Archived decisions

Contact: Chris Williams, ext 6720 email: [email protected]

1. Summary

1.1 The Country Towns Initiative (CTI) programme aims to improve the attractiveness of small towns by carrying out environmental enhancements, improving highway safety and making their centres more economically and socially active.

1.2 The project is a partnership venture with New Forest District Council and Hythe and Dibden Parish Council. The project appraisal for the improvement scheme for Hythe Promenade was approved on 15 October 2003. Since then costs have increased and, following receipt of tenders by New Forest District Council, a budget shortfall has been identified.

2. Proposed Scheme

2.1 The area comprises a public highway with adjoining amenity space owned and managed by New Forest District Council. Seating, planting, brick planters and surfacing in the area are uninviting and in a poor state of repair. The Promenade is essentially a pedestrian and vehicular cul-de-sac and this relative inaccessibility from the town centre and the Pier is a key factor in its under-use. Overlooking the internationally important wildlife and commercial waters of the Solent, it offers opportunities not only as the springboard for a new link to the Pier but also as an amenity for visitors and residents.

2.2 The project is identified in the Hythe Waterfront Supplementary Planning Guidance 1997 of the adopted New Forest District Local Plan. A community planning event was subsequently held in 1999 with the district and parish councils, the local community and the Civic Trust Regeneration Unit. This identified the Promenade as a major, under-used resource, the improvement of which is of vital interest to the local community.

2.3 Proposed works include:

(i) removal of outworn, brick plant beds;

(ii) creation of better walking surfaces;

(iii) formation of a pedestrian boardwalk;

(iv) creation of a stepped amphitheatre for outdoor events;

(v) additional disabled parking;

(vi) improved seating, lighting and landscape planting; and

(vii) speed reduction features and wildlife identification boards.

2.4 The boardwalk would be designed for full disabled access and would be capable of being linked at a future date to the Pier/interchange area by a possible footpath or bridge as part of any proposals for the latter. The northern jetty doubles as a possible stage for events in the adjoining amphitheatre.

2.5 Following the previous project appraisal the scheme has been extended to include resurfacing and car parking bays on the approach road to the Promenade from St John's Road. This was included following subsequent approval of highways maintenance funding for 2004/05.

2.6 The Promenade is part of an integrated package comprising the Pier with its ferry terminal and the bus and taxi facilities which constitute the public transport interchange. The future development of the Promenade as an attraction - in particular the possible footpath link to the interchange from the Promenade, from the town to the south - could contribute significantly to the future of the Pier and interchange. Plans are being prepared for major improvements to the bus and passenger waiting facilities and the taxi ranks as part of Hythe's `Gateway to the New Forest National Park' strategy embodied in the Local Transport Plan 2 post-2006.

3. Financial Position

3.1 Tenders received by New Forest District Council have come in higher than anticipated. They reveal the full scheme cost, including fees, costs and 10% works contingencies, at an estimated £873,000, representing an overall funding shortfall of an estimated £235,000.

3.2 This is accounted for partly by the extension of the scheme and partly due to unforeseen costs. The former include the additional approach roadworks, the redesign work needed to incorporate the recent provisions of the Disability Discrimination Act, increased district council staff costs related to the extension of the scheme, and consultants' fees necessitated by district council staff changes. Higher than expected tender costs are more difficult to analyse, due to the wide spread of the bids and the complex commercial decisions which underlie the prices within the tenders. However, possible causes include the many non-standard items in the design, the perceived difficulties of working over and adjoining tidal water and the availability of civil engineering work in the region.

3.3 In response to the shortfall Hythe and District Parish Council has increased its contribution to £18,500. New Forest District Council has informally indicated it is willing to contribute an additional £50,000, making its total contribution £277,500. Taking this into account the funding for the scheme would be increased to £688,000 but there would still be a shortfall of approximately £185,000 to complete the full scheme.

3.4 A financial summary is as follows:

£'000s

Funding

New Forest District Council 227.5

New Forest District Council - additional offer 50

Hythe and Dibden Parish Council - revised offer 18.5

CTI 268

Coastal Budget 24

Highways Special Maintenance 100

Total 688

Costs

Lowest Works Tender 664

10% Contingency Sum on Works Costs 67

Fees, Costs, etc to date 84

Estimated Future Fees and Outgoings 58

Total 873

Funding Shortfall 185

4. Way Forward

4.1 In view of the already high level of financial commitment to the scheme, it is necessary to review its design and identify a new funding package. It is not possible to continue with the scheme as it stands.

Redesign the Scheme

4.2 Preliminary studies indicate the scheme may be redesigned to reduce costs whilst retaining the key elements of the scheme - specifically the boardwalk and the events amphitheatre - achieving high standards of design for these key elements and maintaining overall value for money. This could be achieved by simplifying the design and surfacing of the car park and central area, reducing the extent of hard surfacing and incorporating a central, grass amenity space.

4.3 If the scheme were to be redesigned in this way, a further project appraisal would need to be approved and further detailed design and contract preparation work required before retendering. There would be an additional cost in undertaking this. Given the extent of the changes, it would be necessary to consult again with the local community, in particular the Parish Council and residents most directly affected. It would also be necessary to amend the planning consent, traffic orders and other consents which have been negotiated for the scheme. It is considered that there is scope for a revised scheme to achieve the main objectives of the project and allow for subsequent upgrading at a future date if required.

4.4 Based on current prices from the two lowest tender bids (not allowing for further inflation) an estimated saving of £103,000 to £123,000 might be achieved, leaving an estimated shortfall of £62,000 to £82,000, which would need to be funded from other sources.

4.5 The boardwalk is capable of being constructed in phases - with the two jettied platforms and a central walkway as optional components - or of being omitted entirely. This would allow a reduction in costs to bring the scheme within budget, with the option of completion at a future date. All partners, however, wish to see the boardwalk wholly or substantially retained at the outset and this option is not proposed for the time being.

Achieving Additional Funding

4.6 Further investigations have been made into the following potential funding sources:

(i) Heritage Lottery Fund;

(ii) Dibden Allotment Charity; and

(iii) highways developer contributions.

4.7 An earlier bid to the Heritage Lottery Fund was unsuccessful and subsequent advice confirms that position has not changed.

4.8 A bid for grant aid of up to £100,000 has been lodged with the Dibden Allotment Charity on behalf of the County Council by the local Member. This charitable trust assists with schemes for the support of the "working poor" in the Waterside, using the interest on monies held from the sale of what was previously allotment land.

4.9 There may be the possibility of utilising developer contributions, however this will depend on the details of agreements and priorities for which they were identified.

5. Conclusion

5.1 The scheme is important to the future development of Hythe and to the strategic future of the Pier. It cannot proceed in its present form without further funding. It is proposed, therefore, that the scheme is revised to reduce costs, that the further funding opportunities set out above are investigated and, subject to the availability of funding, a revised project appraisal is brought forward for decision.

5.2 Current tenders remain valid until 10 September 2004. Notwithstanding that the three lowest tenderers have indicated a willingness to extend this period until 10 October. The extent of the proposed revisions would require the revised scheme to go back out to tender.

5.3 A revised scheme would require further public consultation, new traffic orders and revised planning, legal and marine consents. All these will inevitably result in delay with the risk of additional costs. Obviously, the longer the delay, the greater the risk of increased costs due to inflation, fees, etc, and the risk to the funding package of the partners remaining intact.

5.4 In the event of the scheme not proceeding, remedial works will be required for health and safety reasons to the brick structures, surfacing and sea wall structure which are the responsibility of New Forest District Council. The condition of the carriageway surface is such that resurfacing by the County Council will be required within the next two years.

8863A/CW