective”). Please demonstrate how your bid meets this principle.

Market Hill Redevelopment (Intervention 1)

In respect of the demolition and redevelopment of the Market Hill site to a food and beverage facility, the measures put forward under this bid have been co-designed with the community and represent a considered response to address the evidence of need and challenge facing the town centre, which has been highlighted by the public and stakeholders.

Engagement carried out via an extensive household survey in 2019 as part of a retail and town centre study showed that, almost half of respondents (46.2%) were dissatisfied with the town centre and suggested options for improvement, this focussed on the reuse of vacant buildings and attraction of a higher quality offer. Household expenditure revealed a significant leakage of spend to other areas for wider town centre uses, such as Food and Beverage (F&B) and cultural visits; for example, with the town centre only retaining 26% share of the F&B market within the catchment. The study reported high vacancy rates at this time – 22%/ double the national average – clearly illustrating the weakness of the offer in 2019.

Since 2019, the shift to digital, accelerated by covid, has led to the failure or withdrawal of many national brands from Scunthorpe town centre, with vacancies rising to 40% in 2022. There are a growing number of voids throughout the shopping area, with a high concentration of large, modern format units located within ‘The Foundry’ and shopping area, detracting from the vitality and overall perception of what should be prime retail frontage. These units are further burdened with higher business rates and service charge liabilities, making it difficult to secure new operators in their current form. Consequently, rental returns have decreased, and yield has moved out over the past 5 years as investor appetite falls. The proposals in this bid recognise the need for investment to address the market failures and to ensure visually impactful change on the High Street which can act as a catalyst for future growth as well as restoring local pride.

The grant would pursue the specific public policy objectives identified within:

• the Scunthorpe Town Investment Plan by supporting the revitalisation of the town centre, facilitating the re-use of vacant and under-utilised spaces for a range of uses, driving footfall and supporting a sustainable and vibrant high street, linking to the key objectives within this plan to support Economic Growth, Attract Business and Attracting Town Centre Investment;
• the North Lincolnshire Economic Growth Plan (2018) & Economic Renew Plan (2021) which identifies 5 priorities:
  • Protect the economy through strengthened business support
  • Enable job protection and creation
  • Stimulate growth through capital investment and infrastructure
  • A better quality of life for residents
  • Progress sector specific programmes

The grant is in direct alignment to the ambitions of the Economic Growth Plan and latest Renewal Plan, with alignment to the priorities of Stimulate Growth through capital investment and infrastructure and a better quality of life for residents.

– The draft North Lincolnshire Local Plan (2021) & Town Centre Masterplan (2019) which recognises the improvement of Scunthorpe town centre as a priority, referencing the weakness in the offer, the challenges in relation to viability and structural form. Guided by the evidence and framework presented in the Town Centre Masterplan, the Local Plan identifies the need for further investment, to bring forward a broader range of uses and the consolidation of the commercial and retail offering to the western section of the High Street (promoting residential uses further east). It is therefore important that development which widens the town centre offer is encouraged to ensure the town remains strong and vibrant. the Plan will seek to support the widening of the town’s offer and protection from inappropriate out-of-centre development.

– North Lincolnshire Council Plan 2018 – 2021 which provides the overarching ambition for North Lincolnshire. This will be achieved through working to achieve better outcomes for the people and place of North Lincolnshire and a focus on our four priorities of safe, well, prosperous and connected. The outcomes of the North Lincolnshire Council Plan fully align with the ambitions and overarching priorities of redeveloping the Market Hill site to create a safe, prosperous and connected town centre that supports wellbeing and inclusive growth.

In addition, this package bid aligns with the Greater Lincolnshire LEP strategic documents – Greater Lincolnshire Local Industrial Strategy (2017), Greater Lincolnshire Economic Plan for Growth (2020), and Greater Lincolnshire Business and Economy Recovery Plan (2020). Also, the Humber Coast and Vale Building Better Places Strategy. The strategies outline the importance of revitalising our local high streets, building a healthier future and developing the visitor economy by levelling up, to which the redevelopment of the Market Hill site aligns.

2.2.2 Subsidies should be proportionate and limited to what is necessary to achieve the objective. Please demonstrate how your bid meets this principle.

Redevelopment of Market Hill (Intervention 1)

The Council has concluded that the subsidy provided by the grant for the demolition and redevelopment of the Market Hill site would be proportionate to achieving the policy objectives detailed in 2.2.1 above. The amount of grant / subsidy proposed is £2.39 million, approximately 50% of the project’s costs, which total £4.58m. The rest of the project costs will be funded by the Council. The grant will only be used to contribute 100% of the property acquisition of the site, 100% of the site’s demolition, 50% of construction cost, 50% of contingencies and 100% professional fees. This rate has been calculated as necessary to ensure the project is viable overall, for example, in terms of attracting private investors / shareholders and to ensure its viability in the long term. These calculations have been informed by a detailed cost plan and development appraisal, which are further set out in the economic and financial cases and associated appendices.

The grant is only being used as a necessity to enable the successful delivery of the redevelopment of the site and, it is highly unlikely that without it the project would not be able to achieve the scale set out to achieve, and to support or pursue the policy objectives outlined above at 2.2.1. In particular the grant is being used to address market failures, and to ensure visually impactful change on the High Street which can act as a catalyst for future growth, as well as restoring local pride.

2.2.3 Subsidies should be designed to bring about a change of economic behaviour of the beneficiary that is conducive to achieving the objective and that would not be achieved in the absence of subsidies being provided. Please demonstrate how your bid meets this principle.

Redevelopment of Market Hill (Intervention 1)

The costs are the capital costs of demolishing, repurposing, preparing and developing the Market Hill site for lease and/or sale as set out in section 5.3 of this application. Without the grant the Council would not be able to deliver the objectives and outcomes associated with this project and there would be a limited, if any, uptake from local food and beverage operators within the North Lincolnshire area, which has been become evident as the existing units within the Market Hill site have been vacant for over 2 years.

In preparing the economic case, the Council has calculated that this project is not viable and will not be delivered without the grant. Details of the cost-plan, values and development appraisal to substantiate this analysis are set out within the economic and financial cases. There is a clear absence of a private sector-led solution to the issues facing the High Street, there is now an imperative for public sector intervention, to stem the decline, repurpose and revitalise the primary retail area before it reaches breaking point.

2.2.4 Subsidies should not normally compensate for the costs the beneficiary would have funded in the absence of any subsidy. Please demonstrate how your bid meets this principle.

Redevelopment of Market Hill (Intervention 1)

Initial costs will be used to purchase the Market Hill site(s), demolish the site, procure a contract for the design and build of the site, as well as contribute towards any other professional services required and fund 50% of the construction costs. The Council will then look to fund the remaining costs of the project. Any costs associated with fitting out the building internally for the provision of food and beverage, including all other associated costs with leasing/occupying the building will be borne by the commercial entities occupying the building. The grant will not subsidise costs that would have been funded by any third party and in any event as there is no legal obligation on the Council, to deliver the project.

The grant will be used to address this market failure by acquiring a large, predominately vacant building within the town centre in to repurpose and redevelop the spaces for a food and beverage facility. This will establish the right economic, social and environmental conditions to address the economic decline and issues of deprivation within the core catchment and set the town centre on the right trajectory for future prosperity. The measures have been co-designed with key stakeholders and respond to public concern.

2.2.5 Subsidies should be an appropriate policy instrument to achieve a public policy objective and that objective cannot be achieved through other less distortive means. Please demonstrate how your bid meets this principle.

Redevelopment of Market Hill (Intervention 1)

This project is based on the evidential decline of Scunthorpe’s Town Centre, which has been brought about by the seismic change in shopping patterns and the withdrawal of national brands for the high street, which was accelerated by COVID-19. The need for town centre regeneration has been identified to be in line with the policies listed at 2.2.1 above, in addition, this project will also deliver all three pillars for growth, infrastructure, skills and innovations as set out in the Build Back Better, Our Plan for Growth HM Treasury 2021.

The Council concludes that the without the grant being used for the intervention it could not be delivered through any less distortive means, as over the last two years there has been an increase in vacancies and lack of investment from the market therefore there is now a need for public sector intervention.

2.2.6 Subsidies should be designed to achieve their specific policy objective while minimising any negative effects on competition or investment within the United Kingdom. Please demonstrate how your bid meets this principle.

Redevelopment of Market Hill (Intervention 1)

The positive contributions of the grant for the Market Hill site in achieving the objectives will include:

• Reduction in voids within the town centre
• Diversification of uses within the town centre
• Improved townscape
• Increased footfall
• Expanded cultural offer & participation
• Businesses supported
• Job creation

The Council are of the view that the provision of food and beverage is a cross-border economic activity, that will always have the potential to impact on trade and investment between the UK and the EU. It has also been identified that those who may wish to lease/occupy the Market Hill site will fall within the definition of “economic actor” in the TCA by virtue of being a provider of goods and services available on the market. However, although it is difficult to calculate with any certainty what impact the grant and development of the site would have, in the Council’s view and as far as it can tell, the impact would not be material. This is because the scale of the redevelopment in comparison to the overall development of the town centre is small.

In addition, the Council will look to minimise any negative effectives on trade or competition between the UK and the EU by procuring all works and services required for the development of the site in accordance with the Public Contract Regulations 2015 (as more specifically set out in section 6 of this application). The Council will also advertise the site (once developed) in accordance with s123 of the Local Government Act 1072 and its constitution.

2.2.7 Subsidies’ positive contributions to achieving the objective should outweigh any negative effects, in particular the negative effects on trade or investment between the Parties. Please demonstrate how your bid meets this principle.

Redevelopment of Market Hill (Intervention 1)

The positive contributions, outcomes and the negative effects the grant will have on trade or investment are set out above in 2.2.6. As the Council consider any negative impacts to be minimal, the positive contributions outlined above will significantly outweigh any negative impact on trade or investment. The aim of the site development is to invest within the town centre to support the viability of a future economic use by creating a resilient, vibrant, attractive and accessible town centre, enabling environment to support and nurture entrepreneurs, makers and producers and establishing an improved sense of place, distinctiveness, and civic pride.

2.9 Applicants must consider whether the award meets all the tests for each beneficiary.
If beneficiaries are considered to be in receipt of State aid then you must consider how this is compliant under the State aid rules.
Applicants may wish to refer to the European Commission’s “Notion of State aid” guidance.

Part 3 – Bid summary

In this section applicants should provide the core details of their bids; clarifying what, where, how and how much. If your bid is a package bid you should also complete Application Form Annexes A – C.

To note, word counts are included for several questions throughout the application form, these are provided as a guide only. The level of detail you provide should be proportionate to the amount of funding that you are requesting.

3.1 Bid Name:

Please provide a headline project name. All bids will be allocated a specific LUF bid number on submission. This bid number and the name specified here will then be used to refer to the bid in all future correspondence.

3.2 Please provide a short description of your bid, including the visible infrastructure that will be delivered/upgraded and the benefits that will be felt in the area.

This project will transform the high street and enable a new, differentiated and locally distinctive offer to come forward, focussing on culture, creativity and accessibility by enabling:

1. The regeneration of a major retail complex and investment in voids within the Primary Shopping Area, to allow for a mix of uses, supporting round-the-clock vibrancy. This includes exhibition space, training, leisure uses and green space.

2. Investment in the town centre transport hub to promote sustainable travel, improve access and enhance the visitor experience, helping to drive footfall.

The impact of this investment will yield a resilient and vibrant town centre.

3.3 Please provide a more detailed overview of the bid proposal. Where bids have multiple components (package bids) you should clearly explain how the component projects are aligned with each other and represent a coherent set of interventions.

(500 words)

The success of Scunthorpe’s High Street is critical to the wider economic growth and transformation plans for North Lincolnshire. This project will address the changes required to ensure a sustainable future by enabling the transformation and revival of the Town Centre.

Focusing on culture, creativity, and accessibility, the project includes two related interventions:

Intervention 1 – Primary Shopping Area

Investment and regeneration of the retail complex known as ‘The Foundry’, and the vacant premises within the wider Primary Shopping Area, is essential to encourage a diverse mix of uses, promote vibrancy, and day/evening vitality. Investment will include:

• Acquisition and repurposing of a former department store within the Foundry to provide local arts, creative workshop, exhibition and training spaces
• Acquisition, demolition and clearance of Market Hill, a largely vacant retail block within the Foundry, to allow for regeneration focussed on leisure and recreation
• Consolidation of the existing retail offer, and investment in void units to incentivise a future commercial use, to ensure an affordable space for local entrepreneurs, makers, and producers.

As a sub-regional centre, dependent on traditional retailing, the High Street has been impacted by the seismic change in shopping patterns. Shifts to digital, accelerated by covid, has led to the failure/ withdrawal of national brands, resulting in a high concentration of void units within the Primary Shopping Area. Without intervention, there is a high risk that vacancies will continue to rise as footfall declines, operators withdraw, and the spiral of decline continues.

The Foundry is currently under a long-lease arrangement to Columbia Threadneedle, with the Council owning the land. With the rising number of vacancies, a lack of investment strategy and weak operator demand, the Council is compelled to intervene, given the strategic significance of the site within the town centre.

The measures proposed represent a considered approach to address market failure by ‘taking back control’ of key buildings, to repurpose, redevelop and allow for the consolidation of the commercial offer across the Primary Shopping Area, to incentivise the use of key town centre spaces, for local businesses.

This support is essential in addition to the powers proposed under the Levelling Up & Regeneration Bill (High Street Auctions) to drive innovation and change.

Intervention 2 – Transport Hub

Investment into the town centre bus station, which adjoins the primary shopping area, will better support access, promote sustainable travel options and improve the visitor experience to create a modern Transport Hub. Measures include:

• Installation of real-time digital displays to improve service information
• Modern bus stands and waiting facilities, equipped with living roofs and solar panels
• A new visitor information, and shop-mobility centre to allow everyone better access to the town centre.

Both interventions will deliver the following outcomes and impacts:

• Reduction in voids
• Diversification of uses
• Improved townscape
• Increased footfall
• Expanded cultural offer & participation
• Businesses supported
• Job creation
• Improved satisfaction levels and civic pride.

The impacts and benefits of this investment will yield a resilient, vibrant, attractive and accessible town centre – conditions conducive to learning, creativity, innovation and promoting civic pride. Delivering these changes, will contribute directly to the Levelling Up Missions of improving Pride in Place, Wellbeing, Health, Transport Infrastructure, Skills, and Productivity.

3.4 Please provide a short description of the area where the investment will take place. If complex (i.e. containing multiple locations/references) please include a map defining the area with references to any areas where the LUF investment will take place.

For transport projects include the route of the proposed scheme, the existing transport infrastructure and other points of particular interest to the bid e.g. development sites, areas of existing employment, constraints etc.

The investment will take place within the Primary Shopping Area and adjoining Transport Hub, within Scunthorpe town centre.

A map is included to illustrate the proposed area of intervention and the specific location of the Transport Hub (whilst the intervention is a transport project no specific route is affected, the investment will take place at the Transport Hub site and will contribute to and align with the wider regeneration proposals for the Primary Shopping Area) and the Foundry within this area.

Scunthorpe is the main retail and service destination in North Lincolnshire, and the town centre continues to provide a range of services and facilities to serve the immediate population and wider catchment. Historically, the retail core has been a driver for the town, with the expansion of retail floorspace continuing up to the year 2000, and the opening of ‘The Parishes’ complex. The High Street now stretches over 1km in length, with the primary retail frontage and modern format units centred around The Foundry and Parishes complexes, to the east, immediately connecting with the town centre Transport Hub.

The growing prevalence and convenience of out-of-town retail parks and the move to online trading, have served to undermine the traditional retail model, with a decline in footfall and turnover eroding operator demand for town centre floorspace. Covid has served to accelerate this trend, combined with wider social and economic challenges leading to a surplus of retail floorspace and rising number of voids.

The current bus station, whilst well located, is outdated, unattractive and exposed creating an unpleasant waiting environment for passengers as well as an unattractive gateway to Scunthorpe for visitors. Bus patronage in North Lincolnshire has also been declining at a faster rate than the regional and national averages.

Set against this backdrop, the Council has prepared a masterplan for the town centre which identifies a series of ‘quarters’ to help guide future development and land use decisions. Recognising the change in consumer behaviour, the masterplan promotes a consolidation of the retail offer to the east of the High Street, to a smaller footprint, and a shift in focus in favour of residential uses in the west. In addition to retail, the masterplan seeks to promote wider uses to improve footfall, spend and dwell time such as workspace, education, culture, leisure and public realm investments.

Actions to implement this approach have already been driven by the Council, with a focus on bringing new professional and educational uses and public realm investments within the Church Square area (Commercial and Lifelong Learning Quarters).

The interventions which are proposed through this project will focus on the Primary Shopping Area (Retail and Leisure Quarter within the masterplan), delivering against the policy objective by repurposing and investing in a higher quality, distinctive and diverse offer, accessible via sustainable travel. This will build upon the existing regeneration programme and address the market failures which are currently limiting the prosperity of the High Street.

3.5 Please confirm where the investment is taking place (where the funding is being spent, not the applicant location or where the bid beneficiaries are located).

If the bid is at a single location please confirm the postcode and grid reference for the location of the investment.

If the bid covers multiple locations please provide a GIS file. If this is unavailable please list all the postcodes / coordinates that are relevant to the investment.

For all bids, please confirm in which constituencies and local authorities the bid is located. Please confirm the % investment in each location.

The investment will take place within the Primary Shopping Area and adjoining Transport Hub, both within Scunthorpe Town Centre.

The former department store, and Market Hill are both part of The Foundry complex. The postcode for the former department store is DN15 6SU; the post-code for Market Hill is DN15 6SB, and for the Transport Hub, the post-code is DN15 6QX. A full list of co-ordinates is included in the attached excel file.

The proposals will also invest in bringing back vacant units into productive use across the wider Primary Shopping Area. A full list of the post-codes and co-ordinates for all the vacant units within this area is included within Annex 2.

A site map illustrating the project location is attached with this bid as Annex 1 and 2.

A masterplan illustrating the development proposals for the Department Store and Market Hill under Intervention 1 is included at Annex 6.

The whole of the investment area is within the Scunthorpe constituency.

100% of the investment will take place within the identified intervention areas.

3.6 Please confirm the total grant requested from LUF (£).

£15,867,608

3.7 Please specify the proportion of funding requested for each of the Fund’s three investment themes:

• 45% Regeneration & Town Centre
• 37% Cultural
• 18% Transport

The interventions will support the regeneration of the town centre through the delivery of an upgraded Transport Hub and by repurposing vacant and underutilised retail spaces for cultural activities, leisure and wider commercial uses, as part of a balanced and vibrant town centre offer. The proposals are wholly dependent on LUF funding and there are no applications pending for the same interventions.

3.8 Please tick one or more subcategories that are relevant to your investment: Regeneration Commercial Civic Residential Other Cultural Arts & Culture Creative Industries Visitor Economy Sports and athletics facilities Heritage buildings and sites Other Transport Active Travel Buses Strategic Road Rail Aviation Maritime Light Rail EV Infrastructure Local Road Other

• Regeneration
• Commercial
• Cultural
• Arts & Culture
• Other Transport
• Active Travel
• Buses.

3.9 Please provide details of any applications made to other funding Applicants should list any other funding applications they have made Page | 19 schemes for this same bid that are currently pending an outcome. Where a successful outcome might lead to you no longer requiring the LUF grant please provide details and confirm when might you expect the outcome to be known. (150 words)

No other applications have been made to other funding schemes for this same bid.

Town Funding is identified to support the development of a new library in part of the department store and therefore it has been included as match-funding.

LUF would enable the Council to deliver a major cultural venue, achieved through the co-location of a new arts, creative and training offer, which would then fully utilise the remaining floorspace within this large, strategically located building. This would significantly elevate the regeneration strategy and ensure that Scunthorpe’s culture was front and centre of the high street revival.

There is no duplication in funding and the benefits accounted for under LUF are entirely separate and additional to those accounted for under the Town Fund business case.

Part 4 Strategic Fit

4.1 Member of Parliament Endorsement (England, Scotland and Wales ONLY)

4.1.1 Has an MP given formal priority support for this bid? Y/N – yes

4.1.2 Please confirm which MP has provided formal priority support: (name) Holly Mumby-Croft

4.1.3 Which constituency does this MP represent? Scunthorpe

This bid has been formally endorsed by Holly Mumby-Croft, MP for Scunthorpe.

4.2 Stakeholder Engagement and Support

Applicants are encouraged to engage with a wide range of local stakeholders and the local community to inform proposals in the bid and to secure buy in.

4.2.1 Describe what engagement you have undertaken with local relevant stakeholders, including the community (the public, civic society, private sector and local businesses). How has this informed your bid and what support do you have from them?

(500 words)

The measures put forward under this bid have been co-designed with the community and represent a considered response to address the evidence of need and challenges facing the town centre, highlighted by the public and stakeholders through a range of different channels and engagement methods. This includes the following:

• Engagement carried out via an extensive household survey in 2019 as part of a retail and town centre study – 46.2% respondents were dissatisfied with the town centre; suggested options for improvement included reuse of vacant buildings and a higher quality offer. Household expenditure revealed significant leakage of spend to other areas for uses such as Food and Beverage (F&B) and cultural visits; with the town centre only retaining 26% share of the F&B catchment spend. Such findings have informed the Town Centre Masterplan, the emerging Local Plan and the Town Investment Plan which are all key reference points for this project.
• The MyTowns Campaign (2020) identified the need to increase leisure attractions/facilities as the most popular intervention, with 63 responses.
• Further consultation surveys were undertaken to inform the Towns Fund Programme (2020) –
  97.5% respondents identified the need for the regeneration of the High Street; with 77.5% identifying the need to ‘fill empty shop units’ as a priority. A series of workshops with local businesses and stakeholder organisations also highlighted lack of investment and rising vacancy levels as major issues. The results indicate a growing dissatisfaction with the town centre, linked to the rise in vacancy levels, a weakened offer and high street investment.
• Further engagement has recently been carried out to inform the Cultural Strategy in 2021/22. This has included focus group sessions with educational providers, students and young people. A key message is that respondents want to see cultural ambitions raised in the area and culture used as a means of raising aspirations and improving people’s wellbeing. This presents an opportunity to utilise surplus town centre spaces for cultural activities to build on successful attractions such as the Visual Arts Centre.
• Stakeholders and local experts from arts and industry have identified a need for workshop and retail spaces to showcase local makers and producers. This also presents an opportunity to create a distinctive offer within the high street making use of vacant spaces. Both Arts Council England (ACE) and National Lottery Heritage Fund (NLHF) have been engaged in discussions to develop the proposals for the library as part of the Town Fund programme, and the potential for the future development of an arts and creative space alongside this offer. The proposals put forward in this bid represent a concerted and coherent effort to promote and expand the cultural offer to transform and showcase Scunthorpe as an important Industrial Garden Town.
• In respect of local transport provision, local residents are surveyed annually via the National Highway and Transport (NHT) Public Satisfaction Survey on various public transport parameters including satisfaction with public transport information (34% satisfied in 2020) and the state of bus stops (56% satisfied in 2020). These results show a clear need to make improvements to bus stops / information provision. As part of our Bus Service Improvement Plan (BSIP) we published an online survey, almost 300 local residents responded and provided their views on elements of the local bus network, this supported the findings of the NHT survey and indicated only 40% of respondents were satisfied with the condition of bus stops. Our local bus operators were engaged through the BSIP process and also expressed the need to update bus station facilities.
• Crucially, the MP and wider Town Board have received regular briefings on the development of these proposals, in the context of the wider place-making agenda, to ensure that the measures dovetail with other regeneration programmes and build on the momentum created by previous interventions. There is strong support for this bid and a clear recognition of the need for investment to address the market failures and to ensure visually impactful change, restoring local pride.
• Wider stakeholders have also been involved in order to develop deliverable proposals that can transform the High Street as proposed via this bid. This includes Education & Training providers (informing opportunities to embed learning as part of a cultural offer), Commercial agents, landowners, business and industry (intelligence on demand, sector trends, development opportunities, viability and deliverability), Comparator venues and towns – sharing learning and best practice to inform an aspirational but deliverable approach that is right for Scunthorpe.

4.2.2 Has your proposal faced any opposition?

Please provide a brief summary, including any campaigns or particular groups in support or opposition, and if applicable, how will you work with them to resolve any issues.

(250 words)

No, the consultation and engagement process has demonstrated strong support for the regeneration of the town centre and highlighted an urgent need to enable the repurposing and reuse of vacant spaces and to upgrade to transport facilities.

The results of the NHT survey and our own BSIP survey indicate that residents are generally dissatisfied with the state of bus stops and bus service information in the local area. 69% of respondents to our BSIP survey indicated that improvements to waiting facilities, lighting, shelters and information boards would help them to use the bus more often.

Similarly, it is clear from the household, retail and business surveys that there is a growing level of dissatisfaction with the existing High Street, linked to the increase in vacancies, weakened offer and lack of investment. This is despite major investment in bringing new professional office space and educational uses to regenerate the Church Square area, which immediately adjoins the High Street.

In the absence of a private sector-led solution to the issues facing the High Street, there is now an imperative for public sector intervention to stem the decline, repurpose and revitalise the primary retail area before it reaches breaking point.

4.2.3 Do you have statutory responsibility for the delivery of all aspects of the bid?

If no:

– Please confirm those parts of the project for which you do not have statutory responsibility
– Please confirm who is the relevant responsible authority
– Please confirm that you have the support/consent of the relevant responsible authority

Yes. As a unitary authority, North Lincolnshire Council (NLC) has statutory responsibility for all aspects of the project.

4.3 The Case for Investment

Applicants should use this section to detail a compelling case for why the proposed investment supports the economic, community and cultural priorities of their local area.

Applicants should upload their completed Theory of Change model that supports this section at the time of submission.

For package bids, an explanation should be provided as to how the component projects are aligned with each other and represent a coherent set of interventions.

4.3.1 Please provide evidence of the local challenges / barriers to growth and context that the bid is seeking to respond to.

(500 words)

High Street Offer & Commercial Issues – Need to diversify, repurpose and remodel

Scunthorpe Town Centre is in decline. As a sub-regional centre, dependent on traditional retailing and with limited diversity, the High Street has been impacted by the seismic change in shopping patterns, which has taken place in recent years.

A Retail Study (2019) provides baseline evidence to illustrate this decline. The analysis found that the town was exhibiting clear signs of vulnerability due to its reliance on retail, with significant leakage of spend outside of the area (only 50% spend on comparison goods and 26.1% on F&B is retained in the town centre) and a 25% drop in retail turnover between 2005-17. This has manifested in high vacancy rates – 22% in 2019 and double the national average, clearly illustrating the weakness of the offer.

Since 2019, the shift to digital, accelerated by covid, has led to the failure or withdrawal of many national brands from Scunthorpe town centre, with vacancies rising to 40% in 2022. There are a growing number of voids throughout the shopping area, with a high concentration of large, modern format units located within ‘The Foundry’ and shopping area, detracting from the vitality and overall perception of what should be prime retail frontage. These units are further burdened with higher business rates and service charge liabilities, making it difficult to secure new operators in their current form. Consequently, rental returns have decreased, and yield has moved out over the past 5 years as investor appetite falls.

Social & Economic Profile – Need for Inclusive approach

An additional challenge to the desirability of the town centre from an investment perspective is the demography of the area, with the primary catchment comprised of higher proportions of less affluent groups. Wider issues of deprivation including lower skill levels, poor wage growth and lower life expectancy must also be considered and tackled as part of an inclusive approach to the regeneration of the town centre.

The local economy is currently highly dependent upon manufacturing. Around 23% of employees in North Lincolnshire work in this sector when compared with 11.3% regionally and 7.9% nationally (BRES, 2019). The steel sector continues to dominate the employment profile within Scunthorpe, presenting further challenges to the future prosperity of the area, whilst it transitions towards a low-carbon, higher tech economy, with a focus on clean energy, food and logistics. Macro-economic conditions have served to intensify the socio-economic challenges facing this area and the imperative for Levelling Up Fund support has never been stronger.

Urban Form Townscape & Transport Gateway – Need to consolidate, improve access & enhance quality

Scunthorpe high street stretches for over a kilometre. There is now a clear surplus in commercial floorspace and a need to consolidate the main town centre offer within a smaller footprint, to diversify and lift the quality of this offer, improve footfall spend and dwell time. Improvements to the main Transport Hub, to enhance access, passenger information and the wider visitor experience are also considered key to the future success of the town centre and to ensuring a sustainable public transport service given the poor user satisfaction with current facilities (34% satisfied with transport information and 56% satisfied with the state of bus stops in 2020). This approach is set out within local policy, with a focus on the lower High Street area as the primary shopping frontage, location of the main Transport Hub and to build on the successful and ongoing regeneration of the Church Square area for professional and educational uses. Levelling Up Funding is needed to implement this policy and enable a new phase of regeneration to be delivered.

4.3.2 Explain why Government investment is needed (what is the market failure).

(600 words)

Levelling Up Funding is required to support a transformational change, which is required to repurpose and remodel key assets within the core town centre, following a decline in retailing, rising vacancies, and lack of private sector investment, as returns diminish, and viability is limited. The quantum of vacant floorspace is now significant and demand from commercial operators is weak. Larger units within the primary shopping area are burdened with higher rates, and some of the stock, particularly within The Foundry complex, is becoming old and outdated, due to a lack of market interest and therefore investment.

The conventional business model, founded on national operators with a strong covenant and guaranteed income stream, is no longer working and there is a need for a fundamental change, to repurpose large vacant spaces, renew and redevelop old stock where the level of voids has reached a tipping point, and consolidate, diversify and improve the quality of the offer across a smaller footprint.

Retail and catchment analysis’ highlights a lack of operator demand for floorspace based on existing provision and retention levels. However, analysis does highlight the opportunity to regain market share and retain a greater proportion of spend within the local area, if investment can be channelled into attracting a broader mix of uses and improving the quality, with a particular focus on those uses which are under-represented relative to comparator centres, such as leisure, cultural, educational and community uses, which can increase footfall and dwell time during the daytime as well as into the evening.

It’s evident the market will not provide a solution on its own, based on the trends and evidence of failure to date. Intervention is now needed to halt the decline and to set a new direction for the high street as a constituent part of the wider, sustainable growth plans for the area. The Council has already capitalised on opportunities arising from educational and professional services requirements with investment in Church Square. This project will build on this successful and ongoing regeneration activity by driving a change in the high street business model to allow existing, void and underinvested retail spaces to be repurposed for a new and differentiated offer, which will focus on expanding the town’s cultural offer and opening up to SMEs, makers and producers.

Alongside the work to repurpose commercial spaces, there is a need to invest in the key transport infrastructure which serves the town, with a particular focus on encouraging sustainable travel and supporting better access. The town’s main Transport Hub is the gateway to the main shopping area, but the passenger facilities and information are limited and there is a need to upgrade the infrastructure for those with mobility problems. In addition, the decline in bus patronage in North Lincolnshire has been significant, with a total decline in passenger numbers over the last ten years almost three times higher than that experienced in England. COVID-19 further impacted bus demand with a 50% drop in passengers from 2019 to 2020. Given the trend of long-term decline and the ongoing impacts of the pandemic there is a need to invest in local transport facilities to ensure an efficient public transport network as part of a sustainable and inclusive approach to regeneration.

The key constraints (leading to market failure) and opportunities to be addressed via this project are summarised as follows:

Constraints:

• Lack of operator demand, surplus floorspace and high vacancy rate
• Tired and outdated stock
• Spiral of decline as operators do not renew tenancies – threat of withdrawal of key anchor uses (e.g., Vue cinema)
• Poor quality Transport Hub/arrival points
• Poor provision of public transport information
• Declining bus patronage
• Distance, connectivity and legibility between key attractions
• Less affluent catchment & issues of deprivation
• Local economic challenges – reliance on traditional industry/economy in transition
• Macro-economic challenges intensifying the issues locally.

Opportunities:

• More affluent tertiary and quaternary catchment, which can be attracted to the town
• Opportunity to regain market share currently lost to other urban centres
• Gaps within cultural, leisure uses, opportunity to diversify
• Valued cultural assets – 20-21 Visual Arts Centre/Bath’s Hall, opportunity to bring the ‘offer’ into the High Street
• Requirement for wider health uses identified, to support wider diversification
• Industrial market performing well – opportunity for creatives/maker spaces
• Residential need – opportunity to diversify and condense the ‘High Street’
• Opportunity to ‘take back control’ of assets & future revenue
• Opportunity to increase number of journeys made by sustainable modes to Scunthorpe town centre.

4.3.3 Please set out a clear explanation on what you are proposing to invest in and why the proposed interventions in the bid will address those challenges and barriers with evidence to support that explanation. As part of this, we would expect to understand the rationale for the location.

For large transport bids £20M – £50M applicants should submit an Option Assessment Report (OAR).

(750 words)

The regeneration of the town centre is a clear priority for Scunthorpe and a key component of the wider economic growth and transformation plans for North Lincolnshire. The project includes two related interventions which will collectively respond to the challenges set out in 4.3.1 & 2.

Intervention 1 – The Primary Shopping Area

The first intervention will repurpose and regenerate a retail complex and invest in vacant premises to allow for a diverse mix of uses which will promote, vibrancy and vitality during the daytime and into the evening. The investment will include:

• Acquisition and repurposing of a former department store to provide exhibition, creative, and training spaces
• Acquisition, demolition and clearance of Market Hill, a largely vacant retail block to allow for a new build scheme focussed on leisure
• The consolidation of existing retail offer and investment in void units to incentivise a future commercial use, ensuring that these spaces are affordable to local businesses.

As evidenced above, there is a need to focus on the consolidation, upgrade and diversification given the high concentration of voids in this area. Investing in this location makes sense given its planning policy designation, reflecting the proximity of key infrastructure, such as the Transport Hub, cultural, educational, civic and commercial assets. There is a clear opportunity to improve access and legibility between the High Street, Transport Hub and Church Square area (the focus for existing regeneration), in addition to the work in repurposing assets.

The Foundry is currently under a long-lease arrangement  xxxx information redacted, with the Council owning the land. The Foundry portfolio is part of a major pension fund investment, but with the rising number of vacancies, limited demand and the continued departure of operators when the terms of the lease permit, the portfolio is in decline.

As a strategic asset, the future of the town centre is contingent on the success of the Foundry. The Council has identified an approach which seeks to support a repurposing of the asset, with direct interventions alongside a grant investment fund, to support the uptake, repurposing and fit out of voids across the wider Primary Shopping Area. This approach takes account of the need to manage the risks involved on the part of the Council (and taxpayer) in taking back control of the asset whilst recognising the imperative for action now, to secure the long-term future of the town centre before it reaches breaking point.

Fiscal support is considered essential to the delivery of these proposals, in addition to the powers proposed under the Levelling Up & Regeneration Bill (High Street auctions) given the poor condition of the existing stock, weak operator demand and the need to nurture and support new business and entrepreneurs (with limited covenant strength/capital) to drive innovation and change.

Intervention 2 – Transport Hub

The second intervention is to invest in the creation of a modern, town centre Transport Hub, to improve access, promote sustainable travel and improve the overall visitor experience to drive footfall. Measures will include:

• The installation of real-time digital displays to improve service information
• Delivery of modern bus stands equipped with living roofs and solar panels
• A new visitor information and shop-mobility centre to promote and enable better access to the town centre for everyone.

The Council considers this investment in public transport infrastructure as an essential component of the regeneration package, with a clear rational for intervention to address the challenges set out in the sections above.

Options Analysis

In arriving at the preferred approach, the following options have been considered and dismissed:

• Single Bid: research & stakeholder engagement has identified clear challenges to be addressed in respect of the High Street market failures and transport facilities. The package approach is considered to offer the greatest impact and benefit for the level of investment proposed, with a clear rational for intervention in each case.
• Development Partner: the option of partnering (either through a Development Agreement or the creation of a JVCo) to deliver the proposals under Intervention 1, working with the present leaseholder or via the procurement of a developer has been dismissed at this stage given the weak market and the leaseholder’s express preference for disposal.

The development partner option was not considered appropriate for the Transport Hub where the Council is investing in its own asset for public good.

• Acquisition of entire Foundry portfolio: under Intervention 1 has been dismissed based on the level of holding costs, requirement for investment and LUF timescales presenting a high level of financial and delivery risk.
• Wider High Street Investment Fund: not considered to address the need for consolidation or visually impactful change. Further the Council is developing wider initiatives to support a diversification of uses outside of the core town centre, with a focus on brownfield housing development and conversions through its Town Fund programme. Refer to Annex 1 for further details of the wider regeneration context.

In summary, the proposed interventions will deliver a holistic approach to delivering a vibrant, and distinctive town centre, showcasing Scunthorpe’s identity. The proposals will dovetail with the Council’s wider work to incentivise brownfield housing development outside of the core retail area, and its work with the NHS to bring new health diagnostic uses to the town centre. This combination of actions will fundamentally address the failures that exist, to repurpose and regenerate the primary shopping area as part of a consolidated and improved offer.

4.3.4 Please explain how you will deliver the outputs and confirm how results are likely to flow from the interventions.

This should be demonstrated through a well-evidenced Theory of Change. Further guidance on producing a Theory of Change can be found within HM Treasury’s Magenta Book (page 24, section 2.2.1) and DLUHC appraisal guidance.

(500 words)

The theory of change summarises how the proposals put forward as part of this bid will address the key issues and challenges and deliver positive impacts for the community, aligning with the Levelling Up Missions.

It has been developed in line with Magenta Book guidance and illustrates how the inputs flow through into outputs and then, subject to certain assumptions, deliver the desired outcomes and long-term impacts. These in turn respond to the challenges set out earlier in this application and summarised in the context section of the theory of change. The model is summarised in text form below and set out in full within Annex 4, Delivery Plan.

Context:

• Declining retail offer, limited diversity, low operator demand, and high vacancy rates, leading to reduced returns/yield, and limited commercial viability
• Issues of deprivation, compounded by macro-economic challenges
• Spatial form, poor connectivity, and legibility
• Low quality bus passenger facilities, information services, and declining patronage.
• Poor quality, inconsistent bus passenger information.

Inputs:

• Funding – LUF and Match
• NLC land and resources
• Consultation, partnership working, leaseholder negotiations, and agreements
• Promotions and marketing.

Outputs:

• Acquisitions and investments
• Regenerations and renewal of strategic town centre assets
• Investment and upgrade of main town centre Transport Hub.

Outcomes:

• Reduction in voids, improved townscape, and uplift in land values
• Diversification of land uses, expanded cultural offer and increased footfall and dwell time
• Business supported and job creation
• Increased bus usage, and satisfaction
• Improved non-user confidence in public transport

Impacts:

• A resilient, vibrant, attractive and accessible town centre
• A hub for culture and creativity, learning, leisure, and wellbeing
• An enabling environment to support and nurture entrepreneurs, makers and producers
• An improvised sense of place, distinctiveness and civic pride.

The proposals respond to a rise in High Street vacancies following the decline in retailing and a lack of private sector investment, as returns diminish, and viability is limited leading to market failure. The interventions will also establish the right physical, economic and social conditions to address the decline and deprivation within the core catchment, by ensuring the affordability and accessibility of key assets within the town, to support local businesses and entrepreneurs; by providing cultural facilities which are conducive to learning, aspiration and supporting local talent and by ensuring an accessible and attractive arrival point for sustainable travel which is well connected to the town centre.

The output of the Levelling Up Fund will be a visually impactful change within the town centre, through retrofit, repurposing and new-build development together with investment in a key transport facility. Such positive, tangible change will act as an enabler for future, clean growth, investment and prosperity.

The outputs will generate a range of outcomes focused on job creation, increased skills base, increased footfall, and the diversification of the town centre. The impact of this coherent package of interventions will be to deliver a vibrant and resilient town centre, improving civic pride, opportunity, aspiration and ultimately productivity.

4.3.5 For package bids you should clearly explain how the component projects are aligned with each other and represent a coherent set of interventions.

The focus for investment through this package bid is on the core retail area within the town centre. The approach is to enable the diversification of land uses and improve access to support town centre vibrancy.

The first intervention will address the need to remodel and repurpose vacant spaces and incentivise new uses to come forward, whilst the second will support the transport infrastructure to improve access by sustainable means, enhance passenger facilities and information and generally improve the visitor experience and sense of arrival to drive footfall, extend dwell time and support vitality.

The interventions are clearly aligned and represent a logical, holistic and inclusive approach to the regeneration of the town centre, taking account of the dynamics and demographic of the area as well as opportunities to attract more people to the area and regain market share.

4.3.6 Applicants should also briefly set out how other public and private funding will be leveraged as part of the intervention.

(500 words)

Significant public and private funding is proposed to be directly leveraged as part of this proposal, as follows:

• Towns Fund: funding will be secured under the Towns Fund for the ground floor department store renovation and library fit out, of £6,113,307.
• North Lincolnshire Council (NLC): NLC proposes to fund the balance of costs of the redevelopment of Market Hill for F&B units and outdoor seating,  xxxx information redacted
• Private sector funding: For the grant investment fund, it is proposed that LUF will fund up to 75% of the total capital costs, with the balance being funded by tenant and/or landlord.  xxxx information redacted

This significant funding package will address the need for investment to tackle the market failures and to ensure visually impactful change on the High Street. This will, in turn, act as a catalyst for future private sector investment and growth to promote new economic opportunities and restore local pride.

In addition to leveraging significant private sector investment, the Council is committing to the core operational costs associated with the Transport Hub and the library/cultural venue to improve and sustain these services during the operational phase, beyond the capital delivery programme.

4.4. Alignment with the local and national context

In this section, applicants should clearly articulate their alignment with any relevant local and national strategies and objectives concerning investment, infrastructure and levelling up. Applicants should explicitly state how the bid will substantially support the delivery of local and national policy objectives.

4.4.1 Explain how your bid aligns to and supports relevant local strategies (such as Local Plans, Local Economic Strategies, Local Cultural Strategies or Local Transport Plans) and local objectives for investment, improving infrastructure and levelling up.

For Northern Ireland, Scotland and Wales bids: In addition, explain how your bid aligns to the strategic plans and objectives of devolved administrations.

(500 words)

Scunthorpe Town Investment Plan (2020)

Identifies the need to invest in the town centre, to develop the cultural, arts and heritage offer as part of an overall vision to create:

… a place for excellence in innovation, culture and education synonymous with quality and opportunity…

This project aligns with this vision and will build on the proposed Town Fund investment in existing cultural assets such as the Visual Arts Centre and Library. It will support revitalisation by facilitating the re-use of vacant spaces, driving footfall and supporting a sustainable high street, linking to the key objectives within this plan to support Economic Growth, Attract Business and Town Centre Investment.

North Lincolnshire Economic Growth Plan (2018) & Economic Renew Plan (2021)

Sets out ambitions to build on the area’s existing sector strengths in production and manufacturing and the opportunities afforded by its strategic location to develop clean energy, logistics and port operations. To service this growth, investment in place-making is also recognised, including capital investment in the town centre to ensure the viability of regeneration proposals which can enhance the quality of the place.

The Economic Renew Plan takes these ambitions forward, identifying priorities to strengthen business support, create and protect jobs, promote capital investment and deliver a better quality of life.

The impact of this bid will help to realise these priorities by promoting cultural development which will in turn, support a diversification of the economy and job creation.

(Draft) North Lincolnshire Local Plan (2021) & Town Centre Masterplan (2019)

The draft Plan recognises the improvement of Scunthorpe town centre as a priority, referencing the weakness in the offer, the challenges in relation to viability and structural form. Guided by the framework in the Town Centre Masterplan, the draft Plan identifies the need for a broader range of uses and the consolidation of the commercial offering.

This bid will support a renewed and diversified town centre to meet with these objectives.

North Lincolnshire Council Plan 2018 – 2021

Provides the overarching ambition for North Lincolnshire, with a focus on four priorities of safe, well, prosperous and connected. This bid will support a safe, prosperous and connected town centre that supports wellbeing and inclusive growth.

The bid aligns with the Greater Lincolnshire LEP Local Industrial Strategy (2017), Economic Plan for Growth (2020), and Business and Economy Recovery Plan (2020). Also, the Humber Coast and Vale Building Better Places Strategy. The strategies outline the importance of revitalising high streets, building a healthier future and developing the visitor economy.

North Lincolnshire: A Green Future (2021)

Sets out the high-level objectives for the Council to achieve net-zero by 2030, with a focus on sustainable energy, resource management, natural environment, people and place. The proposals will contribute to these objectives by investing and repurposing existing assets within a sustainable location and promoting sustainable access via public transport services. Opportunities to maximise outputs – for example energy efficiency measures – aligned to these objectives will be an integral part of the asset investment strategy.

Connecting North Lincolnshire: An Integrated Transport Strategy (Draft ITS) (2021)

The draft ITS sets out a vision to deliver a safe, clean, sustainable and efficient integrated transport network which embraces all modes of transport. The proposals will contribute towards the delivery of the vision and priorities to improve transport linkages for all modes into the town centre to support regeneration objectives; improve access to employment, education and services, including via shop mobility, delivering net-zero and use of technology to drive efficiency.

Bus Service Improvement Plan (BSIP) (2021)

The BSIP sets out our vision for improving our local bus network and thus increase patronage, improve passenger confidence and increase customer satisfaction. Our BSIP included a specific measure centred on the bus station: Measure E1 – Improve the quality of the bus station. Our BSIP acknowledged that while the bus station is well located it is outdated, unattractive and exposed making an unpleasant waiting environment for passengers as well as an unattractive gateway to Scunthorpe for visitors. This bid will help deliver on the proposals set out in this Plan through delivery of real-time information and sheltered passenger waiting facilities, with the opportunity to build in ecological measures and green technologies.

4.4.2 Explain how the bid aligns to and supports the UK Government policy objectives.

For Northern Ireland, Scotland and Wales: In addition, explain how your bid aligns to any specific policy objectives, legal and statutory commitments relevant to the devolved administrations.

(500 words)

Levelling Up the UK White Paper

The White Paper sets out the evidence of disparities that exist between different areas of the UK, across a range of matrices from health and well-being to productivity, with proposals to address these issues and ensure that everyone has access to opportunities and can benefit from sustained rises in living standards and well-being. Interventions required to achieve this objective are based on boosting productivity through private sector growth; improving public services; restoring community and civic pride and empowering local leadership. Detailed objectives and targets are set out within 12 missions. Of particular relevance to this project is to address pride in place, improving satisfaction with town centres and engagement in culture and community.

Evidence from the community engagement exercises demonstrates a growing dissatisfaction with Scunthorpe town centre, as vacancies have continued to rise, leading to a decline in desirability and viability of the area for future investment. This project identifies the need to address the structural issues that are contributing to this decline (larger format units, higher costs, old/outdated stock, absentee control and a business model which favours established firms with stronger covenant strength over proactive management) and seeks to ‘take back control’ of key assets and to incentivise investment across the wider high street, to support new cultural opportunities and local business, complemented with investment in the main Transport Hub.

In delivering these changes, the project will also contribute to the Missions to improve Transport Infrastructure, Wellbeing, Health, Skills and Productivity.

Build Back Better, Our Plan for Growth, HM Treasury (2021)

Sets out the vision for the United Kingdom’s post-pandemic future, with 3 key pillars for growth – infrastructure, skills and innovation, underpinned by the need to accelerate plans for clean growth to achieve net zero. This project will deliver on all 3 pillars – by ensuring local infrastructure is available to support cultural and community activities, including training facilities to support skills development as well as repurposing vacant retail spaces to support local entrepreneurs and a culture of innovation. All of this investment will contribute to the government’s clean growth and net zero targets by securing the reuse of redundant assets within a sustainable local and upgrading the key Transport Hub to support and encourage sustainable travel within the urban area.

Ten Point Plan for a Green Industrial Revolution (2020)

Sets out proposals for a green recovery with investment across 10 key areas to meet net zero by 2050. This project will contribute to Point 5, Green Public Transport and Point 7 Greener Buildings by investing in transport infrastructure to encourage sustainable travel and in the upgrade and reuse of vacant premises, with the opportunities to enhance energy efficiency as an integral part of the design process and a requirement of the proposed investment fund.

Transport Decarbonisation Plan (July 2021)

Delivering decarbonisation through places the Government will support decarbonisation by investing more than £12 billion in local transport systems over the current Parliament, enabling local authorities to invest in local priorities – including those related to decarbonisation such as reducing congestion and improving air quality. The Plan will drive decarbonisation and transport improvements at a local level by making quantifiable carbon reductions a fundamental part of local transport planning and funding. The proposals to invest in ‘greening’ the bus terminus through a combination of green roofs, planting and photovoltaic units is entirely complementary to this plan and the longer-term objectives for decarbonisation.

UK Net Zero Strategy: Build Back Greener (Oct 2021)

Details the future of tackling climate change and carbon emissions in the UK. Ending the sale of new petrol and diesel cars and vans by 2030. By 2035 the UK will be powered entirely by clean electricity. Policy to provide £3 billion to create integrated bus networks, more frequent services and bus lanes to speed journeys. Transformation of local transport systems, with 4,000 new zero emission buses and the infrastructure to support them. Once again, the measures proposed as part of this project to ‘green’ the terminus and improve the passenger experience will contribute to this strategy and help promote sustainable travel.

Bus Back Better: national bus strategy for England (March 2021)

This strategy document sets out the vision and opportunity to deliver better bus services for passengers across England including aspirations to ensure all passengers have access to the same high-quality information. The local BSIP has been prepared in response to this national strategy and we are establishing an Enhanced Partnership with our bus operators. The measures proposed in this bid support our BSIP therefore align with the national bus strategy, with support from local Stakeholders.

4.4.3 Where applicable explain how the bid complements / or aligns to and supports existing and / or planned investments in the same locality.

(100 words max per fund)

These proposals build on continued Town Centre regeneration activity. Over 5 years, £40m has been invested in the delivery of new offices, a University Technical College and relocation of the indoor market. Next phase of work will deliver an Innovation Hub, restore the listed Arts Centre, deliver a show-case urban park and library under the Future High Street/Town Fund programme.

LUF will enable a shift in focus to address and transform the failing High Street, complementing the wider growth strategy for the area with interventions such as the Humber Freeport and a focus on clean energy production and advanced manufacturing.

4.4.4 Please explain how the bid aligns to and supports the government’s expectation that all local road projects will deliver or improve cycling and walking infrastructure and include bus priority measures (unless it can be shown that there is little or no need to do so). Cycling elements of proposals should follow the government’s cycling design guidance which sets out the standards required.

(250 words)

This project does not include any works to the local road network. It does however include improvements to the main bus terminus serving the town centre. This is a key arrival point for those visiting the town and the proposals include measures to upgrade and regenerate this space, particularly in relation to passenger information, waiting, access and mobility services as a key component of the wider revitalisation package.

4.4.5 Please tick to confirm which of the following Levelling Up White Paper Missions (p.120-21) your project contributes to:

• Living Standards
• Research and Development (R&D)
• Transport Infrastructure
• Digital Connectivity
• Education
• Skills
• Health
• Wellbeing
• Pride in Place
• Housing
• Crime
• Local Leadership

And write a short sentence to demonstrate how your bid contributes to the Mission(s).

Pride in Place

Also:

• Transport Infrastructure
• Wellbeing
• Skills

Evidence from the community engagement exercises demonstrates a growing dissatisfaction with Scunthorpe town centre, as vacancies have continued to rise leading to a decline in desirability. This project identifies the need to address the structural issues that are contributing to this decline and seeks to ‘take back control’ of key assets and to incentivise investment across high street, to support new cultural & training opportunities and spaces for local business complemented with investment in the main Transport Hub to drive footfall.

Part 5 Economic Case

All costs and benefits must be compliant or in line with HMT’s Green Book, DfT Transport Analysis Guidance and DLUHC Appraisal Guidance. Please also see Technical Note.

5.1 Appropriateness of data sources and evidence

5.1.1 Please provide up to date evidence to demonstrate the scale and significance of local problems and issues.

(500 words)

The following evidence clearly demonstrates the scale of the challenges facing Scunthorpe and links back to the challenges outlined previously in this bid document.

Vacancy Rates

The 2019 retail vacancy rate was 22% – double the national average at this time and clearly vulnerable due to a reliance on retail. The lack of a quality evening leisure offer was apparent with only 26% of the catchment spend on Food & Beverage being retained within the town centre. The 2022 vacancy rate is now 40% illustrating a clear market failure and call for action. (North Lincolnshire Retail & Leisure Study, ELG, 2019; NLC Retail Survey, 2022). Town centre vacancies are highlighted on the Project Area Plan in Annex 1, clearly illustrating the scale of the challenge.

Catchment Analysis

A Catchment Analysis Study (2022) using the CACI Retail Footprint and Acorn data, defines Scunthorpe as a ‘Value Major Town Centre’ which captures 24% total market share. There are a higher proportion of less affluent residents living in close proximity to the town centre, with the wider catchment including more affluent groups.

The report identifies potential to diversify the existing value-based offer to include more leisure and cultural uses which will serve both the local community and wider catchment.

When compared to benchmark locations, there is scope to increase the proportion of brands with more mass-market appeal, independents and other uses to broaden its appeal.

The challenge is to attract these brands, alongside the direct delivery of a bespoke cultural offer in a weak market – hence the need for major investment to pump-prime recovery and vibrancy (Cushman Wakefield, 2022). The Catchment Analysis Study included as Annex 5.

Wider analysis of key data sources confirms the level of deprivation, social and economic challenges within the core catchment to be addressed as follows:

• Deprivation: The areas around Scunthorpe High Street are amongst the most severely deprived areas in North Lincolnshire and fall into the 10% most deprived areas in the Country (ONS, IMD data 2019).
• Unemployment: The High Street falls inside the Town ward of North Lincolnshire. Historically this ward has had a disproportionately high number of benefit claimants when compared to the area as a whole and the gap is widening post-covid (almost 10% for Town in March 21, compared with 6% for NL), illustrating the acute nature of the problems facing residents in this community (ONS, Claimant Count data Mar 16-21).
• Skills: 29.1% population aged 16+ in Town ward have no qualifications, higher than the North Lincolnshire average of 26.2%. This flows through to the employment structure, wage levels, productivity and prosperity, with employment rates in lower-skilled occupations considerably higher for Town ward than the area as a whole (21.1% compared with 14.7% in elementary occupations). (ONS, Census 2011).
• Health inequalities are stark with life expectancy for males born in Town ward 3.4 years lower than the average for North Lincolnshire at 75.4 compared with 78.8 years and significantly lower than for England (79.5 years). Premature mortality rate for respiratory disease, coronary heart disease (CHD) and stroke in the Town ward are all significantly higher than both the North Lincolnshire and England rates (Public Health England 2013-17).
• Crime: Town ward records a crime rate of 185.7 per 1,000 population compared with 79.9/1,000 for North Lincolnshire – the highest of all areas (Humberside Police, 2020-21)
• Housing Tenure: Town ward has a higher proportion of privately rented homes (27.5%) and social rented accommodation (21.3%) when compared to North Lincolnshire (13.4%/15.4% respectively).
• Bus patronage in North Lincolnshire has declined more steeply than the regional and national trends, with a further 50% decline between 2019-20. (North Lincolnshire Bus Operator Data)

5.1.2 Please demonstrate the quality assurance of data analysis and evidence for explaining the scale and significance of local problems and issues.

Please demonstrate how any data, surveys and evidence is robust, up to date and unbiased.

(500 words)

All data utilised is from reliable national and local sources, that are as up to date as possible. In terms of national data, robust central Government data has been used wherever available, supplemented by specific research which has been commissioned or carried out directly by the Council to understand key issues and to inform solutions.

This data has been quality assured by the Council’s research and policy teams and senior management (SRO, S151) as part of the development of this bid to ensure reliability.

The evidence bases to support this bid is drawn from the following key data sources:

• North Lincolnshire Retail and Town Centre Study (ELG Planning, 2019) – a comprehensive study of town centres to support the emerging Local Plan. Data sources such as Experian, combined with local surveys and an extensive household survey have been used in the production of this report as a robust piece of evidence to support the development plan for the area.
• Scunthorpe Town Centre Regeneration, Catchment Analysis (Cushman Wakefield, May 2022) – utilises CACI retail footprint and Acorn data which is underpinned by a combination of government data sources, customer transactions, shopper flows and surveys. This report was commissioned to understand the latest position in respect of the town centre, as a comparator to the 2019 study and to inform the regeneration strategy put forward in this bid.
• North Lincolnshire Council Retail Study (May 2022) – a visual study and mapping of current land uses and vacancies to monitor the health of the town centre and key trends.
• Scunthorpe Town Centre Masterplan, 2019 – spatial analysis of the town centre and its constraints and opportunities. Key to this analysis is the need for consolidation of the offer and a diversification of uses to give new purpose.
• ONS, using Census and other published data sources have been used to help triangulate the findings from the Retail Study and Catchment Analysis and provide a greater understanding of the social and economic challenges underpinning these findings. These sources include the latest Claimant Count information, IMD, Skills and qualifications data, Humberside Police and Public Health England.
• Qualitative findings from our stakeholder engagement with communities and key organisations has helped to provide meaning and depth, giving a greater understanding of the challenges and preferred interventions and ensuring an inclusive approach to the bid.
• Bus operator data – data covering boarding locations and annual patronage by route has been provided by Stagecoach, the largest bus operator in North Lincolnshire, and annual patronage by route has also provided by our second largest operator, Hornsbys.

The combination of government data sources, directly commissioned and focussed studies and local survey work provides strong, up-to-date evidence, based on a sound and detailed understanding of the challenges to be addressed through Levelling Up and the opportunities, to bring about meaningful change.

5.1.3 Please demonstrate that the data and evidence supplied is appropriate to the area of influence of the interventions.

(250 words)

All data is appropriate to the intervention area, both strategically and geographically, using national and local data, supplemented with the findings from our own local data and stakeholder engagement.

The data has also been supplemented with specifically commissioned research to ensure the most up-to date position, to help inform an appropriate response, and to deliver meaningful change. This includes the detailed catchment analysis which has informed the approach to the regeneration of the Primary Shopping Area, under Intervention 1.

Local data provided by our bus operators has been used to inform the economic case for Intervention 2 – Transport Hub. This included detailed boarding information provided by Stagecoach which demonstrated how many passengers board at the bus station. From this data we were also able to identify other key boarding points for passengers using our local services which included various points within the town itself as well as Brigg, Ashby and Hull. Whilst our intervention is focussed on the Transport Hub, the boarding information provided by Stagecoach indicates that the scheme has the potential to have an impact across a much wider area given the wide range of destinations of local passengers.

Overall, the Scunthorpe Town Centre Vibrancy interventions aim to promote inclusive growth and encourage aspiration, prosperity and pride, improving wellbeing and reducing deprivation within the immediate catchment whilst also ensuring that the town appeals to and provides for the wider population it serves.

The breadth of evidence, research and consultation has helped to understand the issues and to design the interventions put forward in this bid.

5.2 Effectiveness of proposal in addressing problems

In this section applicants should clearly set out how the activity described in the bid will address the challenges identified.

5.2.1 Please provide analysis and evidence to demonstrate how the proposal will address existing or anticipated future problems.

Quantifiable impacts should be forecasted using a suitable model. Theory of Change evidence should
be identified and referenced.

(750 words)

The proposal is fully aligned to the identified challenges identified in 5.1 above and will directly contribute to addressing these challenges as follows:

Declining High Street

The proposals will directly deliver new development and the renovation of redundant/vacant spaces, as well as incentivising third-party investment in voids across the wider High Street. This intervention will address a clear market failure and create the right conditions to support further investment and transformation of the High Street as well as providing new land-uses which will directly benefit the immediate and wider catchment area

Unemployment/ benefit claimants

The proposals will provide new construction and permanent operational employment positions within the new employment floorspace at Market Hill and the repurposing of vacant units. The scheme will also safeguard existing retail jobs in Scunthorpe by increasing footfall, dwell time and visitor spend.

Workforce

The proposals will provide additional new construction and permanent employment positions within the retail floorspace, that will be improved as part of the scheme. This recognises the importance of jobs in the lower skilled occupation groups, despite it not being the highest value of sectors, as an important source of local employment. The scheme will also safeguard existing retail jobs in Scunthorpe by increasing footfall, dwell time and visitor spend.

Deprivation and crime

The proposals will address a number of deprivation issues, through providing enhanced opportunities for local people. The scheme will significantly improve the quality of the physical environment in the town centre through the refurbishment of units and transformation of key assets. Increasing the number of employment opportunities means that individuals will be less likely to engage in anti-social behaviour and this will contribute to reducing the propensity for crime events to occur.

Qualifications

The proposed transformation of the library will promote an environment where young people can thrive, improving literacy and numeracy levels and expanding horizons. This will support academic achievements, as well as creativity, to support an increase in qualified people within Scunthorpe. In turn this will increase wages and household spend.

Health and Wellbeing

The proposals will provide new construction and permanent operation employment opportunities within the retail floorspace, which will be improved through the delivery of the scheme. This improved floorspace will deliver a number of positive employment, skills, health and environmental quality improvements. The Transport Hub intervention will improve access, sustainable travel and visitor experience for local people, to encourage healthier modes and transport and decrease the number of cars in the town centre, thereby reducing air pollution.

Spatial form, poor connectivity and legibility

The proposals are interconnected and designed in the context of a wider masterplan to improve the legibility of the town centre and key linkages between the streets and spaces to support access, vibrancy and dwell time.

Low quality bus passenger facilities and information services & declining patronage

The proposals respond to a clear need identified by stakeholders, to address the poor condition of the Transport Hub and gateway into the town as part of the implementation of the BSIP. As noted above, this will improve access, sustainable travel and visitor experience for local people as part of an inclusive regeneration approach.

The economic benefits of the scheme have been modelled using a bespoke economic appraisal model which is consistent with the HM Treasury Green Book methodologies.

5.2.2 Please describe the robustness of the analysis and evidence supplied such as the forecasting assumptions, methodology and model outputs. Key factors to be covered include the quality of the analysis, the quality of the evidence and the accuracy and functionality of the models used.

(500 words)

For Intervention 1 – Primary Shopping Area – a bespoke economic appraisal has been constructed to model the economic costs and benefits of the proposed scheme. This is consistent with best practice in the economic appraisal of property related schemes and has been prepared by national economic development and property consultant Cushman and Wakefield. The methodology accords with HM Treasury Greenbook requirements. The focus of benefits relates to land and property, and as such, all benefits are benchmarked against market intelligence and/or industry standards. Full details of the methodology of the economic appraisal are provided below and in further detail in Annex 8.

For Intervention 2 – Transport Hub – a bespoke Excel-based model has been built following TAG to assess the impacts of the proposal. Full details are provided in the Intervention 2 Modelling and Appraisal report provided in Annex 8. The approach to assessment is summarised below.

The model is based on bus patronage data for 2019 provided by Stagecoach and Hornsbys from which annual boarding figures at Scunthorpe bus station could be inferred. Passengers using the bus station were distributed to various destinations to provide origin-destination level flows using boarding data provided by Stagecoach. Demand for the ‘do minimum’ scenario was forecasted forwards using the 2019 base data and applying ‘all day’ TEMPro growth rates for bus over the appraisal period. TEMPro indicated that bus patronage is predicted to decline by 0.36% per year.

The ‘do something’ scenario modelled the impact of the proposed intervention on patronage. Generalised journey times (GJTs) were calculated for the ‘do minimum’ current origin-destination flows using the bus station. A GJT reduction was applied for the ‘do something’ scenario using values from M3.2.1 Segmented values of soft bus interventions (generalised minutes). An ‘overall’ journey purpose elasticity of –1.1 (acquired from Bus fare and journey time elasticities and diversion factors for all modes – 2018) was then applied to the change in GJT to calculate the predicted increase in demand. This additional patronage was forecast forward over the appraisal period using the TEMPro growth factors referenced above.

5.3 Analysis of costs and benefits

In this section applicants should describe and explain the costs and benefits in the relevant Costings and Planning Workbook – Tables A – Economic Benefits and Table A – Economic Costs They should provide an explanation of how benefits and costs are analysed and estimated, and how this approach is proportionate for the proposal being submitted.

All costs and benefits must be compliant or in line with HMT’s Green Book (including supplementary guidance), DLUHC Appraisal Guidance, and if appropriate Transport Analysis Guidance.

Package bids need to demonstrate both the overall package costs and benefits, and the disaggregated costs and benefits for each component project. Supplementary tables for component projects should be completed in full.

5.3.1 Please explain how the economic costs of the bid have been calculated, including the whole life costs.

(500 words)

For Intervention 1 – Primary Shopping Area, a bespoke economic appraisal model has been developed on the following core economic cost assumptions. All costs are fully consistent with the financial case of this business case and have been adjusted in accordance with the HM Treasury Green Book (HMT) (2022) guidance. Key assumptions and adjustments are:

• All costs are modelled over a 30-year period and discounted at a rate of 3.5% per annum, as per the HMT social time preference. Economic costs have been profiled in accordance with the scheme cashflow based on the year the costs will be incurred, which is consistent with the financial case.
• The base year of the appraisal is 2022/23 and no discounting is applied to this base year;
• The economic costs include relevant cost contingencies applied within the financial case, as advised by cost consultants.
• Inflation has been removed from the financial costs to calculate the economic costs of the scheme in present day values. No general inflation is included as per the HMT Green Book.
• Specifically, in the economic case only, is the inclusion of Optimism Bias (OB) on public sector costs in accordance with the HMT Green Book Supplementary Guidance Note. The upper bound OB limit for capital expenditure in a standard building is 24% and the lower bound limit is 2%. The proposed package of projects are categorised as standard buildings. All of the scheme components are at RIBA 1/2 design stage, however professional cost consultancy advice has advised the latest cost estimates, with the inclusion of relevant contingencies. As a result, a 13% OB allowance has been applied to all costs which aligns with the midpoint OB range for standard buildings.

The financial cost estimate for Intervention 2 – Transport Hub totalled £2.51m in 2022 prices including contingency. These costs were processed in line with TAG guidance (adjusted to a 2022 price base) as follows:

•  Inflation was applied to the base cost of the scheme (not including contingency in line with TAG) to inflate costs to the construction year for the scheme
• GDP deflator values from the TAG Databook were applied to convert back to a 2022 price base
• Optimism bias of 70% was applied (based on TAG Unit A1.2 Scheme Costs Table 8 – Stage 1 rate for building projects)
• The scheme cost was then discounted back to 2022 values.

Operating costs have not been included for the bus shelters and the renovation of the building as it is not anticipated that the proposed scheme will result in an increase in operating costs compared to the current situation. Operating costs for the real-time information element of the scheme have been estimated at £8,800 per year in 2022 prices. These were processed over the appraisal period as described above.

5.3.2 Please describe how the economic benefits have been estimated, including a discussion and evidence to support assumptions.

(750 words)

Technical appraisals have been appended to this bid, providing full details of the approach undertaken for each intervention. A summary is provided in each case below.

A bespoke economic appraisal model for Intervention 1 – Primary Shopping Area has been developed which is based on the following key appraisal assumptions:

• All costs are modelled over a 30-year period and discounted at a rate of 3.5% per annum as per the HMT social time preference. Economic costs are profiled in accordance with the scheme cashflow based on the years the costs will be incurred
• The base year of the appraisal is financial year 2022/23 and no discounting has been applied to this year
• Exclusion of general inflation to values beyond the current day
• Application of HMT GDP deflator to bring historic benefit values into 2022/23 base year values
• Application of deadweight/displacement assumptions in accordance with the 2022 HMT Green Book/ MCLG Appraisal Guide.

The following benefit streams have been monetised as part of Intervention 1:

Department Store

Direct PV LVU associated with the new library. As a public facility the value of this asset has been calculated on a cost replacement basis since there is no transactional evidence on which to determine an appropriate sale value. The costs are based on Rex Proctor Cost Plan dated May 2022 with a displacement factor of 50% to reflect the value of the pre-existing library building, that will be replaced.

Market Hill

Direct PV LVU associated with 650 sq. m GIA of new F&B floor space on the Market Hill site. Land values have been calculated on a per sq. m basis derived from VOA Land Values guidance for 2019 for the Lincolnshire area. An adjustment has been made to inflate this figure to the present day, and discount it from the point at which the benefit is realised. A 20% deduction for displacement is then applied to this figure.

Grant Investment/Repurposing

Direct PV of LVU associated with repurposing of targeted vacant shops in the Primary Shopping Area. This has been calculated in accordance with Government guidance on LVU by estimating the capital value of each property, deducting the existing use value and capital costs. Existing use value is judged to be £0 reflecting the nil economic value of vacant property. Capital values have been estimated by applying a 10% uplift on each property’s rateable value (source VOA), and capitalising each at a gross yield of 8.5%. The 10% uplift in rateable value brings average rents to the level of the best properties that have recently transacted in Scunthorpe.

Wider Property and Land Value related benefits

Two further areas of LVU have been incorporated to reflect the broader ripple effects of the proposed investments on both adjacent commercial and residential property:

• In respect of commercial property, there is estimated to be an impact on all the properties within the Primary Shopping Area as a result of increased footfall. This is predicted to generate an increase of 10% of the rental value of commercial properties over a five-year period, and for vacant properties, bring a portion of these back into use.
• In respect of residential property, there is estimated to be a modest increase in property values of 2.5% in aggregate over a five-year period for all residential properties within a 1-mile radius, a 15-minute walk time, of the high street. This reflects the enhanced value that a vibrant and viable town centre will have in attracting and retaining residents.

Labour Supply Benefits

Direct Labour Supply Benefits which represent the jobs created by the new F&B floor space and repurposed shop grants that will be taken by local residents. Job densities have been applied in accordance with HCA Employment Density Guidance (2015), 10% of which are judged to be taken by new/re-entrants to the local labour market.

Distributional benefits

Distributional benefits are based on the Greenbook principle that “the value of an additional pound of income is higher for a low-income recipient and lower for a high-income recipient. The methodology for calculating the distributional benefits is outlined in Annex 8, and in summary involves multiplying a factor of 1.4065 to each category of monetised benefit.

Economic benefits for Intervention 2 – Transport Hub have been assessed in line with the Department for Transport’s Transport Analysis Guidance (TAG). Four sets of benefits have been monetised:

• Value of time savings
• Revenue
• Marginal external cost savings
• Urban realm benefits.

Initially, patronage for the bus station was estimated from data provided by operators and forecasted forward based on TEMPro. This formed the basis for the benefits assessment.

Value of Time Savings

To calculate value of time savings, the following values were taken from TAG Table M3.2.1 Segmented values of soft bus interventions (generalised minutes):

• New bus shelters: 1.08 minutes
• New interchange facilities: 1.27 minutes
• RTPI at bus stops: 1.47 minutes (85% only in line with TAG Unit M3.2 Table 2)
• CCTV at bus stops: 3.7 minutes (50% claimed only)

Given the values above are based on commute trips, a time saving for business/other trips was calculated by applying a proportionate adjustment using TAG values of time. Forecast values of time by trip purpose were then extracted from the TAG Databook table A1.3.2, in 2022 prices, and applied to the time saving and Bus Station patronage. Values were then discounted to 2022 prices.  xxxx information redacted

Revenue Benefits

To calculate revenue benefits, the time savings calculated above were applied to generalised journey times (GJTs) for flows using the bus station. A bus journey time elasticity from the report Bus fare and journey time elasticities and diversion factors for all modes (2018) was then applied to the base and do something GJTs to calculate a demand uplift and therefore a revenue benefit. This revenue was inflated, deflated and discounted to 2022 values and adjusted for concessionary trips.  xxxx information redacted

Marginal External Costs

Marginal external cost savings for new users switching from car to bus were calculated using a diversion factor from the report, Bus fare and journey time elasticities and diversion factors for all modes (2018): 30% for urban conurbations. Forecast new demand, trip distances, the diversion factor and 2022 Marginal External Cost values (from TAG Table A5.4.4) were combined and then discounted to calculate a predicted benefit of £0.81m.

Urban Realm

Urban realm benefits were calculated using the Valuing Urban Realm Toolkit (VURT). Pedestrian Environment Review System (PERS) audit outputs and bus station patronage figures were input to VURT. A single year estimate in 2006 prices was extracted from VURT and processed over the appraisal period using VoT multipliers and GDP deflator values from TAG, values were then discounted to calculate a predicted benefit of £0.11m.

Full details of the appraisal methodology for Intervention 2 are provided in Annex 8.

5.4 Value for money

In this section applicants should set out the Value for Money (VfM) of their bid, taking account of monetised and non-monetised impacts and risks and uncertainties.

Prior to completing this section the application should complete the relevant Costings and Planning Workbook – Table A – VfM

5.4.1 Please provide a summary of the overall Value for Money of the proposal. This should include reporting of Benefit Cost Ratios (BCR).

(500 words)

If a BCR has been estimated, please provide the BCR of the proposal below.

If you only have one BCR, please enter this against the ‘initial’ BCR.

‘Initial’ BCR (single bid) ‘Adjusted’ BCR (single bid)

The BCR for the scheme is calculated within the LUF Workbook based on dividing the PV of benefits against the PV of public sector costs.

The BCR/value for money output is set out below for each respective intervention and for the package as a whole:

Intervention 1 – Primary Shopping Area

The Primary Shopping Area proposal generates the following output, representing a high value for money.

• Present value of ‘initial’ benefits (PVB) £31.5million
• Present value of ‘adjusted’ benefits (PVB) £44.3million
• Present value of costs (PVC) £15.7million
• Initial BCR 2.01
• Adjusted BCR 2.83

Intervention 2 – Transport Hub

The Transport Hub scheme generates the following results, also representing a high value for money.

• Present value of ‘initial’ and ‘adjusted’ benefits (PVB) £8.48million
• Present value of costs (PVC) £3.78million
• Initial / Adjusted BCR 2.24

The combined BCRs of the two projects is:

• Initial BCR 2.06
• Adjusted BCR 2.72

There is a strong case for investment in this package of proposals which will collectively and individually yield a high value for money output in terms of the BCR.

Methodology & Workbook Inputs

In respect of benefits, the transport benefits (Intervention 2) have been inputted in real terms i.e., inclusive of inflation. Because of the structure of the model, it has been necessary to select ‘nominal’ which enables the model to deflate these figures in accordance with HM Treasury Greenbook requirements. The Primary Shopping Area benefits (Intervention 1) have been entered without inflation, but, because of the structure and working of the model, have been selected as ‘real prices’, to ensure that no inflation is added. Whilst this may appear contradictory to the instruction in the model, it is necessary to ensure that the model correctly presents the BCR in accordance with HM Treasury Greenbook which requires discounting to the present day and with no inflation (effectively real prices).

As referenced previously full details of the forecasting and appraisal methodology for both Interventions is further set out in the supporting Annex 8.

5.4.2 Please describe the non- monetised impacts the bid will have and provide a summary of how these have been assessed, including the expected scale of these impacts. These will be factored into the overall Value for Money assessment of the bid.

(500 words)

The potential non-monetised impacts for each intervention are described below:

Intervention 1

The wider non-monetised outcomes that could arise from the requested LUF investment, are outlined below:

• Supporting the local retail economy: the proposed grant fund could have a transformational impact on retail core of Scunthorpe and increase footfall and dwell time in the town centre. This will assist to attract tenants to reduce retail voids and prevent further decline of the town centre.
• Supporting the local visitor economy: improving Scunthorpe’s commercial offer and attractiveness will assist to attract new visitors to Scunthorpe and improve visitor experiences.
• Providing local construction jobs: although not quantified as part of the economic appraisal above, the project will support new construction jobs during the construction phases of the projects.
• Catalysing private sector investment: the projects could assist to catalyse wider private sector investment in Scunthorpe as a result of the improved quality of place and enhance investor/developer perceptions and property values.

Intervention 2

The scheme will generate a wide range of non-monetised impacts. The refurbishment of the Transport Hub and the associated increase in bus demand will result in increased levels of physical activity for those who switch from car to bus as most of this new demand will access the bus network by walking to a stop. This will have impacts on health and wellbeing.

The provision of new waiting facilities of a higher quality with improved seating throughout the bus station, will generate a small benefit for persons of reduced mobility.

Improvement to the core hub of the bus network could also act as a catalyst to improve bus demand throughout the area, as well as, in combination with wider town centre regeneration, promote increased footfall in Scunthorpe Town Centre. Increased bus demand could help to justify further investment in the bus network across the area, therefore enhancing accessibility and reducing reliance on the private car.

5.4.3 Please provide an assessment of the risks and uncertainties that could affect the overall Value for Money of the bid.

(250 words)

Sensitivity for Intervention 1

For Intervention 1 a sensitivity and switching value analysis has been undertaken as per the Green Book, to understand the impacts on the BCR of changes to key variables/inputs as a further test to the VFM position. The results below identify that an increase of PV economic costs of 199% or a reduction of 50% in PV benefits is required for the BCR to fall to 1:

Switching Values & Impact on BCR:

• Percentage increase in PV economic costs for BCR to fall below 1 – 201%
• Percentage decrease in economic benefits for BCR to fall below 1 – 50%

The following scenarios have also been tested which show that the preferred option retains an acceptable – high value for money BCR output:

1. Increase of 10% economic costs – BCR 1.83
2. Reduction of 10% economic benefits – BCR 1.81
3. Increase of 10% costs & reduction of 10% benefits – BCR 1.65

Sensitivity Testing Intervention 2:

For Intervention 2, three demand-based sensitivity tests have been undertaken, all of which maintain a ‘high’ value for money BCR output, comparable with the core scenario.

1. Core Scenario:

• Growth Rate – 0.36%
• PVB – £8.43m
• PVC – £3.91m
• NPV – £4.52m
• BCR – 2.16
• VfM Category – High

2. Doubled Rate of Decline:

• Growth Rate – 0.72%
• PVB – £8.03m
• PVC – £3.91m
• NPV – £4.12m
• BCR – 2.05
• VfM Category – High

3. No Decline:

• Growth Rate – 0%
• PVB – £8.82m
• PVC – £3.91m
• NPV – £4.92m
• BCR – 2.26
• VfM Category – High

4. BSIP Target Growth:

• Growth Rate – 5%
• PVB – £14.28m
• PVC – £3.91m
• NPV – £10.37m
• BCR – 3.65
• VfM Category – High

5.4.4 We would expect an Appraisal Summary Table, to be completed to enable a full range of impacts to be considered. This should be consistent with the relevant appraisal guidance for the bid.

For package bids, please provide an Appraisal Summary Table for each component project.

For Regeneration or Cultural bids, the Appraisal Summary table should be consistent with the DLUHC appraisal guidance. For Transport bids it should be consistent the Transport Analysis Guide.

Any additional evidence to support your responses to this section should be referenced within your responses (5.1.1 – 5.4.3) and attached as a single annex.

Appraisal Summary Tables have been provided for both Interventions at Annex 7.

• For Intervention 1, Regeneration & Cultural theme, the table is consistent with the DLUHC appraisal guidance and supporting evidence is referenced within the responses to 5.1.1-5.4.3 and also within the Technical Report at Annex 8.
• For Intervention 2, Transport theme, the table is consistent with the Transport Analysis Guidance (TAG) and supporting evidence is referenced and included alongside the information provided for Intervention 1 as above.

Part 6 Deliverability

6.1 Financial

Within this section applicants are required to provide clear and robust details of the financial aspects of the bid, including sources, secured status, and type of match funding, project costs, financial risks and mitigation measures, and how funding is structured – e.g. if you are intending to further disburse the LUF grant with bid partners.

Management and consultancy costs should be clearly shown within the project budget, and any work to be sub-contracted explained within the application form.

Prior to completing this section applicants should complete the relevant Costings and Planning Workbook – Table B – Funding Profile and Table C – Cost Estimates

6.1.1 Please confirm the total value of your bid.

The total value of the bid is:

• Intervention 1    £22,858,120
• Intervention 2      £2,821,367
  Total:                   £25,679,487

6.1.2 Please confirm the value of the capital grant you are requesting from LUF.

The total of the grant sought is:

• Intervention 1    £13,046,241
• Intervention 2      £2,821,367
  Total:                  £15,867,608

6.1.3 Please confirm the value of match funding secured.

Where match funding is still to be secured please set out details below. If there any funding gaps please set out your plans for addressing these.

(250 words)

Match funding is secured and proposed as follows:

Towns Fund
Funding will be secured under the Towns Fund for the Ground floor department store renovation and library fit out, of £6,113,307. This funding is ring-fenced pending approval of a full business case. The business case has been approved by the Council and Town Board and is now pending final approval by Government.

North Lincolnshire Council
NLC proposes to fund the balance of costs of the redevelopment of Market Hill for F&B units and outdoor seating,  xxxx information redacted. The Council is proposing to directly develop the scheme and will either hold the asset in its commercial portfolio as an investment or realise a sale. This match funding contribution is conditional upon Levelling Up Funding and full business case to enable formal Council approval at this stage.

Private sector match funding
For the grant investment fund, it is proposed that LUF will fund up to 75% of the total capital costs, with the balance being funded by tenant and/or landlord.  xxxx information redacted. The intervention rate reflects the level of market failure and incentive that may be needed to secure a differentiated offer. The Council has confidence that this level of private sector funding can be secured and exceeded overall.

6.1.4 If you are intending to make a land contribution (via the use of existing owned land), please provide further details below and confirm who currently owns the land, details of any restrictions and the estimated monetary value.

(250 words)

N/A

6.1.5 Please confirm if your budget includes unrecoverable VAT costs and describe what these are, providing further details below.

(250 words)

N/A

6.1.6 Please describe what benchmarking or research activity you have undertaken to help you determine the costs you have proposed in your budget. Please advise on any assumptions.

(750 words)

Costs have been prepared through rigorous cost planning, based on well-developed design specifications. Cost plans have been prepared by qualified cost specialists Rex Proctor and property advisor Cushman and Wakefield, which are submitted in support of this bid. Details of the research undertaken for each element of the bid are set out below.

Intervention 1

Department Store

Property acquisition costs are based on property valuations undertaken on behalf of the Council. Stamp Duty Land Tax at the applicable rate, as well as property agent and legal fees have been allowed for, at industry standard rates.

Two separate cost plans have been produced by cost specialist Rex Proctor, based on designs prepared by architects. The first is for the renovation and full fit out of Ground floor and shell and core for the remainder. The second cost plan is for the fit out of the first and second floors. Both cost plans are comprehensive and allow for all remedial works, preliminaries, OHP, professional fees, surveys and contingencies. Costs rates have been informed by reference to recent comparable schemes and with the benefit of Rex Proctor’s expertise in cost planning and management.

Inflation has been added to the cost plans based on BCIS All Tender Prices forecasts. Costs have been indexed used the BCIS inflation factors to the midpoint of projected construction contracts reflecting industry practice.

Market Hill

Property acquisition costs are based on property valuations undertaken on behalf of the Council. Stamp Duty Land Tax at the applicable rate as well as property agent and legal fees have been allowed for at industry standard rates. The property will be acquired with vacant possession.

A cost plan has been produced by Cushman and Wakefield’s Cost Consultancy team, which includes the costs for demolition and remediation, construction works for the building, and externals works, professional fees and contingencies. This cost plan is informed/benchmarked by comparable recent developments including referencing the industry standard RICS Building Cost Information Service (BCIS). Costs are inflated consistently as for the department store renovation.

Additional costs have been allowed for including tenant incentives, rental and sales costs, and void allowances. These have been informed by Cushman and Wakefield’s market assessment and testing with occupiers. A cashflow based development appraisal has been produced to model all development costs against projected end values. The appraisal has been produced in the industry standard Argus Developer software and allows for Council borrowing costs, to the Council, to fund the balance of the scheme costs, after allowing for the proposed LUF grant.

Grant Investment Fund

A cost plan has been produced by Cushman and Wakefield’s Cost Consultancy team. This includes assessments of the costs of renovation and fit out of targeted vacant properties. The costs allow for remedial works, fit out and external improvements. This assessment has been aggregated into an overall rate on a per sq. meter basis which has been applied across the targeted vacant properties. Costs allow for professional fees and contingencies at consistent rates as the other elements of the project, and subject to inflation consistent with the other scheme interventions.

Intervention 2

Real-Time

Cost estimates have been prepared by the Council’s ICT and Digital specialists for the Real-Time Infrastructure proposals, with reference to comparable schemes and supplier engagement.

Transport Hub Upgrades

A cost plan has been produced for the wider upgrades to the terminus, including the concourse/bus stands and passenger waiting facilities again by Rex Proctor, Quantity Surveyors, utilising their extensive experience in cost planning and management.

Inflation has been added to the cost plans based on BCIS All Tender Prices forecasts. Costs have been indexed used the BCIS inflation factors to the midpoint of construction contract reflecting industry practice.

6.1.8 Please set out below, what the main financial risks are and how they will be mitigated, including how cost overruns will be dealt with and shared between non-UK Government funding partners. (You
should cross refer to the Risk Register).

(750 words)

The key financial risks to this project are as follows.

Construction contracts let for either or all of the department store renovation, Market Hill Developments and Transport Hub are above that, which is budgeted in the cost plans.

The cost plans have been prepared based on design specifications and by cost consultants that have priced risk appropriately, with expert knowledge of construction markets. In addition, inflation has been allowed for, in accordance with, the BCIS All Tender Prices Index forecast to the mid-point in the anticipated construction programme. Whilst there is a possibility of tenders’ prices being above budget, this risk is considered to be low and will be mitigated in the following ways:

• Construction contracts will all be subject to tender, through compliant frameworks
• Market testing will be carried out prior to tendering of contracts
•  NLC will appoint specialist NEC project managers/cost consultants to ensure delivery to programme and to scope.

In the unlikely event of tendered costs being above budget, NLC will consider underwriting the additional funding required to deliver the schemes.

Construction cost overruns during the construction process threaten the scheme’s completion.

NLC intend to contract through conventional design and build type arrangements where the construction cost risk is transferred to the main contractor on a fixed price basis. In the event that there are changes in scope that increase costs that cannot be under-written by the head contractor, NLC as client body will put in place suitable arrangements to assure the delivery and completion of the project.

Changes to market conditions during the construction of the F&B scheme on the redeveloped Market Hill site, result in a reduction in market interest from occupiers, necessitating either a greater level of tenant inducement required or a lower rent payable, impacting on the rent receivable and capital value of the asset.

NLC has already had market advice which has confirmed the potential appetite from target F&B operators given the shortage of such providers in Scunthorpe which represents a gap in the local market. The Council’s property advisors Cushman and Wakefield have had preliminary discussions regarding headline terms with prospective operators – this is reflected in the rent and tenant inducement package that has been modelled. In the event that rents were less, or tenant inducements required were greater than that assumed, this would impact on the portion of the project that the Council is funding, and the Council would look to mitigate its exposure through renegotiating the terms with occupiers. A worst-case scenario for the Council is that they would need to consider terms, which would require holding the asset for a prolonged period of time, to recover the capital expended.

Costs of shop improvements are higher than estimates put forward as part of the bid, threatening the quantity of shop repurposing schemes that can be accommodated in the allocated funding.

Careful cost planning has been carried out to estimate the costs associated with repurposing shops for a variety of uses, and provision has been for contingencies, fees and inflation, thus minimising the risk of cost increases. In the event that costs are greater than anticipated, there is flexibility within the programme to re scope the extent of the works that the grant would fund, ensuring the same impact in terms of the quantity of units and floor space benefitting.

Occupiers/landlord unwilling to match fund the required minimum contribution to the grant investment fund

The cost plan assumes that occupiers/landlords will fund a minimum of 25% of the works, alongside the LUF element of up to 75%. This is considered to be a maximum level of intervention to ensure there is flexibility within the scheme to address key assets which require considerable upgrade to repurpose the use, however it is hoped that a more favourable split can be achieved on average across the portfolio (50/50 or lower) which would enable further funds to be recycled onto other properties. The current leaseholders of both the Foundry and Parishes, main shopping centres within the town centre have both expressed support for the scheme, recognising the current market challenges and the need to repurpose the stock. The LUF proposal makes an allowance for the Council to appoint a management and marketing team to promote and target occupiers which will help to maximise the take up and willingness to invest.

6.1.9 If you are intending to award a share of your LUF grant to a partner via a contract or sub-grant, please advise below. NB: You must ensure any further disbursement of the grant is done so in accordance with subsidy controls and public procurement rules.

(750 words)

The proposed site acquisitions will be carried out in accordance with the Council’s Property Portfolio Framework (2021-2025) with the values informed by a formal Red Book Valuation. The acquisitions will be subject to a formal contract in the form of a Sales Agreement with the leaseholder, Columbia Threadneedle, and will be conditional upon funding and securing deliverable planning consents.

The principal contracts for works to be delivered through the proposed LUF grant are set out below. Full details of the proposed procurement and delivery strategy and contracting arrangements are set out in Section 6.2.1 and in the Delivery Plan.

• Construction contractor for the former department store renovation (Intervention 1) – estimated construction contract value £11.4m
• Construction contractor for redevelopment of Market Hill (Intervention 1) – estimated construction contract value £2,757,370
• Construction contracts for delivery of the Transport Hub (Intervention 2) – Real-time delivery estimated contract value £65,443 and design and construction contracts at an estimated total value of £2,775,924

The beneficiaries of the above works contracts are not yet known, since the procurement process for the delivery of the works cannot commence until funding is secured, however all procurement will be undertaken in accordance with the Council’s Contract Procedure Rules (CPRs), including its Social Value Charter and ultimately, the Public Contract Regulations (PCRs) 2015, updated 2020.

In addition to the above contracts, the Council proposes to call-off design and professional services to support the further development of proposals, under the scope and terms of existing contracts to ensure that the project is prepared for delivery upon award of funding. Then, subject to a successful award, further services will be procured including a dedicated NEC Project Manager/Cost Consultant to take the proposals forward to tender for the construction works. Specialist commercial services will also be procured to support with the marketing and promotion of the scheme to secure operators for the proposed development and wider void units. Once again, details of the proposed delivery strategy are set out in section 6.2.1 and Annex 4, Delivery Plan.

Finally, the Council proposes to deliver a grant investment fund under Intervention 1 to support businesses with the fit out/renovation of existing premises to support new economic uses. The total amount of funding to support grants is estimated at £4,253,661.

The businesses have not yet been identified however, subject to funding, this scheme will be subject to a full marketing exercise. There will be an open call for projects to ensure that the opportunity is competitively marketed, and all grant applications will be assessed and scrutinised carefully to ensure value for money and compliance in accordance with LUF and Subsidy Control (under the ‘small amounts’ rule or the TCA principles on a case-by-case basis as may be required (see Section 2). Businesses will be contracted via a Grant Fund Agreement all LUF conditions and obligations will be embedded in this agreement to ensure an appropriate flow down from the Council.

6.1.10 What legal / governance structure do you intend to put in place with any bid partners who have a financial interest in the project?

(750 words)

The Council’s internal legal specialists have advised on the proposals set out in this bid and will continue to advise the SRO and Delivery Manager on all aspects of delivery as a key member of the Project Team, to ensure compliance with all relevant legislation, including the Council’s Contract Procedure Rules (CPRs), the Public Contract Regulations (PCRs) 2015, updated 2020 and Subsidy Control.

The SRO will report to the Council’s Cabinet on all legal/contracting arrangements in accordance with the Council’s Scheme of Delegation and also to the Scunthorpe Town Board, which has been re-constituted to ensure oversight and decision-making powers in respect of all relevant place-based funding (LUF, Towns Fund and Shared Prosperity Funding). The reporting and governance structure and assurance arrangements for this bid are set out further in section 6.2.1 and the appended Delivery Plan.
The Council will procure and/or put in place legal contracting arrangements with partners to deliver the interventions. Again, these arrangements are set out further in subsequent sections and within the Delivery Plan, with a summary of the key contracting arrangements and legal framework below:

• Acquisition of proposed sites subject to agreement of Heads of Terms and Sales Agreement, underpinned by Red Book Valuation and conditional upon securing funding and a deliverable planning consent. All to be carried out in accordance with the Council’s Property Portfolio Framework
• Procurement of works contracts to be carried out via identified PCR compliant frameworks, in accordance with value thresholds
• Procurement of services contracts (NEC PM/Commercial) via identified PCR compliant frameworks in accordance with value thresholds
• Promotion of Grant Investment Policy and award of grant to businesses, in accordance with published assessment criteria and subject to Grant Funding Agreements which will require recipients to demonstrate compliance with ‘Small Amounts’ or TCA principles and will passport the Council’s CPRs to ensure value for money is achieved for all works, and no indirect subsidy flows through to suppliers.

In addition to the formal legal and governance structures summarised above and as noted in other sections, the Council will also seek to work in partnership with wider stakeholders to promote the town to prospective operators. This will include key landowners, local businesses and commercial agents. The Council will utilise existing structures, centred around the Town Board and where required, will explore opportunities for further dedicated partnership working, with any arrangements set out within appropriate Terms of Reference, linked back to the main Board governance structure.

6.2 Commercial

Within this section, applicants should set out their commercial and procurement strategy for effectively awarding and managing any contracts for goods, works or services to be funded by the grant. The strategy should include all key procurement lifecycle activities, timescales and who will lead on procurement / contractor management.

6.2.1 Please summarise your commercial structure, risk allocation and procurement strategy which sets out the rationale for the strategy selected and other options considered and discounted.

(1500 words)

Commercial Structure

North Lincolnshire Council will act as the accountable body and delivery organisation for this package of projects, working in partnership with key stakeholders. It is not proposed to create a separate legal structure for this project for the reasons set out in the Options Analysis in Section 4.3.3 (and within the Procurement Strategy outlined below).

The Council has the powers to deliver the proposals of acquiring, disposing and developing land and entering into contractual agreements, as set out in the bid under Section 120 and Section 123 of the Local Government Act 1972; Section 111 of the Local Government Act 1972, and Section 1 of the Localism Act 2011.

Procurement Strategy

All procurement activity which is proposed to enable the delivery of these schemes will be undertaken in accordance with the Council’s Contract Procedure Rules (CPRs), including its Social Value Charter and ultimately, the Public Contract Regulations (PCRs) 2015, updated 2020.

The Project Team for this package bid has extensive experience in procurement and commissioning to deliver complex, multi-disciplined schemes. This includes competitive dialogue, restricted and open processes, and the use of compliant frameworks, such as Scape, Pagabo, Procurement Hub, YORhub and the North Lincolnshire Council framework.

The proposed procurement strategy for each intervention, is detailed below.

Intervention 1: The Primary Shopping Area

This intervention will comprise of acquisitions to enable development – directly delivered by the Council – and investment in void units to support the viability of a future economic use – delivered by way of a grant investment fund.

Contracts Procured

With respect to the acquisitions and development proposals, the following contracts have already been procured to support the evidence, research and financial modelling for this project and to inform the route to market for the delivery phase.

• Building Design Team, led by AHR Architects Ltd: procured as a competition under the YORhub (YORconsult) framework to provide multi-disciplined design services for the development proposals for the department store and Market Hill under this bid. This includes architects (AHR Ltd), Project Management and Cost Consultants (Rex Proctor), Structural Engineers (Mott Macdonald) and MEP services (BWP). This professional team have been procured to provide services to RIBA 2, with the option to extend to RIBA 3, including consents and the preparation of tender documents, to allow for the procurement of a lead contractor on a design and build basis. The form of contract for this appointment is the NEC 3 Professional Services Contract. Design beyond RIBA 3/planning will then sit with the contractor to allow for the transfer of these risks, helping to ensure greater cost-certainty for the Council in delivering the scheme.
• Commercial Expertise, led by Cushman & Wakefield: procured directly under the ESPO Framework to provide market intelligence to support the regeneration strategy, negotiations in respect of the proposed acquisition/land deal, financial modelling and viability to ensure a robust and considered business case, which is deliverable and represents value for money for the taxpayer, whilst also protecting the financial standing of the Council. The form of contract is the ESPO Framework Agreement and Call-Off Terms and Conditions.
• Formal Red Book Valuations, led by PPH (local agent): procured directly (under £5k) in accordance with CPRs/PCRs, to provide an independent Red Book Valuations of these premises to underpin negotiations with the leaseholder to seek to secure tenure for the development proposals. A local agent has been procured for this work to ensure a strong knowledge of the local market, complementing the wider intelligence and macro analysis via Cushman & Wakefield.

YORhub is a compliant framework that covers the full construction cycle. YORhub is managed by five lead authorities across Yorkshire. It is not commercially driven but strives to deliver best value and to share knowledge for the benefit of the region as a whole, promoting best practice in public sector procurement for construction projects. The framework offers professional support, with 100% transparency on cost and delivery. Social value, skills and employment are embedded within the framework. For these reasons, this framework is considered an appropriate route to market for the design stage and likewise, offers a favourable route for the delivery stage.

ESPO’s Consultancy Services Framework was selected for the commissioning of commercial expertise, since it offered an efficient route to access a range of pre-approved, experienced service providers. With agreed quality and fee rate information, this route was considered to offer a time-efficient and therefore less costly route to market when compared to a traditional tender exercise. With pre-agreed fee rates, the Council could also be certain of value for money. As a compliant framework, the processes, procedures and fees for ESPO were also considered more favourable when compared with other framework providers.

Detailed Design & Delivery Phase

Subject to funding, it is proposed to procure the contract for works in respect of the department store and Market Hill on a design and build basis, following the completion of detailed designs, SIs and approvals at RIBA 3. It is proposed to utilise the YORhub framework, as a compliant route to market and for the reasons set out above, to tender the works on a mini-competition basis, entering into an NEC contract. Under this mechanism the Contractor will also be responsible for CDM.

Alongside but separate to this procurement, the Council will procure a dedicated Project Manager/Cost Consultant and Site Supervisor roles to manage the contract for works, providing technical expertise, verification of valuations for stage payments and ensuring robust challenge to bring the project in on time and to budget. The Project Manager will work alongside the Council’s internal Delivery Manager and liaise closely with other project partners and stakeholders to ensure effective management and co-ordination of the project to practical completion and hand over (and retained until the end of the DLP). The Project Manager role will be procured via the YORhub framework or through the Council’s own dedicated framework, which offers similar advantages to the YORhub approach but with a reduced number of suppliers. The cost of these services is included within the overall project costs.

Grant Investment Fund

In addition to the direct delivery of development by the Council, it is proposed to provide an investment fund, to allow for the fit-out and repurposing of void units across the wider Primary Shopping Area. This is considered to offer a lower-risk approach for the Council, since it will not be contingent on taking back control of the whole portfolio (limiting the risks associated with holding void units and costs) but will provide an opportunity to incentivise third-party investment and private sector leverage.

The grant will support operators with fit-out/repurposing costs, subject to securing of tenure. The scheme will be managed through application and assessment processes, based on a clear policy and with final award subject to the terms of a Grant Fund Agreement. These terms require recipients to demonstrate compliance with TCA principles and will passport the Council’s CPRs to ensure value for money is achieved for all works and no indirect subsidy flows through to suppliers.

To support with the marketing and promotion of the grant scheme and in securing operators for the proposed new development at Market Hill, the Council will procure a commercial specialist to supplement internal Council resource and to provide dedicated, proactive expertise. The Council will seek to utilise the ESPO framework, which provides access to a multitude of commercial specialists on a direct award or mini-competition basis.

This combination of direct delivery and facilitation of third-party development is considered to offer the best solution to achieving transformational change, addressing viability issues, changing the dynamic and creating more favourable conditions across a wider footprint, as a catalyst to future vibrancy, whilst always ensuring a balanced approach to financial risk to the Council and wider taxpayer.

Intervention 2: Transport Hub

Contracts Procured

With respect to Intervention 2, improvements to the transport hub, the following services have already been procured/put in place to support the project and to inform the route to market for the delivery phase.

• SYSTRA – procured under the SAM framework to support North Lincolnshire Council with the development of the Bus Service Improvement Plan, deliver the Enhanced Partnership and Network Review and to support with the design development and economic appraisal of the transport infrastructure proposal within this bid. SYSTRA will continue to work with North Lincolnshire to deliver the Enhanced Partnership and, subject to securing LUF funding, can further support the development of proposals.
• In respect of the Real Time Infrastructure proposals, the Council’s ICT and digital specialists are providing dedicated design and development expertise to the project team to provide a full specification for the works.

Detailed Design & Delivery Phase

The procurement route for the delivery of the Real-Time measure will be to utilise a national G-Cloud procurement framework, with a direct award process. This will provide a fast, legal direct route to market with pre-defined contractual arrangements at framework level. This will enable us to mobilise the project expediently and drive forward delivery quickly. The Council’s internal ICT and Digital Specialist will oversee the delivery of this contract.

Subject to securing LUF funding, the Council will procure design services for the wider works to the Transport Hub, based on the specification developed by SYSTRA, utilising the Council’s own framework for design services, or an alternative compliant framework. The works will then be tendered at the detailed design stage, again utilising the Council’s own frameworks, subject to final value thresholds, or alternative compliant framework. Like Intervention 1, a Project Manager/QS resource will also be procured to provide oversight and technical expertise, verification of valuations for the work.

The proposals for the Real-Time infrastructure and main concourse improvements can be delivered by the Council under permitted development rights afforded by the General Permitted Development Order (GPDO) 2015.

The works to the main building frontage will require planning consent but as for Intervention 1, the proposals are subject to dialogue with the planners and are not considered to be contentious from a design perspective, given the upgrade to the facility that will be achieved here in alignment with planning policy and the BSIP stakeholder consultation. Works will be phased to allow for the continued operation of bus passenger services during the development, which has been planned to minimise impact on the main concourse whilst enabling a significant upgrade to the passenger areas.

Alternative Procurement Options

• Traditional procurement (fully designed scheme, restricted process): this route does not allow for the transfer of design risk, which would sit with the Council and its client-side design team. It is considered preferable to achieve greater cost-certainty and reduce risks with delivery to manage the contracts on a design & build basis. Further, the volatility of the market and issues with supply shortages give additional grounds for securing a contractor earlier in the process, to ensure accurate costings.
• Development Partner: this approach would likely require a complex procurement such as Competitive Dialogue. Further, the limited commercial demand/viability make this less attractive to a private sector partner at the present time. Given the time pressures of the LUF funding and market failures, it is considered preferable to pursue a direct delivery model, with the LUF needed to offset the risks to the Council.  xxxx information redacted

This option was not considered appropriate for Intervention 2 – Transport Hub given that the Council is investing in its own land and infrastructure for public good.

Summary of Approach

It is considered that the combination of a dedicated Delivery Manager and Assistant Project Officer for this package, supported by an internal Project Team which has been enabled with capacity to focus on the delivery of these measures and supplemented by external specialists, offers the most appropriate strategy for the delivery of these interventions. Project management and professional fee costs have been included in the bid proposals to ensure sufficient resource for delivery.

6.2.2 Who will lead on the procurement and contractor management on this bid and explain what expertise and skills do they have in managing procurements and contracts of this nature? If the procurement is being led by a third party and not the lead applicant, please provide details below.

(500 words)

This package of projects will be managed by a cross-directorate Project Team, with extensive experience in procurement, contracting and project delivery and with wider experience of the development and funding processes. The Team will also be supported by internal experts in procurement, property, legal and financial matters.

External specialists have been procured to provide additional expertise during the development stage, and proposals are set out above for the procurement of specialists to support the delivery phase, to ensure a comprehensive and robust approach.

The SRO will provide the overall direction of the procurement and contracting arrangements for these schemes with the Delivery Manager leading and managing the process on a day-to-day basis. Oversight and assurance will be provided via the SRO and wider Scunthorpe Town Board.  xxxx information redacted

xxxx information redacted

With respect to the proposed grant investment fund, the policies and procedures to deliver this scheme have been developed, based on previous precedents including the Humber High Street Challenge Fund, which was managed by North Lincolnshire Council and following the latest examples, such as the Hull Levelling Up Fund. The Council has extensive experience of delivering grant interventions, most recently through the roll-out of the Covid fiscal support measures where the council provided over 15,500 grants to the value of £63m.

6.2.3 Are you intending to outsource or sub-contract any other work on this bid to third parties? For example, where you have identified a capability or capacity gaps.

(750 words)

The Council has established a multi-disciplined, cross-directorate Project Team to manage this package, with clear roles and responsibilities, as set out in section 6.2.2 and the appended Delivery Plan. The project will be directed by a highly experienced SRO and Delivery Manager, with support from specialist services.

In addition to this core internal team, the Council has recognised the need to procure specialist support to assist in the delivery phase, to ensure robust management of the construction phase and to secure commercial interest and operators for the future development scheme and occupation of vacant spaces, with the aid of the grant investment fund. Specifically, the Council requires specialist NEC Project Manager/QS and Site Supervisor roles for the construction phase and to extend the services of a commercial specialist to proactively market the sites and secure operator interest alongside the cultural and community uses to be operated directly by North Lincolnshire Council.

The Council has already procured this specialist support for the project development phase, to support the development of a sound business case and robust decision-making (in addition to wider design services). This support is in place to enable detailed design and development to allow for the efficient procurement of a contractor upon award of funding. These services will be procured for the delivery phase if funding is secured, to provide ongoing client-side support, mitigating development risks, including cost-overrun and ensuring future occupancy of new and existing floorspace.

It is intended to procure these ongoing services via the YORhub, NLC and ESPO Frameworks if funding is secured. The form of contract will be the NEC 4 Professional Services Contract, with key milestones and KPIs set out within the contract data to ensure effective management and monitoring.

The above, client-side services will provide direct support, expertise and capacity to ensure effective delivery of the measures set out in this package bid. In addition to this, the Council will procure contractors to undertake the design delivery of the proposed construction and development works packages and specialist services directly in respect of the Realtime proposal, to build the technical architecture and install the relevant hardware and software.

6.2.4 How will you engage with key suppliers to effectively manage their contracts so that they deliver your desired outcomes. What measures will you put in place to mitigate supplier/contractor risks and what controls will you implement to ensure they deliver on quality.

(1000 words)

Design & Development Phase

Suppliers have been procured to support the Council in developing the designs, costs and approvals for the direct delivery proposals under Intervention 1 and to support with the outline design and costs proposals for Intervention 2, in advance of the delivery phase.

These suppliers have been subject to due diligence as part of the approval process to pre-qualify for selection under the identified frameworks. The Council has then carried out its own due diligence as part of its further selection process.

In accordance with the CPRs, the Council has finalised the scope of works, contract data and evaluation criteria within the procurement documentation prior to publication. The method used to assess the suitability of a supplier is based on the most economically advantageous tender (MEAT), taking into account the quality and price of the proposal. In assessing the proposals put forward by suppliers under the further competition process, or as a direct call-off (such as under the ESPO framework), the Council has carried out its due diligence and set out the framework for delivery within the contract documentation, with clear milestones and KPIs to be met and monitored to meet the expected standards and ensure effective controls.

Contract awards are published via the YORtender portal and procurement procedures are set out on the Council’s website to ensure transparency of decision-making.

To ensure the effective delivery of the services, the Delivery Manager / appointed representatives from the Council’s internal Project Team, will continue to meet regularly with the supplier, to monitor and review progress with regards to the overall project programme and outputs. Key deliverables are then signed-off with the SRO and Town Board (as required) to support the development of the project.

A summary of the key controls to mitigate risks and ensure quality of delivery are set out below:

• Procurement documents with a clear scope, pricing schedule and contract data set out prior to publication/engagement of a supplier to ensure clarity over expected standards
• Form of contract includes appropriate terms and conditions to ensure effective controls (e.g., NEC)
• Evaluation process includes gateway checks in addition to evaluation of quality and price to provide assurances on supplier selection
• Use of frameworks, pre-approved suppliers, to provide further checks and assurances
• Contract to include clear scope, milestones and KPIs as well as payment schedules to enable effective monitoring, accountability and controls
• Regular project meetings with suppliers to monitor progress and to raise any issues to be addressed at an early stage
• Mechanisms for variations and change management (CEs), escalation and mediation or termination included within the contract – shared risk between the Council and supplier.

Delivery Phase

Subject to funding, the Council will move forward with the procurement of contractors to deliver the key construction and development works. Specialists (NEC PM/QS, Commercial) will also be procured to provide services to supplement the resource, capacity and expertise of the Council’s internal team as described earlier in this bid. Measures to mitigate risks at this stage are summarised below:

• Detailed designs and SIs to achieve greater cost-certainty prior to tendering
• Tendering of main contracts on a D&B basis, using fixed price NEC (option A) to reduce risk of cost over-run
• Specialist services – PM/QS – to oversee contract, provide technical challenge and verify the value of works/stage payments and final certification
• Due diligence/gateway checks and evaluation on MEAT basis
• Regular progress meetings between external and internal PM and project partners to ensure effective delivery and hand-over for the operational phase
• Regular internal meetings with the SRO and Board to update on progress and raise any issues for early resolution.

6.3 Management

Prior to completing this section applicants should complete the relevant Costings and Planning Workbook – Table D – Milestones Delivery

6.3.1 Please set out how you plan to deliver the bid (this should be a summary of your Delivery Plan).

(1000 words)

North Lincolnshire Council is the accountable body for this project and will lead on the direct delivery of the proposals. A summary of the timeline for each intervention is presented below. Proposed timescales have been informed by the Council’s commercial advisers, transport specialists and a professional design team, procured to support the delivery of the project. The overall timescale for the delivery of all interventions to be part-funded through this bid is well within the timescales for the Levelling Up Fund programme as a whole.

Intervention 1 – The Primary Shopping Area

Department Store Regeneration:

• Secure LUF funding – September 2022
• Progress sale to conditional exchange – Sept 2022 – Jan 2023
• Detailed designs and Sls – July – Oct 2022
• Planning submission – Nov 2022
• Determination of planning/expiry of JR – Feb 2023
• Technical design and procurement – Feb – July 2023
• Award of contract – July 2023
• Start onsite – Sept 2023
• PC – Dec 2024

Market Hill Regeneration:

• Secure funding – Sept 2022
• Progress sale to conditional exchange – Sept – Jan 2023
• Detailed design and Sls – Jan – June 2023
• Planning Submission – July 2023
• Determination of planning/expiry of JR – Dec 2023
• Procurement of construction contractors – Jan – June 2024
• Demolition & site preparation – Sept 2024
• Marketing launched – Sept 2024
• Start on site (construction) – Oct 2024
• Phased completion (LUF) – Mar 2025
• Final scheme completion – Oct 2025

Grant Investment Fund

• Preparation of design code, grant policy and governance documents Sept 2022 – Mar 2023
• Launch of scheme – Apr – June 2023
• Marketing and promotion – Jan 2023 – Dec 2024
• Grant assessment and approvals – June – Dec 2023
• Implementation of approved schemes – Jan 2024 – Mar 2025

Intervention 2: – The Transport Hub

Real-time Infrastructure

• Final specification contract price agreed (subject to funding) – July 2022
• Secure funding – Sept 2022
• Contact award – Oct 2022
• Contractor lead-in – Oct – Dec 2022
• Start onsite – Jan 2023
• Practical completion – Mar 2023
• Scheme operational – Mar 2023

Wider Transport Hub Upgrades (Stands, Visitor & Passenger Facilities)

• Secure funding – Sept 2022
• Procurement of design team – Sept-Nov 2022
• Consultation and engagement with stakeholders/operators – Sept – Dec 2022
• Detailed design and Sls – Nov 2022 – Feb 2023
• Planning Submission – Feb 2022 (building frontage, wider works under GPDO)
• Procurement of contractor – Feb – May 2023
• Determination of planning – April 2023
• Contract lead-in – May – June 2023
• Start onsite – June 2023
• Practical completion – March 2024
• Scheme operational – April 2024

Key dependencies & Interfaces

The proposals for The Foundry are contingent on agreement to the terms of a proposed acquisition, to enable the Council to secure control of the assets  xxxx information redacted. Negotiations have taken place, but a final agreement is subject to the Council securing LUF funding to support the cost of the acquisition and proposed redevelopment/investment strategy, which is essential to regenerate the scheme as a whole, so that it can best serve the town of Scunthorpe.

The regeneration of the former department store as a cultural venue is regarded as a priority given the significance of this building within the townscape. The programme for the adjacent Market Hill site, proposed for demolition and redevelopment, will follow the relocation of the remaining occupiers on this site, which will be facilitated as a condition of the proposed acquisition. These proposals will require formal planning consent and timescales for detailed designs and approvals has been included within the programme. The proposals are already subject to consultation with the planners under pre-development dialogue.

The timescale for the grant investment fund, to support the upgrade of the existing stock across the wider Primary Shopping Area will run concurrently with the delivery of the new cultural space, and Market Hill. This work will focus on internal fit-out to support new operators, with façade improvements and can be delivered alongside the proposed regeneration works to the department store.

Likewise, the works proposed to the Transport Hub can also be delivered at the same time as the proposals, for the Primary Shopping Area since this is contained within a separate site, already within the ownership of the Council. The proposals for the Real-Time infrastructure and main concourse improvements can be delivered by the Council under permitted development rights afforded by the General Permitted Development Order (GPDO) 2015. The works to the main building frontage will require consent but as for Intervention 1, the proposals are subject to dialogue with the planners and are not considered to be contentious from a design perspective, given the upgrade to the facility that will be achieved here in alignment with planning policy and the BSIP stakeholder consultation. Works will be phased to allow for the continued operation of bus passenger services during the development, which has been planned to minimise impact on the main concourse whilst enabling a significant upgrade to the passenger areas.

The programme has been informed by professional advice and the milestones allow for some contingency in the event of any delays with the decision-making processes (for example in respect of the final funding award).

Project Delivery, Governance & Stakeholders

A multi-disciplined project team has been established to lead on the delivery of the capital works proposed as part of this project, with an internal Delivery Manager and Lead Officers appointed to oversee the delivery of each intervention, under the direction of the SRO. Details of this project team and relevant experience are included in the Delivery Plan. Supporting the internal team, the Council has procured a design team (including Architects, MEP and Structural Engineering, PM/QS) to take forward the detailed design and masterplan works to enable the procurement of contractors for the direct works. The Council has also procured commercial expertise to support negotiations and secure terms in respect of the Foundry. Procurement of contractors will be carried out via the Council’s framework or an alternative public sector framework.

Senior accountability will sit with the Cabinet and the Scunthorpe Town Board which has been re-constituted to ensure oversight and decision-making powers of all relevant place-based funding (LUF, Towns Fund and Shared Prosperity Funding).

Regular reporting will take place during the delivery phase by way of Highlight Reports, with more detailed reporting to Cabinet/Board where a key decision is needed (e.g., award of contracts).

Operational Phase

North Lincolnshire Council already has the expertise to manage the core operational demand arising from the proposed interventions.

With regards to the Transport Hub, this will be managed by the Council’s Transport Services Team, who will oversee contracting arrangements with the bus service providers and other transport operators. Support will also be provided via the Council’s Corporate Landlord function, to ensure the management and maintenance of the upgraded facilities. There is capacity within the existing team to manage the ongoing operation, but capital funding is required to deliver the significant upgrade, to facilities, to improve the service provision, access and environment at this key arrival point into the town centre.

The Market Hill development will be managed and promoted by the Council’s Commercial Property team. Additional commercial resource and capacity will be procured to support with the marketing of this site and wider void units as the subject of the grant investment fund, to secure external operators and supplement the proposed cultural uses which will be operated directly by the Council. This has been built into the project budget forming part of this bid.

The Council’s Culture & Creative Partnerships and Adult & Community Learning teams will manage and operate the library, cultural and training spaces proposed for the Department Store. An expert team and core budgets are already in place to manage this space as a shared asset and it is anticipated that greater efficiencies will be achieved as a result of this co-location to enable an extension of the offer.

The strategic direction and development of the library offer will be led by the Partnership and Community Librarians; day to day operational delivery is by a team of multi-disciplined staff, covering the customer service, library and activity functions established to ensure seamless delivery of front-facing customer service. The library will continue to build on the foundation of the Libraries Connected Universal Library Offers:

• Reading
• Digital and Information
• Health and Wellbeing
• Culture and Creativity

The team has already developed longstanding, partnerships with many council, community and other organisations to enhance our delivery of these four core elements of the service, and the new space will enable an expanded offer, in a welcoming, open and inclusive environment.

The Culture and Creativity offer has seen increasingly strengthened with the existing, successful 20-21 Visual Arts Centre, and there is much potential to add further value through the co-location of a new and modern library facility, with arts, creative and training spaces, in a new town centre setting. Likewise, there are very strong synergies between the library and the adult and community learning offer but at present, there is no dedicated adult and community learning facility within the town centre. Bringing such a venue to a town centre location will support a broader uptake of training opportunities and promote learning for all.

The proposals for the department store could also be a game-changer for the delivery of the culture and creativity offer in Scunthorpe, due to the scale of the space and provision of stable environmental conditions, affording the potential to secure loans of national significance and larger scale shows alongside the promotion of local creatives, producers and makers. The Council already has two National Portfolio Organisations (NPO’s) (20-21 Visual Arts Centre and North Lincolnshire Museum and Normanby Hall Country Park as part of the Humber Museums Partnership) and will continue to work very closely with Arts Council England and funders to promote, develop and extend its offer.

Stakeholders have been involved in informing the approach to the regeneration of the town centre, including in respect of the services and transport facilities as detailed previously. The Project Team will continue to engage with key stakeholders in taking these proposals forward, working with the professional teams, land-owners an prospective operators in the first instance (whilst the bid is under assessment) and extending this to include a wider programme of consultation and engagement with the community, to inform the detailed design process and planning once the funding decision has been made – to give some certainty and commitment to change which is what the community of Scunthorpe is clearly calling for.

6.3.2 Please demonstrate that some bid activity can be delivered in 2022-23.

(250 words)

A professional design team is already in place to support the development of detailed designs for the proposed regeneration plans at the department store, the Foundry and for the Real-time proposals at the Transport Hub. The Council will continue to mobilise this resource to develop the proposals at risk, to allow for the earliest delivery of the works if funding is secured.

Following this approach, the Council expects to be in a position to enter into a contract for the delivery of the Real-Time Infrastructure under Intervention 2 upon award of funding, to enable completion of this phase of work in the current financial year.

In addition to this activity, design and site investigation costs will also be incurred in 2022-23 to mobilise for the delivery of the wider development proposals from early 2023/4. Likewise, the grant investment fund can be mobilised and launched without delay following the award of funding to allow for early take-up and delivery from early 2023/4, with the opportunity to bring this forward in response to demand and subject to funding and timescales for contracting arrangements for LUF.

6.3.3 Risk Management: Applicants are asked to set out a detailed risk assessment.

(500 words)

North Lincolnshire Council will assume overall accountability for this package of interventions and for the monitoring and evaluation of the project as a whole.

Key risks associated with the overall project are summarised below. In taking the project forward to detailed design stage, each intervention will be subject to a full risk, dependencies and constraints review, in order to develop a costed risk-register in each case. This process will also seek to identify opportunities to optimise design and reduce cost where this is possible, whilst maintaining an uplift in the quality. The Risk Register is included as Annex 3.

Strategic- Stakeholder Support

Mitigation:

• Strong support for town centre intervention demonstrated via consultation to date
• Ongoing engagement proposed as part of the detailed design stage at project and programme level to tailor specific land uses to meet stakeholder needs/ensure support
• Development proposals will be further tested through the formal planning process.

Financial – Funding

Mitigation:

• Package reliant on LUF to support the overall proposal, in addition to local contributions
• Strong strategic case and support from delivery partners demonstrated
• Collaborative approach to detailed design phase, to optimise design proposals and minimise funding requirement/explore opportunities, to leverage additional investment proposed to enhance VfM.

Financial – Construction tenders higher than budget

Mitigation:

• Design and cost plans prepared by qualified design team/cost consultants and subject to inflation/contingency allowances
• Detailed design process to reduce and close off risks as part of next stage
• Works subject to full tender to comply with PCR/ ensure value
• Risk of cost increases mitigated with appropriate contingencies and form of contracts (D&B/Fixed Price etc).

Financial – Construction cost over-runs

Mitigation:

• Appointment of NEC PM/QS.
• Risk of cost increases mitigated with appropriate contingencies and form of contracts (D&B/Fixed Price etc).

Financial – Grant funded works higher than estimated

Mitigation:

• Cost consultancy advice has informed this bid/costs required
• Area of focus across primary shopping area provide flexibility over units to be upgraded/respond to demand
• Flexible intervention rates up to 75% subject to subsidy.

Financial – Operators can’t match fund grant scheme to appropriate level

Mitigation

• Flexible intervention rate
• Wider area of focus
• Commercial agents/expertise to support promotion and marketing to secure interest.

Delivery – Securing the site

Mitigation:

• Council owns the land and facilities the Transport Hub
• Council owns the land at the Foundry, and is in negotiation with leaseholder to seek to acquire the properties with formal agreement being subject to securing LUF
• Engagement with leaseholder to secure agreement to lease/purchase will continue during bid appraisal period to seek to secure formal legal position for delivery if funds successful.

Delivery – Securing a deliverable planning consent (s)

Mitigation:

• Proposals subject to pre-development discussions with planning team and wider consultees – support in principle
• Engagement with planning will continue as part of the development team approach to ensure works proposed at The Foundry meet the requirements
• Works to the Transport Hub largely deliverable under GPDO with consent limited to building façade which is again subject to pre-development discussion.

Delivery – Management; ensuring sufficient capacity and skill to deliver the capital works

Mitigation:

• Experienced multi-disc team managing the work with support from professional design team, engineering and commercial expertise
• Major works will be subject to NEC contract terms – design and construction risks transferred – managed by dedicated PM/QS and Site Supervisor roles.

Delivery – Programme; managing the works to timescales for LUF

Mitigation:

• Project approach and deliverables planned to ensure deliverability within LUF timeframes
• Design already underway and to continue ‘at risk’ to ensure expeditious delivery if LUF is successful.

Financial & Commercial – Operational cash-flow pressures placing financial risk on the Council

Mitigation:

• Existing operational model/finance in place for core end-uses – Transport Hub and cultural venue
• LUF will support investment in building stock to minimise operational costs
• Benefits of co-location to maximise efficiencies.

Financial & Commercial – Change in market conditions, difficulties in securing operators for Market Hill

Mitigation:

• Commercial expertise has informed approach via initial market testing
• Further expertise to be procured, to support marketing and secure operators during delivery phase
• Opportunity to flex specific uses to respond to demand during design/development process.

The risk management strategy that will be utilised for the delivery of this project has been developed by North Lincolnshire Council for the management of risk across all its capital projects. The strategy developed focusses on the identification, quantification, and management of risk to deliver its outcomes more efficiently, protect its reputation and to create greater certainty in the Council’s budget for capital projects.

The overall risk management strategy will be owned by North Lincolnshire Council’s Project Steering Group, and the day-to-day management, strategy and project risk will be managed by the Delivery Manager. The risk register will be a standing item on Project Steering Group meetings and will highlight any potential project risks and allow open communication between the project team so that these can be managed. Additionally, a monthly risk report will document the risk and key actions relating to risk. There are two levels of project-based risk management; the project risks which affect the cost, scope and timescale for the project; and the project management risks which present wider risks to the client body.

North Lincolnshire Council’s approach to the management of this project is based on an experienced structure, aligned to the PRINCE2 methodology, that reflects the need for clear responsibilities for assurance and oversight, covering all areas of the project delivery from day-to-day management to strategic direction and Council approvals. The clear lines of reporting will allow for issues and risks to be monitored and their effects mitigated throughout the project delivery. The management structure and its associated lines of accountability extends to all parts of the delivery team, including external contractors whose accountability to the Project Steering Group will be enshrined in the terms set out in the form of contract with the Council.

6.3.4 Please provide details of your core project team and provide evidence of their track record and experience of delivering schemes of this nature.

Please explain if you are intending to sub-contract any of this work or if a third party is managing the project and not the organisation applying.

(750 words)

A cross-departmental, multidisciplined project team has been established to take this project forward, under the direction of the SRO, with overall accountability to the Council’s Cabinet (as a directly delivered scheme) and to the Town Board (oversight of all place-based funding programmes).

The team comprises of senior officers from the following services:

• Transport Services
• Assets & Infrastructure
• Commercial Property
• Economic Growth
• Investment & Delivery
• Communities
• Culture & Creative Partnerships
• Construction
• Legal
• Finance.

The Council’s internal Delivery Manager for this scheme sits within the Investment and Delivery Team, with over 15 years of experience in economic development and regeneration. The SRO for this scheme is the Assistant Director for Place, with over 20 years of experience in economic growth and major development. Similarly, the wider project team bring specialist knowledge and experience in project delivery combined with a dedication to making a difference in the area. The combination of expertise provided by this project team provides the required skill, knowledge and experience to deliver a successful project.

Supporting the internal project team, the Council has procured a professional design team to support the development of proposals to the detailed design and planning stage, to enable the procurement of contractors to undertake works on site at The Foundry as part of Intervention 1. With regards to Intervention 2, the Council’s digital specialists are preparing a full specification for the Realtime Infrastructure proposals and a design team will be procured to develop the outline proposals for the wider upgrades to detailed design/planning to enable procurement of contractors as for Intervention 1. The risks associated with construction in each case will then be mitigated through a design and build approach and a fixed-price form of contract. Further controls will be in place through the project monitoring and assurance process.

North Lincolnshire Council has successfully delivered a number of large-scale projects and programmes, securing investment in its own property and intellectual assets to support the sustainable growth of the area. This includes leading a PCR15 compliant programme of capital infrastructure, investment and regeneration programme with a value of over £200m, all within agreed budgets and timescales to pre-defined quality standards/outcomes. Of particular relevance to this scheme, the Council has delivered the following major capital development projects:

• The Pods leisure centre: North Lincolnshire Council was successful in obtaining Urban Renaissance monies from Yorkshire Forward and the key project was the planning and delivery of The Pods leisure centre. This was a multi-million-pound capital build that involved the purchase of land, international design competition, appointment of architects, construction and full fitting out. The overall cost was approximately £23m and funds were secured from Yorkshire Forward, National Lottery and Sport England. The new facility opened its doors in 2011 and was voted the most sustainable building/development of 2011 at the Property Industry Awards Yorkshire.
• Baths Hall: A £13m project to construct a new high specification entertainment venue incorporating the refurbishment of historically significant buildings alongside a new build, completed in 2011.
• St John’s Market: A £5m scheme partly funded via SLGF and Council capital investment. This project delivered the relocation of the market provision within a former retail unit in Scunthorpe Town Centre, completed in 2019.
• Northern Junction – A £5m infrastructure project, to enable the delivery of 6000 homes, and a 65-acre employment site, with the vision and scope to bring new, higher skilled job opportunities to the area and increase skills, with a long term aim to provide Commercial floor space, to attract new, and existing businesses into North Lincolnshire. Work Commenced in June 2020 and was led by North Lincolnshire Council and delivered by ESH Construction Limited (procured via the YORhub Civils 2 Framework) with Highways England as a key partner, the work was completed in in June 2021.

Commercial Property Team

In addition to the delivery of major projects, the Council has a dedicated Commercial Property Team, headed up by 2 senior officers, who both possess 20+ years of experience in this field of expertise.  xxxx information redacted. This includes both land and building tenures, supported by a maintenance team to ensure properties/land is maintained to a high standard, leading by example for pride in place.
The Commercial Property Team works alongside, and is supported by the Economic Growth Team, and Inward Investment Officers, who market and promote vacant premises, with an aim to encourage new business into the area, and support local businesses to grow, collectively supporting tenancy uptakes, and the letting of units, to encourage vibrancy of place, whilst maintaining and upholding North Lincolnshire Councils resource strategy.

6.3.5 Please set out what governance procedures will be put in place to manage the grant and project.

We will require Chief Financial Officer confirmation that adequate assurance systems will be in place.

For large transport bids, you should also reference your Integrated Assurance and Approval Plan, which should include details around planned health checks or gateway reviews.

(750 words)

Lesley Potts, Assistant Director, and senior officer within the Council has been appointed as the Senior Responsible Officer (SRO) for this bid. The SRO will assume overall responsibility for the project, ensuring that it remains both viable and compliant with the conditions of the Levelling Up Fund and overseeing progress, monitoring and evaluation returns to Government.

In line with the Council’s Scheme of Delegation, the SRO will report to the Council’s Cabinet and the Scunthorpe Town Board, which has been re-constituted to ensure oversight and decision-making powers in respect of all relevant place-based funding (LUF, Towns Fund and Shared Prosperity Funding).

The SRO will be the primary point of contact between the Cabinet, Town Board and the Delivery Manager and act as the representative for the Accountable Body (North Lincolnshire Council).

The Project Delivery Team, led by the Delivery Manager will be responsible for the running of the day-to-day project activities, including monitoring the performance of external consultants, ensuring the project can deliver the benefits defined in the brief, overseen by the SRO and the overall delivery of the project within the required constraints of time, quality, cost and risk.

All expenditure will be approved in line with approval limits as set within North Lincolnshire Council’s Scheme of Delegations. Regular reporting will take place during the delivery phase by way of Highlight Reports, with more detailed reporting to Cabinet/Board where a key decision is needed (e.g., award of contracts).

Key decision-making bodies, project staff and reporting lines for this project are set out within the Delivery Plan at Annex 4 and summarised below.

Decision Making:

• NLC Cabinet & Scunthorpe Town Board – Lead Officer is the SRO reporting to these groups and feeding through from the Operational Delivery team via the Delivery Manager.
• Programme Board – Lead Officer is SRO, with Delivery Manager in support. Function is to oversee delivery of all capital projects in line with the Council’s governance procedures.

Operational Delivery:

• Project Steering Group – Lead Officer is the Delivery Manager who will connect with the wider Internal Team and External Specialists through the Steering Group and wider project meetings as required to deliver the schemes, reporting to and taking direction from the SRO and higher-tier, decision-making bodies.

Internal Project Delivery Team:

Representatives from the following specialisms will be included in the Steering Group:

• Transport
• Digital
• Property and Assests
• Construction
• Legal
• Economic growth
• Administration and Support

External Specialists:

Representatives advising on specific project meetings and attending Steering Group meetings as required to support the internal team:

• Design Team
• Commercial
• PM/QS
• Contractors

The Council’s project management framework will be followed for this bid and is based on the principles of PRINCE2, reflecting best-practice in the delivery of all major capital projects. The structure provides both vertical and horizontal lines of accountability where each person and organisation involved in the project’s delivery must report on progress, spend and outcomes regularly. This process will ensure that the project is delivered correctly and achieves its stated ambitions.

Assurance

The Levelling Up Fund projects will be assured in accordance with the assurance framework set out for the Towns Fund programme, with the remit of the Town Board now extended to encompass all place-based funding programmes. This is set out below, with reporting lines between the Project Steering Group to the Council’s internal Programme Board and its Town Board, supported by internal and external due diligence as a further safeguard to ensuring correct procedures and informed decision-making which is compliant with Council and wider Levelling Up Fund conditions, policies and procedures. This is set out within the Delivery Plan at Annex 4 and summarised below.

Project Steering Group:

• Monthly meetings
• Quality assurance of all written documentation
• Sign off of all written documentation
• Monthly report
• Risk log
• Project plan

Programme Board/Management Review:

• SRO monthly meetings with Delivery Manager
• Monthly Programme Board
• Project scorecard/highlight reports
• Sign off all board papers
• S1S1 Sign off

Board Review:

• Bi-monthly Town Boards
• Project scorecard/highlight reports
• Board minutes and actions
• Board sign off
• Cabinet ratification

Internal and External Review:

Internal:

• Internal audits

External

• DLUHC
• External due diligence
• External audit

6.3.6 If applicable, please explain how you will cover the operational costs for the day-to-day management of the new asset / facility once it is complete to ensure project benefits are realised. You should also consider any ongoing maintenance and servicing costs.

Please note that these costs are not covered by the LUF grant.

(750 words)

Operational costs will be supported by existing NLC budgets and resources, and through the income derived from the proposed commercial letting of the Market Hill development.

North Lincolnshire Council has the expertise to manage the operational demand arising from the proposed interventions.

The Transport Hub will be managed by the Council’s Transport Services Team, who will oversee contracting arrangements with the bus service providers and other transport operators. Support will also be provided via the Council’s Corporate Landlord function to ensure the management and maintenance of the upgraded facilities. There is capacity within the existing team and resource to manage the ongoing operational costs, but capital funding is required to deliver the significant upgrade to facilities to improve the service provision, access and environment at this key arrival point into the town centre.

The Market Hill development will be managed and promoted by the Council’s Commercial Property team. Additional commercial resource and capacity will be leveraged during the capital project delivery phase to secure external operators, for the proposed regeneration of The Foundry, to supplement the proposed cultural uses which will be operated directly by the Council. This has been built into the project budget forming part of this bid.

The Council’s Culture & Creative Partnerships Team will manage and operate the library and new cultural space proposed for the Department Store. Operational budgets are in place as a statutory function, but the new space will allow for a much-enhanced offer, which will also provide a wider regeneration benefit as an anchor development in the town centre.

The strategic direction and development of the library offer will be led by the Partnership and Community Librarians, and will continue to build on the foundation of the Libraries Connected Universal Library Offers:

• Reading
• Digital and Information
• Health and Wellbeing
• Culture and Creativity.

The team has already developed longstanding, partnerships with many council, community and other organisations to enhance our delivery of these four core elements of the service and the new space will enable an expanded offer, in a welcoming, open and inclusive environment.

The Culture and Creativity offer has seen increasingly strengthening links with the existing 20-21 Visual Arts Centre, and there is much potential to increase the value to the community by bringing a shared library, arts, culture and training offer into a new town centre setting. With respect to the arts, the proposals for the department store will offer the ability to secure loans of national significance and larger scale shows alongside the promotion of local creatives, producers and makers. The Council already has two National Portfolio Organisations (NPO’s) (20-21 Visual Arts Centre and North Lincolnshire Museum and Normanby Hall Country Park as part of the Humber Museums Partnership) and a very strong track record in delivering arts and creative programmes across North Lincolnshire. The Council will continue to work very closely with Arts Council England and funders to promote, develop and extend its offer.

See Annex 4, Delivery Plan for more details of the Council’s cultural vision, opportunities and proposals for developing this new cultural venue.

6.4 Monitoring and Evaluation

Prior to completing this section, please complete the relevant Costings and Planning Workbook – Table E – Monitoring and Evaluation

6.4.1 Monitoring and Evaluation Plan: Please set out proportionate plans for monitoring and evaluation.

(1000 words)

The Monitoring and Evaluation proposals set out below describe how actual scheme delivery, including wider scheme impacts, construction and budget management, is to be evaluated. It will culminate with a brief Post-Implementation Review (PIR) approximately one year after scheme opening. A follow-up review will be undertaken approximately five years after scheme opening. The Monitoring and Evaluation Plan is designed to be proportionate and compliant with the requirement of the Levelling Up Fund.

The quality of the monitoring data is key, to ensuring a robust and comprehensive evaluation and PIR. Details of the monitoring outputs and data is set out within the Costings Workbook and further within the Appendices to this bid. The Delivery Manager will be responsible for collating all data and evidence with regards to the outputs and outcomes for the project. She will be supported by the external Project Managers and Assistant Project Officer. Each output and outcome will be verified and signed off by the SRO with all evidence gathered and retained for audit purposes.

The Delivery Manager will also retain and update information on:

• Procurement
• Project Expenditure
• Project Progress
• Project Changes
• Risks.

At the end of the project the Delivery Manager will be required to:

• Review all milestones and outputs – The Manager will ensure that any outstanding issues with the projects’ expected outputs are resolved before the project is fully signed-off.
• Review the project aims and objectives – The Manager will need to refer back to the latest agreed version of the Project Plan and consider if the project:
  • Met its stated aims and objectives
  • Was delivered on time
  • Was delivered on budget
  • Was acceptable to the client/stakeholder and met all their specific requirements.
• Review and close off residual risks and issues – Review and deal with any remaining risks and issues. This will involve a final check through the project’s Risk Register and ensuring there are no outstanding cost commitments (e.g., retention payments).
• Conduct/Instruct the Post Implementation Review

Post-implementation Review

This will be in two parts: Scheme Implementation and Wider Impacts.

Scheme Implementation

The first part of the Post-Implementation Review will focus on scheme delivery, covering the following aspects:

• Construction – including the efficiency and cost of the infrastructure contractor’s procurement exercise, and the extent to which the construction programme was delivered within the estimated timescales and budget; and
• Project Management – including the cost of project management resources, as well as the extent to which overall scheme timescales were adhered to.

This review will be completed approximately one year following the opening of the final component of the proposed package. A key output of the review will be a log of the lessons learnt, which will assist in the planning and delivery of future schemes so best practice can be taken forward. To ensure that an accurate and informative Post-Implementation Review can be undertaken, detailed records in relation to procurement processes, the scheme budget and expenditure and project management meetings will be maintained.

Wider Impacts

The second part of the Post-Implementation Review will focus on the wider set of impacts as a result of the scheme:

• Scheme benefits – a summary of the formal benefits review, one year and five years post scheme completion; and
• Unexpected (dis)benefits – identifying any additional impacts that were not planned for as part of the projects.

Evaluation Milestones and Outputs

It is proposed the evaluation process consists of three key phases:

• Phase 1: Pre-Construction Baseline;
• Phase 2: One Year After Implementation; and
• Phase 3: Five Year After Implementation.

Data will be collected for baseline conditions during 2021/22 following confirmation of funding from Government, prior to construction works commencing. This will ensure that the data is not compromised by the construction period. Before and after scheme monitoring will be undertaken to evaluate the projects’ effectiveness against the objectives for the Levelling Up Fund and local policies.

This evaluation will be framed by the Theory of Change framework, as illustrated above which identifies the inputs, outputs, outcomes and impacts) and addresses the proposed monitoring measures.

Ownership and Governance

The overall Monitoring and Evaluation Plan will be owned by the Senior Responsible Owner (SRO), with responsibility for overseeing the monitoring, and particular tasks to be delegated as necessary. The owners for each monitoring aspect will be defined following funding approval.

Part 7 Declarations

7.1 Senior Responsible Owner Declaration

Proforma 7

7.2 Chief Finance Officer Declaration

Proforma 8

7.3 Data Protection

Please note that the Department for Levelling Up, Housing and Communities (DLUHC) is a data controller for all Levelling Up Fund related personal data collected with the relevant forms submitted to DLUHC.

The Department, and its contractors, where relevant, may process the Personal Data that it collects from you as part of your application to the Levelling Up Fund, in accordance with its privacy policies. The Department will use the Personal Data provided to contact you, if needed, as part of the assessment, selection and/or monitoring process.
For the same purposes, the Department may need to share your Personal Data with other government departments (OGDs), their Arm’s Length Bodies and contractors, where relevant, and departments in the Devolved Administrations, and by submitting this form you are agreeing to your Personal Data being used in this way.

Any information you provide will be kept securely and destroyed within 7 years of the application process completing.

You can find more information about how the Department deals with your data here.

7.4 Publishing

When authorities submit a bid for funding to the UK Government, as part of the Government’s commitment to greater openness in the public sector under the Freedom of Information Act 2000 and the Environmental Information Regulations 2004, if the bid is successful, they must also publish a version excluding any commercially sensitive information on their own website within five working days of the announcement of the successful bids by UK Government. UK Government reserves the right to deem the bid as non-compliant if this is not adhered to.
Please tell us the website where this bid will be published:

Invest in Website: Business Support and Inward Investment | Invest in North Lincolnshire

Annexes A – C: Project summaries

These should be completed individually for each component within a package bid