A private firm is being sought to operate the new multi-million pound travel hub in Prestwich.
Bury council considered running the soon to be completed multi-storey car park themselves but that option was found to be far more expensive than
finding an external car park operator.
Work started last year at the former Fairfax Road surface car park to build a £14m travel hub in the centre of Prestwich.
The project is the the first phase of a massive £100m regeneration project to create a new village centre which includes demolition of the current
Longfield centre, a new retail centre, market hall and community hub along with more than 200 new homes.
A two-storey, three-level car park is being built with 301 spaces. Completion of the structure is expected by July, 2026.
The report stated that it was estimated that operating costs for the hub would be £464,000 per year if run by the council but just £291,000 if controlled by an external operator.
The difference would largely be due to the council having to hire five staff to manage the hub. The report said as external operators already hold infrastructure at scale, they are able to offer a reduced unit cost in terms of
direct labour.
A report to the council’s cabinet said that the contract to an external operator for three years would be more than £500,000.
The report, said: “The use of an external operator represents better value for money to the council.
“This is because the operation of off-street car parking facilities of the scale proposed at Prestwich is not currently a core function of
the council.
“The authority does not currently operate similar facilities and as
such, will need to invest in the relevant staffing and infrastructure to deliver this new model.
“Given that private sector external operators operate numerous similar facilities at greater scale, external advice suggests that they are able to
secure a lower unit cost of operation and a more responsive service.”
The council is now set for a period of initial soft market testing to find out levels of interest and compare commercial management models in further detail.
The Prestwich travel hub building will be owned by Bury Council as a commercial asset. The report said all costs associated with the external car park operator would be recovered from car parking income collected in the hub, with surplus income assigned to the council.
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