Agenda item

Report of the Director for Housing, Regeneration and Planning. To be introduced by the Cabinet Member for House Building, Place-Making and Development.

The report seeks approval to undertake a procurement process to deliver and operate a Wood Green Enterprise Hub at 40 Cumberland Road, London, N22 7SG.

Cllr Diakides remained out of the room for this item.

The Cabinet Member for House Building, Place-Making and Development introduced the report which sought approval to undertake a procurement process to deliver and operate a Wood Green Enterprise Hub at 40 Cumberland Road, London, N22 7SG.

The Cabinet Member stated that there was strong demand for workspaces to support local people, entrepreneurs, and creative industries. It was explained that three floors of the existing building were used for council purposes but that these could be conducted from alternative locations. It was suggested that the building would be leased to a workspace provider and that any desired social value requirements could be included in the lease tender. It was added that some external funding was available to refurbish the premises so that all five floors could be refurbished to accommodate different types of workspace. 

The Cabinet Member responded to questions from the Cabinet:

-       It was confirmed that social values would be embedded in the tender.

-       It was also noted that space would be protected for small businesses who were existing tenants of the building. Hakata – mentioned orgs

RESOLVED

1.    To agree to undertake a procurement process to secure a workspace operator for 40 Cumberland Road who will deliver the Enterprise Hub.

2.    Following the conclusion of the procurement process, to delegate authority to the Director of Housing, Regeneration and Planning, after consultation with the Lead Member for House Building, Place-Making and Development to:

(i)            Enter into a contract with the preferred operator following the completion of the procurement process

(ii)          Enter into an agreement for lease with the preferred operator as a result of the above contract award

(iii)         Allocate £0.780m of grant funding, in accordance with the grant terms and conditions, which will be reflected in the above contractual agreements for the redesign, refurbishment and fitout of 40 Cumberland Road

Reasons for decision

As 40 Cumberland Road is no longer needed for operational purposes, an opportunity has arisen to support the Wood Green economy by developing a new Enterprise Hub on the site. The approach set out in this report provides more space for more local businesses and protects the position of existing businesses / tenants on site.

The decision to lease 40 Cumberland Road for the purpose of an Enterprise Hub will deliver a range of tangible Community Wealth Building and social value benefits to Wood Green which will prioritise local business growth and job opportunities, promote diversity and inclusion, and support a placemaking approach to Wood Green by supporting the wider business ecosystem.

The approach also allows the council to meet its delivery obligations to the GLA with regard to external funding, and will result in a financial return to the council, alongside reducted operating costs.

Alternative options considered

Regarding the building

Do nothing: the existing situation is not tenable. The building has been identified as surplus, is in need of investment, and existing tenants have no security. This option has been discounted.

Disposal: the council has yet to establish its long-term approach to Station Road where the council has a significant landholding. This work will be progressing in the coming years. It is therefore premature to consider a disposal.

Regarding the procurement approach

Let direct to a single operator: this option has been discounted as it would not be compliant with the public procurement e regulations and  the Council’s contract standing orders.

Undertake a procurement competition to secure an operator to undertake the works, manage the premises and secure social value outcomes. This option is preferred as it is transparent and represents the best overall value for money to the council.

Regarding timing options for the proposed procurement approach

Procurement to conclude in June, Cabinet to approve contract award of operator in June / July  This option would not leave enough time for the £780,000 grant funding to be spent before the April 2023 deadline and risks the loss of the funding. Once appointed, the operator will need to undertake a design process and then deliver capital refurbishment works. Appointment of the operator in July leaves only 9 months for this process which has been confirmed via soft market testing with operators as insufficient.

Reduce tender period to increase time for governance processes  A tender period of less than 4 weeks is unlikely to elicit the quality of responses that the Council requires and leaves no time for any potential delays caused by tender clarifications during tender evaluation phase.

Cllr Diakides did not take part in the discussion or voting and re-entered the room at the end of the item.