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Newberries Car Park Development

Meeting: 14/12/2015 - Executive (Item 71)

71 Newberries Car Park Development Scheme pdf icon PDF 114 KB

The Executive is asked to consider a scheme for the development of Newberries Car Park in Radlett.

 

Additional documents:

Minutes:

Decision that:

 

1.         subject to approval of the finance and costings laid out in part II report (EX/15/76), the Council be recommended to approve a scheme for an 11,000 ft² GIA Retail/Food Store and an 80-bedroom hotel, based on the initial design shown in Appendix 1, subject to planning consent and an “Agreement to Lease” being in place; 

 

2.         subject to (1) above, the Council also be recommended to approve the capital spend towards financing this project, as explained in paragraph 7 of the Part II report (EX/15/76), which will most likely be from prudential borrowing in line with the Council’s treasury management strategy;

 

3.         subject to the Council’s approval of recommendations (1) and (2) above:

 

(i)          these proposals be progressed with the preferred operators        identified in the part II report based on their current financial offers     as a minimum and negotiations be concluded to a position of               “Agreement to Lease”;

 

(ii)         authority be delegated to the Chief Executive, in consultation with the Finance and Property Portfolio Holder, to progress the scheme to the construction phase subject to approval of the business case as detailed in the part II report and an “Agreement to Lease” that is legally binding being in place; this based on the minimal rental figures detailed in the part II report and tendered construction costs being within 5% of the estimated build costs in the part II report;

 

(iii)        a Project Board Panel be set up consisting of Chief Officers, the Finance and Property Portfolio Holder and nominated elected members to manage the project and associated risks; and

 

(iv)   initial funding of £400,000 from the Innovation and Investment Fund      be approved to drive and deliver the project to planning application       stage including the procurement of a Project Manager; and

 

4.         further progress reports be presented to the Executive on a periodic basis.

 

Reasons for the Decision

 

The development would aid local economic regeneration by creating jobs within the Borough and boosting the local economy with hotel guests using the local shops, restaurants and other facilities.  It would also provide a much‑needed hotel facility within the area which currently did not exist as well as a retail food store.  The site was ideal for a hotel, having good connections to the M25, M1 and A1 and being in close proximity to the rail station with excellent travel links to London.

 

Further projected cuts in public spending would result in loss of the Council’s current Revenue Support Grant funding by 2019/20 or sooner and the Council was also unable to continue to rely on the New Homes Bonus.  Of equal importance was the fact that land was not an inexhaustible resource and it was inevitable that the building programme would slow down in future years.

 

For these reasons, the Council needed to look seriously at all its assets in a commercial and entrepreneurial manner.  The Newberries Car Park scheme was considered a key project which might be able to provide the Council with guaranteed revenue income  ...  view the full minutes text for item 71