Agenda item

The Chair noted that William Burdett-Coutts, a Director of the Riverside Trust and Chairman of Riverside TV Studios Limited, had been invited to the meeting but was unable to attend. His response to the Chair would be circulated outside of the meeting.

Officers presented the report and informed members that the Riverside Trust had advised the Council that there was a considerable funding shortage in re-providing the Riverside Studios facility in full as agreed when the current redevelopment was completed and that they were seeking a loan from financial institutions to deliver on that commitment. The report set out the background to the planning permission granted in January 2014. It sought a steer from members to ensure that the expected public planning gain and community benefits from the development were achieved in full.

Members noted that up to 40 percent affordable housing (estimated to be worth in the region of £25m) had been waived by the Council at the time of the planning application, with the public monies resulting from planning gain used instead to ensure development of the community arts and entertainment facility.  The full re-provision of the facility was now considered to be under-funded by the Riverside Trust. Officers informed members that viability appraisal submitted in support of the planning application attached no revenue stream to capitalise in respect of the arts and entertainment facility scheme.

Members asked if the original multi-purpose television studios and theatre spaces were fit for purpose. Officers responded that the Riverside Trust had advised officers and the Theatre Trust that the studios were past their useful life and needed redevelopment. Revenue from renting out the studio spaces to television companies had helped support the arts activity.

Members asked if officers visited other similar studio spaces to determine how they compared. Officers responded that they had and at the time the Council believed a new and improved community arts and entertainment facility would be a positive addition to the borough. The Council’s external consultant had verified all development costs that had gone into the application’s financial viability appraisal.

Members asked if it was usual for public money to be provided to a private company, with regards to the renovation of the studio spaces. Officers responded that the Riverside Trust was a registered charity and that they were continuing to provide the same service as they had before; renting space to television and theatre companies and holding community arts provision.

Members asked if officers felt the developer’s viability appraisal presented an accurate reflection of current market values. Officers responded that they considered the application’s viability appraisal to have underestimated likely sales values of the residential element and they negotiated for significantly higher sales values. Given the higher than predicted house price growth from 2013 onwards, the properties are now being advertised for higher prices that those agreed at the time of the application assessment. Officers noted that the Council had, in recent years, started to use far more varied techniques to challenge and robustly test the methodology and impacts that are used by applicants in their financial viability appraisals.

Members asked if any Section 106 obligations or planning conditions had been breached by the developer. Officers responded that there had been no breaches of the Section 106 agreement but there were some outstanding planning conditions that officers were investigating.

RESOLVED

·         That the committee be presented with the viability assessment and the Council’s appraisal of that document avoiding disclosure of information that may be considered commercially sensitive.

·         That the committee be presented with a schedule of the planning and Section 106 obligations stating which have been complied with and which have not, with detail on any that may have been breached, including options for enforcement.

·         That officers seek confirmation and details on why the £7m capped figure may not be sufficient to fully fit out the new Riverside Studios space.

·         That the Chair of the Riverside Trust be invited to attend the meeting.