The Corporate Director Communities presented an update on the Porthcawl Regeneration Scheme and sought approval to revise the capital programme to invest anticipated capital receipts arising from the sale of land, encompassing Salt Lake Car Park.  He also sought approval to secure match funding for coastal defence improvements which will unlock future development phases.

He informed Council that the acquisition of third party leasehold interests at Salt Lake Car Park in the sum of £3.3m had been approved by Cabinet on 19 December 2017, which gave the Council unencumbered freehold interest of the site to secure its redevelopment.  He stated that the original plan envisaged a large superstore to be located on the Hillsboro Car Park, since then fundamental changes in the food store market had led to demand being reduced to a smaller scale store.  Following an assessment of options, the current strategy was based on the store being located at the northern end of Salt Lake and the retention of Hillsboro as the primary town centre car park. 

He reported that one of the key requirements to unlock development of the whole of the Salt Lake site is coastal protection works to mitigate flood risk and without this work, the majority of the parcels identified for housing could not be developed and attracting leisure facilities at the southern end of the site may be problematic.  He informed Council that an outline business case for the coastal protection works had been approved by the Welsh Government and detailed designs were being progressed.  If successful, it would result in 75% funding via the Local Government Borrowing Initiative towards these works.  Authority was requested to contribute 25% match funding.  He stated that a decision by the Welsh Government on the funding was not expected until autumn / winter 2019. 

The Corporate Director Communities reported that market analysis, key infrastructure constraints and cash flow considerations dictate that development must be brought forward in phases.  He outlined the proposed phasing strategy:

·         Phase 1 – Foodstore Site

·         Phase 2 – Housing

·         Phase 3 – Hillsboro Place Car Park

·         Phase 4 – Eastern Promenade and wider coastal flood defence works

·         Phase 5 & 6 – Housing Sites

·         Phase 7 – Leisure Site

The Corporate Director Communities outlined the rationale for the ring-fencing of capital receipts together with a summary of receipts.  He also outlined a strategy for the proposed reinvestment of receipts where investment would be made in the Hillsboro Car Park, while improvements would be made to the Salt Lake Car Park to enable it to run as a public car park by the Council which will require new pay and display machines.  Accessibility improvements would be carried out to the Portway including crossing points and the potential for the introduction of on-street parking.  Physical works to the leisure site would be brought forward as part of the leisure strategy and physical improvements would be carried out at the gateway to the site, the promenade and pedestrian links to the town centre.  The estimated project costs associated with the development is £2.64m and authority is requested to include this in the capital programme.  The development would be phased to minimise the amount of prudential borrowing and only when receipts from sales are in-hand are infrastructure costs to be incurred with the exception of £100,000 necessary to make the Salt Lake Car Park operational. 

The Cabinet Member Education and Regeneration commended officers on producing a rational and logical phasing of the development.  Members welcomed the proposals and questioned whether it would be more beneficial to delay the sale of the site until the coastal defence work had been completed in order to maximise the land value and capital receipts.  The Leader informed Council that the initial phasing of the development was such that it was not in the area subject to flooding.  The Corporate Director Communities informed Council that phases 5-7 were in the areas subject to flooding.  The Leader informed Council that there had been significant interest from food retailers in developing a food store.  The Corporate Director confirmed that phase 1 of the site would be for the development of a food store which would be situated nearer the town centre.  It was considered that a sea front location for the food store would not be appropriate.  He also stated that the redeveloped car parks would see the introduction of electric charging points being installed.  The Leader thanked the local Members for being supportive of the proposals. 

A member of Council questioned the rationale for investing in the infrastructure of the car parks.  The Corporate Director Communities informed Council there was a need to strike a balance with investing in the car parks in order to bring them up to standard and make them safe. 

A member of Council questioned whether it would be more prudent to bid for coastal defence works to include Sandy Bay.  The Corporate Director Communities stated that the preference of the Welsh Government would be to fund in accordance with phase 4 of the development.  He stated that the development of the Salt Lake Car Park requires the coastal defence works to be carried out and any delay to these works being carried out would delay the development of the site.

A member of Council thanked the officers and the Cabinet Member for their input and for adopting a new approach to the development.

RESOLVED:            That Council approved the following elements necessary to bring forward the Porthcawl Regeneration Scheme:

1. To revise the capital programme to include a budget of £2.64m of investment in Porthcawl Regeneration, funded from a combination of capital receipts generated from the sale of land within Salt Lake, and prudential borrowing;

2. To provide 25% match funding (circa £1 million) towards coastal defence works in Porthcawl and authority to secure 75% funding via the Local Government Borrowing Initiative (LGBI) towards these works. The scheme will not be incorporated in the capital programme until the 75% LGBI funding has been approved; and  

Note: the sums will be confirmed prior to the detailed business case submission to Welsh Government expected around Summer 2019.

3. To delegate authority to the Corporate Director – Communities and s151 Officer to agree any cost variations associated with the Porthcawl Development Scheme.