Agenda item

Report of the Deputy Chief Executive (Place)

(NOTE: Pursuant to the City Council’s Constitution, Councillor R Brown, the Chair of Scrutiny Co-ordination Committee (or his nominee) has been invitred to attend the meeting for the consideration of this matter (and the corresponding private report, item 8 below), to agree the need for urgency such that call-in arrangements will not apply. The reason for urgency being that there is a contractual deadline which the developer needs to meet which would be breached if the matter is subject to call in. This could put the scheme at risk of not happening.)

The Cabinet Member for Jobs and Regeneration considered a report of the Deputy Chief Executive (Place) which indicated that the regeneration of the City Centre continues to be a key priority of the Council. An area specifically recognised as requiring investment and regeneration and the reintroduction of residential living is the area of the City around Burges, Ironmonger Row, Cross Cheaping, Hales Street and Palmer Lane.

One key scheme involves the Council, in conjunction with Historic England, supporting Historic Coventry Trust’s investment and regeneration of several buildings in Burges and Hales Street as well as the opening up the river Sherbourne in Palmer Lane. As a result of these works a further opportunity has arisen with the Council being approached by EDG Property Ltd who wish to invest in the area and create new compact but sought after one bedroom, residential flats on the corner of Cross Cheaping and Ironmonger Row.

EDG Property Ltd have an established track record of success in areas of Coventry City Centre that require considerable investment at risk having delivered transformational change with their innovate conversion of the former Co-operative store in Corporation Street, setting a new benchmark for city centre living in Coventry.

The report sought approval to the grant of a new 250 year lease over the property known as 8-12 Ironmonger Row, 17-21 Cross Cheaping. This would enable EDG Property Ltd to invest circa £5m in the scheme to retain and enhance the ground floor retail units and facilitate the conversion of the current vacant upper floor offices into small residential flats. In addition, and subject to planning, this scheme enables the construction of two further floors of residential accommodation on top creating forty two, one bed, self contained, residential flats for private sale. This would result in a fundamental change in appearance of this building.

Following long term discussions with EDG Property Ltd, the total costs of the scheme are preventing the development unless there is some intervention from the Council. To enable this important development, the Council is being asked to forego a ground rent or capital premium for the granting of the new lease. The report detailed the social and economic benefits of promoting the scheme.

A corresponding private report detailing confidential financial matters was also submitted for consideration (Minute 25 below refers).

Pursuant to the City Council’s Constitution, Councillor R Brown, the Chair of Scrutiny Co-ordination Committee attended the meeting for the consideration of this matter (and for the matter considered in Minute 25 below) and agreed the need for urgency such that call-in arrangements would not apply. The reason for urgency being that there is a contractual deadline which the developer needs to meet which would be breached if the matter is subject to call in. This could put the scheme at risk of not happening.

RESOLVED that the Cabinet Member for Jobs and Regeneration:-

1)  Grants a new 250 year lease, at the sum identified in the corresponding private report, to EDG Property Ltd in order to facilitate the proposed development which includes residential, retail and leisure uses on land known as 8-12 Ironmonger Row, 17-21 Cross Cheaping and shown on the plan attached to Appendix 1 of the report.

2)  Delegates authority to the Deputy Chief Executive (Place) following consultation with the Director of Finance and Corporate Services and the City Solicitor to negotiate and finalise the terms of the grant of the new lease, to undertake the necessary due diligence and complete all necessary legal documentation to facilitate the completion of the transaction.

3)  Delegates authority to the Deputy Chief Executive (Place) following consultation with the Cabinet Members for Jobs and Regeneration and Cabinet Member for Strategic Finance and Resources for any subsequent variation in terms.