Agenda item

Report of the Deputy Chief Executive (Place)

The Cabinet considered a report of the Deputy Chief Executive (Place) that set out proposals for Innovative Retail Development Limited to enter into a 150 year lease with the City Council, to enable the refurbishment and redevelopment of the Riley Square Shopping Centre. The lease would include the whole of the Shopping Centre and the residential parts which were subject to a long lease to Whitefriars Housing Association.

A corresponding private report detailing confidential aspects of the proposals was also submitted to the meeting for consideration (Minute 45 below refers).

Riley Square Shopping Centre was part of the Bell Green District Centre that was built in the 1960’s. The centre had an outdated design and suffered from a lack of significant investment and was in a poor physical condition. The decline in the shopping centre had been accelerated with changing shopping habits and nearby competing centres including the Arena Park, Courthouse Green and the Gallagher Retail Park.

A report considered by former Cabinet Member for Business, Enterprise and Employment on 29th March 2016 (his minute 64/15 referred), gave approval to authorise officers to enter into an Exclusivity Agreement with Innovative Retail Development Limited (IRDL) for them to undertake a feasibility study for proposals for the investment and refurbishment of Riley Square and possible terms for disposal by way of a long lease.

IRDL had identified that substantial capital investment was required to resolve outstanding repairs and maintenance, health and safety issues and public realm, to modernise the Centre. If the Council was to commit this capital spend over the medium term, any financial investment would not be worthwhile as it would not get the return on the investment.

Following discussions with the Council and Whitefriars Housing Association, IRDL were now in a position to enter into a 150 year lease with the Council, which would enable the refurbishment and redevelopment of the Centre. The lease would include the whole of the Shopping Centre and the residential parts, which were subject to a long lease to Whitefriars.

The Centre would need to be remodelled and it was essential that the visibility of the retail offer was improved. IRDL had undertaken negotiations with Whitefriars who were supportive of the proposals in principle. Council owned land at Almond Tree Avenue had been identified for the development of affordable houses to compensate Whitefriars for any future loss.

RESOLVED that the Cabinet:

1.  Delegates authority to the Director of Project Management and Property Services to enter into a new 150 year lease with IRDL on a Full Repairing and Insuring Basis.

2.  Approves that the land at Almond Tree Avenue is transferred from the Council to Whitefriars Housing Association to assist in the regeneration of Riley Square.

3.  Authorises the advertisement of the proposed disposal of the public open space in accordance with the requirements of Section 123 (2A) of the Local Government Act 1972 (as amended) and for any representations to be reported to Cabinet Member for Jobs and Regeneration for consideration.

4.  Delegates authority to Legal Services to execute all necessary documentation to give effect of the transfer and the lease.

5.  Delegates authority to the Director of Project Management and Property Services, following consultation with the Cabinet Member for Jobs and Regeneration, to make any subsequent variation in relation to the terms of the proposals in this report.