Agenda item

Hanover Street Site Remarketing Report

Minutes:

Prior to consideration of this matter it was explained that depending upon the contents of Members’ discussion some aspects of this item may need to be considered as an “exempt” matter in private session.

The Chairman introduced Mr. J. Dillion, Chartered Surveyor, from GJS Dillon Commercial Property Consultants who had been marketing the site since 2012.

The Executive Director, Finance and Resources introduced the report and in so doing highlighted why the site should be re-marketed and the additional cost to the Council of this exercise, with brief details of why this had to be carried out. The additional costs would be minimal, bearing in mind the Council’s responsibility for the public purse, and would include an up to date valuation from the District Valuer. Extensive preparatory work in relation to the legal aspects of the disposal of the site had already been completed and this work would assist in helping the legal transaction move forward quickly following the re-marketing. Details of the re-marketing exercise were also provided and the recommendations which would be considered by Cabinet at its meeting later this evening. The purpose of this evening’s Board meeting was for Members to have the opportunity to pre-scrutinise the reports and put forward their views and recommendations as appropriate.

During discussions Members raised the following points to which Officers responded:

· The reasons why Opus had withdrawn from the site. Members were advised that the Commercial Property Consultants had tried unsuccessfully for Opus to continue with the development.

· The viability of the site to other developers (following the withdrawal of Opus). Mr. Dillon responded by informing Members that the market had significantly moved on and there were already a number of parties that had come forward, with a variety of occupants, including some of the original outlets suggested.

· That there had not been a reserved bidder, following the first marketing exercise, the Council had been dealing on with Opus..

· It was understood that the area concerned was or had been a conservation area and Members raised the point as to whether this still remained the case and if so, whether this would be taken into account by prospective developers. Members were informed that the area was on the border of the conservation area and in respect of design of the buildings, this would be something which Planning would consider.

· Whilst a cinema was key, and the one in question continued to be interested in Bromsgrove, Mr. Dillon confirmed that it would be market led and currently the market was showing that there was capacity for such a venue.

· The merits of the inclusion of some sort of “financial lock in” were debated in view of the expense to the Council of the re-marketing exercise.

· The need for any further restaurant chains within the Town Centre and the option of encouraging local businesses to grow. Again, it was suggested that currently the market was showing that there was capacity for such facilities, dependant upon the mix of outlets provided at the site.

· The option for the George House site to be a mix of retail and residential properties. Officers advised that the Council was not in a position to be prescriptive about what was built on the site other than to make reference to the Area Action Plan.

· Work required in respect of the Spadesbourne Brook, which was also detailed in the Area Action Plan and whether this could be included in some way. Officers advised that this was a difficult area as if the Council became prescriptive in the work which needed carrying out it could trigger the need to carry out a formal procurement exercise as opposed to the current proposal of offering the site for sale.

It was reiterated that, whilst taking on board the points raised by Members if the Council were to become too prescriptive in its requirements it could deter prospective developers.

RECOMMENDED that at the conclusion of the marketing exercise, when scoring the bids received, the scoring matrix should allow for due regard to be given to the proposals in respect of the Spadesbourne Brook as referred to in the Area Action Plan for the Town Centre.

RESOLVED that the update report re disposal of Council held assets at Hanover Street Car Park and George House be noted.

(During consideration of this item Members discussed matters that necessitated the disclosure of exempt information. It was therefore agreed to exclude the press and public prior to any debate on the grounds that information would be revealed relating to financial and business affairs. However, there is nothing exempt in this record of the proceedings.)

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