Basing View

Annual Business Plan

Financial Year – 2019/2020

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Table of Contents 1 Introduction .................................................................................................................................... 2

2 Executive Summary ......................................................................................................................... 2

3 Project Objectives ........................................................................................................................... 2

4 Business Plan Purpose .................................................................................................................... 3

4.1 Scope ....................................................................................................................................... 3

4.2 Format ..................................................................................................................................... 3

4.2.1 Governance ..................................................................................................................... 3

4.2.2 Estate-Wide Strategies .................................................................................................... 3

4.2.3 Public Realm Works ........................................................................................................ 3

4.2.4 Plot Development ........................................................................................................... 3

4.2.5 Annual Expenditure Budget ............................................................................................ 4

4.2.6 Estate-wide Expenditure Recovery ................................................................................. 4

4.2.7 Risk Register .................................................................................................................... 4

5 Appendices ...................................................................................................................................... 5

5.1 Appendix 1 – Governance ....................................................................................................... 5

5.2 Appendix 2 - Detailed Site Specific Workstreams .................... Error! Bookmark not defined.

5.2.1 Residential ........................................................................ Error! Bookmark not defined.

5.2.2 Hotels ............................................................................... Error! Bookmark not defined.

5.2.3 Offices .............................................................................. Error! Bookmark not defined.

5.2.4 Alternative ........................................................................ Error! Bookmark not defined.

5.3 Appendix 3 - Annual Expenditure Budget ................................ Error! Bookmark not defined.

5.4 Appendix 4 - Estate Wide Expenditure Recovery .................... Error! Bookmark not defined.

5.5 Appendix 5 - Risk Register ........................................................ Error! Bookmark not defined.

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1 Introduction This is the eighth Basing View Annual Business Plan and intended to set out the partnership’s

strategy for the regeneration of the five core development sites comprising of C (remainder),

K, V, W (remainder) and W1 within Basing View. It will address the principal project

objectives, proposed actions, timescales, outline the budget for the business plan period and

provide an indicative forecast for the 15 year term of the partnership (from December

2012).

2 Executive Summary In the financial year 2018/2019 there were a number of key achievements, specifically:

Securing a detailed planning permission on plot K1 for a 5,400 sq. m. (GIA) office

building and associated car parking.

Securing an outline planning permission on Plot K for a 5,200 sq. m. (GEA) office

building and associated car parking.

Securing a pre-let to Eli Lilly for the K1 office building.

Securing LEP Funding for enabling works on Plot K and K1, and Plot W.

Securing a planning permission on part of Plot W for a 150 key hotel for Village

Urban Resorts.

Completion of the Florence Building (Plot O) by Abstract Securities.

Completion of the sale of part of Plot W to Village Urban Resorts and start of

construction.

Completion of the enabling works on Plot W.

Key areas of focus for this business plan period are:

Commencement of construction of the office building on Plot K1.

Securing detailed planning consent and funding on the “Benchmark Building” on Plot

K, and start construction as quickly as possible afterwards subject to obtaining

funding.

Identify potential uses and options for the remaining sites, C, V and remainder of W.

Resolve all outstanding issues with JLP.

3 Project Objectives The original project objectives, which are considered to remain relevant, are to:

Achieve continued investment and development activity.

Continue to actively promote Basing View and Basingstoke as a forward thinking and

attractive commercial location in order to achieve a step change in occupier demand.

Through a co-ordinated regeneration approach, enhance the quality of the public realm,

urban design, office accommodation and supporting amenities.

Achieve best value from commercial transactions.

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4 Business Plan Purpose

4.1 Scope Under the terms of the Development Agreement the parties agree that the Business

Plan will provide a 5 year rolling strategy focused on delivering the above objectives.

It will include:

A detailed 12 month programme of activities with a quarterly cashflow

forecasts covering expenditure on the estate-wide studies, public realm and

infrastructure.

A four year high level programme identifying key strategic outcomes together

with associated annual cashflows.

A forecast of site specific activities.

It should be noted that the cashflow forecasts do not include any site specific

expenditure as this will be included in site specific business plans which will be

prepared by Muse when they require council approval.

4.2 Format The business plan provides an update on governance, estate-wide strategies, public realm works,

plot development, annual expenditure, estate wide expenditure recovery and project risks.

4.2.1 Governance Full details are provided at Appendix 1.

The current key contacts are as follows:

Name Position

BDBC Kate Dean Strategic Project Director

Jonathan Banham Development Manager – Basing View

Muse Developments Mike Auger Regional Director

Chris Scott Development Director

Simon Martin Projects Director

4.2.2 Estate-Wide Strategies These are all now completed.

4.2.3 Public Realm Works All works have now been completed and a maintenance regime is in place. A new pocket

park has been developed in front of the “Village” site.

4.2.4 Plot Development The core development sites are shown on the following plan.

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Detailed workstreams relating to each of the sites is provided at Appendix 2.

4.2.5 Annual Expenditure Budget The proposed expenditure budget is provided at Appendix 3.

4.2.6 Estate-wide Expenditure Recovery A full breakdown of costs is provided at Appendix 4.

4.2.7 Risk Register A risk register is provided at Appendix 5. This is to be updated on a plot by plot basis and

presented to the Steering Committees on an on-going basis throughout the year as the

options analysis on each of the remaining plots is completed.

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5 Appendices

5.1 Appendix 1 – Governance The terms of governance are specified in the Development Agreement as follows: Parties Basingstoke and Deane Borough Council and Muse Developments Limited (guaranteed by Morgan Sindall Group plc). Governance Structure The project is governed through two regular forums, the Steering Group and Project Group, as described in the table below:

Forum Frequency Attendees Remit

Steering Group

Quarterly Council: Portfolio Holder, Chief Executive, Head of Resources, Strategic Project Manager Developer: Managing Director, Regional Director

Overall monitoring of progress, project delivery and risk management, stake holder engagement

Project Group

Monthly Council: Strategic Project Manager, Property, Planning, Highways, Landscaping, Finance and Legal (others as required) Developer: Development and Construction Managers, Planning Consultant, Architect (others as required)

Detailed working interface to discuss estate-wide strategies, public realm and plot development, drawing in other departments of the Council and the developer’s external team as required

Council Approval Process The Council’s approval processes, for both site wide strategies and scheme proposals, are shown on the following flowchart.

Council Approvals It is assumed that the budget figures which will be presented to the Basing View Executive Committee (BVEC) for approval include an element of contingency for each budget line item.

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In the event the level of agreed expenditure is projected to be exceeded, the revised expenditure in the 12 month cash flow for the current financial year will need to be approved by the Council in accordance with the approval stages in 3.4.4, subject to expenditure remaining within the overall agreed level of council funding of £3.3m. This will apply to all expenditure relating to the estate-wide strategies and all public realm and infrastructure works. However, this will not apply to plot specific pre-development expenditure incurred by Muse, which will be covered by the site specific business plans to be approved separately by the Council in accordance with the Development Agreement. The approval thresholds are based on cumulative figures rather than each individual budget increase and will apply to each of the estate-wide strategies and public realm and infrastructure funding categories. Where there are increases to projected annual expenditure within the individual budgets managed by Muse or the Council, these will require approval by BDBC as follows:

Cumulative Amount Changes to Developer Expenditure (expenditure on estate-wide

studies)

Changes to Council Expenditure (public realm and infrastructure)

£0-£50,000 Authorisation by the Head of Service / Lead Project Officer

Approval by Head of Service

£50,000-£100,000 Approval by Steering Group, after consultation with the Portfolio Holder

£100,000-£250,000 Approval by BVEC

Above £250,000 Approval by Full Council following a report to BVEC

Developer Approvals Muse Developments will obtain board approval for the initial business plan expenditure, before the Council takes its report to BVEC, for:

the estate-wide strategies,

public realm design,

plot specific development, and

forecast peak equity commitment for the delivery of the overall project. Approval for drawdown of funds above and beyond the initial approval (or for additional sites) but within the peak equity commitment, which will have been approved by Muse’s parent company Morgan Sindall Group plc, can be obtained through further requests to the Muse board. Review / Update Mechanisms for the Business Plan The Business Plan is to be:

reviewed quarterly at Steering Group meetings, and

updated annually

The quarterly review will take the form of a formal update to the Steering Group, which will include a review of the expenditure schedules (both to date and projected) in the business plan. The annually updated business plan is to include a full review of the expenditure forecasts. A draft of the Business Plan is to be provided to the Council to allow the BVEC to endeavour to approve the Business Plan by the end of each calendar year, with final approval of the Council’s financial commitment sought from Full Council by the end of February the following year.

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Approval of the Business Plan (as set out in the Development Agreement) The Parties are to agree a proposed draft of the revised Business Plan. The Council is to submit Proposed Business Plan to BVEC (and the financial aspects of the Business Plan to the Cabinet) by the end of December in each year, and to use all reasonable endeavours to hold the BVEC promptly after the submission of the proposed Business Plan. The Council is to seek approval of the financial aspects of the Business Plan (Capital Programme Approval) from the Cabinet. The Council is to seek Capital Programme Approval from the full Council. Once the Business Plan has been approved by BVEC, it shall be adopted by the Parties as the updated Business Plan (pending final Capital Programme Approval from the Cabinet). If the proposed draft of the revised Business Plan is not approved (by the Cabinet, the full Council or by the BVEC), the Parties (both acting reasonably and properly) shall review and agree a revised draft and agree revised timescales for submitting such revised draft, or, in the event of a dispute, either Party may refer the matter to the Chief Executive of the Council and the Managing Director of the Developer for their joint decision as to what is the best course of action to take in relation to the Business Plan. When the proposed draft of the revised Business Plan has been approved by the various levels set out above, the Parties shall initial the Business Plan. If any changes to the Council’s constitution or approval processes necessitate changes to the approval process or timescales set out above (the Council acting reasonably and properly), the Council shall notify Muse promptly of such necessary changes (and shall provide full details of the underlying changes to the constitution or approval process which necessitate such changes). KPI Review Muse Developments’ performance is to be reviewed annually against the KPIs by the Steering Group. The KPI’s are contained in the partnership Development Agreement and provide a means by which the Council can monitor performance in delivering the 6 estate wide strategies and plot specific regeneration. The KPI’s and the sanctions for failure to meet the KPI’s are contained within the partnership Development Agreement. The only outstanding KPI is number 10 – ‘The Year 10 Requirement’. This states: ‘Practical Completion of at least three Sites or Phases by no later than the 10th anniversary of the date of this agreement’. Personnel The key contacts at the Council and Muse Developments for Basing View are provided in the following table:

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Name Position

Basingstoke and Deane Borough Council

Kate Dean Strategic Project Director

Jonathan Banham Development Manager

Muse Developments Michael Auger Regional Director

Chris Scott Development Director

Simon Martin Projects Director

The key external consultancy firms advising Muse are set out below:

Discipline Firm

Architecture 3D Reid and TP Bennett

Cost Consultancy and Project Management Rider Levett Bucknall / Alinea

Landscape Architects and Ecology Land Use Consultants

Engineers: Civils, Services and Sustainability Cundall

Office Agency Jones Lang LaSalle/RARE

Marketing Siren

Stakeholder Engagement and Consultation Throughout the development process, from inception through to delivery, the Partnership will maintain an extensive programme of engagement and consultation. This will include (but not restricted to) the following parties:

The Council – Senior Management Team, Portfolio Holder, Cabinet, Members Advisory Panel, Local Ward Members and Council Officers.

Hampshire County Council – to include Highways and Economic Regeneration.

Basing View Occupier Forum

Other landowners within Basing View

Basingstoke Chamber of Commerce

Enterprise M3 (Local Enterprise Partnership)

Network Rail/Bus Companies

Destination Basingstoke

Other significant landowners in Basingstoke

Public consultation, relating to individual planning applications A consultation methodology will be agreed with officers in advance, including the process for quantifying findings through structured questionnaires or other technique(s). The engagement and consultation strategy will be tailored to each individual group and will remain flexible, and may take the form of the following:

Meetings: BDBC Departments and Members, HCC, landowners (both within Basing View and the wider Basingstoke area), Network Rail

Presentations: BDBC Members, BV Occupiers’ Forum, Chamber of Commerce, Enterprise M3, Destination Basingstoke

Attendance at events: such as Be Inspired

Arrange specific events: public consultation

Other wider PR initiatives through local, regional and national media