Agenda item

Further to Minute 114 of the Cabinet, the City Council considered a report of the Executive Director for Place, which set out proposals for the disposal of Civic Centres 1 to 4 as part of the Friargate project.

A corresponding private report detailing commercially confidential elements of the proposals was also submitted for consideration.

On 25 June 2013, the Council approved that the organisation support the development of the Friargate Business District to regenerate the City, transform the Council and deliver savings by the construction of a new Council owned office building at Friargate, the construction of a new bridge deck, the rationalisation of its operational property estate and the subsequent disposal of property assets vacated through such rationalisation.  The report required that the capital receipts generated from the disposal of such assets be ring fenced to the Friargate Project as part of the affordability strategy for the investment.  The report also required that a disposal strategy be developed that sought early marketing and negotiations designed to minimise the impact on the City Centre estate.  It was noted that the Council had entered into contractual arrangements for the new building to be built.

Since this time officers had prioritised the disposal of the key City Centre sites, namely Civic Centres 1 to 4 and Spire/Christchurch House.  Disposal of Spire/Christchurch House had already been approved and officers had been working closely with Coventry University in respect of Civic Centres 1 to 4.

The University had now presented their proposals for this key site to the Council which were consistent with the Council’s vision for the regeneration of this site and the city centre.  The University proposed that the site would become their key ‘front door’ site and would provide up to 35,000 sq m of development, incorporating research, HQ, commercial and international centre along with a small amount of post-graduate residential accommodation.

The development would require the demolition of all the Civic Centre 1 to 4 buildings and their phased replacement by the University.  The University had also indicated that they wished to purchase the freehold of the commercial units and flats above that front Earl Street for possible incorporation into the redevelopment.  These shops and the flats above were subject to a mixture of tenancies which were largely subject to security of tenure protection.  The University would be responsible for negotiating with the leaseholders to secure vacant possession at their expense and at an appropriate time should the properties be required to facilitate development.

Under the draft Heads of Terms the University proposed that they purchase the site and simultaneously enter into a lease back to the Council at a peppercorn rent until autumn 2017.  This would provide sufficient time for the Council to complete the move to Friargate and vacate Civic Centres 1 to 4.

In addition, the University had given a commitment to maintain the members car parking currently accommodated in the Magistrates car park albeit this may need to be reconfigured to allow it to be accommodated as development progressed.

The report also set out the wider outline strategy for dealing with the disposal of further property assets which would become surplus to requirements as part of the move to Friargate.

RESOLVED that the City Council:

(1)  Approve the freehold disposal of the site outlined red on Plan 1, comprising Civic Centres 1 to 4 to Coventry University in accordance with the terms set out in the report submitted.

(2)  Delegate authority to the Executive Director for Place, Executive Director for Resources and the Assistant Director for Legal and Democratic Service as appropriate, in consultation with the Cabinet Member for Business, Enterprise and Employment, to agree any variations or new requirements that are deemed necessary to give effect to the proposals.

(3)  Delegate authority to the Executive Director for Resources and the Assistant Director for Legal and Democratic Services to complete the necessary legal documentation in this matter and collect the agreed consideration.

(4)  Approve the outline disposal strategy set out in Section 2.12 of the report and delegate authority to the Executive Director for Place, in consultation with the Cabinet Member for Business, Enterprise and Employment, to amend the strategy as required to minimise the impact of vacation of the City Centre estate.

(5)  Delegate authority to the Executive Director for Place in consultation with the Cabinet Member for Business, Enterprise and Employment, to agree terms for disposal under the strategy, provided that the terms are in accordance with the Friargate Business case.