Item 4 â West Herts College Appraisal report
Transcription
Item 4 â West Herts College Appraisal report
Item 4 – West Herts College Appraisal Project Applicant West Herts College Request £5,000,000 Summary of Proposal This is a campus redevelopment with the potential to trigger far wider transformational change following a period of prolonged decline for local communities and local economy. It will achieve this by up-skilling the local population, enabling them to gain employment in the industrial/business sectors the LEP has identified as engines for regional economic growth. It will also provide for an increase in the level of engagement with local businesses to ensure that the provision of services offered from the new premises is in line with local needs The development offers direct benefits to the Dacorum area including the Maylands industrial zone – plus, potentially, further along the A41/M1 corridor where there is an under-developed economic relationship with Watford and further south into north London. The campus re-development is an integral part of the wider redevelopment of Hemel Hempstead Town Centre and in particular the development of the new ‘Public Sector Quarter’. 1. Consistency with LEP strategic priorities The impact of a brand-new and purpose-built college in the heart of Hemel Hempstead will signify genuine change after many false dawns. It is expected that a landmark campus focusing on skills tailored to local needs would quickly become a beacon for business growth and prosperity, and make a significant contribution to Hertfordshire LEPs core commitment within its Strategic Economic Plan to re-invigorate the its deprived ‘New Towns’ (of which Hemel Hempstead is one of three in the county). While the College’s targeted approach to skills development would embrace both the predominantly mainstream sectors of the local economy and the STEM-related needs of emerging/growth sectors identified by Hertfordshire LEP, in terms of apprenticeships and higher level skills, the College will grow its provision by establishing new links with employers supporting the supply chains to new businesses within the emerging growth sectors (Life Sciences, Pharmaceutical, Engineering/Technology etc.) as stated within the Hertfordshire LEP’s Strategic Economic Plan and Skills Strategy The new campus development will facilitate the delivery of additional 180 young people (16-24) apprenticeships linked to local employers. This represents ten-fold increase and will make a substantial contribution to the meeting the objectives of the Hertfordshire LEP’s Apprenticeship Strategy 2015-2017 Outputs Learner numbers before project Learner numbers after project Change in learner numbers [1] [2] = [2-1] Level 1 1000 1400 400 Level 2 200 520 320 Level 3 20 440 420 Level 4+ 0 150 150 Learner Level 16-18 Apprenticeships Adult (19+) Apprenticeships Intermediate: 10 Intermediate: 70 Intermediate: 60 Advanced: 0 Advanced: 25 Advanced: 25 Higher: 0 Higher: 0 Higher: 0 Intermediate: 10 Intermediate: 30 Intermediate: 20 Advanced: 0 Advanced: 25 Advanced: 25 Higher: 0 Higher: 50 Higher: 50 Total 1240 2710 1470 Security Payments of grant has yet to be negotiated, however the proposal is for an allocation of £3m in 15/16 and £2m in 16/17 against defrayed expenditure. It is anticipated that 10% of the funding is to be held back pending final completion of the building. Additional conditions are required confirming that no less than £10.59m of capital match funding has been provided by West Herts College and is committed to the project. Governance Governance of this project will be via a project management group which in turn will report into the College Governing Body Timescales Key milestone Actual/ Expected Date RIBA Stage 2 design agreed 9 March 2015 (completed) Planning application submitted 18 May 2015 Planning consent secured 17 August 2015 Contractor appointed 22 October 2015 Construction commences 4 December 2015 Construction complete 1 December 2016 Fit-out complete Building open 29 December 2016 9 January 2017 Comments The College is expecting to submit a planning application for the development in May 2015. As a result of an earlier attempt to develop the site (which needed to be aborted due to a key partner withdrawing from the process), the College is confident that any critical planning issues have been identified. This, alongside the support of the local borough council (its only direct neighbour), the College is not expecting any serious impediments to obtaining planning consent. Indeed, preliminary discussions with the Council’s planning department have been very positive The College has recent experience of managing similar projects, constructing its flagship Watford Campus between 2008 and 2011. This involved the closure of two campuses in poor condition and their replacement with a single modern campus in the heart of Watford. The new 22,400m2 campus was developed at a cost of £72.928m, £2.559m under its £75.487m budget. The new Campus was designed to be an accessible and attractive environment to facilitate a wide-range of vocational based provision. The effective management of risk is recognised as a key project responsibility. A project risk register has been created with input from the project management team and a Risk Management Plan has been developed accordingly. All identified risks have effective mitigating strategies, and there are no risks that are judged to be sufficiently high to put the project in significant jeopardy. As part of due diligence of this project, a detailed appraisal of this project has been undertaken by the Skills funding Agency on behalf of the LEP (please see attached). This appraisal was against the following key criteria; project deliverability, estates review, financial review and benefits to learners/supporting economic growth with this project scoring a total of 25 points. The passmark used previously by SFA is 20 points. Request to PMC It is requested that PMC approves a grant of £5,000,000, subject to planning consent being secured