This report details the outcome of the procurement exercise and extensive programme of work to select a developer to deliver Minster Quarter Central and makes a recommendation to proceed with the highest scoring bidder.

The Committee considered a report setting out the outcome of a procurement exercise and programme of work to select a developer to deliver the Minster Quarter Central regeneration scheme and recommending the appointment of the highest scoring bidder.  The following documents were attached to the report:

·         Appendix 1 – Evaluation Criteria applied to Minster Quarter Best and Final Offers

·         Appendix 1a – Quality and Commercial Questionnaire

·         Appendix 1b – Pricing Evaluation Summary

·         Appendix 2 – High Level Risk Register

·         Appendix 3 – Broader Minster Quarter – Key sites

·         Appendix 4 – Minster Quarter Board and Governance Framework

·         Appendix 5 – Development Site Plan

·         Exempt Appendices:

o   Appendix A – Minster Quarter Central Recommendation Report from Eddisons

o   Appendix A1 – Strategic Objectives and Development Principles

o   Appendix A2 – Evaluation Score Card

o   Appendix A3 – Moderation Evaluation Schedule

o   Appendix B – Tender Evaluation Report

o   Appendix C – Minster Quarter Section 123 Report

o   Appendix D – Land and Title Matters at Minster Quarter

o   Appendix E – Land and Title Plan – Unregistered Land

o   Appendix F – Development Agreement and Lease – Summary

The report noted that, at its meeting on 11 July 2022 (Minute 13 refers), the Committee had agreed a strategic vision for Minster Quarter Central, supported by a set of minimum requirements and development principles against which bidders could be assessed and which formed the parameters within which a suitably experienced bidder could work to deliver a mixed-use regeneration scheme.

The report set out the results of final negotiations over summer 2023, which had enabled shortlisted bidders to bring forward their Best and Final Offers. These offers and the associated development schemes had been subject to detailed evaluation and scoring. An overview of schemes and their respective evaluations were set out in the Recommendation Report prepared by the Council’s Commercial Adviser, Eddisons, which was attached at Exempt Appendix A.

The report recommended appointment of the highest scoring bidder, based on a well-designed scheme that could be further enhanced through collaboration, community engagement and pre-planning application advice. The selection was also based on a commercial offer and land value, which included an assessment for achieving a viable scheme that could secure commercial funding on the open market.  It was also proposed to formally designate a nominated ‘reserve’ bidder, who could provide a substitute should the Development Agreement and Lease not be concluded and signed with the highest scoring bidder within six months of the Committee’s decision.

The report summarised the key points of the proposed Development Agreement and Lease and set out issues, including land and title matters, that would need to be addressed in the coming months to secure and facilitate the development pathway once contracts had been exchanged.

Resolved -

(1)       That Appendices A-F, which included exempt information as defined in Paragraph 3 in Part 1 of Schedule 12A of the Local Government Act 1972 (as amended), be taken into account in consideration of the report and recommendations;

(2)       That the following be noted:

a)    the conducting of the Competitive Procedure with Negotiation procurement process in accordance with the Public Contracts Regulations 2015;

b)   the outcome of the comprehensive assessment of Best and Final Offers from bidders set out in the restricted Appendix A and summarised in section 4 of the report;

c)    the key benefits and outcomes of the highest scoring bidder’s scheme, summarised in Exempt Appendix A;

d)   the Development Agreement Summary, referred to in section 7 of the report and set out in more detail in Exempt Appendix F;

e)    the consultation with Civic Board at key gateways through the procurement process;

f)     the governance arrangements in place to guide the delivery of the programme moving forward, as set out in Appendix 4;

g)   that the existing open spaces on the site were to be replaced by an enhanced public realm with an offering of arts and culture and that appropriation and disposal would be required;

(3)       That the former Civic Centre and Civic Car Parks A and B be declared as surplus to requirements;

(4)       That Bidder B be appointed for the Minster Quarter Regeneration on the basis that they could best deliver against the Council’s required key outcomes and that their bid represented best consideration within S123 of the Local Government Act 1972;

(5)       That Bidder A be recommended as reserve bidder, should the Council be unable to complete the Development Agreement within reasonable timescales with Bidder B, in which circumstance a report would be submitted to the Committee to confirm the appointment;

(6)       That the Executive Director for Economic Growth and Neighbourhood Services, in consultation with the Assistant Director of Procurement and Contracts, Assistant Director of Assets and Property Management, Assistant Director of Planning, Transport and Public Protection Services, Assistant Director of Culture, Director of Finance, Assistant Director of Legal and Democratic Services, the Leader of the Council and the Deputy Leader, be authorised to:

(a)   Make required arrangements and complete necessary documentation to notify the award of the contract to Bidder B;

(b)   Designate Bidder A as recommended reserve;

(c)   Take any steps to finalise and enter into the Development Agreement, the leases, any ancillary documents, and any required agreements with Bidder B, including but not limited to, negotiation and finalisation of all legal documentation and terms for proceeding; or, required to give effect to the above;

(d)   Subject to satisfactory conclusion of the Development Agreement and the relevant conditions being satisfied, dispose of land in accordance with Section 123 of the Local Government Act 1972;

(e)   Make stopping up orders as necessary to support delivery of the Minster Quarter Central programme;

(f)    Take necessary steps and carry out the required statutory advertisements for appropriation and disposal of the open spaces on the site and consider any objections received on the understanding that a further report would be submitted to the Committee for decision; and

(g)   Apply for and accept any third-party funding to help support the delivery of Minster Quarter Central subject to the funding conditions being acceptable.