皇冠体育app

SAU referral type	Mandatory referral
SAU referral state	Closed
Sector	Real estate activities
SAU referral opened	1 June 2023

Administrative timetable

Date	Action
13 July 2023	SAU鈥檚 report to be published
14 June 2023	Deadline for receipt of any third-party submissions (submissions after 5pm on this date cannot be taken into account)
1 June 2023	Beginning of reporting period

Final Report

13 July 2023: 皇冠体育app SAU has published its report providing advice to Birmingham City Council concerning its proposed subsidy to Stoford Digbeth Ltd. 皇冠体育app report sets out our evaluation of Birmingham City Council鈥檚 Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.

• Final report (13.7.23)

Request from Birmingham City Council

1 June 2023: 皇冠体育app SAU has accepted a request for a report from Birmingham City Council for the proposed subsidy for Stoford Digbeth Ltd. This request relates to a Subsidy of Particular Interest.

皇冠体育app SAU will prepare a report, which will provide an evaluation of Birmingham City Council鈥檚 assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). 皇冠体育app SAU will complete its report within 30 working days.

Information about the subsidy provided by Birmingham City Council

Birmingham City Council proposes to award Stoford Digbeth Limited (SDL) a grant of 拢14.3m to resolve the viability gap associated with converting the former Typhoo building into an 84,000 sq.ft of modern studio and office space for the BBC and 2,780 sq. ft of retail space. 皇冠体育app funding will be paid in respect of construction costs and will only be paid where costs have been incurred. 皇冠体育app timescale for dispensing the funding will not go beyond March 2026.

皇冠体育app redevelopment of the Typhoo building by SDL will cost 拢69.3 million, with circa 拢55 million being funded by privately raised capital. This has left a viability gap of 拢14.3 million.

皇冠体育app overarching rationale for the project is to improve economic opportunities, enhance productivity, and to attract high wage jobs to Digbeth. This project will address market failures by creating a vibrant cluster of modern occupiers and vastly improved public realm and will help overcome social inequalities in Digbeth.

皇冠体育app BBC鈥檚 lease at Mailbox in Birmingham expires in 2026. 皇冠体育app BBC commenced a search for a new broadcasting centre in November 2021, using an advertised, fully competitive process, and the former Typhoo tea factory building in Digbeth was selected as its preferred location based on the proposed emphasis on sustainability, low carbon footprint during construction, future flexibility and build design, with SDL as its preferred developer. 皇冠体育app BBC has committed to signing a 25-year lease, providing the high quality fit out is achieved and public realm is delivered. 皇冠体育app Typhoo building has been derelict for more than 30 years.

SDL has undertaken an open procurement process to appoint a main contractor for the work. 皇冠体育app freehold owner of the Typhoo building, Benacre, will not receive more than the market value of the land as part of the scheme. 皇冠体育app BBC will not be receiving any subsidy as it is not paying below market rates for its lease. 皇冠体育app Council and SDL will enter into a grant funding agreement containing appropriate protections and constraints, including a clawback provision in relation to the level of profit which SDL receives through the project.

Information for third parties

If you wish to comment on matters relevant to the SAU鈥檚 evaluation of the Assessment of Compliance concerning the Birmingham City Council subsidy to Stoford Digbeth Ltd, send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Send submissions to [email protected] copying the public authority: [email protected].

Provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

1. 皇冠体育app SAU will only take your submission into account if it can be shared with Birmingham City Council. 皇冠体育app SAU will send a copy of your submission to Birmingham City Council with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with Birmingham City Council using the email address provided above.

2. 皇冠体育app SAU may use the information you provide in its published report. 皇冠体育apprefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

3. For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Contacts

SAU project team: [email protected]

CMA press team: 020 3738 6460 or [email protected]