Will the Cabinet Member for 
Culture give a progress report on the Downham Lifestyles Project, in
particular relating to (a) the expected date that a contract will
finally be completed, (b) when building work will commence, (c) the
expected opening  times for the different parts of the Project to
the public, (d) any further information or meetings that is planned to
update local residents.

Negotiations continue with the preferred bidder to reach commercial and
financial close on the proposed contract which involves a private
finance initiative (pfi). As was reported at the Council meeting in
June the aim has been to close the deal by the end of September. In
orded to secure financial close and ensure that the Project remains
affordable to the Authority and Health partners it has been necessary
to clarify the funding implications in the light of the bidder’s
current price and changes to the pfi credit arrangement.
The original price bid has been affected over the past year by
inflationary increases in the build cost, increases in the market
interest rates and some changes in the project design. At the same time
the Treasury has applied reductions in the PFI credit rate that means
that the Authority will not receive as much special grant and will not
be earning as much interest on its cash balances as originally assumed.

Having received the preferred bidder’s new price and taking account of
the funding now available from the DCMS as pfy credits it has been
identified that a funding gap has emerged compared to what has
previously been budgeted be the Authority and the Health partners. In
the light of this information the DCMS has been approached with a
request for additional pfi credits to bridge the Authority’s funding
gap. This application for more credits is being considered by Ministers
and a reply is expected by the end of September.
Subjet to the outcome of the aplication, the Authority and Health
partners will then need to consider what action it may need to take in
completing the negotiations with the preferred bidder.

As officers are unlikely to know the outcome of the pfi credit
application till late September there will be a delay while the
financial implications are assessed, and work done to obtain the formal
allocation on pfi credits.

It is therefore estimated that the earliest a contract could be awarded
is the end of October with the main building works for the Lifestyles
Centre and the Park starting in November.
Opening of the new Park is planned in two stages with the west section
adjacent to the former Downham depot opening in the summer of 2005 and
the east section with the new pavillion opening in the early Autumn
2005. The Lifestyles Centre is programmed to be completed in the summer
of 2006.

In terms of the release of information to the public a newsletter was
issued to Downham residents in August indicating progress on the
project and referring to the previous delay to the project. Further
newsletters will be issued as the position as described above becomes
clearer and the project moves forward.
It is not anticipated that there will be any public meetings until the
bidder has been appointed as contractor and information can be imparted
about the build programme.

                                                                                                        

QUICK ANALISYS

They don’t have the funds to go on with the works. They don’t have a contract ready as they can’t match the price.
The Treasury put a limit on the borrowing and now they asked the
Treasury to be allowed to borrow more so that they can go on with the
works.
They plan to make some sort of park area around it in the mean time.
Anything else is speculation as nobody can actually say if and when works will start.