Agenda item

A report from the Leader and Cabinet Member for Finance and Growth is attached.

Councillor Eamonn O’Brien, the Leader of the Council and Cabinet Member for Finance and Growth, presented the report which provided an update on plans for the regeneration of Prestwich town centre and proposed the acquisition of the Longfield shopping centre in order that the wider regeneration outcomes for Prestwich could be achieved as well as proposals to take forward the future development.

Members were supportive of the developments and the commitment to the long term future of the area. In response to a Member’s question, the Leader advised that this differed from previous schemes as negotiations undertaken and partnership working had allowed a more financially viable solution with a lower risk. With regards to the purchase of 458 Bury New Road, this was of strategic benefit for the future but also offered commercial return in the short term.

In response to a question regarding the tight timetable for acquisition, it was noted that the Hollins Murray Group had set this timescale, which placed time restraints on the negotiations but also allowed for a reduced price. It was noted that key leases in Prestwich were coming to an end in the coming years as the Hollins Murray Group had intentionally maintained limited leases. This benefitted the Council’s plans as compensation to longer leases wouldn’t be required. With regards to the £13m figure circulated in literature, the Leader advised that the detail was set out in the Capital Budget, but that the figure represented the total of capital and staffing costs over this and future years.

It was noted that more work and public engagement would be forthcoming, business support would be provided for existing businesses that were affected, and details on phasing to be determined. Councillors praised the officers involved for their hard work in achieving this. Previous plans had been hindered through lack of ownership which this decision would resolve.

Decision:

That Cabinet:

·         Notes the progress made with the Prestwich Town Centre regeneration scheme.

·         Approves the acquisition by the Council of the Longfield Shopping Centre for the amount set out in the report in Part B of this agenda, subject to the detailed terms of the transaction and a best value report being submitted to Cabinet for approval before the end of June.

·         Approves in principle to the Council entering into a Joint Venture agreement with a developer subject to detailed terms of the agreement being submitted to a future meeting of Cabinet for approval.

·         Notes that the Council will submit a costed proposal for the interim property management of the Longfield Shopping Centre which will be subject to a competitive procurement process to be carried out in accordance with the Council Contract Procedure Rules.

Reasons for the decision:

The regeneration of Prestwich town centre is an opportunity to deliver much needed new homes, facilitate growth through high quality commercial spaces, and embed a new cultural offering within new public buildings, whilst also providing an opportunity to deliver operational savings for the Council by consolidating buildings and service delivery with wider public estate functions across the town.

Other options considered and rejected:

Other options have been considered and have been subject to external validation by the Council’s advisers CBRE. The options have been considered in relation to risk, likelihood of development in the short to medium term and best value for the Council. These are:

·         do nothing;

·         buy the lease;

·         developer to buy the lease as part of a Joint Venture approach

·         Compulsory Purchase Order

The detailed evaluation of the options is set out in Part B however the recommendation from the advisers is to purchase the long lease. The do-nothing option will continue to see the redevelopment of the centre frustrated. The Longfield Shopping Centre will remain in a dilapidated and run-down state with the current owners remaining in-situ. The Longfield Centre will be an abandoned building above the Centre, adding to the sense of a failing centre.