The report of the Deputy City Treasurer is enclosed.

Having declared an interest in Minute Number Exe/23/40, as a Council appointed member of Manchester Creative Digital Assets (MCDA), Councillor Craig left the meeting and took no part in consideration of the following item.

Councillor Rahman chaired the meeting from this point for the remaining items of business.

The Executive considered the report of the Deputy City Treasurer that sought agreement to the 250 year leasehold disposal of Space Studios Manchester, in order to facilitate further investment, secure its expansion and long term future as a TV and Film Studio facility in an increasingly competitive market.

Whilst Space Studios is a significant contributor to the local and regional economy, the operation and development of studio assets that were subject to shorter-term licences, high turnover of production clientele, fluctuating levels of occupancy with potential voids, have a far higher risk profile relative to other more established property use classes.  Previous phases of Space Studios had been developed with a mix of grant funding and Council borrowing, with a focus on the social and economic impact over significant returns.  As the studios had become more established, there was now a clear opportunity for the Council to step back from its enabling role and attract significant private sector investment into the operation of the existing facility and the delivery of Phase 3, without the need for the Council to carry forward the development, operational and financial risk whilst the city continued to benefit from the significant positive economic returns.

The Part B report (Minute number Exe/23/43 below) provided more details on the bidding and selection process of the preferred bidder, including the overall commercial offer and any commercially sensitive financial implications.

Decisions

The Executive:-

(1)      Note the report in relation to the changing trends in the Studio sector and the implications for continued ownership by the Council of Space Studios.

(2)      Approve the disposal of Space Studios in order to facilitate further investment, secure its expansion and long-term future as a TV and Film Studio on the basis set out in the report submitted.

(3)      Approve the selection of the Preferred Bidder, as outlined in the body of the report and the Part B report submitted.

(4)      Approve the grant of a 250-year lease of the land and buildings edged red in the plan at Appendix 1 to the report on the main terms and conditions to the Preferred Bidder outlined in the report and the Part B report.

(5)      Approve the grant of an Agreement for Lease and Lease of the Phase 4 land, edged blue at Appendix 1 of the report submitted, to the Preferred Bidder subject to relocation of the existing tenant and vacant possession

(6)      Delegate authority to the Deputy City Treasurer and Director of Development, in consultation with the Leader and Executive Member for Finance and Resources to negotiate and finalise the details and terms of the disposals together with the property and commercial arrangements with the Preferred Bidder.

(7)      Authorise the City Solicitor to enter and complete all documents or agreements necessary to give effect to the recommendations in the report submitted.