Report of the Strategic Director (Growth and Development) attached

The Executive considered a report of the Strategic Director (Growth and Development) which sought approval for the disposal by way of a surrender of the Council’s leasehold interest in the King Street West multi storey car park (MSCP) and ground floor retail shops to facilitate the redevelopment of the site.

The Leader advised that the disposal of the Council’s asset (MSCP and ground floor shops) would create a development platform to undertake the wholescale redevelopment of a cornerstone area of Deansgate and King Street West.  The redevelopment was planned to be one of the first major schemes to be brought forward following the adoption of the St Marys Parsonage SRF and was anticipated to provide a catalyst for the other schemes in the vicinity.

Fundamental to the redevelopment would be demolition, which would necessitate the closure of the ground floor shops.  Engagement with the tenants had been ongoing during the SRF and planning process but both MCC and the developer would endeavour to work closely with each of the tenants to ensure that they were offered advice and guidance along with as much notice as possible in respect of the date by which vacant possession of the units was required.

It was acknowledged that the closure of these retail units would result in the extinguishment of some businesses and as a consequent, a small number of job losses, should any of the businesses choose to permanently close. The precise impact could not be evaluated at this moment but it was hoped that these businesses could be supported to consider relocating locally and retain staff where possible.

Supporting the sustainable redevelopment of sites not fulfilling their commercial potential and maximising the contribution to the city was key to the success of the SRF strategy. Over 500,000sq/ft of [new] office space would be created within this area.  This new development would contribute to the economic success of the city through new jobs, homes and other infrastructure as well as providing a significant new income from business rates and council tax.

The direct revenue and capital implications of the acquisition were set out in the report of the same title on Part B of this agenda.

Decisions

The Executive

(1)          Approve the decision to declare the asset surplus to operational need for disposal by way of surrender of the lease.

(2)          Note the proposal to return to Executive in the event that (1) it has not been possible to secure vacant possession of the site by agreement and a formal request be made to consider the use of Compulsory Purchase Powers and (2) following a period of negotiation with the beneficiaries of any adjoining third party rights affected by the proposed development, the freeholder has not reached a settlement and has requested the Council consider use its powers under section 203 Housing and Planning Act 2016 .

(3)          Delegate authority to the Deputy Chief Executive and City Treasurer, Strategic Director of Growth & Development in consultation with the Leader and Executive Member for Finance and Resources to negotiate and finalise the details and terms of the disposal by way of surrender together with the property, commercial and any ancillary arrangements.

(4)          Delegate authority to the City Solicitor to enter into and complete all documents or agreements necessary to give effect to the recommendations in this report.