The Corporate Director – Communities provided an update on the Maesteg Town Hall Project seeking approval from Cabinet to present a report to Council proposing a revision to the capital programme for 2017-18 to 2016-27. Following the transfer of management of the Town Hall to Awen Cultural Trust in 2015, feasibility work was commissioned for the restoration and renovation of the building and creation of a modern multi-purpose culture and arts venue.  The scheme proposal had been prioritised by WG for Buildings for the Future Funding and a full business case for the project was now required.

The Corporate Director – Communities explained that Mace Group was commissioned in August 2017 to develop the design concept, carry out additional feasibility and provide more accurate cost estimates for the project. The detailed feasibility work was scheduled for completion by March. It was anticipated that the cost of the scheme based on the original ambition would be £5-6 million, an increase over the initial preliminary estimate of £4-5 million which was made before detailed feasibility work had been carried out. The renovation of old historic buildings was though he explained always complex and until feasibility was complete and all pertinent issues identified a true capital estimate was difficult to predict accurately.  He went on to explain that until final tenders were received the cost estimate would remain indicative with a further report to be presented to cabinet when the work and cost plan had been completed.

Cabinet had already resolved to ring fence £800,000 of the anticipated receipt from the sale of land at Ewenny Road for regeneration in the Llynfi Valley and it had always been anticipated that this sum would be used to support the redevelopment of Maesteg Town Hall. The land however had not yet been sold and so this presented a timing issue as it was necessary now to confirm the additional £800,000 allocation to the scheme for the purposes of external funding bids, because the Council had been advised that there was better chance of those being successful if the full amount of the Council’s match funding was confirmed now prior to those applications being formally considered. However,this required the Council to identify the £ 800,000 in its capital programme now which would be offset once the sale of Ewenny Road was complete . This presented a small risk to the Council as there was a risk that it would not sell and that if it did it would sell for less than £800,000.  The Corporate Director Communities reassured Cabinet however that the sale of the land was well advanced.

The Cabinet Member for Education and Regeneration explained that the Llynfi Valley residents were aware of discussions but it would be helpful for new members if examples of the proposals could be circulated. Concerns were raised that the project could not go ahead without the sale of land at Ewenny Road. The Corporate Director Communities explained that in a scenario where the current ambition for the redevelopment of the hall became unaffordable, either because all of the anticipated external funding was not secured or because the costs of the scheme increased , that  there were a number of options. It would be possible to look for other sources of external funding, although this might cause some delay, the scheme coud be paired back and value engineered to whatever amount of money was available, but there would potentially be operational consequences of doing this,   or a further request could go back to Council to secure the additional funds required if necessary, however this would need to be considered in the context of other demands on the Council’s capital programme. .At this stage he reiterated that the ambition remained to deliver the full scheme , but this may have to be reviewed depending on the final cost estimate and the result of external funding bids over the next few months.

The Cabinet Member for Wellbeing and Future Generations asked if officers were confident that costs would not increase again. The Corporate Director – Communities said that he would be more confident when final estimates were received at the end of March.

The Leader stated that he was confident the project would go ahead and that the receipt from Ewenny Road would be secured.

RESOLVED:              Cabinet recommended obtaining approval from Council for an increased capital budget of £5.186 million for the proposed redevelopment of Maesteg Town Hall, which included an additional £800,000 of capital receipts, generated either by the sale of the land at Ewenny Road, or general capital receipts, in the event that the Ewenny Road receipt failed to materialise or was lower than the anticipated receipt together with revised funding from external sources.