Agenda and minutes

There were no diclosable pecuniary interests.

a)  To agree the Minutes of the meeting held on 13 May, 2024

b)  Any matters arising

The Minutes of the meeting held on 13 May, 2024 were agreed and signed as a true record.

There were no matters arising.

Report of the Director of Property Services and Development

The Cabinet Member for Jobs, Regeneration and Climate Change considered a report of the Director of Property Services and Development which indicated that Broadgate House is a listed mixed-use building in the heart of Coventry’s city centre. Currently the upper floors are offices occupied by Council staff but there is a planned phased programme of service relocation to alternative Council accommodation due to commence shortly in order to deliver a significant on-going cost saving.

Once Broadgate House becomes vacant and surplus to the Council’s requirements, which is anticipated to be in the Autumn of 2025, there will be a need to identify an alternative use for the former office space. The  report sought approval for officers to commence marketing Broadgate House and for the disposal of a long leasehold interest.

The report outlined the features of Broadgate House, which is a Council owned freehold Grade II listed building, constructed as part of the initial phase of the post war regeneration of Coventry’s city centre. The ground floor retail units and the leisure unit are let to commercial tenants, with the Council receiving the rental income and managing a service charge. 

It is anticipated that the opportunity to refurbish the upper floors of this prominent and imposing building will engender a range of interested investors and developers to bring forward a range of proposals. The Council would welcome a range of uses to be incorporated including the encouragement of private and affordable residential accommodation but excluding student housing.

The intention is to effect a disposal by way of an agreement for lease and new long lease of the upper floor space.  The Council will retain the ground floor retail units and will maintain the rental income from those commercial lettings. The report indicated that a long leasehold disposal is the most financially prudent option, providing a receipt and avoiding vacant holding costs.  A disposal would see Broadgate House in continued use and result in jobs and new homes within the City Centre.

RESOLVED that the Cabinet Member for Jobs, Regeneration and Climate Change:-

1.  Declares Broadgate House surplus to the Council’s requirements.

2.  Approves the long leasehold disposal of Broadgate House via an open market process.

3.  Subject to the value of the lease being within the Cabinet Member’s financial approval limit, delegates authority to the Director of Property Services & Development and Director of Law and Governance, following consultation with the Cabinet Member for Jobs, Regeneration and Climate Change and the Cabinet Member for Strategic Finance and Resources, to select a purchaser and conclude the legal documentation and grant of a new long lease over the property.

4.  Approves the use of the capital receipt being applied to off-set the costs of relocating staff and services from Broadgate House with any surplus receipt being added to corporate resources.

Report of the Director of Property Services and Development

The Cabinet Member for Jobs, Regeneration and Climate Change considered a report of the Director of Property Services and Development which sought  approval to transfer the freehold of the site of the former Faseman House to Citizen Housing Group Limited to facilitate the development of the site to provide Temporary Accommodation within the Councils Housing Team.

The report indicated that  Faseman House is a vacant cleared site off Faseman Avenue in Tile Hill and formally provided two storey office accommodation occupied by the Council.  The buildings were demolished to slab level in 2019, leaving a cleared vacant site (the land).  The site is currently fenced with the main vehicle access off Faseman Avenue. Citizen Housing Group Limited have submitted a planning application and secured Planning Committee approval to construct a new block of 50 flats on the land. A planning permission Decision Notice will be granted once a Section 106 Agreement has been completed.  The planning application is for a proposed single building, providing one, two and three bed flats set in landscaped grounds.  A new access will be formed together with a small new car park.

Citizen Housing Group Limited have also obtained grant funding to support the development, without which it would be unviable. The final details of the planning application are agreed and it is anticipated that the land transaction will complete simultaneously with the final planning agreements. The use of the new building, to be constructed on the land, will be supported accommodation for temporary housing needs.  The Council will benefit from 100% nomination rights whilst there is a housing need, helping to meet the Council’s ongoing service provision.

The Council have a freehold interest in the land and the proposal is to transfer the freehold of the land to Citizen Housing Group Limited.  The transfer must occur ahead of the commencement of development as a requirement of the grant funding.  There will be provisions to enable the Council to buy back the land (at the same price) if for some unforeseen reason the development is unable to progress within two years of the freehold transfer or Citizen Housing Group Limited amend the planning permission to provide 43 or less residential supported accommodation units.  The receipt will be ring fenced until there is committed progress on the development; the Council will not be committed to buy back.

There will also be a right of pre-emption over the site in favour of the Council for a period of 125 years which will give the Council the right of first refusal to purchase the site at market value should Citizen ever consider the disposal of the completed scheme.

RESOLVED that the Cabinet Member for Jobs, Regeneration and Climate Change:-

1.  Approves the transfer of the freehold interest at the site of the former Faseman House to Citizen Housing Limited for £541,000.

2.  Delegates authority to the Director of Property Services & Development and the Director of Law and Governance, following consultation with the Cabinet Member for Jobs, Regeneration and  ...  view the full minutes text for item 4.

There are no outstanding issues.

There were no outstanding issues.

There were no nother items of urgent public business.