A £7.2 million contract to transform a town centre toilet block into a cafe and revamp a car park has been awarded – though the ambitious project may never happen.
Torfaen Borough Council’s deputy chief executive, Dave Leech, has said it doesn’t “anticipate” having to use powers in the contract to pull the plug on the redevelopment schemes intended to breathe new life into Pontypool.
However before building work can get underway in September a number of cost savings will need to be found to bring the £7.3m construction tender into budget. If those can’t be achieved the council can use a break in the contract and pull out at no further cost to it.
There is also uncertainty on the third element of the project to restore the derelict St James’ Church which is opposite the Hanbury Road toilet block which is to be converted into a cafe and restaurant with its rear overlooking the Italian Gardens in Pontypool Park.
Mr Leech said the council, which owns the toilet block and the nearby Glantorvaen multi-storey car park, is looking to “finalise legal agreements” with the private owner of the church which would be used as a space for events in the “coming weeks”.
The UK Government had awarded the Pontypool Cultural Hub project £7.6m from its Levelling Up Fund, which replaced European Union funding, in January 2023 but the project has been beset by delays and plans for the toilet block and car park have already been redesigned and scaled back on cost grounds.
The contract awarded by the council cabinet, to an as yet unnamed contractor which was the only firm to submit a final bid, only covers the conversion of the toilet block and overhaul of the car park.
The council also hopes it will be able to draw on a further £1m from the UK Government Shared Prosperity Fund, though this will have to be approved through the funding programme led by Rhondda Cynon Taf Council, and £725,000 from the Welsh Government.
The contract also includes a “Not to Exceed sum” which sets a “ceiling price” for the construction project which is currently £6.7m though design fees and a contingency sum of £485,000 are in addition to the “Not to Exceed” figure and are factored into the overall budget.
Mr Leech told councillors: “There is break if required in case design costs do not come down in line as expected. We do not anticipate that (breaking the conract) happening.”
He said the contractor has already proposed potential savings but said there remained a risk if it isn’t able to bring the work “into the affordability envelope”.
He also acknowledged the private owner of St James’ Church may not wish to proceed and said they hadn’t wanted to enter a contract with the council until the UK Government confirmed it would extend the Levelling Up award.
Councillor Joanne Gauden, who is responsible for the economy, told her Labour council cabinet colleagues she wanted to thank Torfaen Labour MP, and UK Government minister, Nick Thomas-Symonds for his support in securing the extension which avoided having to start the tendering process over again.
If design costs are agreed construction work could start this September with the car park refurbished by July next year and the toilet block conversion competed in July 2027.
The project is intended to attract some of the 300,000 annual visitors to Pontypool Park into the town centre and boost the night time economy.
Mr Leech said: “Creating a high quality food and drink offer will draw people up from the park, one of the busiest attractions, and on to the high street.”