Report of the Deputy Chief Executive and City Treasurer and the Strategic Director (Development).

This report provides an update on the delivery of Aviva Studios including progress with the construction programme; the evolution of Factory International; the success of the recent MIF23 festival; and the conclusion of the naming rights agreement with Aviva for Aviva Studios.

The committee considered a report of the Deputy Chief Executive and City Treasurer and the Strategic Director (Development) which provided an update on the delivery of Aviva Studios including progress with the construction programme; the evolution of Factory International; the success of the recent MIF23 festival; and the conclusion of the naming rights agreement with Aviva for Aviva Studios.

Key points and themes within the report included:

·         Providing an introduction to the project;

·         The benefits already being felt by the works;

·         The social value provided by The Factory Academy and Factory Futures;

·         The social value created through the construction works;

·         Progress and key performance indicators;

·         The position of the project at July 2023;

·         The fundraising strategy;

·         That the naming rights had been awarded to Aviva and would be called Aviva Studios; and

·         Contractual arrangements.

Key points and queries that arose from the committee’s discussions included:

·         Why the most recent report to the Committee in October 2022 was not listed within the background documents;

·         Reiterating a previous request that any future requests for increased funding include a breakdown of all funding increases over the project’s lifespan;

·         Whether any costs were charged to architects as a result of design challenges;

·         If delays due to water damage caused by inclement weather could have been avoided;

·         Noting the importance of engaging with local businesses, particularly small enterprises, and querying how this would be undertaken; and

·         Welcoming the community and social value work. 

The Statutory Deputy Leader introduced the item and stated that the delivery of Aviva Studios had brought in more than £106m of new money into Manchester and would result in an additional £1.1bn in the economy over a period of time. It would also create over 1500 jobs and would serve as a catalyst for investment into the cultural sector. He highlighted that Lonely Planet had named Manchester one of the top 30 destinations to visit and Time Out named The Factory as one of the best things to visit in 2023. He stated that positive feedback had been received from residents and the cultural sector.

The Deputy Chief Executive and City Treasurer apologised for the most recent report not being included in the list of background documents and explained that this had been done in error. She also committed to providing a full history of the funding increase within the final account at a future meeting, to which members requested this be provided sooner.

In response to a query regarding design challenges, the Director of Capital Programmes explained that two design architect firms had been commissioned to ensure the acoustic capacity and fire safety of the building. He stated that the cost of this had been borne by the Council and that this was necessary to ensure the integrity of the building.

The Director of Capital Programmes explained that inclement weather also described the cold snap experienced at the beginning of the year, which led to water damage as a result of condensation. He stated that discussions were ongoing regarding the management of works as part of the commercial considerations.

The Director of City Centre Growth and Infrastructure provided assurances that the development would have a positive impact on local businesses and the Council would engage with these as Aviva Studios became embedded within the city. She also highlighted that twelve food and beverage venues were planned for St John’s to support the area. 

The Deputy Chief Executive and City Treasurer also wished to place on record the Council’s excitement to work and partner with Aviva on this project.

Decision:

That the committee

1.    notes the report, and

2.    endorses the recommendations being made to the Executive.