Agenda item

            The Committee considered the undernoted report:

“1.         Relevant Background Information

1.1       Lagan Gateway Project

            Members will be aware that in 2006 an offer of £1million funding was made available to Council by Ulster Garden Villages Limited (UGV) towards the reopening of the Lagan gateway Lock 1 at Stranmillis, on the basis that match funding would be available.

1.2       Ulster Garden Villages initially supported the Council by providing funding of £50,000 from the £1 million offer, to establish the Lagan Corridor Officer post within the Development Department.

1.3       A letter has been received from UGV to establish BelfastCity Council’s intention to proceed with its proposal to develop the Lagan Corridor.  The letter highlighted the decision of the Board of UGV to reallocate the £1m funding to other projects in Northern Ireland unless the Council was in a position to confirm the scale of its contribution to the project by 31 March 2011.

1.4       Members will be aware that at the February 2011 Development Committee it was recommended that The Director of Development meets with Mr Tony Hopkins Chair of Ulster Garden Villages and Mr Erskine Holmes Board Director, to discuss the future of the £1million offer towards the development of the Lagan gateway Lock 1 at Stranmillis.  The Director was seeking an extension to the time period granted by UGV, which would allow consideration of the prioritisation of the overall project.  A meeting was held on 16 March 2011.

1.5       Lagan Canal Restoration Trust

            In November 2006 Members approved the establishment of the LaganCanal Restoration Trust and in 2008 the core funding bodies appointed a manager whose remit was to set up the Trust.

1.6       The Trust currently represents the following core funding bodies including; Belfast City Council, Lisburn City Council, Castlereagh Borough Council, Craigavon Borough Council, DCAL and Northern Ireland Environment Agency (NIEA).  Other Trust stakeholders include; DSD, Inland Waterways Association of Ireland (IWAI), Countryside Access and Activities Network (CAAN), Ulster Waterways Group (UWG) , Lagan Valley Regional Park and a number of public stakeholders.

1.7       In August 2009 Development Committee committed funding to the Trust until March 2011 and the Chair and Deputy Chair of the Development Committee were appointed as Belfast City Council representatives on the Trust Board.  The Board is a not for profit company limited by guarantee with charitable status.

1.8       Over the previous three year period Council has contributed core funding of £50,500 to the Trust.  The Trust is now seeking the same level of funding from Council for the next three year period from 2011/12-2013/14.

1.9       With the exception of NIEA all of the key funders have committed to fund the Trust for the next three years; Lisburn City Council £112,200, DCAL £56,100, Craigavon Borough Council £22,500, and Castlereagh £11,200. 

1.10     A number of key impact reports are currently being undertaken by the Trust, namely, a Business Case and Funding Strategy from Belfast to Lough Neagh and Strategic Environmental Assessment (SEA) of the Lagan Corridor from Belfast to Lough Neagh.  These reports are considered fundamental to the possible future capital development of the project and should be completed over the 2011 period.

2.         Key Issues

            Lagan Gateway Project

2.1       The Director of Development met with UGV in March 2011 to discuss the future of the £1million offer towards the development of the Lagan Gateway Lock 1 at Stranmillis.

2.2       The Director updated the UGV on the current uncertainties surrounding the project due to the upcoming Council election, the fact that the project was not included within the current Capital Programme and the projects to be funded from the City Investment Fund had yet to be finalised.

2.3       The Director highlighted the fact that there were numerous projects competing for these limited funds and that any bid for funding of the navigation of the Lagan would have to be considered within that context.

2.4       An economic appraisal presented to the Committee in September 2009 identified that the ‘preferred option’ was the development of the Lagan Waterway from the Lagan Weir to Edenderry at a cost of £8.66m. The next best option was the development of a gateway at Stranmillis incorporating the re?opening of the lock with an estimated cost of £3.26m. The UGV offer of £1m is specifically towards the re-opening of the lock.

2.5       The Chair of UGV acknowledged the fact that other potential funders had confirmed that match funding was highly unlikely to be made available in the short to medium term and that the funding of these relatively ambitious projects from Council resources represented a significant challenge. He did however emphasize that his Board would still be keen to see some progress and suggested that if a more modest project was to be presented by Belfast City Council which

            would allow the lock to re-open the UGV board may consider 50% funding towards the project. It is estimated that such a project is likely to cost somewhere in the region of £500K.

2.6       The Chair of UGV stated that he would be prepared to go back to his board to seek an extension of the deadline for the allocation of monies subject to BCC indicating that it was prepared to consider options and that any decision would be taken within a reasonable timescale (e.g. 6 months) as there were many demands on the Trust funds. He further made the point that if the monies were to be re-allocated it was unlikely that it would transfer to another project in Belfast.

2.7       It is clear that no other funding is like to be available form any other source outside of the Council and UGV. In order for the project to proceed it would have to be considered within either the Council’s Capital Programme or the City Investment Fund. The Strategic Policy & Resources Committee would therefore have to consider the merits of funding the various options from either of these funding streams. 

            The Lagan Canal Restoration Trust

            The Lagan Canal Restoration Trust is seeking funding of £50,500 from Council for the three year period from 2011/12-2013/14.  Funding commitments have been agreed with other core funders.

3.         Resource Implications

3.1       As highlighted above the ‘preferred option’ as set out in the September 2009 was a Lagan Navigation project from the Lagan Weir to Edenderry at a cost of £8,660,949.  The ‘next best’ option was the development of the Lock 1 Stranmillis Gateway with an estimated cost of £3,261,860.

3.2       The lesser alternative of opening the lock only is estimated to cost around £500K. This smaller scale project which would need to be scoped and fully costed before it could be considered by Council. It is estimated that this would cost somewhere in the region of £5000.

3.3       The Lagan Canal Restoration Trust is seeking funding of £50,500 from Council for the three year period from 2011/12-2013/14.  The cost to Council for one year is £16,800 and is included within the current 2011/2012 budget

4.         Equality and Good Relations Considerations

4.1       No adverse impact on Section 75 groupings. 

5.         Recommendations

5.1       It is recommended that Members note the content of the report and agree that a further report is submitted to the Strategic Policy and Resources Committee to allow the project to be considered for inclusion within either the City Investment Fund or the Capital Programme.

5.2       Members agree to the allocation of £5,000 to re-scope and cost the potential opening of Lock 1 at Stranmillis only should the Strategic Policy and Resources Committee agree to consider this option.

5.3       Members agree a one year extension of funding for the LaganCanal Restoration Trust until March 2012. Following this period, a review of future funding for this organisation is undertaken in light of the economic climate, future prioritisation by Council, potential external funding and partner commitment. The cost to Council is £16,800 and is included within the current 2011/2012 budget.”

            The Committee adopted the recommendations.