Ilex wants its lifeline extended

Ilex’s wish to implement the plan is one of a number of revelations contained in a new audit of the transfer of six MoD sites to the NI Government in 2003.

The report also reveals the proceeds from the sale of the Magherafelt barracks to the North Eastern Education and Library Board (NEELB) in February 2010 for £1.2 million, less £250,000 for site remediation costs - should have been pumped into Ebrington but it is not clear this was achieved as the money was surrendered to the Consolidated Fund during 2010-11.

The report also says it is not clear lessons were learned from the successful Laganside Development Corporation when the Office of First Minister and Deputy First Minister (OFMDFM) made the decision to set aside recommendations of the Partnership and Regeneration Panel and set up Ilex in the first place.

In reference to the projected lifespan of Ilex the Northern Ireland Audit Office (NIAO) report says OFMDFM is awaiting the outcome of a 2014 follow-up review before taking a view on the company’s continuation.

But the auditors - who point out that a high turnover of senior officials at the Londonderry regeneration company has hampered progress since its establishment in 2003 - believe that “given the progress on regenerating the Ebrington site, the opening of the Peace Bridge and the City’s success in its “City of Culture” bid in 2013; that efforts are at a critical stage and it is important that the continuity and confidence of the local community and private sector is maintained.”

The report indicates Ilex’s own view by adding: “The Board of Ilex feels that its continued oversight is important for the implementation of the new regeneration plan ‘One City, One Plan, One Voice’ for the next 10 years.”

Elsewhere, the report says continuity of senior officials is important as high turnover can represent a serious threat to the success of projects.

“It is particularly evident in the formative years of Ilex Urban Regeneration Company Ltd., which experienced a high turnover of senior officials; this is recognised as having had a significant impact on regenerating the Ebrington site,” the report states.

It is also critical of OFMDFM spending less than half the £85m allocated to it for the six regeneration sites since 2003.

Up until March 2011 £12.9m had been spent on the Ebrington and Fort George sites, which was the second largest expenditure after Maze/Long Kesh.

The auditors say there is a risk that underspending could result in both the private sector and the community losing confidence in regeneration projects.

It reports: “This risk is evident in the Ebrington site where, after eight years from the transfer of the site, a plan for the development of the site is now underway.

“In 2008 Ilex engaged consultants (at a cost of £75,000) to undertake an economic appraisal to identify the optimum delivery strategy for the Ebrington site.

“The consultants also completed a market analysis and after weighing up a range of options identified the transfer of the land into a Joint Venture company, with a private sector partner, as the preferred option.

“This appraisal was submitted to OFMDFM in March 2009 for consideration and approval but in March 2010, Ilex re-submitted a revised Strategic Outline Case to OFMDFM setting out its proposals for the Ebrington site.”

The auditors say Ilex decided to secure outline planning approval through a Development Framework and believes there is a growing private sector interest in the Ebrington site and that it intends to put the Development Framework to market in 2012.

But the report is critical of “faltering” on the part of the local regeneration company and says this has affected the development of Ebrington.

“The suspension in 2009 of the original Regeneration Plan launched in 2005 and the faltering of the strategic outline case aimed at identifying the optimum delivery strategy for the Ebrington site, has impacted on the regeneration of the site.

“Ilex told us that progress at the site was impaired until such time as the Regeneration Plan and outputs from an Equality Impact Assessment were known.

“It added that, in the current economic climate, to inspire confidence in either the public or private sector, there is a need to provide direction and certainty of outcome to market-based investors.

“We welcome this acknowledgement. However, it highlights how important it is if the market is to plan for investment in the site, for both OFMDFM and Ilex to ensure that development plan documents, outlining the key development goals of the development framework supporting the delivery strategy for the Ebrington site are finalised; and implementation plans put in place and published without delay,” the report states.

Other key recommendations contained in the report are that OFMDFM ensures delivery strategies for the Maze/Long Kesh, Ebrington and Crumlin Road Gaol sites are finalised and implementation plans put in place as quickly as possible to enable the private sector to plan for investment; that appropriate Gateway reviews are completed on its major capital projects at Ebrington and the Crumlin Road Gaol sites; and that the momentum of the Peace Bridge project continues to maintain the profile of the Ebrington site.

The report recommends: “Given the progress on regenerating the Ebrington site and the City’s success in its city of culture bid in 2013, the efforts are at a critical stage and it is important that continuity and the confidence of the local community and private sector is maintained.”