Preston, South Ribble and Lancashire City Deal

Transcription

1 Prestn, Suth Ribble and Lancashire City Deal

2 Executive Summary Building n the success f the first wave f city deals agreed last year with the eight cre cities, the Prestn, Suth Ribble and Lancashire City Deal is the first f the secnd wave f City Deals which will drive frward lcal grwth by empwering city areas like Prestn and Suth Ribble t make the mst f their ecnmic assets and pprtunities. The Prestn, Suth Ribble and Lancashire City Deal agreed with gvernment builds n the strng ecnmic perfrmance f the area ver the last ten years and will help t ensure that the City Deal area cntinues t grw by addressing strategic transprt infrastructure and develpment challenges t deliver new jbs and husing acrss the City Deal area. Over a ten-year perid the deal will generate: Mre than 20,000 net new private sectr jbs, including 5,000 in the Lancashire Enterprise Zne; Nearly 1 billin grwth in Grss Value Added (GVA); 17,420 new hmes; and 2.3 billin in leveraged cmmercial investment. Our signing f this dcument cnfirms ur jint cmmitment t ensure full implementatin f the Prestn, Suth Ribble and Lancashire City Deal, prpsed by the Lancashire, Prestn and Suth Ribble Lcal Authrities and the Lancashire Lcal Enterprise Partnership; cnsistent with the attached detailed implementatin plan. T ensure implementatin and demnstrate success we will jintly track prgress against mile stnes and utcmes. Page 1

3 Intrductin Lancashire is ne f the largest lcal ecnmies in the Nrth f England, currently generating ver 23 billin in GVA per annum and supprting nearly 620,000 jbs. Many wrld class businesses are lcated in the cunty alngside an increasing number f high-perfrming Small and Medium Enterprises (SME s) established in the area, which is hme t 45,000 businesses in ttal. 1 The City Deal is a crucial element f the Lcal Enterprise Partnership's (LEP s) strategic plan t create 50,000 new jbs ver the next ten years acrss Lancashire. Lancashire's grwth pprtunities lie in its strng ecnmic base anchred by a number f internatinally cmpetitive sectrs, including aerspace, advanced engineering, and manufacturing. Lancashire has the single largest cncentratin f aerspace emplyment in the cuntry, with the UK secnd nly t the USA in terms f glbal aerspace prductin. Significant pprtunities als exist fr Lancashire t capture the ecnmic benefits f lcal shale gas reserves, which are the largest in Eurpe. The area benefits frm excellent external rad and rail links with several mtrway crridrs cnverging in the City Deal area, prviding attractive develpment pprtunities and a favurable cst base. The cnnectivity f the area will be further enhanced by Lancashire's superfast bradband prgramme, which will ensure the area has a digital infrastructure as strng and fast as anywhere in Eurpe by Hwever, these pprtunities are ffset by ecnmic challenges which have included ecnmic restructuring and heavy jb lsses in traditinal industries; an ver-reliance in sme parts f the cunty n public sectr activity and emplyment; a lack f suitable husing in sme areas, including bth affrdable and executive hmes; and a lw external prfile and lack f identity affecting the cunty and Prestn's investment ptential. By fcusing n key ecnmic strengths, pprtunities and cmpetitive advantages, the LEP aims t reclaim Lancashire's psitin as a natinal ecnmic leader. The City Deal and Lancashire's EZ prvide key delivery mechanisms in supprt f this aim. In supprt f the net new jbs frecast acrss the City Deal area, there is a real need and pprtunity t deliver large-scale husing pprtunities in the shrt t medium term. The City Deal area already has many attractive sites allcated fr husing develpment in its adpted Cre Strategy. Very few lcatins acrss the Nrth f England ffer this pprtunity in such desirable yet sustainable lcatins. Realising these hithert drmant sites and establishing new sustainable cmmunities will nly be achieved if the necessary critical and lcal cmmunity infrastructure is delivered. Key ecnmic pprtunities and challenges which the City Deal will address As well as representing nearly half f Lancashire's ecnmic wealth, the City Deal area als utstrips the majrity f England's Cre Cities fr scale and level f perfrmance. Prestn has been independently identified by the Centre fr Cities and ther analysts as a lcatin that can cnsistently deliver new jbs and ecnmic grwth. 2,3 This pint is underlined by the City Deal unemplyment rate which is significantly lwer (at 7.2%) than sub-reginal, reginal and natinal rates. 4 At present, nwhere in England nrth f the M25, has a higher emplyment density level than Prestn, meaning that there are mre peple f wrking age wrking in Prestn than living in Prestn. 5 The City Deal area is clearly the key emplyment generatr fr the whle f Lancashire. 1 Office fr Natinal Statistics, Centre fr Cities: Cities Outlk and Hidden Ptential: Supprting Grwth in Sunderland & England's ther Mid-Size Cities, Eksgen, Prestn CD Ecnmic Analysis, NOMIS December, Lancashire Prfile, Page 2

4 Hwever, in rder t unlck further significant levels f market driven grwth and private sectr investment, a mre strategic and ambitius apprach is required t remve the existing critical infrastructure barriers t enable sustainable husing and ecnmic grwth. This will allw the area t help realise its full ecnmic ptential. The current deleterius effect f the netwrk capacity issues are well dcumented by studies which shw peak traffic flw blckages n the lcal highway netwrk. 6 The Central Lancashire Cre Strategy ( ) was adpted in summer 2012 by the three lcal planning authrities in Central Lancashire: Prestn City Cuncil, Suth Ribble Brugh Cuncil and Chrley Brugh Cuncil. The Cre Strategy prvides the ver-arching develpment and planning framewrk fr the Central Lancashire area, setting ut the scale and end-use f sites t be develped during the plan perid. The Cre Strategy sets ut a ttal prvisin fr Central Lancashire f 22,158 new hmes ver the 15-year plan perid. The new hmes identified in the City Deal, represents the prprtin f the ttal Central Lancashire allcatin relating t Prestn and Suth Ribble. The City Deal lcal planning authrities alng with the Cunty Cuncil, in its capacity as lcal highway authrity, wrked in cnsultatin with the Highways Agency (HA) t identify the impact f the Cre Strategy n the transprt netwrk. Several residential planning applicatins have been refused permissin in the last twelve mnths n the grunds that there is insufficient capacity n the highway netwrk. 7 Other imminent applicatins are als 'at risk' f refusal. These refusals and at risk develpments amunt t almst 2,000 new huses which have the ptential t create 3,000 jbs in the cnstructin sectr. A successful City Deal prpsal wuld allw these huses t be built, with wrk cmmencing withut delay. As part f the City Deal lcal negtiatin prcess, the lcal authrities have engaged with private sectr huse-builders and develpers. Fr example, Prestn City Cuncil and Lancashire Cunty Cuncil have jintly cmmissined expert planning cnsultants t prduce, by September 2013, a detailed masterplan fr Nrth West Prestn, a large site set ut in the Cre Strategy capable f delivering up t 5,000 new huses. 8 This area masterplan will prvide a framewrk fr develpment and, with the certainty affrded by a successful City Deal, enable huse builders t cmmence the first phase f huse-building in A current lack f strategic investment t deliver critical infrastructure culd seriusly limit the future prspects f the City Deal area t thrive as a dynamic place t invest and wrk. Indeed, it is already evident that private sectr investment plans, in additin t husing sites referred t, are being hindered, with sme key examples summarised belw. In Prestn City Centre, there is investr and ccupier demand fr key elements f a cmprehensive cmmercial mixed-use develpment, with a direct investment value f 50m. The develper-led scheme, which wuld create 3,000 jbs and generate 45m f GVA ver the deal perid, incrprates 18,580 square metres f new high quality ffice develpment as well as retail, cinema and assciated leisure and car parking. Hwever, the ability f the private sectr t deliver the scheme cntinues t be undermined by uncertainty regarding the lnger term develpment prspects f the City Centre due t highway and infrastructure cnstraints and a lack f finance t fund lcalised, but cstly, highway and infrastructure imprvements. The City Deal area is hme t University f Central Lancashire (UCLAN), the 5 th largest university in the Cuntry in terms f its undergraduate in-take. UCLAN is bringing frward majr plans in excess f 50m thrugh the use f its wn capital investment funds and ther cmmercial investment surces, t remdel its Prestn campus as an internatinal centre f advanced engineering underpinned by its strng research base and industrial partnerships. By realising the full ptential f the City Deal area, UCLAN will be able t deliver its wn ambitius plans t becme a renwned internatinal centre f learning and innvatin in supprt f the grwth f Lancashire's wrld-class aerspace and advanced manufacturing sectr and supply chain. 6 Jacbs Cnsultancy, Includes refusal f planning applicatins r nn-determinatins fr majr cmmercial huse builders 8 URS Planning Cnsultants appinted April, Page 3

5 UCLAN has als established a Memrandum f Understanding with Warwick University t prvide leading edge supprt t the advanced engineering and manufacturing base, as part f the Enterprise Zne develpment. Furthermre, the tw sites at Samlesbury and Wartn, which frm the EZ, are lcated either side, yet within seven miles, f Prestn City Centre. The EZ is set t becme ne f Eurpe's largest centres fr advanced engineering and manufacturing, but the pace and scale f its future success, in part, will rely n the efficient functining f the lcal and natinal highway netwrk in and arund Prestn. The City Deal infrastructure investment will imprve accessibility between the tw sites and their link int the lcal and strategic highways netwrks. Much f the ecnmic grwth and private sectr investment in the City Deal area is ccurring at a subptimal level and nt at the pace pssible r required. There is strng develper appetite, plicy and plitical supprt fr develpment; hwever, the failure t prvide certainty f critical infrastructure investment is preventing the realisatin f this pent-up develpment. Due t the scale f investment in critical infrastructure required, nly the creatin f a bespke funding and delivery mechanism will see develpment pprtunities realised in the ptimum timeframe. This apprach requires lcal and natinal public resurces as well as private sectr investment. The City Deal ffers a real pprtunity fr natinal and lcal partners, with a clear understanding f the relatinship between ecnmic grwth and critical infrastructure, t wrk tgether within rbust, binding and innvative new gvernance arrangements t deliver genuine additinal ecnmic grwth. Imprtantly, it will als prvide the private sectr with the cnfidence that the public sectr is fully and financially cmmitted t a lng-term investment strategy. The Deal T deliver the utcmes set ut in the dcument the City Deal partners will: Establish an Infrastructure Delivery Prgramme and Investment Fund, which tgether are wrth 434m. The City Deal Infrastructure Delivery Prgramme, at 334m, will enable the delivery f critical infrastructure and allw the full develpment f significant cmmercial develpment and husing schemes. This includes fur majr highway schemes and the necessary lcal cmmunity infrastructure, such as schls and health facilities, required t supprt the scale f such ambitius develpment. The City Deal Investment Fund cnsists f a 100m lcal allcatin frm the Lancashire Pensin Fund, which will be c-invested n a cmmercial basis in husing and develpment schemes in the City Deal area. The 100m allcatin is a new venture fr Lancashire Pensin Fund. Cmbined, the City Deal Infrastructure Delivery Prgramme and Investment Fund will act as a catalyst fr cmmercial and husing develpment and will leverage 2.3 billin f cmmercial investment thrugh the cnstructin f up t 17,420 net new hmes and the delivery f nearly 1 millin m 2 f new cmmercial flr space. Imprtantly, these benefits will begin t be delivered immediately the City Deal is agreed. By 2015, Prestn and Lancashire expect t have built 1,206 huses, with a further 1,200 under cnstructin, and created ver 1,500 jbs, as a result f the certainty generated by the City Deal framewrk. The City Deal Infrastructure Delivery Prgramme is funded thrugh pled lcal and natinal resurces. Department fr Transprt (DfT), whse funding includes the Lcal Majr scheme and the Hmes and Cmmunities Agency (HCA) will invest thrugh the lcal retentin f value uplift frm land sales. Lcal partners have cmmitted investment via New Hmes Bnus (NHB), Business Rates (NNDR), land receipts Page 4

6 and mainstream capital prgrammes, and the Private Sectr will invest in the City Deal thrugh Cmmunity Infrastructure Levy (CIL) and additinal value capture mechanisms. Natinal Gvernment resurces will be aligned and invested in line with the phasing f the Infrastructure Delivery Prgramme, and will be the key t unlcking cnstrained private sectr investment t deliver ecnmic grwth which the private sectr and lcal authrities wuld be unable t achieve alne. Key elements f the City Deal City Deal Stewardship Bard The City Deal Stewardship Bard will be respnsible fr guiding the dispsal f HCA assets in the City Deal area. The City Deal funding mdel is underpinned by a staged repayment f the base value f HCA sale receipts t Department fr Cmmunities and Lcal Gvernment (DCLG) ver the City Deal perid as the sales arise, with the additinal value f up t 37m being retained in the City Deal area. In the event that a business case fr waiving the claw back and verage n the 'land nrth f Eastway' is nt apprved by HM Treasury, DCLG will cmmit t recnsider the HCA asset uplift cap. The City Deal Stewardship Bard will set pririties and ensure alignment with wider City Deal ecnmic and husing grwth bjectives. This wuld be set ut in a Business and Dispsal Plan and agreed with the HCA's Natinal Bard annually. Once agreed, the delivery f the Business Plan and dispsals wuld be delegated t the HCA's Operating Area Directr. The annual Business and Dispsal Plan wuld be supprted by an annual Infrastructure Delivery Plan which will set ut csts, timescales and key milestnes fr each element f the Infrastructure Delivery Prgramme. The City Deal Stewardship Bard will be chaired by the HCA's Executive Directr fr the Nrth West, with membership including the three lcal authrity Chief Executives and the LEP s private sectr Bard Champin fr Strategic Develpment. The membership f the City Deal Stewardship Bard culd be enhanced by the additin f ther key partners critical t the delivery f the Bard s agreed Business and Dispsal Plan. The City Deal Stewardship Bard will prvide the strategic directin fr the dispsal and r develpment f lcal partners assets in line with the PCD ecnmic and husing grwth strategy. A Lcal Partner Asset List will frm part f the Stewardship Bard Agreement with the remval r additin f assets requiring Stewardship Bard apprval. Assets will include: Bluebell Way Serviced cleared site in wnership f the Cunty Cuncil earmarked fr emplyment use and immediately adjacent t HCA sites in Nrth East Prestn. Dependent upn the develpment rute this culd generate a receipt fr inclusin in the Prestn, Suth Ribble and Lancashire City Deal. Cuerden Green field land in wnership f the Cunty Cuncil in prime lcatin at intersectin f M65/M61/M6. Site is recgnised in Cre Strategy as key emplyment site and extensive develpment n part f the site likely t cme frward in Dependent upn the develpment rute this culd generate a receipt fr inclusin in the Prestn, Suth Ribble and Lancashire City Deal. Lancashire Business Park LBP (part f) LBP is in the wnership f the Cunty Cuncil with cmpletin f in excess f 300,000 square feet f new industrial space due fr cmpletin autumn The part f the site t be included in the lcal partner asset list is earmarked fr redevelpment in Dependent upn the develpment rute this culd generate a receipt fr inclusin in the Prestn, Suth Ribble and Lancashire City Deal. Page 5

7 Prestn Central Assets As the cmmercial and administrative centre f Lancashire and the City Deal area a buyant Prestn City Centre is vital. Prestn City Cuncil has a significant land hlding in the centre f Prestn and the delivery f a mixed leisure and cmmercial develpment scheme in this area is a pririty fr the lcal PCD partners. The Stewardship Bard will cnsider develpment prpsals and prvide strategic directin t ensure that the delivery is in line with the husing and ecnmic grwth bjectives f the City Deal. Cmmercial appraisals suggest, subject t develpment mechanisms, that capital receipts frm asset sales will be required t ffset develpment csts and assist with viability. The Stewardship Bard will review and endrse develpment mechanisms as prpsals cme frward A 10 -year Lcal Majr Transprt Allcatin DfT has already annunced a fur year indicative allcatin fr its Lcal Majr Transprt resurces fr Lancashire. The City Deal will prvide a ten year allcatin fr Lancashire, with a 6-year cmmitted allcatin and a fur year indicative allcatin. Transprt fr Lancashire (TfL), n which DfT has bserver status, will versee the allcatin f these resurces n deliverable schemes which generate maximum ecnmic benefit t the Cunty. At its meetings n 30 th May and 1 st July, TfL endrsed an Assurance Framewrk, which includes Lancashire's Transprt Scheme Pririty List and cnfirmed its supprt fr a ten year Lcal Majr Transprt Scheme allcatin as part f the City Deal prpsal and specifically the critical highway infrastructure included in the prpsal. 9 The City Deal Infrastructure Delivery Prgramme and Investment Fund sets ut a requirement fr an allcatin f 72m tward the delivery f the key highway schemes. Any allcatin will be subject t TfL fully discharging its respnsibilities with regard t independent scheme analysis, and agreeing a pririty schemes schedule within an ver-arching assurance framewrk. A New Junctin n M55 (Near Bartle) A critical City Deal infrastructure element is the prvisin f a Junctin n the M55, near Bartle, which the HA has always anticipated may be required shuld ecnmic grwth prpsals materialise. The HA, the lcal highway authrity and the lcal authrities are all in agreement that nw is the time t advance this prpsal t unlck the develpment. A cllabrative apprach t the delivery f the new junctin is in place between the HA and Lancashire Cunty Cuncil in rder t quickly prgress t an agreed prcurement strategy and delivery mechanism. The City Deal Infrastructure Delivery Prgramme The City Deal Infrastructure Delivery Prgramme will deliver the critical infrastructure required t enable the full develpment f significant husing and cmmercial develpment schemes. This includes fur majr new rads, a Mtrway Junctin, the preparatry wrks fr a New Ribble Crssing Bridge and the necessary lcal cmmunity infrastructure, such as new schls, health facilities, pen spaces and district centre imprvements required t supprt the scale f such ambitius develpment. City Deal lcal authrity partners and the private sectr are fully cmmitted t delivering the City Deal Infrastructure Delivery Prgramme, with significant levels f resurces t be deplyed by lcal authrity partners in managing and delivering the City Deal. At its peak, the 334m Infrastructure Delivery Prgramme requires cash-flw supprt f circa 107m during the ten year perid. The nly lcal rganisatin with the capacity and financial standing t prvide this cash-flw supprt is Lancashire Cunty Cuncil, which is an AA2 rated entity. 9 TfL cmprises membership f the Chair and Vice-Chair f the LEP and the three lcal transprt authrities f Lancashire Cunty Cuncil, Blackburn with Darwen Cuncil and Blackpl Cuncil. Page 6

8 The City Deal Investment Fund The Lancashire Pensin Fund's agreement t allcate 100m fr investment in cmmercial schemes in the City Deal area is a cre City Deal Offer. The Lancashire Pensin Fund Cmmittee has agreed t apprve a new Lcal Allcatin f 150m fr Lancashire (apprximately 3% f the 5bn fund) t be funded thrugh a re-allcatin f existing glbal equity allcatin. 10 This allcatin is targeted at the acquisitin f real incme generating assets in Lancashire, with a target f 100m within the City Deal area and 50m acrss the rest f Lancashire. Fllwing agreement f the mandate as a result f this deal, an OJEU ntice fr the Fund's management will be placed. Discussins have already taken place regarding a number f ptential cmmercial investment schemes int which the Fund culd invest its City Deal Lcal Investment Allcatin, and the appinted fund manager will begin t assess specific pprtunities in the first quarter f Key deliverables As a result f City Deal the fllwing key prjects will be delivered: The Prestn, Suth Ribble and Lancashire City Deal will deliver the critical infrastructure required t enable the full develpment f significant husing and cmmercial develpment schemes. This includes fur majr new rads, a mtrway junctin, and the necessary lcal cmmunity infrastructure required t supprt the scale f such ambitius develpment. The fur majr rad schemes are: Prestn Western Distributr (PWD): A new PWD will link the A583/A584 t the mtrway netwrk via a new junctin n the M55. This rad will imprve access t the Wartn site f the Lancashire EZ, the Springfields nuclear fuel facility at Salwick and enable the cmprehensive develpment f the Nrth West Prestn strategic husing lcatin which will accmmdate ver 4,000 new hmes. Scheme csts f 109.5m. Suth Ribble Western Distributr (SRWD): An enhanced SRWD will duble vehicle capacity between Prestn City Centre and the mtrway netwrk, at the pint at which the M65, M6 and M61 cnnect. This enhancement will enable full develpment f, and access t, Cuerden strategic emplyment site and the adjacent Lancashire Business Park. In additin the rad will unlck husing sites t create ver 2,700 hmes. Scheme csts: 52.5m. Brughtn Cngestin Relief: A new Brughtn Bypass will prvide critical relief t the A6, Nrth East Prestn and the M6. This new rad will unlck husing sites t create ver 1,400 new hmes, as well as enabling full develpment f new and future emplyment sites in East Prestn creating ver 5,000 new jbs. Scheme csts: 23.9m Penwrtham Bypass: A new sectin f rad will cmplete the Penwrtham Bypass, cmplementing SRWD capacity imprvements and cnnecting the netwrk t Ringway. The cmpleted bypass will significantly imprve access between lcal and mtrway netwrks, reducing cngestin in Prestn City Centre thrugh by-passing f City Centre rutes. In additin it will enable future husing pprtunities t cme frward beynd It will als define the rute f the new bridge crssing f the River Ribble linking with the PWD. Scheme csts: 17.5m. 10 Agreed at the meeting f the Pensin Fund Cmmittee n 22 nd March Page 7

9 Gvernance Established in April 2011, the LEP is the partnership vehicle f chice t secure the private sectr leadership and leverage needed t deliver strategic ecnmic change in Lancashire. It is within this cntext that partners agree the LEP shuld be respnsible fr the gvernance and delivery f the City Deal. The City Deal has the capacity and desire t becme a natinal exemplar, in terms f establishing a cmpany-led/cntractual mdel f City Deal gvernance. The City Deal als demnstrates, in an area characterised by tw-tier lcal gvernment arrangements, strng and inclusive crss-party civic leadership can be successfully cmbined with dynamic private sectr drive t deliver ecnmic and husing grwth utcmes f natinal significance. Since its inceptin, the LEP has been established as a cmpany limited by guarantee, which is whlly-wned by the Cunty Cuncil, but with a clear majrity f private sectr directrs. The LEP's Chairman and Vice- Chairman are als drawn frm the private sectr. As a cmpany in its wn right, the LEP's gvernance arrangements prvide rbust legal structures t guide and versee the delivery f agreed pririties and utcmes. It is the private sectr leadership f the LEP, which has helped test and champin the develpment f this prpsal. As majr emplyers and representatives f many SME cmpanies, LEP Bard members have cnfirmed the business lgic and benefits f develping a City Deal prpsal with a clear fcus n delivering key infrastructure and develpment pririties in Prestn. The details f hw the LEP gvernance mdel will deliver the city deal are set ut belw. Page 8

10 Annex 1: Summary f Cmmitments Prestn, Suth Ribble and Lancashire cmmitments Manage and implement a 334m Infrastructure Delivery Prgramme, underpinned by lcal and central gvernment funding and asset streams and private sectr cntributins, with apprpriate risk mitigatin and mnitring in place t invest in the prjects listed belw T cntribute 211m f lcal resurces ver 10 years cmmencing in 2014/15 tward the Infrastructure Delivery Prgramme Launch a City Deal Investment Fund by June 2014, cnsisting f a 100m new lcal investment allcatin frm the Lancashire Pensin Fund, which will be deplyed n a cmmercial basis in supprt f key husing and cmmercial schemes in the CD area Allcate 72m f lcal majr transprt scheme funding tward the delivery f the key highway schemes listed T include the fllwing assets within the Stewardship Bard: Bluebell Way Cuerden Part f the Lancashire Business Park Prestn Central Assets T pl the receipts f the abve lcal assets int the Infrastructure Delivery Prgramme. These receipts will be used if needed t cver any shrtfall fr investments planned under the city deal, fr example if infrastructure csts shuld be higher, r revenues lwer, than expected. Any excess revenues will be invested in infrastructure r develpment in the area, as determined by the Stewardship Bard The land receipt frm the Lstck Hall Land, and lcal share f the clawback / verage n the Mss Side Test Track site will als be included in the Infrastructure Delivery Prgramme T repay HCA the bk value f assets as at 30 March 2013 (valued at 50.76m) placed by the HCA in the Stewardship Bard in accrdance with the annual Business and Dispsal Plan. The HCA will receive receipts equivalent t the bk value f the assets 12 mnths after the sale f the HCA wned asset Central Gvernment cmmitments Cnfirm 10-year Lcal Majr Transprt Scheme allcatin, starting in 2015/16, by July 2013; cmmitted fr the first 6 years (with the prfile t be determined in the Autumn) and indicative fr the fllwing 4 years T supprt a cllabrative apprach t the delivery f a new Junctin n the M55 (near Bartle), including the identificatin f the preferred prcurement and implementatin prcesses t achieve an pening year f 2019/20 r befre T establish a Stewardship Bard, under which assets belnging t the HCA and lcal partners are sld fr inclusin within the Infrastructure Delivery Prgramme. The Bard is t agree the first crrespnding Business and Dispsal Plan by March 2014, and annually thereafter with the HCA Natinal Bard T include the fllwing HCA assets within the Stewardship Bard: Cttam Hall Eastway Prestn East Emplyment Area Cttam Brickwrks Pickerings Farm Crstn Rad Suth Crstn Rad Nrth Altcar Lane Brindle Rad Waltn Park Link Rad (Crss Brugh Link Rad) Whittingham Hspital T transfer int the Infrastructure Delivery Prgramme the prceeds frm the sale f assets placed in the Stewardship Bard, with the current bk value f 50.76m prvided as lan, and allwing the Infrastructure Delivery Prgramme t retain any uplift in HCA land values ver and abve this, up t a maximum f 37m (subject t the next clause). The prceeds and uplift will be released n cnditin f Prestn and Lancashire s cmmitments being met DCLG will supprt the waiving f claw back and verage n "land nrth f Eastway" and with the HCA will develp a business case t d this. In the event that the business case is nt apprved by HMT, DCLG will cmmit t Page 9

11 T grant the necessary planning cnsents, in line with planning plicy, and cmmit t ensuring delivery f the fllwing husing units within the City Deal area: 2014/15: /16: /17: 1, /18: 1, /19: 1, /20: 1, /21: 2, /22: 2, /23: 2, /24: 1,571 recnsider the HCA asset uplift cap. Given the interdependency f lcal and natinal funding streams, the cnsequences f Gvernment plicy changes will be cnsidered especially with regard t the retentin f business rates funding mdel. If the cnsequences materially undermine the viability f the Infrastructure Delivery Prgramme the City Deal lcal partners and Gvernment agree t review the City Deal T deliver the fllwing infrastructure within the City Deal area: Prestn Western Distributr Suth Ribble Western Distributr Brughtn Bypass Penwrtham Bypass New Junctin n M55 (Near Bartle) Lcal cmmunity infrastructure T prvide frm internal reserves cash-flw supprt f up t 107m in any ne financial year during the 10-year city deal perid T prvide a cmmitment t meeting husing need beynd the 10 year deal perid. Agree gvernance arrangements fr the City Deal, the Infrastructure Delivery Prgramme, the City Deal Investment Fund and the Stewardship Bard by March 2014 Given the interdependency f lcal and natinal funding streams, the cnsequences f Gvernment plicy changes will be cnsidered especially with regard t the retentin f business rates funding mdel. If the cnsequences materially undermine the viability f the Infrastructure Delivery Prgramme the City Deal lcal partners and Gvernment agree t review the City Deal. The LEP, as spnsr f the City Deal, will wrk with City Deal partners t ensure that changes t City Deal funding streams annunced in the 2013 Spending Review, particularly in relatin t NHB and Integrated Transprt Blck, d nt impact negatively n the City Deal. Page 10