APPENDIX 11
Memorandum submitted by EMIH Limited
THE DEEP MILLENNIUM PROJECT, KINGSTON UPON
HULL
PROJECT OUTLINE
The Deep Millennium Project is a £40m World
Ocean Discovery Centre incorporating a visitor attraction, learning
centre, research facility and associated business centre complex.
This landmark project will be situated at Sammy's Point, a spectacular
brownfield site in the heart of Hull's extensive waterfront and
at the confluence of the River Hull and Humber Estuary. The project
is due to open in 2001.
The recipient of the grant, EMIH Limited, is
a joint venture company established by the project's partners
(Kingston upon Hull City Council and the University of Hull) to
establish, and then subsequently operate, the project. EMIH Ltd
is a registered charity.
The project will be a major strategic infrastructure
investment of international significance. Our vision is "to
pioneer a new sustainable relationship with the oceans through
education, entertainment and science". The project reflects
and promotes the vision of Kingston upon Hull as a "dynamic
European Maritime City" and its marketing aspirations as
a "Top Ten, pioneering City".
THE ROLE
OF THE
MILLENNIUM COMMISSION
Having bid for Millennium Commission funding
in July 1997 and being notified of our success in November that
year, it was not until April 1999 that all the legal agreements
were in place between the Millennium Commission and ourselves—this
negotiation stage was very difficult, time-consuming, drawn-out
and not particularly conclusive.
During the implementation stage since April
1999, our relationship with the Millennium Commission has been
very good: they have been helpful, solution-focussed, flexible
and prompt in their release of grant drawdowns. The Millennium
Commission's reporting requirements, whilst very prescriptive
and time-consuming, have proved a good discipline to follow and
is the format we have adopted for our reporting to all other funding
organisations.
PROJECT BUDGET
At the pre-bidding stage of the application
process, the proposed budget for our project was £31.6 million
(at November 1996 prices). At the Detailed Appraisal Review stage
of the application process, the proposed budget increased to £34.3
million at July 1997 prices (being an estimated £38.9 million
at outturn prices). During negotiations with the Millennium Commission,
this reduced to £37.2 million at outturn prices.
Against our £37.2 million budget, the Millennium
Commission awarded a grant of £18.5 million. No further applications
have been made to the Millennium Commission for further grant
assistance.
The current budget for the project is £39.4
million, funded as follows:
— Millennium Commission—£18.5
million
— European Regional Development Fund
(ERDF)—£7.2 million
— Single Regeneration Budget Challenge
Funding—£3.8 milion
— Yorkshire Forward Regional Development
Agency—£2.8 million
— Kingston-upon-Hull City Council and
the University of Hull Project Partners—£5.8 million
— Other/Private—£1.3 million
Over the course of the last two years, the project
has been completely redesigned so that it is more aspirational
and iconic—in accommodating this, the project budget has
had to increase by £2.2 million over this period (ie from
£37.2 million to £39.4 million).
PROJECT TIMETABLE
At the time of grant award by the Millennium
Commission, the project was expected to open in April 2001.
Current programming information indicates that
the Business Centre element of the project will open in February
2001, with the visitor attraction element opening in October 2001.
The delay in the opening date is basically due
to the time needed to undertake the project redesign and the subsequent
requirement for value engineering and tender reviews/negotiations
to enable the more ambitious project to be delivered within the
available project budget.
LONG-TERM
VIABILITY
As we have seen from a series of new attractions
that have opened recently, it is difficult to determine precise
visitation levels.
In support of our application for Millennium
Commission funding, Coopers & Lybrand (now part of PricewaterhouseCoopers)
carried out a market assessment of likely visitor levels to The
Deep, indicating that around 380,000 visitors per annum should
be achievable. Despite now planning to deliver a more ambitious
project, in its most recent business planning EMIH Limited has
taken a more prudent view of visitor numbers—The Deep is
now forecast to be able to operate at a breakeven figure of 180,000
visitors per annum.
May 2000
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