Treasury and Resources
Ministerial/Treasurer’s Decision Report
Allocation of fiscal stimulus funding to the cheapside urban renewal project
1. Purpose of Report
The detailed cost estimate and analysis, together with the programme have now been submitted by the Transport and Technical Services department (“TTS”) and has been subject to review by the Fiscal Stimulus Steering Group (the “Steering Group”) to ensure that the Fiscal Stimulus criteria are met. This paper summarises the resulting recommendation.
2. Background
A number of urban renewal schemes have been undertaken as joint initiatives of the Transport and Technical Services and Planning and Environment departments together with the Parish of St Helier. However, due to funding constraints there are a number of projects which cannot be completed as part of that programme.
The regeneration of the Cheapside area is one of those schemes, and the project is designed to provide pedestrian, traffic and environmental improvements to Cheapside and the surrounding area, including pedestrian improvements at New St Johns Road. The scheme also creates the opportunity to add value to the West Park - Cheapside resurfacing project which has also been funded with fiscal stimulus monies. The final phase of that resurfacing scheme is intended to be completed once the Cheapside urban renewal project has been substantially delivered.
3. Scheme details
The scheme does not necessitate the tendering of a main contract and to ensure that the whole scheme can be delivered with a lower contribution from the fiscal stimulus fund, TTS will oversee the on site work and allocate some of its own labour at nil cost. The benefits to the Jersey economy will arise through spend on materials, equipment hire and specialist subcontract elements of the project. Additional sources of funding of c. £230k have been identified so there is expected to be a multiplier effect on the fiscal stimulus fund contribution of around 50%.
The project’s design will be finalised following the outcome of a public consultation, which is the first phase of the project once the funding has been committed. The project meets the timely criteria of fiscal stimulus schemes because it will be substantially complete by the end of the year, and provide benefit in 2010 to businesses throughout the supply chain for construction work, and to the people employed in that area.
4. Recommendation from the Fiscal Stimulus Steering Group
The Steering Group recommends that the Minister for Treasury and Resources allocates funding of £400,000 to TTS for the Cheapside Urban Renewal project and approves the transfer of that amount to a new capital head of expenditure.
5. Reason for Decision
A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The project meets the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £400,000 allocation to the project will enable the civil infrastructure project group to deliver the scheme in accordance with the critical path.
6. Resource Implications
No financial resource implications other than those explained above.
No manpower resource implications.