Agenda item
Update on Progress for Aviva Studios
Report of the Deputy Chief Executive and the Strategic Director (Growth and Development).
This report provides an update on the delivery of Aviva Studios – home of Factory International, including completion of the construction programme and working with Factory International on the ongoing management and performance of the venue.
Minutes:
The committee considered a report of the Deputy Chief Executive and the Strategic Director (Growth and Development) which provided an update on the delivery of Aviva Studios – home of Factory International – including completion of the construction programme and the ongoing management and performance of the venue.
Key points and themes within the report included:
- Providing an introduction and background to the works;
- The social value plan and delivery of this, including results against key performance indicators (KPIs);
- The restructure of loan arrangements between the Council and Allied London to provide for repayment of the Council investment into the development of the Riverside site over a longer period of time alongside further income generation opportunities to support the budget and operation of Aviva Studios;
- An update on the capital budget for the project;
- Progress with construction as the project moved into a 12-month ‘making good defects’ period;
- Key contractual arrangements in place or intended to be in place to support the operation of Aviva Studios; and
- The recent programme of events.
Some of the key points and queries that arose from the committee’s discussion included:
- Why the performance and business plan of Aviva Studies would be reported to Economy and Regeneration Scrutiny Committee as opposed to this committee;
- The financial risk to the Council as a result of the outstanding loan to secure the Riverside site;
- The naming rights of Aviva Studios;
- Income generated since the opening;
- Noting issues with transport links to the venue, particularly from the North of the city; and
- How Aviva Studios engaged with schools and children through social value work;
The Director of Capital Programmes introduced the report and stated that the construction of the project was a significant milestone achieved since the last update to the committee and that work was currently ongoing to resolve initial snagging and defects, which he stated was normal in any construction project. He highlighted the social value benefits of the work and stated that fundraising had been positive to date and would continue. Members were advised that, although not finished, officers remained confident that the project would be within the revised budget. He stated that the Council continued to be represented on Factory International’s board and that future reporting on the organisation’s performance and the business plan would be to Economy and Regeneration Scrutiny Committee.
The Deputy Leader stated that the opening of Aviva Studios had a big impact on Manchester and would attract national investment. He acknowledged that there would be lessons learned from the project but emphasised that the scale of the project should not be underestimated as this was unique to the country and had been recognised internationally.
In response to members’ concern regarding future reporting to Economy and Regeneration Scrutiny Committee, as opposed to this committee, the Deputy Leader explained that this was because Aviva Studios fell under the remit of culture, which was reported to Economy and Regeneration Scrutiny Committee, but it was agreed that a report would be provided to this committee on the business plan and contractual arrangements.
The Director of City Centre Growth and Infrastructure explained that the restructured loan arrangements related to land and the intention was to ensure that Factory International operated in an area providing a high-quality public realm and which contributed to the wider offer in St Johns.
The City Treasurer stated that the naming rights to Aviva Studios were worth approximately £14m to the Council, which would be used to repay the borrowing taken to fund the build. The naming rights were also worth £14m to Factory International, which would be used to operate the building and to fulfil the organisation’s artistic and charitable endeavours. It was also stated that Factory International had received £9.8m in funding from the Arts Council and that all other revenue was generated from events.
The committee was informed of the work of Factory Academy, which worked with children and young people in hard-to-reach areas. It was also stated that Factory International undertook outreach work with schools and businesses.
Decision:
- To note the report.
- To request that the business plan for Aviva Studios be submitted to the committee with a report on the loan restructuring arrangements.
- To request that a table of all financial figures relating to the project be provided to the committee.
Supporting documents: