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Revised Full Business Case - Perry Barr Regeneration Scheme

Published: Tuesday, 10th March 2020

A report detailing the extensive progress already made on delivering the Perry Barr Regeneration Scheme (PBRS) and the measures needed to ensure the project’s successful completion is due before Birmingham City Council’s Cabinet on March 17.

The council has delivered at pace on the PBRS – an almost £500million+ investment into one of Birmingham’s most deprived neighbourhoods – since the original full business case was approved in the summer of 2019.

Over 90 per cent of the required land is now within the council’s control and the necessary processes are in place to secure the remainder.

Contracts are also signed to deliver 72 per cent of the 6,500 bed spaces needed during the initial use as the Commonwealth Games Village, with that figure set to soon reach 97 per cent through identified proposals, with a solution for the remainder (184 beds) managed through effective scheduling of sporting activities at Games time.

But in order to mitigate pressures which have arisen over the last year, including construction cost inflation, the revised full business case (RFBC) for the PBRS has been drawn up following detailed consideration of nine potential options.

The preferred option will ensure the council meets its commitments for Games-time accommodation as well as maximising benefits of the scheme for the people of Birmingham as a housing legacy project – a total of 1,400 much-needed homes for citizens, as the first phase of a long-term scheme to build 5,000 new homes in north-west Birmingham.

Cllr Ian Ward, Leader of Birmingham City Council, said: “The redevelopment of Perry Barr and the surrounding area is one of the council’s most important projects.

“It will lead to major benefits for existing and future residents, enabling Perry Barr to become one of the most vibrant, dynamic and well-connected parts of Birmingham.

“Through this revised full business case we clearly demonstrate the substantial progress made on reducing financial pressures, whilst honouring our commitments to the Commonwealth Games, the best possible athlete experience and to the people of Birmingham, in terms of the Games having no detriment to the taxpayers of the city.”

In summary, the revised full business case reduces a range of costs with significant mitigation strategies. The council is committing £35.7 million of funding to the project through the RFBC (£15.7million from existing capital contingencies and £20million from windfall capital receipts) which is levering an investment into Perry Barr of over £500million.

To further de-risk the scheme, it is proposed that options are explored with partners to identify suitable funding solutions that increase the level of contingency for the project to a level suitable for the size and complexity of the scheme.

The RFBC also reiterates the reasons why the planned A34 highways improvements are of critical importance pre-Games.

These include the point that the existing local highways infrastructure would be unable to accommodate the improved public transport facilities required to support the wider regeneration of Perry Barr, leading to a reduction in the environmental credentials of the PBRS.

Additionally, it says the retention of the flyover would lead to a failure to deliver over 200 new homes earmarked for post-Games development, which would remain locked within a busy traffic island.

Cllr Ward added: “The importance of this scheme cannot be underestimated. It is a catalyst for many improvements in Perry Barr, which would have been delivered at a much slower pace or not at all if it were not for the investment the Commonwealth Games is levering into Birmingham.

“As with all major projects, we will continue to robustly monitor progress and work collaboratively with our delivery partners to enable a successful Commonwealth Games and the meaningful legacy these plans and the hundreds of millions of pounds that are being invested into the city will deliver.”

The RFBC can be viewed on the Birmingham City Council website.

 

Background notes

Some of the key benefits of Birmingham hosting the 2022 Commonwealth Games are as follows:

  • For every £1 Birmingham invests in the Games, national Government is putting in £3 additional money that would not have come here otherwise (note: funding for the Perry Barr Regeneration Scheme is separate to the Games budget);
  • The Games will generate over 4,000 local jobs a year up until 2022;
  • Backing local business: £300m of Games contracts are expected to benefit local or regional suppliers;
  • 6,500 athletes and officials will come to Birmingham for the Commonwealth Games from 71 nations and territories are expected to take part in Birmingham 2022;
  • More than 1.3 million tickets will be available for the Birmingham 2022 Commonwealth Games;
  • Birmingham 2022 is the largest event in the city’s history and more than 10,000 volunteers will be needed to help deliver the Games;
  • The Games will kickstart the delivery of 5,000 new homes in Perry Barr;
  • An estimated global audience of 1.5 billion will view the Birmingham 2022 Commonwealth Games;
  • 11 days of spectacular sporting action will be staged during the Birmingham 2022 Commonwealth Games;
  • Birmingham is home to residents from 180+ countries – a truly Commonwealth city;
  • An estimated 41,000 Games-time roles will be created for the Birmingham 2022 Commonwealth Games;
  • Potential boost to the regional economy in excess of £1 billion (based on Gold Coast 2018 Games);
  • 1,400 new homes to be built in Perry Barr on the site initially serving as the Commonwealth Games Athletes’ Village;
  • Perry Park and Alexander Stadium will come together as one improved community facility, creating a destination for all to visit and enjoy;
  • Additional walking and cycling routes into Perry Park;
  • The provision of facilities at the revamped Alexander Stadium that meet local community needs and those of elite sport;
  • A new educational offering at the Alexander Stadium through a partnership with Birmingham City University.

 

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