Report of the Director of Business, Investment and Culture
(Listing Officer: David Nuttall, Tel: 024 7683 2337)
Minutes:
Further to Minute 78 above, the Cabinet considered a private report of the Director of Business, Investment and Culture, which set out the commercially confidential matters relating to the proposals for the acquisition of the IKEA premises and adjoining land and property at Croft Road, Coventry for the purpose of creating a nationally significant Collections Centre for the storage, care and management of cultural, arts and historic artefacts. In addition, the report sought acceptance of capital grant towards the new Collections Centre project, along with the design and professional fees that would be required to take the scheme through detailed design and tendering.
RESOLVED that, the Cabinet:
1. Approve the acquisition of the leasehold interest of the site shown edged red in Appendix 1 of the report submitted.
2. Approve additional professional design fees of £1.311m to develop the detailed option designed to RIBA Stage 3 and Stage 4 (contractor procurement through a compliant process), subject also to finalising commitment of the partners (through a Partnership Agreement) to the underwriting of these fees should the project not proceed.
3. Delegate authority to the Director of Property Services and Development and the Director of Business, Investment and Culture, following consultation with the Director of Law and Governance and the Director of Housing and Transformation, to commence the necessary procurement or the appointment of the professional design team including any necessary contract extensions.
4. Delegate authority to the Director of Property Services and Development and the Director of Business, Investment and Culture, following consultation with the Director of Finance, the Director of Law and Governance, the Cabinet Member for Jobs and Regeneration and the Cabinet Member for Housing and Communities, to undertake the necessary due diligence and finalise the terms of the leasehold transaction and acquisition between the Council and IKEA Properties Investments Limited.
5. Note that the principal partners, subject to their own due diligence processes and final approvals on terms delegated tot heir respective Chief Executives or identified representatives, have approved the principle of entering into Agreements for Lease with the Council as tenants within the new Collections Centre.
6. Delegate authority to the Director of Property Services and Development and the Director of Business, Investment and Culture, following consultation with the Director of Finance, the Director of Law and Governance, the Cabinet member for Jobs and Regeneration and the Cabinet Member for Housing and Communities, to finalise the necessary negotiations and any due diligence associated with the Heads of Terms for each of the partners and the entry into the new Agreements for Lease arrangements between the parties.
7. Recommend that Council:
(a) Approve capital expenditure to the sum identified within the report submitted (plus acquisition fees and Stamp Duty Land tax to the sum identified) to fund the acquisition of the leasehold interest of the site shown edged red in Appendix 1 and to include this within the approved capital programme which shall be funded from a combination of capital grant and prudential borrowing as set out in the report.
(b) Delegate authority to the Director of Business, Investment and Culture and the Director of Finance, following consultation with the Cabinet Member for Strategic Finance, the Cabinet Member for Jobs and Regeneration and the Cabinet Member for Housing and Communities, to identify and bid for grant assistance, where available, that supports the aims of the Collections Centre project. The delegated authority under this recommendation shall include the power to accept the terms and conditions of grant funding and the entering into all necessary legal agreements to secure such grant funding.