Brighton & Hove City Council - Issue - items at meetings

Report of the Acting Executive Director for Environment, Development & Housing (copy attached).

RESOLVED – That the Committee:

1) Agree the draft Heads of Terms as summarised in the Confidential Appendix 3 as the basis of ongoing negotiations with Standard Life Investments (SLI) on the understanding that the Head of Law is authorised to enter into the final conditional Development Agreement (cDA) and any linked documentation after the Acting Executive Director Environment Development & Housing and the Head of Law have consulted with the Waterfront Project Board regarding any further changes to the draft Heads of Terms

2) Note the terms of the draft Valuation Brief as referred to in the Confidential Appendix 4.

3) Note and agree:

a) The revised financial information contained in the Confidential Appendix 5.

b) The current conference subvention budget is retained by the council to support conferences during the closure period and attract conferences to the new venue once opened.

c) Construction of the new venue will be funded by the capital receipt generated from the sale of the Brighton Centre site, rent from the appointed venue operator, net savings achieved on the current Brighton Centre operational budgets and up to 50% of the forecast additional future business rates income stream (set out in the funding table in paragraph 7.4 of the financial implications) along with any relevant successful Local Growth Fund bids.

d) That any additional council tax revenue and any increase in New Homes Bonus will be used to support the City Council’s medium term financial strategy

e) The Brighton Centre Redevelopment Reserve can continue to be used to fund project development costs incurred by the council on the Central and Black Rock sites as set out in paragraph 7.14.

4) Note and agree the overall procurement approach as summarised in paragraphs 7.15 to 7.17 and the role of Standard Life Investments as lead Development Partner for both the central (Brighton Centre and Kingswest) and east (Black Rock) sites.

5) Agree that a competitive procurement process to appoint a third party operator can proceed in a manner agreed by officers with the Waterfront Project Board.

6) Agree that the appointment of a third party operator for the new venue, following completion of the procurement process, be agreed by Policy & Resources Committee.

171.1 The Committee considered a report of the Acting Executive Director for Environment, Development & Housing in relation to Brighton Waterfront Project (Brighton Centre and Black Rock sites). The report sought delegated authority for Council Officers, in consultation with the Waterfront Project Board, to agree terms for a conditional Development Agreement (cDA) with Standard Life Investments (SLI) to allow for a future integrated redevelopment of the Council owned Brighton Centre site (currently occupied by the Brighton Conference Centre) and the Kings West site (owned by Standard Life Investments) (and referred to jointly as Waterfront Central).

171.2 The Chair thanked all those that had been involved in the project up to this point, and noted the work that had already been put in. He highlighted that the scale of the project and the necessity to ensure the conference and concert offer of the city could compete nationally.

171.3 Councillor Mitchell welcomed the increased pace of the project, and highlighted that the end result would be the regeneration of two sites in the city. She also welcomed the depth of detail in relation to transport issues in the report and acknowledged the challenges that would be created in this area.

171.4 Councillor G. Theobald recognised the necessity to update the Brighton Centre, but he noted there were risks with locating the facility in the east of the city. Traffic would be a significant factor at the site, and the addition of this facility would add to the need to ensure a better rail link to London.

171.5 Councillor Sykes welcomed the report and asked the sustainability accreditation of the arena be pushed and explored as much as possible to ensure this was an attraction to the venue in an increasingly sustainability conscious world.

171.6 Councillor Mac Cafferty welcomed the report, and in response to questions it was explained that the increase in business rate contribution was to account for the increase in costs; however, it was clarified that this only applied to the business rate net increase as a result of this project.

171.7 Councillor Janio welcomed the report and hoped that the work could continue on a cross-party basis.

171.8 The Chair thanked the Committee for their positive comments in the debate.

171.9 The Chair then put the recommendations to the vote.

171.10 RESOLVED – That the Committee: