Agenda item

The Interim Director for Growth and Regeneration to submit a report to seek approval from Committee Members to agree the basis for the grant of a sub-lease for that part of the Melton Cattle Market site forming part of the Southern Opportunity Area which will be used by Round Corner Brewery Limited to create a brewery and associated tap room.

The Interim Director of Growth and Regeneration submitted a report to seek approval from Members to agree the basis for the grant of a sub-lease for that part of the Melton Cattle Market site forming part of the Southern Opportunity Area which will be used by Round Corner Brewery Ltd. to create a brewery and associated tap room.

 

The Interim Director of Growth and Regeneration informed Members that the new 20 year lease to Gillstream Markets at the northern site of the Cattle Market has been sought and we are now looking at a short term lease for the southern site.

It was noted that the completion and opening of the new buildings at the Cattle Market in March mean that attention is now being turned to the remainder of the site with a new venture to set up a brewery at the Cattle Market.

This idea is trying to replicate the attraction of the Tuesday market day across the rest of the week and offer a seven day attraction to visitors.

After developing a master plan last year, the Council is reviewing the masterplan and working in partnership with Gillstream Markets to develop an investment plan and look at ambitions.

It was noted that the brewery proposal received planning permission in May and Gillstream have sought approximately £1.5m to fund the brewery. Granting the lease would mean that the project by completed by the end of the year.

 

A Member noted their enthusiasm for the proposal and asked what level of directly enhanced income will the Council receive as a result.

 

The Building Surveyor noted that we are yet to see projections with regards to the brewery.

 

A Member noted that Gillstream will be reducing their overheads and asked how we benefit from that.

 

The Building Surveyor replied that it will be necessary to look at the entire site.

The Interim Director of Growth and Regeneration noted that there will be a small return. The proposal is opportunist and done in advance of the complete masterplan but the proposal is complimentary to wider strategic proposals.

 

A Member praised the proposal for becoming more commercial and could see the opportunities as part of a bigger picture but was concerned that the Council shouldn’t be giving away an opportunity.

 

A Member asked  if there would be an impact on the Market Tavern.

 

The Interim Director of Growth and Regeneration noted that the impact was for Gillstream to consider but the two premises wouldn’t compete, rather they would compliment each other.

 

A Member asked if modelling had been done to look at impact on other licence holders in the town. If their turnover went down there would be a negative impact on existing businesses.

 

The Interim Director of Growth and Regeneration noted that no modelling had been done however it was not thought that it would take away from other pubs.

 

A Member asked if the brewery would have vastly improved prices that could undercut other licenced premises.

 

The Interim Director of Growth and Regeneration noted that the micro-brewery proposal would be an artisan attraction and given the product would be unlikely to undercut other licenced premises in the town.

 

A Member noted that by making the beer on site, the Cattle Market could get half of their business from selling to local businesses in the town and Borough.

 

A Member asked how it would be looked at if they wanted to serve food. However, the Building Surveyor noted that initial discussions with Gillstream suggested that their intention was not to sell food although this might be reconsidered at a later date. It was noted that the intention was not to impinge on other businesses or artisan outlets.

 

A Member noted that the Interim Director of Growth and Regeneration had a point on commercialisation that the Council needed to consider. A brewery could generate unpleasant odours in the course of production, this should be considered in the terms of the lease as Councillors didn’t want Melton to get a bad reputation. It was suggested that a steer from this Committee could be to add in review periods as part of this interim lease. The interim Director for Growth and Regeneration agreed with this point and confirmd review periods would be included. .

A Member also noted that the attraction of the brewery could bring with it subsequent noise pollution and so it was suggested that this also be built into the terms of the lease.

 

The report was proposed and seconded.

 

All Members were in favour.

 

RESOLVED that the Committee agrees to delegate to the Director of Growth and Regeneration authority to negotiate and conclude terms, in consultation with the Chair of the Place Committee and Leader of the Council for:

i)             The grant of the licence to underlet to allow the subletting, by Gillstream Markets Ltd. of those parts of the buildings contained within their short-term lease of the south side of the market, to be designated as a brewery to Round Corner Brewery Ltd. (RCBL) together with all necessary lease variations, as required to permit this use.

ii)            In the event that the existing five year short-term lease within which there is an option to extend by a further five years to take the term to 2027 proves to be a constraint to the grant of the sub-lease to RCBL, then Committee to approve the extension of this delegation to the Director of Growth and Regeneration to negotiate and agree terms for the grant of a new longer term lease to Gillstream Markets Ltd. for the Opportunity Area. Terms would only be agreed once a satisfactory investment plan and appropriate levels of due diligence and assurance around matters such as tenant covenant, viability and deliverability of the plan have been completed.