Decision details

Councillor Eamonn O’Brien, the Leader of the Council and Cabinet Member for Finance and Growth, presented the report regarding the proposed 50:50 Joint Venture vehicle between Bury Council and Muse Developments in the regeneration programme in Prestwich. It was noted that full financial and legal details were set out in the Part B paper later in the agenda.

In response to Members’ questions it was noted that liaison with existing tenants had taken place early on to inform them of the changes and how it would affect them. Relationships were being developed so tenants knew who to contact and were kept informed and the management office in Prestwich would ensure face-to-face contact was available. With regards to site being left empty, details and phasing were still to be developed but efforts would be made to minimise the inevitable disruption. 

In terms of environmental standards, it was noted that anything the Council built would be as modern and eco-friendly as was reasonable. The Council’s involvement would ensure this type of added value above the market itself, costing more at the outset but driving high standards and securing lower running costs long-term.  

Decision:

Cabinet:

1.   Approved the Heads of Terms and the formation of a JV with Muse Developments contained within Part B of this report with final approvals delegated to the Director of Regeneration, the Section 151 and Monitoring Officer’s;

2.   Approved the principle of underwriting predevelopment costs to enable the acceleration of the planning submission. This will be limited to works completed prior to entering into the JV agreement over the next 3 months; and

3.   Noted the Councils ongoing work to manage the Longfield Shopping Centre and achieve vacant possession.

Reasons for the decision:

·         Muse have an Option Agreement on the leasehold of the Longfield Shopping Centre, this puts Muse in a unique position, the Longfield Shopping Centre is integral to the regeneration scheme, and the Council could not have purchased the Shopping Centre without Option Agreement remaining in place.

·         Muses’ exclusive rights position is based upon the fact that their consent would be required for any entity (including the Council) to develop the Longfield Shopping Centre and deliver the wider regeneration programme.

·         Addleshaw Goddard have provided clear legal advice to the Council regarding the exclusive rights position and procurement considerations when using the proposed JV.

Other options considered and rejected:

·         Following acquisition of the Longfield Shopping Centre and the acknowledgment that the centre needs significant investment and must be regenerated, the council has an alternative option to redevelop:

·         Muses’ option agreement expires in 2025. Council retains the income producing asset until expiration then procure an OJEU compliant developer. However, this is not the preferred option. This would delay the project by 6+ years and would cause significant uncertainty to local businesses and the community.