The redevelopment of Rotherham Markets has been delayed as the council attempts to fill a large funding gap for the £22m regeneration project.
A planning application was recently submitted for the redevelopment of Rotherham markets, complete with a new chapter for a central library. It was previously given a total budget of £22,095,761 by the council, split between this year and next.
The council's cabinet is being told that the project has been delayed whilst a review of funding options took place, due to the impact of inflation on the project delivery costs.
Rothbiz outlined in July that a number of regeneration projects in Rotherham have been delayed with the council citing issues linked to the COVID-19 pandemic and the rising costs of materials.
The indoor markets are set to get a new layout and timber effect ceiling whilst the outdoor market's canopy roof is set to be replaced. A new dining area with commercial units is a new addition, along with much improved public realm. A new library will include a café, meeting rooms, flexible gallery space, and a maker’s space.
Whilst planning permission is awaited, the Charter Arms pub and the RAIN Building, which will be replaced by public realm in an area called "Market Gardens," have already been demolished.
Rotherham Council secured funding from the Government’s Future High Street Fund to part finance the improvements but it has now been revealed that the project has a forecast funding gap of £9.8m following an update of the cost plan.
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A council report states: "With changing market conditions, the updated cost modelling resulted in a substantial uplift to the anticipated cost of delivering the outlined phase of works. The reasons for the increase include general materials inflation but also much greater than expected inflation on base materials that are becoming scarcer. In addition, following early engagement with suppliers, further design adjustments have been identified that add to a funding shortfall."
Following a council review of the project and wider capital programme a funding package has been proposed to bridge the gap. This includes £5m from the South Yorkshire Mayoral Combined Authority's (SYMCA's) "Gainshare" funding pot. The council is also proposing to move an allocation of libraries relocation budget of £2.9m that was earmarked for the central library relocation, and a redirected operational building budget of £1.8m, utilising the elements of the budget earmarked for central library and markets capital maintenance.
Rotherham Council's £188.138m of capital expenditure for 2022/23 is part of the largest capital programme it has ever had, - over £500m from now to 2025/26. The largest funding streams for this financial year are £84m from grants and contributions and £63m from unsupported borrowing.
The council report concludes: "The capital programme for 2022/23 remains ambitious even with a significant level of re-profiling of schemes into 2023/24. The Council will therefore need to keep close control of project spend profiles and delivery milestones to keep these projects on track. The Council will also need to review the deliverability of this significantly increased capital programme and potentially, re-profile some schemes into future financial years."
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With dwindling numbers, a recent review of the markets showed that councillors have "acknowledged the importance of rallying behind the Market Service in taking the Town Centre Markets in a direction that reflects the changing needs of consumers and maximises the future role Rotherham’s markets will play in the community."
The revamp aims to make it more appealing to young generations and new customers, while not alienating the existing customer base - "which together will contribute to its vitality."
Images: RMBC / Greig & Stephenson Architects
A planning application was recently submitted for the redevelopment of Rotherham markets, complete with a new chapter for a central library. It was previously given a total budget of £22,095,761 by the council, split between this year and next.
The council's cabinet is being told that the project has been delayed whilst a review of funding options took place, due to the impact of inflation on the project delivery costs.
Rothbiz outlined in July that a number of regeneration projects in Rotherham have been delayed with the council citing issues linked to the COVID-19 pandemic and the rising costs of materials.
The indoor markets are set to get a new layout and timber effect ceiling whilst the outdoor market's canopy roof is set to be replaced. A new dining area with commercial units is a new addition, along with much improved public realm. A new library will include a café, meeting rooms, flexible gallery space, and a maker’s space.
Whilst planning permission is awaited, the Charter Arms pub and the RAIN Building, which will be replaced by public realm in an area called "Market Gardens," have already been demolished.
Rotherham Council secured funding from the Government’s Future High Street Fund to part finance the improvements but it has now been revealed that the project has a forecast funding gap of £9.8m following an update of the cost plan.
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A council report states: "With changing market conditions, the updated cost modelling resulted in a substantial uplift to the anticipated cost of delivering the outlined phase of works. The reasons for the increase include general materials inflation but also much greater than expected inflation on base materials that are becoming scarcer. In addition, following early engagement with suppliers, further design adjustments have been identified that add to a funding shortfall."
Following a council review of the project and wider capital programme a funding package has been proposed to bridge the gap. This includes £5m from the South Yorkshire Mayoral Combined Authority's (SYMCA's) "Gainshare" funding pot. The council is also proposing to move an allocation of libraries relocation budget of £2.9m that was earmarked for the central library relocation, and a redirected operational building budget of £1.8m, utilising the elements of the budget earmarked for central library and markets capital maintenance.
Rotherham Council's £188.138m of capital expenditure for 2022/23 is part of the largest capital programme it has ever had, - over £500m from now to 2025/26. The largest funding streams for this financial year are £84m from grants and contributions and £63m from unsupported borrowing.
The council report concludes: "The capital programme for 2022/23 remains ambitious even with a significant level of re-profiling of schemes into 2023/24. The Council will therefore need to keep close control of project spend profiles and delivery milestones to keep these projects on track. The Council will also need to review the deliverability of this significantly increased capital programme and potentially, re-profile some schemes into future financial years."
The revamp aims to make it more appealing to young generations and new customers, while not alienating the existing customer base - "which together will contribute to its vitality."
Images: RMBC / Greig & Stephenson Architects