Agenda item

Hotel Element

(a)  That the updated financial report contained in Appendix One to the report, which updated Cabinet members on costs, income and payback be approved.

(b)  That delegated authority be given to the Interim Chief Executive or nominated deputy, acting following consultation with the s151 Officer and the Leader and Commissioner for Housing and Urban Renewal, to:

i.  Agree and enter into an Agreement for Lease with landlord’s works obligations and subsequent Lease of part of the Old Library Site for a 25-year lease term with a hotel operator for the two hotels, noting that this term could be extended to 40 years to match the offer from the hotel operator;

ii.  Agree and, where the Council is a party, enter into the additional legal agreements set out in sections 5.15 and 5.16 of this report and any other ancillary agreements required to give effect to the redevelopment proposals for the site;

iii.  Consider whether to appropriate to planning purposes the Council-owned land required for the development which is currently held by the Council for other purposes and, if he considers it appropriate to do so, to effect the appropriation of such land to planning purposes subject to complying with the statutory procedures for such appropriation;

iv.  Take any other necessary actions, acting in the best interests of the Council, in order to enable the redevelopment of this element of the site for hotel use as set out in this report.

Residential Element

(c)  That the disposal of part of the OLS to SUR to develop the residential/ restaurant element of the overall project be authorised for a valuation sum that represents no less than the best consideration reasonably obtainable.

(d)  That delegated authority be given to the Assistant Director, Assets Infrastructure & Regeneration or nominated deputy following consultation with the Leader and the Council’s section 151 officer to:

i.  Agree the final valuation sum.

ii.  Consider whether to appropriate to planning purposes the Council-owned land required for the development which is currently held by the Council for other purposes and, if he considers it appropriate to do so, to effect the appropriation of such land to planning purposes subject to complying with the statutory procedures for such appropriation;

(e)  That delegated authority be given to the Assistant Director Assets, Infrastructure and Regeneration following consultation with the Cabinet Member for Housing & Urban Renewal to:

i.  Approve all non-financial terms for disposal.

ii.  Agree and, where the Council is a party, enter into the additional legal agreements referred to in sections 5.15 and 5.16 of this report and any other ancillary agreements, required to give effect to the redevelopment proposals for this element of the site and take all necessary any other necessary actions, acting in the best interests of the council, to give effect to the proposals.

Partnership Business Plan

(f)  That delegated authority be given to the Interim Chief Executive, following consultation with the Leader of the Council and the Commissioner for Housing & Urban Renewal, to approve the Site Development Plan for the redevelopment of the Old Library Site prepared by SUR.

The Commissioner for Housing & Urban Renewal introduced a report that updated the Cabinet on the progress made since September 2016 on the redevelopment of the Old Library Site into a mixed use development including two hotels, restaurant and residential scheme.  Approval was sought for a number of decisions and delegations to make further progress.

Appendix One, financial summary – hotels, and Appendix Two, Financial Comparison, contained exempt information and were considered in resolving the matters in Part I of the agenda without disclosing any of the exempt information.  The Cabinet was informed that Appendix Three, the SUR Site Development Plan, had been marked to follow, however, it was reported that the document was not yet finalised and recommendation (f) was therefore amended to provide delegated authority to the Interim Chief Executive to approve the Plan, following consultation with the Commissioner for Housing & Urban Renewal.

The Cabinet welcomed the progress that had been made and was satisfied that the business case was sound.  The scheme would provide a solid long term revenue stream that covered the cost of borrowing; a capital asset to the Council in a prime location; and the creation of a high quality development including two new hotels in the town centre.  After considering various matters including the terms of the lease and position of other parties regarding the legal agreements, the Cabinet agreed the recommendations as set out in the report and, in relation to recommendation (f), delegated approval of the Site Development Plan to the Interim Chief Executive.

Resolved –

Hotel Element

(a)  That the updated financial report contained in Appendix One to the report, which updated Cabinet members on costs, income and payback be approved.

(b)  That delegated authority be given to the Interim Chief Executive or nominated deputy, acting following consultation with the s151 Officer and the Leader and Commissioner for Housing and Urban Renewal, to:

i.  Agree and enter into an Agreement for Lease with landlord’s works obligations and subsequent Lease of part of the Old Library Site for a 25-year lease term with a hotel operator for the two hotels, noting that this term could be extended to 40 years to match the offer from the hotel operator;

ii.  Agree and, where the Council is a party, enter into the additional legal agreements set out in sections 5.15 and 5.16 of this report and any other ancillary agreements required to give effect to the redevelopment proposals for the site;

iii.  Consider whether to appropriate to planning purposes the Council-owned land required for the development which is currently held by the Council for other purposes and, if he considers it appropriate to do so, to effect the appropriation of such land to planning purposes subject to complying with the statutory procedures for such appropriation;

iv.  Take any other necessary actions, acting in the best interests of the Council, in order to enable the redevelopment of this element of the site for hotel use as set out in this report.

Residential Element

(c)  That the disposal of part of the OLS to SUR to develop the residential/ restaurant element of the overall project be authorised for a valuation sum that represents no less than the best consideration reasonably obtainable.

(d)  That delegated authority be given to the Assistant Director, Assets Infrastructure & Regeneration or nominated deputy following consultation with the Leader and the Council’s section 151 officer to:

i.  Agree the final valuation sum.

ii.  Consider whether to appropriate to planning purposes the Council-owned land required for the development which is currently held by the Council for other purposes and, if he considers it appropriate to do so, to effect the appropriation of such land to planning purposes subject to complying with the statutory procedures for such appropriation;

(e)  That delegated authority be given to the Assistant Director Assets, Infrastructure and Regeneration following consultation with the Cabinet Member for Housing & Urban Renewal to:

i.  Approve all non-financial terms for disposal.

ii.  Agree and, where the Council is a party, enter into the additional legal agreements referred to in sections 5.15 and 5.16 of this report and any other ancillary agreements, required to give effect to the redevelopment proposals for this element of the site and take all necessary any other necessary actions, acting in the best interests of the council, to give effect to the proposals.

Partnership Business Plan

(f)  That delegated authority be given to the Interim Chief Executive, following consultation with the Leader of the Council and the Commissioner for Housing & Urban Renewal, to approve the Site Development Plan for the redevelopment of the Old Library Site prepared by SUR.