80 Royal Victoria Place Tunbridge Wells Update PDF 135 KB
To consider and decide on the recommendations as set out in the report.
Additional documents:
Decision:
RESOLVED –
1. That the contractual obligation on the council as the freeholder of the long leasehold interest between the Council and British Land consent to the proposed mall refresh refurbishment works and to contribute to the full cost of such works as provided for under the terms of the lease be noted; and
2. That the Head of Economic Development and Property in consultation with the Monitoring Officer, the Director of Finance, Policy and Development, the Portfolio Holder for Finance and Governance and the Portfolio Holder for Property, Major Projects and Strategic Engagement be delegated authority to:
a. Complete of all necessary negotiations, legal documentation and legal formalities and to appoint external solicitors to deal with such matters as considered appropriate; and
b. Make all proven and necessary payments to ensure compliance with the lease obligations in relation to the identified Type 1 Qualifying Refurbishment works.
REASON FOR DECISION:
To allow the refurbishment works at Royal Victoria Place Shopping Centre to be taken forward.
Minutes:
John Antoniades, Estate Manager, introduced the report that set out details for the refurbishment works to the Royal Victoria Place Shopping Centre that included the following:
- British Land to undertake the refurbishment works and to note the summary specification and programme for the proposed works
- To note and confirm the Council’s obligation to contribute towards the cost of the those works under the terms of the long leasehold interest.
- To note the proposed estimated total cost and the proportion of those costs that would be the responsibility of the Council.
- The proposed refurbishment works did not require planning permission and would be undertaken outside normal opening hours.
- The Council had identified work that it deemed outside the remit and as such it was revised with significant savings.
- Mechanisms were in place to ensure effective monitoring took place throughout the refurbishment process.
- In the longer term there was a proposal for the redevelopment of the site.
Discussion included the following comments:
- Congratulations to the team for identifying the maintenance items that resulted in a reduction in costs to the Council.
- This was a good news story. The first element, Ely Court was due to open shortly.
- Beneficial to shopping and leisure for both residents and visitors to Tunbridge Wells.
RESOLVED –
1. That the contractual obligation on the council as the freeholder of the long leasehold interest between the Council and British Land consent to the proposed mall refresh refurbishment works and to contribute to the full cost of such works as provided for under the terms of the lease be noted; and
2. That the Head of Economic Development and Property in consultation with the Monitoring Officer, the Director of Finance, Policy and Development, the Portfolio Holder for Finance and Governance and the Portfolio Holder for Property, Major Projects and Strategic Engagement be delegated authority to:
a. Complete of all necessary negotiations, legal documentation and legal formalities and to appoint external solicitors to deal with such matters as considered appropriate; and
b. Make all proven and necessary payments to ensure compliance with the lease obligations in relation to the identified Type 1 Qualifying Refurbishment works.
REASON FOR DECISION:
To allow the refurbishment works at Royal Victoria Place Shopping Centre to be taken forward.
51 Royal Victoria Place Tunbridge Wells Update PDF 134 KB
To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.
Additional documents:
Minutes:
John Antonaides, Architectural Surveyor, introduced this report that seeks to notify Cabinet of the intention of the long leaseholder, British Land to undertake refurbishment works to Royal Victoria Place Shopping Centre. To note and confirm the Council’s obligation to contribute towards the cost of such works as provided for under the terms of the long leasehold interest. To further note the proposed project programme to undertake the work, the estimated costs (including the Council’s commitment to those costs), and associated legal requirements.
Discussion and responses to member questions included the following matters:
- The rent received by the Council was the base figure of £837,000 (guaranteed) and not a percentage of net rents as this would be a less.
- The planned refurbishment works alone would not provide sufficient rent to reach the guaranteed £837,000. This would require development works or a substantial change in the outlook of retail.
- British Land was solely responsible for payment of Ground Rent. Should British Land go bust, under the terms of the contract, others would be liable for the rent.
- Refurbishment of Ely Court was underway and due to be completed soon. .
- Plans for the refurbishment received by British Land on acquisition was not fit for purpose. British Land had already invested £96m in order to obtain the leasehold so it was in their interest to consider options for redevelopment – to bring forward new initiatives and a move away from just retail to include more experience and leisure based activities. The Council would provide support when the case came forward for consideration.
- It was important not only to consider new retailers, but to take account of existing retailers and their continued presence in the town. It was also important to encourage existing retailers to undertake their own refurbishment to bring current stock up to date and increase footfall.
- Investment by British Land and the Council would help protect the value of the Council’s property asset.
- Confirmation that under the terms of the lease, the Council received all the income from car parking. Higher footfall in the Shopping Centre would increase car parking revenue - a benefit to the Council.
- Investment in the Shopping Centre would also result in an increased level in rents which was a direct contributor to the amount of business rates to be paid, the Council would then benefit in the increase of Business Rate Growth.
- As the long leaseholder, British Land would be accountable for the risk but the Council would have access to all the invoices so that spend could be monitored.
- Scheme running within agreed timeframe.
Decision was made that included information contained in the Exempt Appendix taken as read.
RESOLVED – That the recommendations to Cabinet set out in the report be supported.