Councillor Morris, Cabinet Member for Culture, Economy and Skills reported that in October 2023 Bury Indoor Market was closed due to the discovery of Reinforced Aerated Autoclaved Concrete (RAAC) which posed a significant Health and Safety risk.
Following the closure, 49 Traders (62 Units) who operated within the hall were either relocated, had their units reconfigured to continue operating, or arranged alternatives for their business.
During the consultation with traders to organise relocation, opportunities to move traders into the Millgate Shopping Centre presented themselves as Bury Council had recently entered a Joint Venture with Bruntwood to purchase the Millgate to regenerate the area, which links to the Bury Town Centre Master Plan.
The level of subsidy is unsustainable and is creating increased budget pressures on Bury Council.
The traders were advised that the subsidy would be revisited and reviewed in 12 months. As traders were not relocated together, the date when the 12 months expires varies considerably.
It is proposed that traders operating within the Millgate Shopping Centre be given notice that the subsidy they are receiving ends in March 2024. This will allow traders 6 months' notice to either negotiate with the Millgate Shopping Centre for a formal lease or to consider alternatives.
In response to a question regarding the cross-party group to look at appraisals members were informed there will be another meeting and a further update is anticipated to take place at the next Cabinet meeting in November.
In response to a query regarding support given and how people were targeted Councillor Morris reflected that the Council focused on ensuring traders were offered a place to operate and continue trading.
DECISION:-
· Traders operating within the Mill Gate Shopping Centre be given notice that the support they are receiving ends in March 2025. This will allow traders time to either negotiate with the Mill Gate Shopping Centre for a formal lease or to consider alternatives, for example, relocation.
· The total cost of the emergency response to the closure of the Indoor Market Hall is approved by the Cabinet as it is now over £500,000.00 which deems it a key decision.
Reasons for recommendations:
Although Bury Council is committed to Bury Market and the continued development of the Town Centre, continued support for a small number of relocated traders operating within the Mill Gate will create a considerable ongoing strain on Council budgets. Continued financial support for relocated Market Traders operating within the Mill Gate creates inequity for Mill Gate retailers. The continued support cost could be utilised to deliver the preferred option of the Market Hall feasibility study. Any decision in relation to an executive function which results in the council incurring expenditure which is, or the making of savings which are, significant having regard to the council's budget for the service or function concerned, in this case, the expenditure in excess of £500,000.00, is deemed as a key decision and must be approved by Cabinet.