Issue - meetings

Strategic City Centre Asset Opportunity

Meeting: 14/03/2023 - Cabinet (Item 110)

110 Strategic City Centre Asset Opportunity pdf icon PDF 246 KB

Report of the Director of Property Services and Development

 

Minutes:

The Cabinet considered a report of the Director of Property Services and Development which indicated that the Lower Precinct shopping centre is a key city centre commercial asset, with more than 40 commercial units, including Coventry Market, representing a strategic part of the city centre. The report detailed an opportunity the City Council has to take control of all or part of this asset through an agreement reached with the long leaseholder Royal London.

 

The Lower Precinct (including Coventry Market) is the subject of a head lease between the Council, as freeholder, and Royal London, as long leaseholder, of 240 years which commenced in October 2010. Under the terms of the head lease (as varied), Royal London pay the Council a minimum annual rent.

 

Coventry Market is part of the Lower Precinct head lease i.e. the head lease gives Royal London control over Coventry Market. There is a separate Management Agreement in place between the Council and Royal London whereby the Council runs the Market on Royal London’s behalf. The Management Agreement can be terminated by either party with six months’ notice.

 

As landlord and major tenant and stakeholder, the Council and Royal London are in continual dialogue regarding strategic and operational matters affecting each party’s interests in the city. From the Council’s perspective, as the custodian of the city, having a high performing city centre that is maximising its asset base and playing its part in attracting visitors, new businesses and investors is key to the city’s future success. This dialogue has been magnified recently through the process of bringing forward the Council’s flagship City Centre South (CCS) development scheme which is adjacent to the Lower Precinct and Coventry Market. CCS will deliver up to 1500 new homes and create a new part of the city centre which will in turn lead to spill over benefits to surrounding areas.

 

The CCS scheme’s land assembly process requires the Council to bring into its control areas of land currently in Royal London’s ownership (including service yards next to Coventry Market; the stalls on the external façade of Coventry Market; and a head lease of the vacant “Victoria Buildings” site next to Coventry Market) in order for the scheme to be delivered. This has resulted in proposals being made to Royal London to acquire these land interests (including the acquisition of “Rights” over their land in order to bring the CCS scheme forward, an example of these “Rights” would be the Right to swing a crane jib over their land) and the inclusion of these interests in the CCS Compulsory Purchase Order (CPO) which was made in April 2022.

 

Further to the CPO being made, Royal London lodged an Objection to the CPO and, therefore, the proposed scheme. Notwithstanding Royal London’s position, dialogue between the parties continued and Royal London removed their objection to the CPO on the first day of the CPO Public Inquiry (on the 17th January 2023).

 

The Council framed its position during these negotiations around the meeting of  ...  view the full minutes text for item 110