Farnworth Town Centre Development Scheme

Concepts

• bolton
• building construction
• bolton council
• farnworth town centre development scheme
• planned regeneration development
• developer
• practical completion of the development
• farnworth town centre
• respect of the proposed farnworth town centre development scheme
• option agreement

Location

Greater Manchester:

Description

The contracting authority is not awarding a contract. This is a 30 day VEAT Notice in respect of the proposed Farnworth Town Centre Development Scheme, due to commence on or around 3 July 2023. Bolton Council intends to enter into an Option Agreement, with an annexed Buy Back Option and a Price and Overage Deed with Capital and Centric Cocoon Ltd. C&C for the planned regeneration development at Farnworth Town Centre.

Total Quantity or Scope

The scheme is publicly funded through an agreed funding strategy comprising a combination of grant and loan financing from Bolton Council, Future High Street Funds, Brownfield funds, and lending from Greater Manchester Combined Authority ("GMCA"). Bolton Council intends to enter into an Option Agreement, with an annexed Buy Back Option and a Price & Overage Deed with Capital & Centric (Cocoon) Ltd. ("C&C") for the planned regeneration development at Farnworth Town Centre. The Option Agreement places an obligation on Bolton Council to sell the land at Farnworth Town Centre to C&C should C&C exercise the option. Should C&C exercise the option to buy the land, it can as the developer, develop the land in accordance with planning permission (subject to permitted variations) if it chooses to, but is not required to do so. Bolton Council can exercise the Buy Back Option if; i. The funding agreement with GMCA is not entered into in line with the agreed funding strategy; and/or ii. A forward purchase agreement is not entered into in line with the agreed funding strategy; and/or iii. There is, broadly, an insolvency event in relation to C&C; and/or iv. Practical completion of the development is not reached within a certain timeframe. The Price & Overage Deed allows for deferred consideration payable for the property to Bolton Council shortly after practical completion which will be secured by way of a charge.

Award Detail

CPV Codes

• 45210000 - Building construction work

Legal Justification

Bolton Council considers that the contract with C&C for the regeneration development at Farnworth Town Centre falls outside the scope of Public Contract Regulations 2015 ("PCR 2015") as it is not a public works contract. The site at Farnworth Town Centre has been fully vacant for twelve months and provides an opportunity for land disposal and development to regenerate the area. The development will include a varied mix of residential units and commercial units. Whilst Bolton Council has set certain requirements in relation to any development that takes place, C&C is not required to develop the land at all. In any event, if C&C does develop the land, certain variations are permissible to the requirements.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** Contract Award Value: The total value of the Farnworth Town Centre development is £28.2m Contract Award Date: It is expected that the contract award date will be 3 July 2023.