{meta} Decision - Trafford Road Improvements - S106 Contributions

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

I, Paul Dennett, City Mayor in exercise of the powers contained within the City Council constitution do hereby approve the expenditure of £1,354,314.49 of Section 106 contributions towards Trafford Road Corridor project and delegate authority to the Strategic Director for Place, in consultation with the Head of Planning and S106 officer, to allocate specific Section 106 contributions not yet received but identified for the Trafford Road Corridor project.

 

The reasons are to meet the requirement of the relevant Section 106 Agreements detailed within the report.

 

Options considered and rejected:  Not applicable as the Section 106 Agreement detailed within the report requires expenditure on specific individual projects or types of projects.

 

Assessment of risk: Low – The delivery of these highway improvements will satisfy the terms of the Section 106 agreement.

 

The source of funding is: Section 106 contributions totalling £1,354,314.49 which have been received from the developments located at:

 

§  £267,851.79 from Dock Office (Section 106 Ref: 289 - 14/65100/FUL)

§  1,036,463.70 from Michigan Avenue (Section 106 Ref: 320 - 15/66481/FUL)

§  £50,000.00 from King William Street (Section 106 Ref: 376 - 18/72048/FUL)

 

Legal Advice obtained: Shared Legal Service (Juliet Mbam)

 

Comments: Section 106 contributions can only be expended in accordance with the terms of the planning obligations outlined in the agreement.   The proposed expenditure of the s106 contributions outlined in this report on the Trafford Road Corridor would be in line with the terms of the respective agreements.

 

Financial Advice supplied by Natalie Birchall, Ext. 2316

 

The overall project is valued at £19.83m comprising: £4.83m MCF, £10.5m of Growth Deal 3 funding and £4.5m of local match funding by SCC.

Growth deal 3 funds must be spent by the end of March 2021 and the Mayors challenge funds by the end of March 2022.

 

The OBC received conditional approval in December 2018 and OBC development costs have been reimbursed to the council and FBC approval on the 26th June 2020.

 

The accompanying reports sets out an agreement to allocate contributions received to date totalling £1,354,314.49 to be available for Trafford Road.

Agreement in principle is required for future receipts as detailed in section 2.2 to be available for Trafford Road, totalling £1,812,529.78, of which £362,529.78 has been invoiced for and awaiting payment from the developer. The future agreements in place or under negotiation in the area that will generate further contributions to the scheme subject to the continuation of development activity. These funds can be used to further reduce or even eliminate the requirement for USB borrowing to support the scheme in later years depending upon progress with these developments.

 

Procurement Advice obtained: Not applicable

 

The following documents have been used to assist the decision process:

 

§  Section 106 Agreement, Ref: 289 - 14/65100/FUL)

§  Section 106 Agreement, Ref: 320 - 15/66481/FUL)

§  Section 106 Agreement, Ref: 376 - 18/72048/FUL)

§  Report to the City Mayor for Property / Regeneration Briefing on 29 May 2020 which approved up to £4.5m of local match funding

§  Notice of Decisions Agreed at the GMCA held on 26th June 2020 (item 17) which confirmed the allocation of £15.332m of grant funding to the Trafford Road Improvements project

 

Contact Officer: Steve Davey                    Tel No x3762

 

 

This decision is not subject to consideration by another Lead Member /Strategic Director

The appropriate scrutiny committee to call-in the decision is the Growth and

 Prosperity Scrutiny Panel.

 

Signed: Paul Dennett

City Mayor

Dated: 9 November 2020

 

This decision was published on Monday, 9 November, 2020                                              .

This decision will come in force at 4.00 p.m. on Monday, 16 November, 2020

 unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 09/11/2020

Date of decision: 09/11/2020

Decided at meeting: 09/11/2020 - Property / Regeneration Briefing

Effective from: 17/11/2020

Accompanying Documents: