Building construction work

Tender description

As part of the Knowsley Metropolitan Borough Council’s (the ‘Council’) ‘Strategy for Knowsley 2016-2020’, the Council has committed to delivering a new retail offering in Kirkby town centre in order to regenerate the area. The Council has identified a number of sites in the town centre area, that it wishes to purchase in order to achieve its regeneration objective. The sites are currently owned by St Modwen Developments (Kirkby 2) Ltd (‘St Modwen’). It is a condition of sale of the Site that the Council enter into a development management agreement with St Modwen under which St Modwen will design and build a retail development and manage the leasing of that development. The value shown in the section below is the current estimated value but may vary upwards or downwards. The Council is acquiring further land interests in Kirkby Town Centre to facilitate regeneration. These are Kirkby Town Centre, on land north of Cherryfield Drive, Kirkby; the Shopping Centre known as St Chads Parade; and a bare development site known as land to the south of Cherryfield Drive which together comprise the ‘Sites’. All Sites are in Kirkby Town Centre. The Sites are currently owned freehold and long leasehold by St Modwen who have agreed to sell the Sites to the Council conditional on the Council entering into the Development Management Agreement (‘DMA’) with St Modwen. Under the terms of the DMA, St Modwen will be responsible for the redevelopment of Kirkby Town Centre. This will include an obligation to procure, manage, monitor and supervise the design, construction and completion of a new retail development to be anchored by a Morrisons supermarket and more particularly defined under St Modwen’s planning consent authorising the erection of a mixed use development comprising a foodstore and non-food retail shops (Use Class A1) food and drink uses (Use Classes A3/A5), petrol filling station, car parking, landscaping, highways improvements and other associated works (including 3 electricity substations) on land bound by Norwich Way, Hall Lane, County Road and Irlam Drive, and the construction of a car park with ancillary works on land off Cherryfield Drive and Cherryfield Crescent dated 9.11.2017 and issued 20.11.2017 and referenced 17/00559/FUL). St Modwen as current owner of the Sites is in the process of concluding prelets with 3 tenants, conditional on construction of the relevant units. Under the DMA St Modwen are also to be responsible for managing the leases of un-let space in the new retail development. The DMA also includes St Modwen carrying out car park works on the land to the South of Cherryfield Drive. St Modwen intend to let the design and construction of the development to a main contractor. St Modwen shall also appoint letting agents. All design consultants have already been selected by St Modwen and/or the main contractor and they are also concluding the terms of a JCT contract to design and construct the development with GMI Construction Group plc (‘GMI’). Under the terms of the DMA, St Modwen will be obliged to procure collateral warranties (containing step in rights) in favour of the Council from the key design consultants, employer's agent and GMI. It is the intention to start works covered by the DMA in December 2019.