Costs and Funding
How much will the project cost?
The total cost is estimated to be £52.7 million (as at third quarter 2006 prices).
The project’s partners have made clear that there will be no or negligible additional cost to the taxpayer as a result of this development. The building is designed to reduce running costs and to eliminate the unaffordable maintenance costs that the partners’ existing estates carry. Costs will be met from existing budgets and efficiency savings generated by the project.
An independent review of the Waveney Campus project by the Office of Government Commerce (OGC) has confirmed that it offers value for money for the taxpayer, that it was affordable for all three partners and that it has a sound business case.
Who is funding the Waveney Campus?
Cefas is the largest partner in the project and its space accounts for around 53% of the project cost. Waveney District Council accounts for 27% and Suffolk County Council 20% of the cost.
The project will be funded through loans, grants and savings made through sharing services. There will be no or negligible increases in council taxes to finance the project. The running costs of the Campus (including loan repayments and interest) will be funded from existing running cost budgets.
Who currently owns the land?
Waveney District Council, EEDA and other landowners including a coach business, a concrete batching plant and two unoccupied sites.
What will happen to the businesses currently on the site?
For the project to go ahead it will be necessary to relocate some existing businesses, which employ around 60 staff. Waveney District Council is helping the existing businesses to relocate to suitable premises. The affected businesses have been offered land elsewhere and compensation so that they do not need to leave the area or go out of business.
A compulsory purchase order (CPO) has been issued, which includes five plots of land in Riverside Road, comprising nine businesses and 31,900m².
What is a compulsory purchase order (CPO)?
A CPO allows land or property to be bought by a local authority without the consent of the owner where the local authority thinks that development or redevelopment will contribute to the economic, social or environmental wellbeing of the authority’s area. CPOs are a legal framework which provide support to aquiring authorities who will always seek to negotiate an agreed settlement.
Why is there a public inquiry and what has been decided?
A public inquiry began in April 2007 at the Hotel Victoria, Kirkely Cliff, Lowestoft, because there have been objections to the CPO by people with a legal interest in the land (i.e. leaseholders and freeholders). It is the objections that triggered a public inquiry.
GO-East (the Government Office for the East of England) decided to hold and is responsible for organising the public inquiry. The case reference number is E1/T3535/03/02/03 - CPO at Riverside Road, Waveney District Council.
An independent inspector appointed by the Planning Inspectorate has heard the partners' cases. The inquiry was adjourned and then came to an end in October 2007. The objections were withdrawn so now a recommendation will be made, by the inspector, to the Secretary of State for Communities and Local Government on whether the CPO should be confirmed.
When is a decision expected and what would the consequences for the project be?
The Secretary of State's decision is expected within 3–4 months of the end of the public inquiry (January 2008). If the CPO is confirmed, Waveney District Council will then be able to take possession of the land. The council will liaise with the businesses concerned to minimise disruption.
If the Campus does not go forward all of the partners will have to reconsider their business plans. This would have considerable implications for Cefas as the Waveney Campus site has been identified as the only viable site within Lowestoft for the organisation. It is not viable for Cefas to maintain its existing accommodation.