APPENDIX 8
Memorandum submitted by The Magna Project
PROJECT OUTLINE
1. Magna is a self-sustaining interactive learning
centre and visitor attraction, which merges entertainment and
education. It is located in the former Templeborough Steelworks
in Rotherham, an impressive building 400 metres long and nine
stories high. Using the making and application of steel as its
focus, Magna is themed around the four natural elements of earth,
air, fire and water and shows how human ingenuity has combined
them in design, manufacture and art. Its method is to create interactive
exhibitions where learning will be fun and back these up with
education services, events, retail, catering and conference facilities
to meet the needs of tourists, families, schools and businesses.
The project comprises:
— 1.1 site preparation, including
demolition of redundant structures, land reclamation, new access
road, car parking and security fencing.
— 1.2 construction of four new
exhibition pavilions and associated exhibits, including two major
audio-visual shows.
— 1.3 development of visitor reception
centre incorporating ticketing, catering, and retail facilities.
— 1.4 development of associated
education facilities (including provision for the adjacent Blackburn
Meadows Nature Reserve), and an Enterprise Centre that aims to
maximise the impact of Magna on the regeneration of the local
economy.
2. The grant from the Millennium Commission
of £18.6 million has been received by the Magna Trust Ltd
(the Trust) which is a registered charity and company limited
by guarantee. The Trust is procuring the building works and exhibition
by engaging contractors and consultants under a construction management
arrangement. The Trust will run the attraction when it opens in
April 2001.
3. Magna marks the year 2000 and the beginning
of the third Millennium with its creation of a new kind of learning
centre that both supports the National Curriculum and also facilitates
informal learning. Magna blends leisure and education in a challenging
but accessible environment that provides outstanding opportunities
for lifelong learning. Its focus on science, technology and industry
pays homage to two millennia of industry on the Magna site, but
more importantly will provide visitors with opportunities to explore
accessible technologies and learn new skills. In addition, the
Enterprise Centre will help to equip the local workforce with
skills appropriate for employment in the 21st Century, whilst
overall Magna will supply chain opportunities that will assist
in the regeneration of the local economy.
THE ROLE
OF THE
MILLENNIUM COMMISSION
4. The speed with which grant claims are
administered (ie paid) is very helpful. It allows us to plan our
cash-flow with a degree of certainty, thereby avoiding unnecessary
interest charges. On occasions, where there have been queries,
we have been able to discuss and resolve issues by telephone and
fax to minimise delay.
The appointment of an external monitor has worked
well, serving as a good sounding-board opportunity to arrive at
best practice. Monthly meetings have proved a useful discipline
in maintaining sufficient momentum and addressing issues as they
arise. We have also benefited from the Commission's ability to
bring experience from other projects to Magna.
The one negative aspect of dealing with the
Commission has been the amount of time, effort and expense devoted
to contractual matters with both professional and construction
firms. The various prescribed forms of contract have involved
too many man-hours of essentially unproductive effort which has
intermittently also caused ill-feeling within the team and considerable
extra costs. This effort seems to have been duplicated by many
projects.
PROJECT BUDGET
5. When the project was conceived, the original
project cost was calculated at £49.5 million. Following receipt
of the award by the Commission this was reviewed and subsequently
reduced to £37.2 million.
6. The grant awarded by the Commission was
£18.6 million being 50 per cent of the revised total project
cost. No further grants have been made.
7. The latest forecast cost of completion
remains at £37.2 million. In addition to the Millennium Commission,
grants and contributions in kind have been received from ERDF
(£8.9 million), English Partnerships (£5.6 million),
private sector companies (£4.0m) and the local authority
(£0.1 million). To add to this it is hoped to raise additional
funding from the Commission and others to improve the project.
Such funding would be used to enhance the exhibition and develop
additional income generating business opportunities on the site.
8. As noted above the original project cost
was estimated at £49.5 million and subsequently engineered
down to £37.2 million. Whilst there have been changes to
the elements of the budget as the building has progressed the
total remains the same. If we succeed in raising additional funding
as noted above the budget will increase accordingly.
PROJECT TIMETABLE
9. The forecast timetable at the time of
the Commission grant was completion by April 2000. However this
was amended with the approval of the Commission as noted below.
10. The current timetable is for completion
of the building and exhibition fit out by 31 December 2000, giving
15 weeks for commissioning, testing and training. The proposed
opening date is 12 April 2001.
11. Following delays in the acquisition
of the land and in raising the balance of the required funding
it was recognised that the April 2000 completion date was not
tenable and with the approval of all parties it was put back by
12 months.
LONG-TERM
VIABILITY
12. The prospects for the long term viability
of Magna are excellent. It has many advantages including:
12.1 The innovative design of the exhibition;
12.2 The dramatic setting in a massive former
steelworks;
12.3 Its location half a mile from the M1
with a resident population of 5 million within one hour (18 million
within two hours);
12.4 A highly respected and experienced management
team which has experience of running other successful visitor
attractions (eg Eureka, Dynamic Earth);
12.5 A building that has great potential
for profitable business development—eg up to 4,000 square
metres of corporate event space;
12.6 A robust business plan with a modest
visitor target.
Magna will succeed because in addition to the
above it has the dedication of its staff and the enthusiastic
support of its funders, the local authority and the regional media.
It will succeed despite some ill-informed and deliberately misleading
comments on Lottery funded projects by the national media.
We would urge the Committee to give its full
support to all such projects to help ensure their success.
June 2000
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