Issue - items at meetings - Sale of Christchurch By-Pass Car Park

To consider the Sale of Christchurch By-Pass Car Park report, previously considered by Cabinet on 10 March; and scheduled for Council consideration on 23 March.

The O&S Board is asked to scrutinise the report and make recommendations to Council as appropriate.

Cabinet member invited to attend for this item: Councillor Drew Mellor, Leader of the Council and Portfolio Holder for Finance and Transformation.

The Cabinet report is circulated with the agenda for consideration by the O&S Board. PLEASE NOTE: Should the Board wish to discuss the detail of the exempt Appendix 2 the meeting will be required to move into Confidential (Exempt) session.

The Chairman advised that this special meeting had been called in order for the Board to consider this issue prior to full Council consideration on 23 March, of the recommendation from the Cabinet meeting of 10 March which was outlined at item 7f on the Council agenda. The recommendation which was due to be considered by Council was,

“RECOMMENDED that Council:-

(a) agree to dispose of the Christchurch By-Pass Car Park, as outlined in red on the attached plan in Appendix 1, for the purchase price detailed in the confidential appendix to this report; and

(b) delegate authority to the Corporate Property Officer in consultation with the Portfolio Holder, Monitoring Officer and Section 151 Officer to finalise the detailed terms of the disposal.

A copy of the related report had been circulated to the Board members and appears as Appendix ‘A’ to these minutes in the Minute Book. The Chairman asked the Leader of the Council and Portfolio Holder for Finance and Transformation to introduce the report. The Leader outlined the key issues for consideration and explained that there was a balance to be achieved in considering this issue. He also advised that as this issue was particularly relevant to the Christchurch area, he felt that it was important that the local ward Councillors were able to take the lead on this decision. A number of issues were raised during the consideration of the report including:

· Asset stripping – the Leader confirmed that there were no assets identified to be disposed of and there would be significant investment in Christchurch. However, the recommendation was to enable a permanent solution to be identified.

· Regarding Waitrose requiring a single lease including the car park, that the current Waitrose lease didn’t run out until 2027, which was still several years away. Negotiations had only been taking place with Aberdeen Asset Management and not directly with Waitrose.

· Whether other options had been considered, including leasing direct to Waitrose, or sub-letting the site. The Leader advised that the transaction outlined was as good as they believed was achievable.

· That Waitrose had advised staff that they had no intention of leaving the site in Christchurch.

· Concerns were raised with the valuation sum for the site and other financial impacts including the amount of revenue from the site and how this had been calculated and the licensing fee funding.

· Lack of consultation with Ward Members prior to the decision being considered by Cabinet.

· That it would appear reasonable to sell the site provided that the price was acceptable. However, a number of Councillors expressed dissatisfaction with the conditions of sale outlined within the report.

· It was clarified that, whilst the proposal was in its initial stages when the Unity Alliance were in administration and the previous Leader was informed of the proposal, nothing had been presented to the previous Cabinet in a formal or informal way.

· Whether borrowing for investment in the site had been considered. The Chief Financial Officer advised current PWLB (Public Works Loan ... view the full minutes text for item 171

It is proposed that the Christchurch By-Pass Car Park is sold to the adjoining owner of the retail outlet, in order to secure the continued occupation of this unit by Waitrose.

The purchase price has taken into consideration the existing use value of the site as a car park. The sale will be subject to clauses that allow the Council to buyback the site should it no longer be required as a car park.

The terms of the disposal have been agreed between the parties and are outlined in the confidential appendix to this report.

Progressing with this disposal will provide a capital receipt that will support the Council’s Transformation Programme.

The Leader of the Council presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'F' to these Minutes in the Minute Book.

Cabinet was informed that the report set out proposals for the Christchurch By-Pass Car Park to be sold to the adjoining owner of the retail outlet, in order to secure the continued occupation of this unit by Waitrose.

Further to this Cabinet were advised that the purchase price has taken into consideration the existing use value of the site as a car park, and that the sale will be subject to clauses that allow the Council to buyback the site should it no longer be required as a car park. Cabinet was informed that the terms of the disposal have been agreed between the parties and are outlined in the confidential appendix to this report, and that progressing with this disposal will provide a capital receipt that will support the Council’s Transformation Programme.

The Chairman of the Overview and Scrutiny Board addressed the Cabinet stressing concern that the report should have an in-depth analysis of consideration from the Board prior to going to Council and urged consideration be given to deferring the item to a future Council meeting in order to allow consideration of the report by the Board.

Councillors Dedman and Hilliard addressed the Cabinet expressing concern with regards to the future use of the site, the effect it will have on the local residents and the assurance of the guarantee the Council had to buy back the site.

Councillor Hadley addressed the Cabinet expressing concern with regards to the rate at which this is being done and questioning the difference between the Council retaining the Car Park and selling the car park to the retail outlet.

In relation to this Members were informed that the retail unit wanted to remain in control of the car park and wanted the confidence that the car park would remain as a car park. Further to this Cabinet was advised that the expectation was that the car park would remain as a car park, and that providing security to the retail outlet would support the vibrancy of the town centre.

The Lead Member for BCP Retail Strategy and Christchurch Regeneration addressed the Cabinet highlighting that the car parking isn’t going to change, and that the report indicates that there is going to be no loss to car parking. Further to this Cabinet was informed that the access arrangements across the site had been considered and that this was a very good transaction to secure the retention of the current retail unit for the future.

The Leader highlighted that he would work with the Chairman of the Overview and Scrutiny Board outside of the Cabinet meeting in order to discuss ways in which the Board could be engaged in discussions around this item.

RECOMMENDED that Council:-

(a) agree to dispose of the Christchurch By-Pass Car Park, as outlined in ... view the full decision text for item 315