London Bridge Quarter Section 106 Project Board Performance report January 2012

The London Bridge Quarter Section 106 Board has been established to review and steer the design and implementation of a package of £32.2m of section 106 benefits associated with the construction of the Shard of Glass. The board meets quarterly to review the progress of a number of working groups which are striving to deliver the benefits associated with the section 106 legal agreement.

The board includes: Cllr Fiona Colley, Cabinet Member for Regeneration & Corporate Strategy, James Sellar, Director, Sellar Property Group PROJECT 1 London Bridge Interchange £25m Millions of pounds are being invested in the transformation of the railway – bus station interchange at London Bridge station to create a 21st Century interchange. The works include a new bus station re-orientated on an east-west axis, a new train station concourse, a new plaza with public art and new connections to the London Underground. Project management: A high level steering group is chaired by the Managing Director of Transport for London and attended by LBS, Network Rail, TfL, and Sellar. A project working group and wider interchange working group are chaired by TfL officers and attended by LBS, Network Rail, TfL, and Sellar, and MACE. Milestone Baseline date Latest update Bus station enabling works start on site Mar 11 Complete Bus station canopy removed Apr 11 Complete Bus station foundations complete July 11 Complete Bus station re-location works May 12 To start December 12 Bus station operational handover to TfL May 12 Ongoing Train concourse ticket barriers and paving complete May 12 Ongoing Train concourse roof complete May 12 90% complete Plaza works complete May 12 Design stage London Underground connection complete May 12 Design stage Public art works complete May 12 Design stage Thameslink London Bridge 2012 works complete May 12 Issue for board Legible London signage installed May 12 Design stage

Project update: • New high quality paving, ticket barriers and a glass roof are under construction within the train

station and will transform the arrival space • Possession of the bus station to commence mid December 2012 for works to re-locate the bus

station from its existing location to orientate east west adjacent to the Place • Signage proposals were presented to LBS and TFL end November 2012 – included a bespoke

London Bridge Quarter branding system and 3 Legible London signs • The new interchange is on programme to complete by May 2012 PROJECT 2 St Thomas Street – Guys Hospital £2.2m The regeneration of St Thomas Street provides a vital front door for the Shard of Glass facing south, and seeks to create a strong connection and desire line from London Bridge Quarter to connect south to the residential hinterland and adjacent health and education campuses. Project management: A high level steering group comprises LBS, Guys, TfL, and Sellar. A project working group is joint chaired by Sellar-LBS and attended by LBS, Guys, Kings College, TfL, and Sellar

Project update • Design complete, 278 orders complete with TfL, and at legal stage with LBS – legal document to

include clauses to ensure Sellar manage and maintain the rising bollard and highway • Contractor has been procured and works start on site mid December • Footbridge removal has been planned and communication strategy in place

Milestone Baseline date Latest update St Thomas Street design consultation July 11 Complete Design approval Aug 11 – Feb 12 Complete S278 signed with TFL and LBS Nov 11 Ongoing with LBS Joiner Street pedestrianisation order complete Sept 11 Design stage Contractor appointed Nov 11 Complete Works start on site Dec 11 Complete Olympics embargo 29 June - 4 Sept 12 Note Joiner Street works complete June 12 Lead in period Great Maze pond works complete June 12 Lead in period St Thomas Street works complete Dec 12 Lead in period Guys Hospital project works commence (£4.5m) May 09 Ongoing Guys Hospital works complete May 12 St Thomas Street footbridge removed 27 Dec 11 Planned works Escalator and disabled lift commissioned May 12 Design stage

New entrance and lobby project delivered by Guys using Shard S106 funds

PROJECT 3 Shard Southwark Vocational Programme £5m Proposals to release the training and employment elements of S106 to invest in the Shard Southwark Vocational Programme were agreed by the Council’s planning committee in November 2010, and development of the programme is managed by the Council’s ED&SP division and guided by a steering group comprising Sellar, Southwark, and Southwark College. The majority of the funds for this programme will be paid upon occupation of the Shard in late 2012. To date £1.5m has been received and the following projects have commenced Milestone Baseline date Latest update Joint S106 Project Board set up Sept 10 Complete Planning committee approve programme Nov 10 Complete Training Southwark college service level agreement complete Dec 10 Complete Southwark college project commissioned Dec 10 Complete Southwark college works complete June 11 Complete Opportunities Relationships established with future tenants / suppliers Jan 11 Work in progress Presentation to Shangri-La team at Southwark College Oct 11 Complete Engagement with cleaning, security, estate management suppliers

Jan – Dec 11 Work in progress

Employment opportunities co-ordinator post appointed Feb 12 Design stage Outreach / referral Outreach programme to promote job opportunities May 12 Design stage First tenants move in triggering main section 106 payment of £3.5m

Oct 12

Interviews / placements / secured jobs for local people Oct 12 PROJECT 3.1 Construction Jobs The Shard of Glass training centre has been established through a partnership between the council’s Building London Creating Futures programme and contractors MACE. The training centre is now working to deliver the following overall targets: 450 beneficiary starts; 360 basic skills/CSCS qualifications; 30 Introduction to Construction Employment (ICE) courses; 70 NVQ level 2 qualifications; 240 jobs of 26 weeks or more. A contract has been let to MACE to deliver the above targets over a three year period commencing quarter 4 2010/11, and running until quarter 4 2013/4 (this will include the fit out phases of the Shard). Shard Programme (Quarter 3 November 11) Target Actual Pre-employment interviews (Information Advice and Guidance (IAG))

150 113

Construction Skills Certification Scheme (CSCS) Card 120 31 Basic skills NVQ 1 20 35 Basic skills NVQ 2 25 16 Number of Employment Recorded 77 58

The Place Programme (Quarter 3 November 11) Target Actual Pre-employment interviews (Information Advice and Guidance (IAG))

29 18

Construction Skills Certification Scheme (CSCS) Card 10 7 Basic skills NVQ 1 10 3 Number of Employment Recorded 15 14 Project highlights • £600k contract with MACE Ltd to deliver construction jobs during the construction phase of the

project • Screening workshops have been established for of cohort very hard to reach residents (Not in

Education Employment or Training (NEET)) with a view to directing them to apprenticeships on site in order to reach a target of at least 12 for this year.

CASE STUDY Southwark resident Rosalee Wilson finds work in the Shard of Glass For former Team GB athlete getting a job on the Shard has expanded Rosalee’s horizons and really given a welcomed boost to her confidence. As a single parent she has spent more years than she wishes to remember staying at home and looking after her two daughters. She was introduced to Shard’s Workplace Co-ordinator, at Community Council in Peckham late in 2010 and he told her a door person’s Security Industry Authority (SIA) qualification would be useful for work on the project, if she gained her CSCS qualification – which she duly obtained. After meeting Mace’s logistics manager, she was encouraged to apply for a job as a site security operative and now has special responsibility for escorting visitors to the Shard and manning the marketing suite on the 14th floor. Rosalee says that “it’s a great opportunity to understand how the building is being put together and I have met many interesting people involved with every aspect of the Shard’s construction – it has opened my eyes to just what a complex project this is which can only be constructed by a well organised team and I am proud to be part of it.” after this important legacy to the community.

“I get a lot of encouragement and support from my employers and the Shard’s work place co-ordinator. They are encouraging me to take full use of BLCF’s funding earmarked for up-skilling initiatives for local residents who find work on the project.” Rosalee hopes to gain an NVQ2 in security customer services in additional to gaining a CCTV qualification and she knows that both will come in handy when she goes on to develop her a career centred around security at the Shard.

CASE STUDIES Michael McDonough Drifting from seasonal work to unemployment didn’t seem to suite me, even though I was from a traditional traveller’s community with roots in Peckham. I often wondered what permanent employment would be like and thought that this would be a better option to what I was used to

This has put me on the road to a stable job in the cabling sector and I want my brother to follow my example

I hope that this job works out and if successful to become a professional cable installer in a sector which really counts.

Kris McLachlan I am now on the way to achieving my goal to deliver a fully paid up apprenticeship which had been part funded

The Shard is an impressive project and I cannot think of any other project which I’d rather kick start my apprenticeship. This has been made possible through signing up to this important local labour and employment initiative

Darren Gibson I have recently come out of prison and living in a local hostel in Southwark. My main aim was to be able to demonstrate that I could reintegrate into society and more importantly hold down a job. A start was gaining my CSCS test. I had practical labouring experience, so I decided that construction was for me

I am now a ganger and in charge of other operatives on site. I have been told my site manager that supervisory or even managerial achievement is not out of my reach. I have been assured by my present company that I have been guaranteed at least two years extra work – which is a result.

Paul Scorer My situation was rubbish and I was mixing with the wrong people before I was introduced to the programme

It has changed my life dramatically. I can hold my head up high and buy a round in the pub. It’s a great project! I would advise anybody who wanted to follow this route to stick with the programme

I am now on a different s but my experiences were useful. My line-manager has suggested that he will continue to train me in work and he has plotted two years’ worth of work for me by the end of which he says that if I play my cards right I could be a site supervisor which could lead to management potential

PROJECT 3.2 SOUTHWARK COLLEGE Through the vocational programme, a strong partnership has been developed between the developer, the council and the college to design courses which will directly link to Shard jobs. £500,000 has been invested in the College’s facilities to develop a series of "real work environments" which provide hands on vocational training for local people. The real work environments include a florist, a cafe and a hair and beauty salon at the campus on the Cut, in addition to a construction centre at the College's Bermondsey centre. The new facilities have been open since June 2011 and increasing numbers of local people have received training.

Recent successful tour of Southwark College for the Shangri-La management team Hair and Beauty The hair and beauty salon and associated training rooms have been an enormous success. Currently 170 students are enrolled on hair and beauty courses with over 50 aged under 18. These include some 14-16 year olds who are at risk of exclusion from local schools and who are finding a new self-confidence and enjoyment in their studies. All the facilities are now fully utilised and there are plans to expand capacity next year. Construction Construction courses at the Bermondsey site have been growing rapidly. Currently 93 students are enrolled on courses which include those aimed at young students, unemployed adults and school students. The college has been successful in attracting further funding for construction from the Skills Funding Agency to expand provision and work will soon begin on creating more workshop space. As

a result of the initial funding the construction team at Southwark College is set to expand onto a further site in the centre of the borough. The construction team continues to work very closely with major companies. For instance, on 6th February, the college is hosting a construction apprenticeship day where over 20 companies and hundreds of young people will watch demonstrations from students at the college, discuss employment prospects in the industry and take up opportunities for training in order to attract young people into apprenticeships. Construction is the now the highest performing provision in the college, with a rapid rate of growth and strong interest for future courses, and exciting prospects for further employer engagment. Retail, floristry and horticulture The creation of a floristry shop facing onto The Cut has transformed the floristry provision at the College. Students are now given the opportunity to produce for and serve the public as well as showcase their skills to other florists. It has also helped make the provision much more commercially orientated and because of the rise in its public profile was featured on ‘The Apprentice’ on BBC1 in November. Currently 96 students are enrolled on floristry courses. Hospitality and catering The opening of the Bistro on the Waterloo site has helped boost the public profile of the College at Waterloo attracting employers, potential students and the public to the college. It provides a very important resource for students on floristry, business, retail and customer service courses. In particular, it gives our catering students based in Bermondsey, the opportunity to hone their skills before they enter the labour market by serving the public, students and staff. New facilities Students by end of January Hair and Beauty 170 Construction 93 Retailing, floristry and horticulture

96

Hospitality and catering 18

PROJECT 3.3 JOBS IN THE COMPLETED LONDON BRIDGE QUARTER A unique element of the vocational programme is the support of the developer in accessing jobs in the completed building and with the tenants, and negotiations are ongoing to secure first interviews for Southwark residents. Opportunities include the new Shangri-La hotel, high level viewing gallery, offices, restaurants and hundreds of security and maintenance roles. An assessment of employment within the LBQ estate: The Place Offices 430,000ft2 at 10m2/person = 3,995 persons The Shard Offices 597,000ft2 at 12m2/person = 4,622 persons The Shard Viewing Galleries = 90 staff (estimate) The Shard Restaurants = 120 staff (estimate) Shangri-La Hotel = circa 220 staff (have asked Sla to confirm estimate) Estates Management = 150 staff (estimate) Total = 9,197 people Jobs by sector Estimated

Jobs in the Shard

Trades Progress

Hotel Jobs 120 Hairdressing Front desk Beauty therapy Customer service Business admin Health and fitness

Early commitment by senior managers to the programme

Estate management

150 Commitment made by the estates team to interview 75% of locally selected candidates

Security Jobs 300 Security services Commitment made by the estates team to interview 75% of locally selected candidates

Cleaning Jobs 300 Cleaning services Commitment made by the estates team to interview 75% of locally selected candidates

Restaurant Jobs 120 Customer service Retail and sales

No tenant or supplier has yet been identified

Office Jobs 8617 Customer service Business admin Flower arranging

No tenant or supplier has yet been identified

Viewing gallery 90 Customer service Early commitment by senior managers to the programme

Total 10117 Project highlights: • A presentation was made to senior managers from the Shangri-La hotel at Southwark College

on 13 October 2011 and commitments were made to ensure local people have access to opportunities in the first Shangri-La hotel in the UK.

• Southwark college has run bespoke courses with cleaning contractors who will be occupying the Shard to train local people for jobs in the building

• The Estate Management team has developed an agreed training plan with Southwark College which includes several key local benefits. In addition to a written commitment to interview 75% of locally selected candidates, the estates team will ensure five of the management team will dedicate 2 working days each per annum to support Southwark College course content.

PROJECT 3.4 Employment floorspace in the Shard Employment co-ordinator proposal The developer is obligated through the section 106 agreement to make available between 93 and 140sqm of space within the Shard for use as “employment space”. This space is to be, made available to the council’s economic development team rent-free with nil services charges over a 99 year period. The developer has approached the Council with a proposal that this obligation be amended to allow the Council to receive a cash payment in lieu of the provision of space within the Shard.  A draft outline of the proposal is summarised below and will be accompanied by a specific paper: Employment Opportunities Coordinator: Teighmore could agree to provide an employment opportunities coordinator who could be accommodated within The Shard business centre and whose role would be to identify job opportunities in the shard or the Place either within tenant organizations or within the estate management organisation. Having identified opportunities, the coordinator could liaise with existing placement agencies (including START and Southwark Works) to identify suitable candidates and, if required, could arrange preparation and training via Southwark College or similar training agencies. This role could be modelled on the Building London Creating Futures (BLCF) initiative currently provided under contract to Southwark Council by MACE and would be assessed on the basis of previously agreed target performances. Work Placement Training: Teighmore could undertake to provide an agreed number of real workplace opportunities associated with training programmes provided by Southwark College. These opportunities could either be within tenant organizations, the estate management organisation or in the business centre. In Work Training and Career Development: The employment opportunities coordinator could further undertake to identify suitable candidates and arrange for “in work” training to improve prospects for full time employment in order to minimise the possibility of newly placed individuals falling back into unemployment. Business Centre Accommodation: Teighmore could provide office accommodation for the employment opportunities coordinator plus any students in a real work environment in the business centre in the Shard. Business Centre Membership: The business centre will be run on a membership basis and the Estates Manager could grant membership rights that would allow senior members of the Council to utilise meeting rooms and other work station facilities in the Shard business centre for occasional meetings and workshops.  

Construction management and co-ordination In order to join-up the plethora of conditions and permissions associated with the project, the council is working closely with the developer, design team, and contractor to co-ordinate all permissions and minimise the impact on the local community. Environmental control A strong team has been developed between the contractors, council’s environmental protection team, and through exemplary work with the community and partners (including the hospital trust hotel on London Bridge Street) have won a national award for best practice from the Noise Abatement Society. The measures that the council, the construction contractor and their consultants have put in place at the Shard is becoming a template for other major urban construction sites. Building control The councils engineers have formed a strong partnership with the design team and contractor to ensure a rapid response to the detail of structural and engineering designs, many of which are ground-breaking and a first in the UK. Traffic management The construction site for the Shard project is extremely limited and situated in a very busy and dense location in the heart of the London Bridge Bankside opportunity area. Council network and highway officers have worked closely with the project team, most notably to facilitate a record-breaking pour of concrete which started at 5pm on Friday 16th April and went on till 4am on Sunday 18th April. To promote the safety of construction management, the project team organised a cyclist HGV awareness day with key local partners which was well attended by local residents, businesses, and commuter cyclists, with a keynote speech by celebrity Simon Calder. Co-ordination The developer’s contractors, MACE joined Bankside Logistics Group in February 2010 to co-ordinate activity with other major developers in the area, including Thameslink Borough Market, Thameslink Blackfriars, Neo Bankside, Transforming Tate Modern, and major utility projects including Thames Water, EDF, and Southern Gas Networks. The groups efforts have received Best Partnership Award from the Mayor of London in recognition of working with developers around the logistical management of the many construction projects that are currently underway. The judges remarked on the "excellent communications strategy ensuring stakeholders are aware of major infrastructure developments in the area". For more information on the co-ordination activity, please visit www.southwark.gov.uk/londonbridgedevelopment

6. Shard Section 106 Communications A number of workstreams are ongoing to communicate the message that the regeneration benefits of the Shard of Glass are far wider than just the single building. A key success of the management of the More London project was strong communication of the section 106 benefits associated with the development. Milestone Target date Latest update Action Employment Planning committee approve programme – Press release and local coverage

Nov 10 Complete Complete

Southwark college works opening June 11 Complete Complete Southwark college Shard specific courses – marketing campaign to include Sellar / LBS logos

Aug 11 Ongoing SC / LBS to include in literature

Shangri-La sign up to partner with Southwark College and LBS as part of vocational programme

Feb 12 Met with Shangri-La October – positive intro

SC / LBS to PR Dbrief story

Shard appoints Employment Opportunities Coordinator (after planning committee decision)

Feb 12 Sellar to PR Dbrief story

Suppliers / tenants sign up to Shard Vocational Programme (security / cleaning)

Feb – late 12 Sellar / LBS to PR Dbrief story

First job placements with Shangri-La hotel and other key clients

Late 12 Sellar / LBS to PR Dbrief story

First job placements in viewing gallery Oct 12 Sellar / LBS to PR Dbrief story

Interchange Bus station works commence on site – communications strategy delivered with TfL

Mar 11 Complete

Interchange project complete – opening events

May 12 Sellar / TfL to PR Dbrief story

St Thomas Street St Thomas Street project consultation June 11 Complete St Thomas Street project works start on site Nov 11 Dbrief story

Sellar / LBS to PT St Thomas Street project complete Dec 12 Opening event with joint partners End 12 Dbrief story

Sellar / Guys / TfL / LBS joint PR

Overall Wider promotion of overall Shard benefits package – to time with completion of the building

May 12 Sellar / LBS to PR Dbrief story

Communication highlights: • Successful communication strategy associated with construction of the new bus station whilst

managing disruption and commuter flows • Successful opening of the Southwark College project with coverage in local, regional and

national press • Successful consultation of the St Thomas Street project with stakeholders and key partners, and

commitment to pedestrianise Joiner Street and Great Maze Pond

7. Next steps It is recommended that the S106 project board meets bi-annually to discuss project updates and make decisions on future programme direction and communications, as set out below Milestone Likely milestones to discuss Project Board meeting Wednesday 28 Mar 12 • Comms for the completion of the Shard prior to

Olympics • Completion of interchange • Progress with St Thomas Street construction • Progress with construction jobs and training • Progress with supplier and tenant negotiations • Progress with referral programme set up

Project Board meeting Wednesday 25 Jul 12 • All projects progress prior to Olympics (2 days before)

• Update on payment of final section 106 £3.5m

Project Board meeting Wednesday 28 Nov 12 • Progress with jobs on site in the completed development

• Update on tenants in the completed development • Progress on referral programme