Agenda Item:

Report author: Paul Russell

Tel: 0113 2476171
Report to the Chief Officer (Highways and Transportation)
Date: 21 July 2015
Subject: Kirkstall Forge Change to Essential Infrastructure Works Contract
Capital Scheme Number: 32336
Are specific electoral Wards affected?

Yes

No

Are there implications for equality and diversity and cohesion and
integration?

Yes

No

Is the decision eligible for Call-In?

Yes

No

Does the report contain confidential or exempt information?

Yes

No

If relevant, name(s) of Ward(s): Kirkstall, Horsforth, Barmley and

Stanningley

If relevant, Access to Information Procedure Rule number:

Appendix number:

Summary of main issues

1

Following previous approval to vary the existing Kirkstall Forge Essential

Infrastructure Works Contract, in order to include additional works to the
proposed riverside retaining wall, this report seeks approval to inject 678,000
into the Councils capital programme which will be fully funded by the Developer.

Recommendations
2

The Chief Officer (Highways and Transportation) is requested to:

i)

note the contents of this report;

ii)

note the cost of the additional works as 678,000 which are to be fully funded
by the Developer from a separately held account.

iii) authorise the injection of 678,000 into the Councils capital programme, fully
funded by the Developer.
iv) give authority to incur expenditure of 678,000 in delivering these additional
works, fully funded by the Developer.

Purpose of this report

1.1

This report seeks authority to inject 678,000 into the capital programme and to
incur expenditure of 678,000 in order to undertake the previously approved
variation of the current Kirkstall Forge Essential Infrastructure Contract to include
some additional works requested by, and fully funded by the Developer.

Background information

2.1

Kirkstall Forge is a brownfield site located 3 miles Northwest of Leeds City Centre
off of the A65 Abbey Road. The site has a heavy industrial history but with a
riverside setting it has planning approval to be redeveloped with a masterplan to
construct around 1,000 new homes amongst numerous commercial, retail and
leisure developments over the wider course of the scheme.

2.2

A key element on the masterplan is the introduction of a new railway station. This
is currently being constructed by the West Yorkshire Combined Authority in
conjunction with the Developer and with grant assistance from DfT. This was
subject to a separate planning approval.

2.3

A planning condition on the railway station is that the essential infrastructure

linking the station to the public highway, i.e. a road and footpath from the A65, be
constructed for when the station is opened.

2.4

In order to facilitate the new railway station opening in 2015, the Councils
Executive Board agreed to lend the Developer 9.993m to deliver the essential
infrastructure works. The terms of the loan are covered in a legal funding
agreement between the Developer and The Council.

2.5

The Council has sought tenders for the essential infrastructure work and a
Contractor was appointed in August 2014 with works commencing on site in
October 2014.

2.6

Works to both the new railway station and the essential infrastructure works are
both progressing well with the anticipated opening of the station in December
2015.

Main issues

3.1

As part of the essential infrastructure works, new retaining walls are to be

constructed alongside the River Aire. These consist of reinforced earth slopes
with reinforced earth block walls on top. Due to flood risk, the general topography
of the site, the headroom (waterboard) requirement for the new bridge, the top of
the proposed retaining walls is 10m above the river level in some areas.

3.2

The Developer, on reviewing the proposals for the walls, commissioned his
landscape architect to develop ideas to break up the large expanse of wall
alongside the river which was considered to be unsightly in this prestigious
development.

3.3

The landscape architect produced a number of options and the Developer

decided on the viewing platforms which have been titled the Lounge and Ledge.

These are cantilever structures which sit approximately half way up the wall
oversailing the river.
3.4

These works clearly sit outside the works information contained in the current
contract but in order to implement the proposals, the main steel cantilever
members will need to be installed during the construction of the reinforced earth
retaining walls.

3.5

The only feasible way of doing this is for the steelwork to be procured and
installed as part of the essential infrastructure works contract.

3.6

The Developer will fully fund the additional work and the funds will be lodged in an
Escrow account from which the Council can draw down.

3.7

A supplementary agreement, to the main essential infrastructure works agreement

has been signed but in order to draw down on the Escrow account, an injection
into the Capital programme to the value of the approved variation is required.

3.8

In a similar manner to the reinforced river walls and earthworks, the Lounge and
Ledge structures will not be adopted and future maintenance will be the
responsibility of the Developer.

Corporate Considerations

4.1

Consultation and Engagement

4.1.1

Consultation has taken place with the Councils Legal Services and Financial
Management officers who are satisfied with the supplementary agreement and
proposed funding arrangement whereby the Developer lodges the money up front
in a holding account for the Council to draw down on.

4.1.2

The Developer has also consulted with the Planning Department over the
proposed Lounge and Ledge and planning approval has been granted.

4.2

Equality and Diversity / Cohesion and Integration

4.2.1

As this report covers the financial implications of an earlier decision, no further

screening documentation has been undertaken

4.3

Council policies and City Priorities

4.3.1

The proposals contained in the report have no implications for the council
constitution, policies or priorities.

4.4

Resources and value for money

4.4.1

Costs for the scheme are as follows:

Works

4.4.2

678,000

The funding for this scheme will be met from a separate Escrow account where
the full amount of the works (plus a 5% contingency) will be lodged by the

Developer from which the Council can draw down the costs. Provision has also
been made in the supplementary agreement for the Developer to add additional
funds if required
4.4.3

Capital Funding and Cashflow :

Funding Approval :
Pre vious total Authority
to Spe nd on this s che m e
LAND (1)
CONSTRUCTION (3)
FURN & EQPT (5)
DESIGN FEES (6)
OTHER COSTS (7)
TOTALS
Authority to Spe nd
re quire d for this Approval

Capital Se ction Re fe re nce Num be r :TOTAL TO MARCH

FORECAST
2015
2015/16 2016/17 2017/18 2018/19 2019 on
000's
000's
000's
000's
000's
000's
000's
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

LAND (1)
CONSTRUCTION (3)
FURN & EQPT (5)
DESIGN FEES (6)
OTHER COSTS (7)
TOTALS

TOTAL TO MARCH
FORECAST
2015
2015/16 2016/17 2017/18 2018/19 2019 on
000's
000's
000's
000's
000's
000's
000's
0.0
678.0
678.0
0.0
0.0
0.0
678.0
0.0
678.0
0.0
0.0
0.0
0.0

Total ove rall Funding

(As pe r late s t Capital
Program m e )

TOTAL TO MARCH
2015
000's
000's

FORECAST
2015/16 2016/17 2017/18 2018/19 2019 on
000's
000's
000's
000's
000's

LCC Supported Borrow ing

Revenue Contribution
Capital Receipt
Insurance Receipt
Lottery
Gif ts / Bequests / Trusts
European Grant
Health Authority
School Fundraising
Private Sector
Section 106 / 278
Government Grant
SCE ( C )
SCE ( R )
Departmental USB
Corporate USB
Any Other Income ( Specif y)

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
678.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

Total Funding

678.0

0.0

678.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Balance / Shortfall =

678.0

4.5

Legal Implications, Access to Information and Call In

4.5.1

The decision requested in this report is an administrative decision for varying the
contract. The Councils liability for capital expenditure remains the same as the

additional work is funded directly by the Developer from a separate funding

account.
4.6

Risk Management

4.6.1

The main risk is any potential delay to the main infrastructure contract. The
Contractor is confident that the additional works can be incorporated into the
current programme.

4.6.2

The Contractor has provided a fixed cost quotation for the additional work and
with this takes on any additional risk on cost and programme.

4.6.3

The Developer is committed to the financial cost of the Lounge and Ledge through
the separate Escrow account and is bound by the terms of the supplementary
agreement. Mechanisms for additional funding, if required, are in place

Conclusions

5.1

There is an opportunity to significantly enhance the Kirkstall Forge Development

by introducing the high quality public space overlooking the River Aire. The
Lounge and Ledge platforms would be iconic architectural features and should
help to promote the redevelopment of the site.

5.2

The main steelwork required for the Lounge and Ledge can only be installed
during the construction of the reinforced earth retaining walls and the only logical
way is for this to be done is by varying the current contract.

Recommendations

6.1

The Chief Officer (Highways and Transportation) is requested to:

i)

note the contents of this report;

ii)

note the cost of the additional works as 678,000 which are to be fully funded
by the Developer from a separately held account.

iii) authorise the injection of 678,000 into the Councils capital programme to be
fully funded by the Developer.
iv) give authority to incur expenditure of 678,000 in delivering these additional
works, fully funded by the Developer.
7

Background documents1

7.1

None

1 The background documents listed in this section are available to download from the Councils website,
unless they contain confidential or exempt information. The list of background documents does not include
published works.

U:HWT/Admin/Wordproc/Comm/2015/Kirkstall Forge Changes.doc

Fig 1 Lounge and Ledge

Lounge Steelwork

Ledge Steelwork