Issue - meetings

Report of the Acting Strategic Director of Regeneration and Environment

Recommendations:-

1. That approval be given to enter into a development agreement and the granting of the long lease of the Forge Island development site to the selected developer, Muse Developments Ltd.

2. That approval be given to the outlined financial approach  ...  view the full agenda text for item 77

Consideration was given to the report which within the Masterplan identified the redevelopment on Forge Island as an essential catalyst to wider regeneration.

Following an extensive selection process, a development partner had been identified for the Forge Island development, this report sought approval for the approach required to deliver this.  ...  view the full minutes text for item 77

Cabinet Portfolio:                 Jobs and the Local Economy

Strategic Directorate:           Regeneration and Environment

Consideration was given to a report due to be submitted for determination by the Cabinet at its meeting on 17 December 2018, which sought approval of the approach to deliver the Forge Island development through the grant a long lease of the site Muse Developments Ltd and to agree to take a head lease of the development.

It was reported that the proposal from Muse Developments Ltd would allow the Council to consider options at its discretion once the full commercial detail had been agreed. On such a basis, the Council would not be committed to entering into a head lease until it was satisfied with the business case and commercial offer. Based on the information available, it was considered that this would provide a viable and affordable route to deliver a key component of the town centre’s regeneration and a Council priority.

Members queried why the Council had not explored the insertion of an exit clause after a number of years. In response, it was explained that such a clause would impact on the financial modelling of the scheme. Advice had been taken from professional bodies and the view was that this was not likely to be viable due to the nature of the market, and that had been reflected in the bids received from potential development partners.

Referring to the plans for increased housing within the town centre, Members sought clarification on how the proposals would support the housing agenda. In response, officers confirmed that various initiatives were designed to encourage housing growth in the town centre. Members reiterated the need to get the sequencing correct so that housing demand is met to encourage further economic growth and leisure activity in the town centre.

Resolved:-

1.    That the recommendations be supported.

2.    That quarterly updates continue to be provided to Overview and Scrutiny Management Board on the Forge Island.

3.    That the Cabinet Member for Jobs and the Local Economy provide exception reports to Overview and Scrutiny Management Board in the event of the scheme not progressing to plan.

4.    That further assurances be provided to Overview and Scrutiny Management Board that the insertion of a break clause is not feasible prior to entering the lease agreement.

5.    That a report be provided to Overview and Scrutiny Management Board on the feasibility of inserting of break clauses for future major projects.