Develop Plot R2, Michael Faraday Avenue, Kingsway Business Park, Rochdale for a research and development building

Concepts

• rochdale
• construction work
• kingsway business park
• wilson bowden developments limited
• development funding agreement
• michael faraday avenue
• plot r2
• develop plot r2
• a development funding agreement
• a research and development building

Location

Greater Manchester:

Description

The Council intends to invest third party grant funding by entering into a Development Funding Agreement (“DFA”) with Wilson Bowden Developments Limited (“WBD”). The DFA will develop Plot R2, Michael Faraday Avenue, Kingsway Business Park, Rochdale (the “Property”) for a research and development building (Use Class E) including office, laboratory and production space, function space and café, to be known as the Sustainable Materials and Manufacturing Centre (the “Project”).

Total Quantity or Scope

The DFA will develop Plot R2, Michael Faraday Avenue, Kingsway Business Park, Rochdale (the “Property”) for a research and development building (Use Class E) including office, laboratory and production space, function space and café, to be known as the Sustainable Materials and Manufacturing Centre (the “Project”)

Award Detail

CPV Codes

• 45000000 - Construction work

Legal Justification

The Council relies on Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 to enter into the DFA with WBD to develop the Property. The Council commissioned an Employment Land Analysis from an independent international real estate property consultancy. This provided robust evidence to support the Council's decision not to select an alternative site within the Rochdale Borough, and why the Property is suitable for the Project. The Council relies on Regulation 32(2)(b)(iii) for the following reasons: • in 2002, the North West Development Agency ("NWDA") entered into a Joint Venture Agreement (“JVA”) with WBD, which granted WBD with exclusive rights to draw down land at the Kingsway Business Park (“Site”) from Homes England, and either develop the land itself or sell it to other developers. The land is controlled by WBD through the JVA. • an alternative developer does not exist, as WBD has exclusive rights to purchase land from Homes England on the Site and, to select an alternative developer, the Council would first have to purchase it from Homes England through exercise of statutory powers (which would not necessarily be possible). • the Council cannot conduct a procurement to select a development partner, as WBD were previously selected by the NWDA to deliver works on the Site. The Council cannot contract with another third-party developer; the only developer that the Council can contract with to deliver the Property is WBD. • the Site is effectively unique as the Council’s requirements cannot be met on another site in the Rochdale Borough, and it is the only one of its size that allows further expansion for research and development. As part of the DFA, the Council will enter into an option agreement for two adjacent plots to the Property to allow the Council to acquire and procure the development of such plots for research and development. The development of the Property will act as a catalyst to deliver additional advanced manufacturing/machinery/materials and research & development related activities to create an innovation mega-cluster, bringing growth to the Rochdale Borough. • the Property is a strategic site, and the development is not suited to another parcel of land in the Rochdale Borough. • a key consideration when selecting the Property was accessibility and public transport links to the Property. The Property was preferred due to its links to the road network being a short distance from the M62 and adjacent to the Kingsway Business Park Metrolink Tram Stop providing excellent public transport access. • the Property is within the boundary prescribed by the third-party grant funding, and the development is deliverable within the grant funding timescales. • the existing land ownership and contractual background means that the competition is absent for technical reasons under Regulation 32(2)(b)(iii).

Other Information

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