APPENDIX 16
Memorandum submitted by Manchester City
Council
Thank you for your letter dated 18th April.
The following memorandum is a response to your questions that
we have answered consecutively for ease of reference.
PROJECT OUTLINE
1. An outline of the project for which the
grant has been received.
The project is the "Manchester Millennium
Quarter".
The Millennium Quarter is an area of Manchester
which has enormous untapped potential for cultural and recreational
development. The new cultural quarter will bring significant benefit
to the people of Manchester and the wider region, creating new
public spaces and a major new exhibition in a landmark building
which adds richness and diversity to the city core.
The four key elements of the Millennium Quarter
are:
— Urbis, an exhibition which explores
people's experience of the Modern City;
— a new City Park with major green
space and soft landscaping;
— Exchange Square, a new civic public
space; and
— a visitor centre for Manchester Cathedral.
2. The Nature of the Organisation in receipt
of the grant and that organisation's role in the project
Manchester City Council is a local government
organisation as constituted under the Local Government Act 1972
Section 2(3). The Special Projects Office, Chief Executive's Department,
is responsible for delivery of the Millennium Quarter.
3. The way in which the project marks the
year 2000 and the beginning of the third Millennium
The Millennium Quarter covers the very part
of Manchester where the City began, on the high ground at the
confluence of the Rivers Irwell and Irk. Over time the focus of
the City has moved away from the rivers and the Cathedral, but
now, with funding of over £20 million from the Millennium
Commission, and with additional funding from ERDF, DETR, Manchester
City Council and other sources the Quarter is set to re-establish
its position of importance within the City.
It is particularly appropriate that this renaissance
should happen at the beginning of the new Millennium, as a crowning
jewel to the extensive regeneration of the City Centre, following
the IRA bomb in 1996. The creation of the Millennium Quarter is
a clear indication to the people of Manchester and its visitors
that quality of life in the modern city is now regarded as equally
important to its commercial success. The creation of City Park
in particular is in direct response to local people's wish for
more green open space in the City Centre.
THE ROLE
OF THE
MILLENNIUM COMMISSION
4. An outline of your views as grant recipients
on the effectiveness of administration and project monitoring
by the Millennium Commission.
The Millennium Commission Case Officers have
been extremely efficient and supportive in their approach to delivery
of this project and have often been of practical assistance in
view of their experience with similar projects around the country.
The Project Monitor appointed by the Millennium Commission has
always administered and monitored the detail of the project in
a thorough manner. Comprehensive information on all elements of
the project, its progress on the ground and continued financial
viability is required regularly for the Commission's appraisal.
Initially these very detailed requirements appeared to be unnecessarily
demanding. This approach has, however, proved highly effective
in enabling both the Commission and ourselves to identify and
work together to resolve any potential problems at an early stage.
PROJECT BUDGET
5. The proposed budget for the project at
the time of the original grant application and at the time of
the grant award by the Millennium Commission
The proposed budget for the project at the time
of the original grant application, at detailed appraisal stage,
and at the time of the grant was £41,374,000.
6. The amount of the grant originally awarded
by the Millennium Commission and of any subsequent supplementary
grants by the Commission.
The amount of the grant originally awarded by
the Millennium Commission was £20,090,000. No subsequent
supplementary grants have been awarded by the Commission.
7. The most recent estimate of the total
budget for the project and an outline of non-Millennium Commission
sources of funding for the project.
The current baseline estimate of the total budget
for the project remains at £41,374,000. Non-Millennium Commission
sources of funding for the project are as follows:
— Manchester City Council—£4,800,000
— Private sector—£520,000
8. An explanation of any changes to the project
budget over time
The overall project budget has not changed.
PROJECT TIMETABLE
9. The forecast timetable for the project
at the time of the grant award by the Millennium Commission.
The forecast timetable for the project at the
time of the original grant application, at detailed appraisal
stage, was as follows:
— Exchange Square—completion
29th October 1999
— City Park—completion
31st October 2000
— Cathedral Visitor Centre—completion
31st July 2000
— Urbis—completion 31st
October 2000
10. The current estimated timetable for completion
of the project or details of completion as appropriate.
The current baseline estimated timetable for
completion of the project is as follows:
— Exchange Square—completed
15th November 1999
— City Park—Phase 1 completion
December 2000; Phase 2 completion October 2001; Opening December
2001
— Cathedral Visitor Centre—completion
31st October 2001
— Urbis—completion 21st
December 2001
11. An explanation of any changes in the
project timetable over time
— Exchange Square—completed
on programme and opened November 1999.
— City Park—Rephased to
complete as overall Millennium Quarter completed.
— Cathedral Visitor Centre—Rephased
to complete as overall Quarter completed. Development agreements
with the Chapter took longer than expected to complete.
— Urbis—Original programme
underestimated uniqueness of building design and complexity of
exhibition design integration. Additionally, pressure to keep
Urbis on budget has led to reassessment of programme.
LONG-TERM
VIABILITY
12. An assessment of the current prospects
for the long-term viability of the project
We remain confident about the long-term viability
of Urbis and the Cathedral Visitor Centre based on business cases
that reflect a balance of commercial and quality of visitor experience.
Manchester City Council remains committed to the ongoing revenue
implications of the operations.
June 2000
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