Decision ref
0067 2023/24
Decision date
08/01/2024
Portfolio
Regeneration & Planning
Wards
Town Centre
Title
To enter into a Grant Funding Agreement for SINA Medical Glass - Glass Futures 2
Summary
This decision seeks approval to enter into a grant funding agreement with SINA Medical Glass Limited to fund £5,500,000 from the Department for Levelling Up, Housing and Communities (DLUHC) to support SINA Medical Glass - Glass Futures 2 Project in the St Helens Town Deal programme, which has been approved by Cabinet in the Capital programme FMR3 report 22 February 2023.
Purpose
The purpose of this report is to seek approval to enter into a grant funding agreement to release £5,500,000 of funding from DLUHC monies received to support SINA Medical Glass Limited and enable the delivery of their project in the St Helens Town Deal, in accordance with the payment schedule (schedule 2) set out in the attached grant funding agreement.
Background
In December 2021 the Council received the Town Deal grant offer letter from the Department of Levelling Up, Homes and Communities (DLUHC). This led to the preparation of business cases for the initial 6 (Tranche 1) Town Deal projects which were approved for submission to DLUHC by the Town Deal Board on 17 June 2022 and by Cabinet on 13 July 2022 (this has been attached as a supporting document). The business cases were submitted to DHLUC on 5 August 2022.
The significant news for St Helens was that the Town Deal grant funding for these initial projects was awarded and received by the Council in January 2023. This represents an investment of £20.75 m which will allow delivery against our Town Investment Plan priorities with respect to the following Tranche 1 projects:
Glass Futures Phase 2 - SINA Medical Glass, Cannington Shaw Bottle Shop number 7, Town Centre Living and Regeneration, Heritage World - The World of Glass, Connected Places and Digital Infrastructure.
Agreement is sought to enter into a grant funding agreement for the release of £5,500,000 to enable the delivery of the Glass Futures Phase 2 - SINA Medical Glass Project.
SINA Medical Glass Limited is a new vial manufacturing business established in St Helens to manufacture borosilicate glass vials in the former JK Phillips warehouse owned by St Helens Council. Phase 1 starts in February 2024 and includes the refurbishment of the building and the installation of clean rooms and 8 vial manufacturing machines. SINA Medical will enter into a 15-year lease and has already become a member of Glass Futures to innovate in medical glass manufacturing. The location is within the emerging LCR Life Science Investment Zone. Phase 2 includes the planning and installation of a new furnace for the manufacture of borosilicate tubing for vials. The overall investment is c£90m.
Conclusion
Agreement is sought to enter into a grant funding agreement to release £5,500,000, in accordance with the payment schedule, to enable the delivery of SINA Medical Glass - Glass Futures 2 Project, which has previously been approved by Cabinet in the Capital programme FMR3 report 22 February 2023 (included at paragraph 6.3.2 of Appendix 1). This report has been attached as a supporting document.
Risk Implications
The project will require planning permission to deliver its proposals, which has been submitted for consideration.
As with other capital projects cost pressures associated with inflation and availability of materials. This will be mitigated through the project management in place and provision of a suitable contingency within the project.
A full risk assessment has been undertaken for the project and the results are reflected in the project's Full Business Case.
Risk management is an essential element of ongoing review and project management and is included within the Project Highlight Reports that are reported to the Town Deal Board. Risks are mitigated thorough regular contact with Project Leads and Assurance Meetings.
Measures to Redress Risk
Pre planning and consultation with planning officers has taken place to navigate any perceived issues prior to the submission of the planning application.
Declarations Of Interest
None
Equality Impact Assessment
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More information
Please contact Robert Gatensbury on 01744 676149
