Construction work

Tender description

This voluntary ex-parte transparency notice (VEAT) relates to arrangements governed by a proposed grant funding agreement (GFA) and agreement for lease (AFL) between Warrington Borough Council and Warrington Youth Club Ltd (Company number 04905398; Charity number 11011086) (‘the Charity’) and OnSide Youth Zones (CRN 6591785, Charity No 1125893) relating to the funding of a Youth Zone facility in Warrington. This VEAT has been issued on the basis that such arrangements fall outside the remit of Directive 2014/24/EC for the reasons set out under section II.2.4)and Annex D1 of this notice. This VEAT relates to arrangements intended to be covered by an Agreement for Lease (AFL) and a Grant Funding Agreement (GFA) to be made between the Council (WBC) and Warrington Youth Club Ltd (Company number 04905398; Charity number 11011086) (Charity). The AFL and GFA relate to the construction of a Youth Zone facility (Facility) in respect of land currently owned by WBC at Dallam Lane, Warrington, Cheshire (Site). OnSide Youth Zones (company number 6591785m charity number 1125893) (OnSide) are a party to the AFL, as agent for the Charity. The Charity proposes to enter into a construction contract with a contractor to build the Facility. The AFL grants the Charity an option to build the facility and acquire a lease. If the Charity exercises the option, the AFL will permit the Charity to enter the site, to construct the facility via their appointed contractor. The local planning authority have issued planning permission for the works under planning consent reference 2018/32167. If the Charity commence the works the AFL requires the Charity to comply with planning laws but otherwise does not permit WBC to specify details of the works. Following practical completion (PC) of the facility pursuant to the AFL, the facility will be leased by WBC to the Charity from PC to 21 July 2140 at a peppercorn rent on terms that limit use to a not for profits basis for the purposes of a charity formed for the provision of facilities for children and young people in the Borough of Warrington and surrounding areas providing a universal activity based service complemented by a range of targeted support services to help and educate them by promoting their full physical, intellectual and social potential (Use). The lease will be a full repairing and insuring lease, will limit uses to the use. The Charity will be solely responsible for running costs. The lease will contain step-in rights for OnSide should the Charity fail to operate the facility. The estimated construction cost of the facility is GBP 6 960 000. The GFA will be entered into at the same time as the AFL. If the Charity choose to commence the works under the AFL, the GFA obliges WBC to supply a grant to the Charity of GBP 3 479 000. This grant is to be applied towards construction costs and professional costs in respect of the facility. The GFA does not oblige WBC to contribute to ongoing running costs and limits WBC’s total financial contribution to GBP 3 479 000. The balance of the construction costs is provided by Onside, on behalf of the Charity, by a combination of pledges and funds procured by OnSide.