Issue - meetings

Business Rate Pool Update

 

 

Meeting: 17/12/2020 - Council (Item 62)

62 CABINET RECOMMENDATION TO COUNCIL - BUSINESS RATE POOL FUNDING UPDATE - ASSET DEVELOPMENT PROGRAMME PHASE 1 pdf icon PDF 142 KB

To receive a report from the Cabinet on recommendations referred to the Council

 

 

Additional documents:

Minutes:

(Councillors Bindloss and Posnett here left the meeting due to their interests declared at Minute CO52.)

 

The Portfolio Holder for Growth and Prosperity (Deputy Leader), Councillor Higgins, moved the recommendations and provided a brief introduction as follows:

 

·         A clerical correction was pointed out at recommendation 2.1, which should read Section 9 and not Section 10 as set out in the report

·         A presentation had been made to the Scrutiny in June 2019. A report was approved by the Cabinet  in April 2020 and had been mentioned explicitely in the Corporate Strategy and there had been updates throughout its journey

·         This was the next stage of the review of Council owned sites to asses their development potential

·         The report’s intention was not to close down any service or any operation, nor force any organisation or asset to move out of any building or asset, it was not proposing to close Phoenix House

·         The report proposed to draft a design for Parkside to best use the space available taking account of current occupiers’ intentions to move out of the building, this would enable the Council to then rationalise its own position with all its assets

·         There was a proposal to relocate Me and My Learning to The Cove which was currently vacant

·         The report did not ask the Council to sell or  sell or develop any property but to start considering plans for the future

·         Following approval of this report, the proposals would return to Cabinet later in the year

·         It was considered that scrutiny could add value to the process in assessing the business case as well as how any proposals would affect those who need and use those services

·         He made it clear that notice had not been served on any tenants and no tenants had been asked to leave

·         With regard to the Cattle Market north site, this had stood vacant for over 10 years but could provide capital receipts and there was a possibility to develop the site for providing housing for first time buyers

·         The Council was looking to achieve a financially sustainable model with limited risk and secure external grant funding. The project may involve the redesign of Parkside and Phoenix House site

·         Leicestershire County Council (LCC) had given notice to leave Parkside in 2021 and office space was currently not in demand due to Covid. The Council had to reassess its assets to retain income and reduce operational costs generally

 

Councillor Orson seconded the motion.

 

During debate the following points were noted:

 

·         It was appropriate to be taking stock of the Council’s assets as the Council was short of money

·         All options should be considered before making a decision  so that the Council was well informed and gave the best value for its residents

·         It had been requested that the proposals would be reviewed by Scrutiny. If added to the workplan Scrutiny would then report to Cabinet and/or Council

·         Due to LCC leaving Parkside at the end of 2021, it was important to take  ...  view the full minutes text for item 62

Meeting: 16/12/2020 - Cabinet (Item 140)

140 BUSINESS RATES POOL FUNDING UPDATE - ASSET DEVELOPMENT PROGRAMME PHASE 1 pdf icon PDF 197 KB

The Portfolio Holder for Growth & Prosperity (and Deputy Leader) to submit a report proposing phase 1 of the asset development programme.

Additional documents:

Decision:

Cabinet:

 

1)    NOTED the Corporate Assets Development programme and approves the approach for phase 1 relating to the development proposals for Phoenix House and Cattle Market North site, as well as the potential redevelopment of Parkside, as identified in Section 5 of the report;

2)    RECOMMENDED TO COUNCIL the inclusion of £285k within the Capital Programme for the Asset Development Programme Phase 1 funded through £163,000 grant funding and £122,000 from the Council’s capital receipts as set out in section 9 of the report;

3)    APPROVED to Delegate authority to the Director for Growth and Regeneration in consultation with the Portfolio Holder for Growth and Prosperity to procure and appoint consultants and contractors to enable the use of this funding;

4)    APPROVED to Delegate authority to the Director for Growth and Regeneration in consultation with the Director for Corporate Services to sign the grant agreement following relevant due diligence.

5)    APPROVED the disposal of land at North cattle market site, as identified in appendix 2 with delegation to the Director or Growth and Regeneration to finalise any associated legal documentation.

5)

Minutes:

Pranali Parikh, Director for Growth and Regeneration introduced the report, the purpose of which was to propose Phase 1 of the Asset Development

Programme.

 

Ms. Parikh outlined the Phase 1 proposals for the Council's land and property assets (for Phoenix House and the Cattle Market North) and highlighted the work undertaken to date (assessing the development potential of relevant assets, creating a new corporate property and assets team and securing £500k business rates pool  grant funding, which the Council would match-fund with £375k).

 

Ms. Parikh highlighted that this was a long-term development programme, using a self financing model to develop the first phase of sites to generate capital receipts or revenue income, which would be reinvested in development of the space.

 

Ms. Parikh summarised the actions, which would be taken over future months relating to design and visibility, as well as commercial negotiations which would include engagement with occupiers of the buildings.  She highlighted that Phoenix House did not currently prove financially beneficial, as its expenditure and the income it generated were similar.  It had the potential to be developed, due to its location or to be disposed of in order to generate a capital receipt.  Proposals would be submitted to Cabinet in May 2021.  Disposal of the Cattle Market North site was proposed to generate a capital receipt for reinvestment either in the development of Phoenix House or another asset.

 

Councillor Leigh Higgins, Portfolio Holder for Growth and Regeneration (and Deputy Leader) advised of an amendment to recommendation 2 (at Section 2 of the report), which should reference Section 9 of the report (rather than Section 10).

 

Councillor Higgins advised that collaborative working with local Councillors was key and he welcomed Scrutiny Committee’s involvement, noting the value of the feedback they would provide.  Much work had been undertaken already and it was an ambitious project to make effective and efficient use of Council assets.  It was important to consider whether strategic assets were able to deliver strategic aims for the Council and if not, identify the best options for the Council.

 

Councillor Higgins highlighted that the aim of the Development programme was to create financially sustainable models to support future development of assets and reduce the need to borrow.

 

Councillor Higgins noted that the Cattle Market North site had long been identified for housing and it was anticipated that this would result in economic regeneration and maximise the Council’s gain.  Concerning Phoenix House, the Council had been in discussion with Partners who occupy the building, giving them advance notice of the possibility for disposal of this asset and working with them should they need to find another site.

During discussion the following points were noted:

 

  • Members thanked Ms. Parikh and Councillor Higgins for their work.
  • Members noted that some of the work on this project dated back to 2008 and that since the implementation of new governance arrangements work had gained pace (and updates on the work had been provided to Members).
  • Members agreed the need to be commercially  ...  view the full minutes text for item 140