The car park is scheduled to open on 1 November.
In its decision published on 25 October, Nottingham City Council explains that the The Broadmarsh Car Park Development (BMCP) has now reached practical completion and has been handed back to the Council.
Adding that ‘with the surrounding public realm works nearing completion we will be working towards a phased opening of the facility over the coming months, with the first phase – the opening of the actual car park scheduled for the 1st November.’
The original business case for the BMCP Development, which was approved at 18th December 2018 Executive Board, was based upon a number of forecasts in relation to annual income, expenditure and debt repayment once the development became operational.
As a result of a significant shift within the operating environment, a review of operation costs and income forecasts has identified significant variance from the originally approved operating budget.
Changes in relation to income and expenditure are as follows;
1. The impact of the Covid 19 pandemic and the associated collapse of the intu development, has led to parking income forecasts reducing from £2.6m p.a. to a graduated 10 year estimate of £1.4m in the first full year through to £2.7m by year 9.
The new assumptions are associated with both the predicted rate of redevelopment and Covid recovery.
2. Digital screen income approved at December 2018 Executive Board was £0.2m.
Due to a reduced market for this type of marketing facility this income has been removed from the model and the digital screens were removed from the building design in such a way as to retain the opportunity to reintroduce them at a later date should the market for this kind of advertising recover.
3. Contribution from an income strip model relating to the redevelopment of Angel Row, was assumed to generate £0.3m.
This development has been aborted and the building is now in the disposal process, with £5.0m of the realised capital receipt from the Angel Row mitigating this loss by reducing associated debt within the model.
4. A review of the costs of facilities management has identified additional costs in relation to security and cleaning that were not previously included within the operating model.
This means that the latest operating budget position is £1.8m deficit for the five months to 31st March 2022.
The revenue assumptions are based on the best information that the council currently has in terms of behaviours, requirements and demand for parking in Nottingham post-Covid.
Parking Services already have implemented a substantial marketing programme for the opening of the car parking both to the public and potential corporate customers.
In addition, due to the impact the opening of the car park is likely to have dynamics of the city’s parking supply is expected to change considerably.
This will be closely monitored and will form part of a strategic review of park assets across the city with a view to maximising income to the council.