Work has restarted on Ashfield District Council’s Automated Distribution and Manufacturing Centre after councillors approved more than £7.7 million in additional capital funding for two linked regeneration projects.
A report due before the council’s Cabinet on Monday 15 June says substantive works on the Automated Distribution and Manufacturing Centre, known as the ADMC, resumed on 11 May following a short period of preparation the previous week.
The report says the estimated completion date for the ADMC is now December 2027. Initial foundation and ground works are due to be completed by the end of July 2026, allowing the first steelwork to be erected in August.
The update also covers the wider Ashfield Innovation and Technology Park, known as the AITP. The two projects are described by the council as interdependent, with the wider site intended to support economic growth, skills, employment, business investment and infrastructure.
The report follows a series of decisions taken in April after Cabinet considered a report issued by the council’s Executive Director for Governance and Monitoring Officer under Section 5A of the Local Government and Housing Act 1989. Cabinet also considered an Independent Review and asked the Chief Executive to develop an Improvement Plan in response.
At a meeting on 13 April, Cabinet accepted an outline business case for the Ashfield Innovation and Technology Park and recommended that additional capital funding be approved. Ashfield District Council later agreed to allocate £7,761,342 from its Capital Programme so the ADMC and AITP schemes could proceed.
Cabinet then met again on 20 April and approved a series of procurement and contract decisions. These included direct awards to Lindum Group Ltd for building construction works and highways, infrastructure and Section 278 works, and approvals relating to YMD Boon and Armson & Partners Ltd for professional services. Cabinet also authorised the signing and sealing of a Section 278 Highways Act 1980 agreement with Nottinghamshire County Council.
The latest report says all necessary contracts relating to building construction and highway and infrastructure works have been completed. It also says drafting of the Section 278 agreement is continuing and that it will be signed and sealed once finalised.
The council says additional external project management support has now been brought in to oversee the overall development of the project, working alongside the Senior Responsible Officer. According to the report, this support has already started to formalise areas such as monitoring, reporting and project governance.
The Improvement Plan is intended to address recommendations from the Independent Review and improve the council’s management of capital projects.
The report says a further “Deep Dive” review is also being carried out, with further recommendations expected to be included in a later update to Cabinet and the Audit Committee.
For the wider Ashfield Innovation and Technology Park, work is continuing on a full business case. This is focused on two preferred options identified in April: bringing forward the whole site or delivering the development in two phases. The completed business case is expected to return to Cabinet in September or October, when councillors will be asked whether to approve moving ahead with commercial development of the site. An outline planning application is expected to be submitted before then.
The report also sets out a number of risks connected to the projects, including the possibility of insufficient funding, failure to deliver economic benefits, changing construction costs or land values, legal challenge, and potential repayment of grant funding to the Ministry of Housing, Communities and Local Government if the ADMC cannot proceed.
However, it says a meeting has been held with MHCLG following the council’s April decisions and that the department is content with the steps being taken. The report says MHCLG has given no indication that grant monies are at risk. A Memorandum of Understanding has also been signed with MHCLG extending the delivery timeframe for Towns Fund projects to March 2028.
The report says contracts with suppliers mean costs are locked in and cannot rise further, although it adds that some risks linked to wider economic conditions cannot be fully mitigated and will need to be monitored.
The decision before Cabinet on 15 June is not listed as a key decision, but it is subject to call-in. The main decision being sought is approval of the draft Improvement Plan and referral to the Audit Committee for monitoring. A separate decision on whether to proceed with the commercial development of the wider Ashfield Innovation and Technology Park is not expected until the full business case returns later in the year.
