Decision Maker: Cabinet
Decision status: Recommendations approved
Is Key decision?: Yes
Is subject to call in?: Yes
Approval of joint venture to develop Happyland site on Bournemouth seafront
(a) The Council issues a Voluntary Ex-Ante Transparency (VEAT) Notice advertising the Council’s intention to enter into an agreement for lease of the Happyland site, shown edged red on the attached plan, with a special purpose vehicle established by the Meyrick Estate (the SPV) to grant a lease to a nominee of that SPV;
(b) The Council enters into an agreement for lease with the SPV to grant a 150 year lease at an initial rent of £1,001 per annum and an initial premium that reflects the uplift in value arising from the grant of the planning consent, after deduction of the costs of obtaining the consent. This Agreement for Lease to be conditional upon the grant of planning consent for the redevelopment of the site;
(c) The Council enters into a licence to alter and sublet with the Meyrick Estate, as freeholder, to permit the future development of the site. In consideration, the Estate will receive an appropriate share of the rent under this lease and a share of any additional capital value accruing to the Council; and
(d) authority be delegated to agree terms for all the relevant legal documentation and the content of the VEAT Notice to the Corporate Property Officer in consultation with the S151 Officer and Monitoring Officer.
Portfolio Holder: Regeneration and Culture
The Happyland site is a leasehold site earmarked for redevelopment under the Seafront Strategy. The existing building is in poor condition and will require significant expenditure in order for the Council to meet its repairing obligations under the lease.
This decision means that the freeholder of the site is able to progress development proposals in accordance with planning policy in order to add to the range of facilities for visitors to Bournemouth beach. This proposal is motivated by place-shaping, rather than financial gain, as it is unlikely to generate a significant financial return for the Council.
Report author: Bill Cotton
Publication date: 03/10/2019
Date of decision: 30/09/2019
Decided at meeting: 30/09/2019 - Cabinet
Effective from: 11/10/2019