Issue - items at meetings - Peter Pan Leisure Site, Madeira Drive - Development Proposal

Report of the Assistant Chief Executive (copy attached)

RESOLVED – (1) That the Economic Development & Culture Committee agree to grant Landlord’s consent for the “Sky Wide Open” development on the former Peter Pan site on Madeira Drive; and

            (2) That the Committee authorises officers to negotiate Heads of Terms for the required Agreement to Lease and Lease, which would then be considered by the Policy & Resources Committee for approval.

Before proceeding to consideration of the officer report:

71.1    The Chair invited representatives on behalf of the consortium who had put forward the current set of proposals for the site to give a brief presentation.

71.2    Mr Rob Hart was in attendance accompanied by Simon Murie, Andy White and Joe McNulty. Mr Hart explained that the consortium which had put forward this bid was comprised of established local businesses. There was a growing interest in open water swimming and this would cater to that by providing a nationally recognised open water centre, as well as encouraging to swim in the sea safely. The facility would be capable of use year round, would by virtue of its size have the capability (with eight permanent lanes) to host major events year round. It was envisaged that this facility would provide lifeguarding and water safety courses as well. The scheme would be entirely independently funded, would make a positive contribution to the city and would return to a site which had been derelict for some time to use.

71.3    The Committee considered a joint report of Assistant Chief Executive and the Interim Executive Director for Finance and Resources seeking approval to grant Landlord’s consent, subject to final determination of the Heads of Terms by Policy and Resources Committee, for development of the former Peter Pan site on Madeira Drive by the “Sky Wide Open” consortium. It was noted that “Sky Wide Open” was a working title and would be subject to change.

71.4    The report detailed the process undertaken by officers to market the site for redevelopment and the selection process which had resulted in the preferred developer being chosen. Marketing of the site had taken place at the same time as the Seafront Scrutiny Panel. The Panel had highlighted the importance of seeking investment into the seafront. This development (which would be paid for entirely by external funding) would affect improvements to an area which had been neglected for several years.

71.5    Councillor Hawtree referred to the anticipated costs of bringing the scheme to fruition, stating that the costs seemed very modest for what was proposed and that he hoped that there was a robust business plan in place. He sought clarification regarding access arrangements to the site, seeking confirmation that this would not result in any part of the beach becoming private. The location of the site in relation to the Volks Railway was confirmed and it was also confirmed that public access to the site would remain unrestricted.

71.6    Councillor Smith stated that he considered it regrettable, given that it was his last meeting that he was unable to support these proposals. Whilst proposals to return this site to use were welcomed, a number of schemes had come forward but had not been unable to pay their way and had therefore failed to come to fruition. The most recent of these had been the “Karma” scheme which had not been realised because the applicant had sought to change its parameters in order to make it more viable for them in ways which were not acceptable to the Council. Councillor Smith sought clarification regarding consideration that had been given to the viability of the scheme and whether funding was in place to support it.

71.7    The Deputy Head of Law, Bob Bruce confirmed that these proposals were at a very early stage and that Policy and Resources Committee would need to approve the Heads of Terms at the appropriate stage in order for the scheme to progress. There was no question that the scheme would be permitted to go forward without the necessary guarantees being in place. The Council would require the applicants to provide detailed information in order to meet its due diligence requirements.

71.8    Councillor Smith reiterated his concerns bearing in mind the past history of schemes for this site. The Deputy Head of Law confirmed that all necessary safeguards would need to be in place in advance of any recommendations being put forward to Policy and Resources Committee for approval.

71.9    Councillor C Theobald stated that she shared some of the concerns expressed by Councillor Smith and hoped that a robust business case would be required.

71.10  The Head of Sport & Leisure, Ian Shurrock explained that an officer of the finance department would be included on the officer team which would be reviewing all aspects of the project’s business case. In answer to questions by Councillor Randall, it was explained that it was intended that the development would be supported by a broader range of sports retail facilities including a cycle hub.

71.11  Councillor Wealls sought clarification of the process for agreeing the Heads of Terms and these were outlined by the Deputy Head of Law. Councillor Wealls stated that in his view it was not possible to judge the business case definitively at this stage, but that as Committee were simply being asked to give approval to enable further work to take place he did not consider this was problematic. All of the necessary requirements would need to be met in order for Policy and Resources Committee to determine the matter.

71.12  Councillor Robins stated that he considered it would be regrettable if this scheme and that currently underway to revitalise Saltdean Lido were to compromise one another, so that ultimately only one of them could succeed.

71.13  Councillor Brown stating that whilst she had initially shared Councillor Smith’s concerns having read the report she considered that this scheme which was at a very early and preliminary scheme presented a significantly different offer to that which would be provided by Saltdean Lido. By giving their approval that day, the Committee would be giving their approval to start a process. It was important as part of a process of regenerating this part of the seafront to seek to return this area to use and for that reason she supported the recommendation.

71.14  Councillor Morgan stated that this sight was located in his Ward, whilst he had listened carefully and sympathetically to concerns which had been expressed in respect of Saltdean Lido he considered that they were very different, also, that this area was in urgent need of regeneration. Councillor Randall concurred in that view, noting that as both schemes would be phased, they were unlikely to come on stream at the same time.

71.15  Councillor Deane noted that the project was a work in progress and that further work would be carried out at every stage in order to bring it to fruition.

71.16  RESOLVED – (1) That the Economic Development & Culture Committee agree to grant Landlord’s consent for the “Sky Wide Open” development on the former Peter Pan site on Madeira Drive; and

            (2) That the Committee authorises officers to negotiate Heads of Terms for the required Agreement to Lease and Lease, which would then be considered by the Policy & Resources Committee for approval.

Note: Councillor Smith wished his name to be recorded as having  voted against the recommendation. All other Members voted in support.