Decision details

That Cabinet approves

1.1.        Subject to receiving a satisfactory external valuation advice, that the Council enter into a conditional sale agreement, and any other legal agreements which are required, with the King Street Joint Venture for the purchase of:

·           6,011sqm NIA of B1 office space.

·           523sqm NIA for office start-up units.

·           649sqm NIA commercial uses in A1–A3 use class.

·           A new four-screen cinema totalling 1,283sqm NIA and 335sqm NIA restaurant.

1.2.       Delegated authority to the Strategic Director for the Economy, in consultation with the Cabinet Member for the Economy, to finalise and complete negotiations with the Joint Venture company and enter into all necessary legal agreement/s in order to give effect to the decision in 2.1 above.

1.3.        Delegated authority to the Strategic Director for the Economy, in consultation with the Borough Solicitor and the Cabinet Member for the Economy, to agree onward pre-sales and lettings to appropriate occupiers for each of the buildings following external property advice on commercial terms and values.

That Cabinet recommends to Full Council

1.4.        To approve a capital budget of £64m for the purchase of the office space, start up units, commercial units, restaurant and cinema as set out in this report and the associated professional fees and Stamp Duty Land Tax (SDLT). The total budget will be funded by general fund borrowing, represented by an increase in the Council’s capital financing requirement, supplemented by capital receipts, or developer contributions when available, with final confirmation of funding delegated to the Strategic Director, Finance and Governance, in consultation with the Cabinet Member for Finance and Commercial Services.

1.5.        To approve an additional capital budget of £25m to purchase a 50% stake in the joint venture limited liability partnership with A2 Dominion at the point at which the new town hall extension is handed over to the Council, funded by general fund borrowing, represented by an increase in the Council’s capital financing requirement.