sheffield city region esi funds sub-committee minutes of ......representing the education and the...

20191127 SCR LSC Ratified

European Structural and Investment

Funds 2014 – 2020

Growth Programme for England

Sheffield City Region ESI Funds Sub-Committee Minutes of the Meeting held 27/11/2019

City Growth Offices, 2nd Floor, 11 Broad Street West, Sheffield, S1 2BQ

Agenda: 1. Welcome and Introduction – Apologies and Declarations of Interest 2. Minutes of 2nd July 2019 meeting and progress of actions 3. EAFRD, ESF & ERDF Programme Update by Exception 4. ERDF Outline Applications 4.1 Priority Axis 1 4.1.1 The Sustainable Transport Fuels Research & Innovation Centre 4.1.2 FUTURE Technologies in the RAIL Sector 4.1.3 SHU Testing, Imaging and Characterisation Centre for Innovation 4.1.4 Net Fab 4.2 Priority Axis 2 4.2.1 Digital Start Up to Scale Up Programme 4.3 Priority Axis 3 4.3.1 Manufacturing Growth Programme II 4.3.2 Tech Ecosystem Acceleration and Market-making (TEAM) 4.3.3 SCR Investing for Growth Fund 4.3.4 ScaleUp 360 (Extension) 4.3.5 Exporting for Growth (Extension) 4.3.6 Launchpad (Extension) 4.3.7 The Glass Yard 4.3.8 Hartington Business Park 4.3.9 Grade A Grow-On Space and Co-working Business Centre at Chesterfield Station 4.3.10 Holywell Cross Business Hub 4.3.11 Magna 34 Business Park 4.3.12 Ferrymoor Way Business Park 4.3.13 Capitol Park Phase 2 4.3.14 Monckton Enterprise Park 4.3.15 Gateway Plaza Business Hub 4.3.16 Doncaster Business Incubation and Innovation Park 4.3.17 China UK Business Incubator 4.4 Priority Axis 4 4.4.1 Woodlands Carbon Saving Model Village 4.4.2 Low Carbon Business Support 4.4.3 Refurbishing Auckley for a Low Carbon Future 4.4.4 Sheffield District Energy Network Growth 5. ERDF Full Application 5.1.1 Rotherham Heat 6. Items for Information

20191127 SCR LSC Ratified minutes

1. Welcome and Introduction.

1.1 The Chair welcomed sub-committee members to the meeting and noted apologies. (Annex

B refers).

1.2 The chair welcomed Andrew Denniff representing the private sector and Dr Jan Eldred representing the education and the voluntary sector.

1.3 The following declarations of interest were noted: 1.3.1 Sarah Want declared an interest in item 4.1.1 and an indirect interest in 4.3.17. 1.3.2 James Newman declared an interest in items 4.3.3 , 4.3.7, 4.3.10 and 4.3.14. 1.3.3 Christian Foster declared an interest in items 4.3.7, 4.3.10 and 4.3.14. 1.3.4 Andrew Denniff declared an interest in item 4.3.11. 1.3.5 Where members had declared an interest, they did not take any part in the discussion of the relevant item. 2. Minutes of Meeting held on 2nd July 2019 and Progress of Actions. The minutes of the meeting held on the 2nd July 2019 were reviewed and agreed as a true record of the meeting. Actions from the previous meetings were reviewed by the Chair and an update on each action was provided by the Secretariat or relevant sub-committee member. (Annex A refers). 3. ESIF Programme Update

Programme updates were provided by exception due to the volume of business to be

considered at the meeting.

3.1 ERDF Programme Implementation. Peggy Haywood (MHCLG) provided an update in respect of progress of the ERDF

Programme.

National Programme update

Changes to ESIF Sub Committee Terms of Reference : Presentation of Full Applications

The local ESI Fund sub-committee terms of reference require the ESIF managing authorities to

seek sub-committee advice in respect of funding applications at both the outline and full

application stage.

The ERDF managing authority’s no deal planning identified an opportunity to expedite the

approval of ERDF funding applications by removing the requirement to seek committee advice

at both stages of the process. This reflects feedback from partners and the subsequent findings

of the evaluation of the ESIF business process.


In order to maintain committee engagement in the process and where possible expedite the

approval of funding, the managing authority submitted a proposal to the Growth Programme

Board in September 2019 to allow local ESIF sub-committees the ability to opt out of reviewing

projects at both stages.

In order to maintain committee engagement in the process and where possible expedite the

approval of funding, the managing authority submitted a proposal to the Growth Programme

Board in September 2019 to allow local ESIF sub-committees the ability to opt out of reviewing

projects at both stages.

In order to implement the changes, the Growth Programme Board agreed:

• All projects seeking ERDF funding will be presented to the committee at outline

application stage.

• The committee will be asked if it wishes to review the project at full application stage,

this decision will be formally recorded.

The sub-committee advised:

The sub-committee was content to support the ERDF managing authorities proposal to the

Growth Programme Board in September 2019 to allow local ESIF sub-committees the ability to

opt out of reviewing projects at both stages.

Full applications will be presented to the sub-committee by exception only.

Priority Axis 1

• One Project Digital Innovation for Growth - Sheffield Hallam University has been considered by written procedures, the sub-committee was supportive of the application and is now legally executed.

Priority Axis 3

• Two applications, Dinnington Business Park - EV Waddington and Northern

Powerhouse Export Grant Scheme -Department for International Trade (DIT) have

been considered by written procedures, the sub-committee was supportive of both

applications. Dinnington Business Park has now been legally executed.

• One application has been deselected from the programme, Gateway Plaza Offices

Gateway Plaza Ltd, the applicant failed to supply all relevant documentation in order

to complete the appraisal process.

Project updates following the previous ESIF sub-committee meeting


The appraisal of the following full applications is almost complete:

• Digital Innovation Grants (DIG) – Barnsley Metropolitan Borough Council. • Northern Powerhouse Export Grant Scheme - Department for International Trade (DIT). • Business Productivity and Inclusive Growth Programme - Barnsley Metropolitan

Borough Council. • Sheffield City Region Community Wealth Builders (CWB) - Doncaster Council.

3.2 ESF Programme Implementation. In the absence of a representative from DWP the ESF managing authority the chair provided an overview of a draft call for proposals under Priority Axis 2: Skills for Growth, investment priority 2.1 Enhancing equal access to lifelong learning. The chair was delegated by the sub-committee to approve future ESF calls on their behalf. Following a poor response to the investment priority 2.1 call published in July 2019 and revised version has been drafted by DWP together with the SCR LEP. Positive amends have been made and chair was supportive for the call being published at the earliest opportunity. 4. ERDF Outline Applications for Consideration

4.1. ERDF Priority Axis 1 (Research & Innovation). Danielle Eastwood (MHCLG) provided an overview of the call under priority axis 1 (Research and Innovation). 4. ERDF Outline Applications for Consideration 4.1.1. The Sustainable Transport Fuels Research & Innovation Centre – University of Sheffield Sarah Want declared an interest in this item. The sub-committee noted:

• The application demonstrates a good strategic fit with the local ESIF strategy, alignment with the call specification and the SCR innovation strategy.

• It was supportive of the proposed activities in relation to its strategic fit with local development need, growth conditions and opportunities and contribution towards delivering the SCR ESIF Strategy.

• The project offered a good return on investment in respect of the P2 capital output.

• Proposed activities include building and equipment costs. The sub-committee advised:


• The applicant to consider scalability and to seek alternative sources of funding for either the capital element of the proposal or the equipment in light of competition and resource constraints in priority axis 1. This would reduce the scale of ERDF to c£2.5m

• The applicant to demonstrate alignment with the SIP project, growth hub and wider innovation and business support provision in order to maximise impact, complementarity and non-duplication of activity.

• It concurred with the managing authority’s assessment and proposed conditions. 4.1.2 FUTURE Technologies in the RAIL Sector – University of Birmingham No declarations of interest were received for this item. The sub-committee noted:

• The application demonstrates a good strategic fit with the local ESIF strategy and alignment with the call specification.


• Proposed activities will be delivered at The National College of High Speed Rail in

Doncaster and will support improvements in rail infrastructure in the city region.

• The applicant has a good track record of successfully delivering similar provision in

other LEP areas.

• Value for money is considered to be acceptable. The sub-committee advised:

• The applicant to demonstrate alignment with the growth hub and wider innovation and business support provision in order to maximise impact, complementarity and non-duplication of activity.

• It concurred with the managing authority’s assessment and proposed conditions.

4.1.3 SHU Testing, Imaging and Characterisation Centre for Innovation – Sheffield Hallam University No declarations of interest were received for this item.

The sub-committee noted:



• It noted the investment is to purchase c15 items of equipment.

• Value for money appears to be acceptable.


The sub-committee advised

• The applicant to consider scalability in light of competition and resource constraints in priority axis 1.

• The applicant to demonstrate alignment with the SIP project, growth hub and wider innovation and business support provision in order to maximise impact, complementarity and non-duplication of activity.


4.1.4 Net Fab – TWI Ltd No declarations of interest were received for this item. The sub-committee noted:

• The application demonstrates a partial strategic fit with the local ESIF strategy and alignment with the call specification.

• It was partially supportive of the proposed activities in relation to its strategic fit with local development need, growth conditions and opportunities and contribution towards delivering the SCR ESIF Strategy.

• Value for money appears to be reasonable. The sub-committee advised

• It expressed its concerns regarding the risks associated with the source of match

funding.

• It expressed its concerns regarding duplication of activities in the city region.

• It expressed its concerns in respect of SME and supply chain demand and delivery of activities across the city region.

• It concurred with the managing authority’s assessment and in light of resource constraints, it was not minded to support the proposal to progress to full application.

In light of competition and resource availability, the sub-committee concluded:

• It was supportive of the FUTURE Technologies in the RAIL Sector project progressing to full application.

• It was supportive of the SHU Testing, Imaging and Characterisation Centre for Innovation proposal progressing to full application subject to scalability.

• It was supportive of the Sustainable Transport Fuels Research & Innovation Centre proposal progressing to full applicant subject to scalability.

• It was not minded to support the Net Fab progressing to full application.


4.2 ERDF Priority Axis 2 (Enhancing Access To, and Use and Quality of, Information and Communications Technology). Danielle Eastwood (MHCLG) provided an overview of the call for proposals under priority axis 2 (Enhancing Access To, and Use and Quality of, Information and Communications Technology).

4.2.1 Digital Start Up to Scale Up Programme - East Midlands Chamber

No declarations of interest were received for this item. The sub-committee noted:


• The application is considered to have positive alignment with the Sheffield City Region Strategic Economic Plan and Digital Framework.


• Value for money appears to be good. The sub-committee advised:

• The applicant to demonstrate alignment with the growth hub and wider business support provision in order to maximise impact, complementarity and non-duplication of activity.

• It was supportive of the application progressing to full application.

• It concurred with the managing authority’s assessment and proposed conditions. 4.3 ERDF Priority Axis 3 (Enhancing the Competitiveness of Small and Medium Sized

Enterprises). Will Johnson and Michelle Unwin (MHCLG) provided an overview of the call for proposals under priority axis 3 (Enhancing the Competitiveness of Small and Medium Sized Enterprises – Property).

REVENUE PROJECTS

4.3.1 - Manufacturing Growth programme II : SCR – Oxford Innovation Services Ltd No declarations of interest were received for this item. The sub-committee noted:




• Value for money appears to be acceptable. The sub-committee advised:




4.3.2 - Tech Ecosystem Acceleration and market Making (TEAM) – Capital Enterprise (UK) Limited No declarations of interest were received for this item. The sub-committee noted:



• Value for money is considered acceptable. The sub-committee advised:

• The applicant to provide evidence of how it will engage with SMEs in the city region.



• It concurred with the managing authority’s assessment and proposed conditions. 4.3.3 - SCR Investing for Growth Fund - Key Fund Investments Ltd James Newman declared an interest in this item. Peggy Haywood (MHCLG) chaired this item. The sub-committee noted:

• The application demonstrates a good fit with the local ESIF strategy and alignment with the call specification.


• Value for money is considered acceptable.





• It concurred with the managing authority’s assessment and proposed conditions. 4.3.4 - ScaleUp 360 (Extension) – Sheffield Hallam University No declarations of interest were received for this item. The sub-committee noted:

• The application continues to demonstrate good strategic fit with the local ESIF strategy and alignment with the call specification.


• Value for money is considered to be acceptable. The sub-committee advised:



• It concurred with the managing authority’s assessment and proposed conditions. 4.3.5 - Exporting for Growth (Extension) - Enterprise Growth Solutions Limited No declarations of interest were received for this item. The sub-committee noted:

• The application continues to demonstrate a good strategic fit with the local ESIF strategy and alignment with the call specification.






4.3.6 - Launchpad (Extension) - Barnsley Metropolitan Borough Council No declarations of interest were received for this item. The sub-committee noted:

• The application continues to demonstrate a good strategic fit with the local ESIF strategy and alignment with the call specification.





• It concurred with the managing authority’s assessment and proposed conditions. CAPITAL PROJECTS - MORE DEVELOPED CATEGORY OF REGION 4.3.7 - The Glass Yard – Blue Deer Ltd James Newman and Christian Foster declared an interest in this item. The sub-committee noted:

• The application demonstrated a good strategic fit with the local ESIF strategy and alignment with the call specification.



• The applicant to consider additional sources of funding in light of competition and resource constraints in priority axis 3.


4.3.8 - Hartington Business Park – Devonshire Property (B1D) Ltd Chatsworth Settlement Trustees No declarations of interest were received for this item. The sub-committee noted:


• The application demonstrated a good strategic fit with the local ESIF strategy and

alignment with the call specification. • It was supportive of the proposed activities in relation to its strategic fit with local

development need, growth conditions and opportunities and contribution towards delivering the SCR ESIF Strategy.



• The development is located in a key growth corridor between the SCR and D2N2 LEP

areas.

• Staveley has been shortlisted for investment from the Towns Fund. The project

provides an opportunity to promote further growth within the area.


4.3.9 - Grade A Grow-On Space and Co-working Business Centre at Chesterfield Station - Chesterfield Borough Council No declarations of interest were received for this item. The sub-committee noted:

• The application demonstrated a partial strategic fit with the local ESIF strategy and alignment with the call specification.


• Value for money is acceptable. The sub-committee advised:

• It expressed its concerns regarding deliverability including planning, BREEAM and land ownership

• It expressed concern in respect of the level of market demand to sustain this investment and it has the potential for duplication. .

• It concurred with the managing authority’s assessment and in light of resource constraints it was not minded to support the proposal to progress to full application.

4.3.10 - Holywell Cross Business Hub – Juniper Overseas Ltd James Newman and Christian Foster declared an interest in this item. The sub-committee noted:




• Value for money appears average. The sub-committee advised:

• It expressed its concerns regarding ownership of the building, uncertainty over planning requirements and the scale of intervention.

• It expressed concern in respect of the level of market demand to sustain this investment and it has the potential for duplication.



• It was supportive of the Glass Yard proposal progressing to full application subject to the

applicant exploring additional sources of funding.

• It was supportive of the Hartington Business Park proposal progressing to full

application.

• It was not minded to support the Grade A Grow-On Space and Co-working Business

Centre at Chesterfield Station.

• It was not minded to support the Holywell Cross Business Hub progressing to full

application.

CAPITAL PROJECTS – TRANSITION CATEGORY OF REGION

4.3.11 - Magna 34 Business Park - Magna 34 Business Park Ltd Andrew Denniff declared an interest in this item. The sub-committee noted:





• It was supportive of the proposal progressing to full application.


4.3.12 - Ferrymoor Way Business Park – Dynamic and Capital Investments Ltd No declarations of interest were received for this item. The sub-committee noted:






4.1.13 - Capitol Park Phase 2 - Carnell Management Services Ltd No declarations of interest were received for this item. The sub-committee noted:






4.3.14 - Monckton Enterprise Park – Royston and Carlton Community Properties Ltd No declarations of interest were received for this item. The sub-committee noted:




• The managing authority was unable to provide an analysis in respect of value for money due to incomplete information presented in the outputs annex .


• It expressed its concerns regarding site ownership, planning timescales and

deliverability.


4.3.14 - Gateway Plaza Business Hub – Gateway Plaza Ltd James Newman and Christian Foster declared an interest in this item The sub-committee noted:





4.3.16 - Doncaster Business Incubation and Innovation Park – Oyster Capital industrial ltd No declarations of interest were received for this item. The sub-committee noted:

• The application demonstrated a partial strategic fit with the local ESIF strategy and alignment with the call.


• It expressed its concerns in respect of value for money in comparison to other ERDF capital projects.


• It expressed its concerns regarding the scale and cost of the investment.

• It expressed its concerns regarding SME demand.



4.3.17 - China UK Business Incubator (CUBI) - China UK Business Incubator (CUBI) Sarah Want declared an interest in this item. The sub-committee noted:




• It noted the strategic importance of the proposed activities in light of the regions strong

links with China.

• It expressed its concerns in respect of duplication of existing provision.

• It expressed its concerns regarding the source of match funding.

• The applicant and delivery team appear to have very little knowledge and experience of

delivering an ERDF project and if the application is to progress, it should seek guidance

from technical assistance.



• It was supportive of the Magna 34 Business Park proposal progressing to full

application.

• It was supportive of the Ferrymoor Way Business Park proposal progressing to full

application.

• It was supportive of the Capitol Park Phase 2 proposal progressing to full application.

• It was supportive of the China UK Business Incubator (CUBI) proposal progressing to

full application subject to scalability and resource availability.

• It was not minded to support the Monkton Enterprise Park progressing to full application.

• It was not minded to support the Gateway Plaza progressing to full application.

• It was not minded to support the Doncaster Business Incubation and Innovation Park

progressing to full application.

4.4 Priority Axis 4 (Supporting the Shift towards a Low Carbon Economy in All Sectors).

Danielle Eastwood (MHCLG) provided an overview of the call for proposals under priority axis 4 (Supporting the Shift towards a Low Carbon Economy in All Sectors).


4.4.1 - Woodlands Carbon Saving Model Village - St Leger Homes of Doncaster Ltd No declarations of interest were received for this item. The sub-committee noted:


• It was supportive of the proposed activities in relation to its strategic fit with local development need and contribution towards delivering the SCR ESIF Strategy.

• Value for money is considered to be acceptable.


• The application represents good value for money with a unit cost of c.£14k per house.

• It noted the strategic importance of the area and the high level of deprivation.

• It concurred with the managing authority’s assessment and proposed conditions. 4.4.2 - Low Carbon Business Support – Sheffield City Council No declarations of interest were received for this item. The sub-committee noted:






• It concurred with the managing authority’s assessment and proposed conditions. 4.4.3 - Refurbishing Auckley for a Low Carbon Future - South Yorkshire Housing Association Ltd The sub-committee noted: No declarations of interest were received for this item.


• It was partially supportive of the proposed activities in relation to its strategic fit with local development need and contribution towards delivering the SCR ESIF Strategy.

• Value for money is not considered acceptable.



• The application does not represent value for money with a unit cost of c.£79K per house


4.4.4 -Sheffield District Energy Network Growth – Sheffield City Council No declarations of interest were received for this item. The sub-committee noted:



• The application is considered to have positive alignment with the SCR Strategic Economic Plan.



• The applicant to consider scalability in light of competition and resource constraints in priority axis 4.



• It was supportive of the Woodlands Carbon Saving Model Village proposal progressing

to full application.

• It was supportive of the and Low Carbon Business Support proposal progressing to full

application.

• It was supportive of the Sheffield District Energy Network Growth proposal progressing

to full application subject to scalability.

• It was not minded to support the Refurbishing Auckley for a Low Carbon Future

progressing to full application.

5.1 ERDF Full Application for consideration: Priority Axis 4 Danielle Eastwood (MHCLG) provided an overview of the call for proposals under priority axis 4 (Supporting the Shift towards a Low Carbon Economy in All Sectors). 5.1.1 Rotherham Heat - Templeborough Biomass Power Plant (TBPP)

No declarations of interest were received for this item.


The sub-committee noted:



• The project provides good links with the energy innovations currently taking place in the city region.



• Further detail was required in respect of the source and type of biomass the facility will use.

• It concurred with the managing authority’s assessment and proposed conditions. 6. Items for Information

• Outstanding ERDF full applicants to be considered via written procedures to maintain momentum until the end of the year.

Date and time of next meetings:

• Wednesday 22nd January 2020, 11.00am

• Thursday 23rd April 2020, 11.00am

• Wednesday 15th July 2020, 11.00am

• Wednesday 11th November 2020, 11.30am


Annex A

List of Outstanding Actions from previous Sheffield City Region Sub-Committee Meeting

Action

point

Action Action

Assigned

to

Status

DWP to provide details of the nature of activities funded through ESF Co-financing arrangements in Sheffield City Region

DWP Open

MHCLG to work with DWP and RPA in coordinating a schedule of presentations from ESI funded projects to future sub-committee meetings in order to provide updates on progress to members, subject to business needs.

MHCLG and MA’s

On-going


Annex B Attendee List Sheffield City Region ESI Funds Sub-committee 27/11/2019 meeting Chair & Deputy Chair:

Name, title and organisation Sector/Organisation Representing

James Newman OBE, Chairman Business Partners / Private Sector

Peggy Haywood, Programme Manager, MHCLG ERDF Managing Authority, MHCLG

Sub-committee Members:


Sarah Want, University of Sheffield

Universities

Justin Homer, Assistant Director, Cities and Local Growth, BEIS

BEIS

Christian Foster, Doncaster MBC

Local Authority

Dr Jan Eldred, Senior Research Fellow Learning +Work Institute

Education & Voluntary Sector

Andrew Denniff, CEO Barnsley & Rotherham Chamber of Commerce

Private Sector

Others in attendance (non-members – including secretariat):


Michelle Unwin, ERDF, Secretariat, MHCLG

ERDF, Managing Authority, MHCLG

Ben Morley, Head of Strategic Development and External Programmes, Creative Sheffield

Local Enterprise Partnership

Danielle Eastwood, ERDF Appraisal, MHCLG


Will Johnson ERDF Appraisal, MHCLG


Apologies:


Simeon Leach on behalf of Simon Moss Planning,

Regeneration and Transport, Rotherham Metropolitan

Borough Council

Local Authority

John Mothersole, Chief Executive, Sheffield City Council

Local Authority

David Shepherd, Service Director, Economic Regeneration, Barnsley MBC

Local Authority

Claire Maguire, Operations Manager, DWP

ESF, Managing Authority, DWP

Sally Harrison, Area manager, Operational Delivery, RPA

EAFRD, Managing Authority, RPA

Yiannis Koursis, Principal Chief Executive, Barnsley College

Education

Teresa Hitchcock, Partner, DLA Piper UK LLP

Environmental & Low Carbon interests

European Structural and Investment Funds

2014 - 2020

Growth Programme for England

SCR ESI Funds Sub-Committee

Membership

Name Position/Title and Organisation

Sector Representation

James Newman OBE Chairman Business Partners / Private Sector

Peggy Haywood Deputy Chair, ERDF Implementation Manager

ERDF Managing Authority, MHCLG

John Mothersole Chief Executive, Sheffield City

Council

Local Authority

South Yorkshire Combined

Authority Transition

Region

David Shepherd Service Director, Economic

Regeneration, Barnsley

Metropolitan Borough Council

Local Authority



Region

Simon Moss Director of Planning,

Regeneration and

Transportation, Rotherham

Metropolitan Borough Council

Local Authority



Region

Christian Foster Head of Programmes,

Doncaster Metropolitan

Borough Council

Local Authority



Region

Teresa Hitchcock Partner, DLA Piper UK LLP Environment

Sarah Want Assistant Director, Research

and Innovation Services,

Higher Education

Yiannis Koursis Principal Chief Executive,

Barnsley College

Education, skills and

employment

Dr Jan Eldred Senior Research Fellow

Learning +Work Institute

Education & Voluntary

Sector

Andrew Denniff CEO Barnsley & Rotherham

Chamber of Commerce

Business Community

Councillor Lewis Rose Leader, Derbyshire Dales

District Council

Rural interests

Claire Maguire Operations Manager, DWP ESF Managing Authority

Sally Harrison Programme Manager, RPA EAFRD managing

Authority

Justin Homer Area Lead, Sheffield City

Region, BEIS - Local

BEIS local

Current at: Nov 2019

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