This report sets out details of the redevelopment of the Broad Street Mall and options in relation to the Broad Street Mall carpark.

The Committee received a report seeking approval for the surrender of the Council’s lease of the Broad Street Mall (BSM) carpark to facilitate the redevelopment of the site as part of the wider Minster Quarter regeneration.

The report outlined the strategic importance of the BSM development, which formed part of the Council’s longstanding ambition to regenerate the southwestern part of the town centre. The proposed redevelopment, led by AEW and their appointed developer McLaren Living Limited (McL BSM), would deliver approximately 643 Build to Rent units, public realm improvements, and retain part of the existing shopping centre.

To enable the development, AEW and McL BSM required access to and alterations of the BSM carpark and adjoining Council-owned land. The Council hold a long leasehold interest in the carpark, comprising circa 784 spaces, and the proposed development would result in a permanent reduction of approximately 330 spaces.

Three options were considered for the carpark transaction:

·       Option A – Full Surrender (recommended)

·       Option B – Partial Surrender

·       Option C – Do Nothing

Option A was recommended as it provided a capital receipt representing best consideration, subject to conditions ensuring the carpark remained operational until development certainty was achieved. Following full surrender of the carpark by the Council a number of spaces would remain allocated as public parking. In addition to this, the Council would retain a number of spaces for their own operational use, including for the Hexagon Theatre staff.

The report also proposed entering into an overarching Construction and Management Agreement (CMA) to govern access, construction logistics, and land management during and after development. The CMA would safeguard the Council’s interests, including the Hexagon Theatre and Minster Quarter Central development, and provide flexibility for the developer’s construction programme.

Resolved –

(1)  That the Heads of Terms for the full surrender of the Council’s lease of the Broad Street Mall carpark recommended under Option A be approved;

(2)  That the principles proposed for an overarching Construction and Management Agreement be agreed;

(3)  That the proposed route map and timeline up to exchange of the agreement for surrender of the carpark and related conditionality for completion of the surrender be noted;

(4)  That authority be delegated to the Executive Director of Economic Growth and Neighbourhood Services, in consultation with the Leader of the Council, Lead Councillor for Planning and Assets, Assistant Director of Legal and Democratic Services, Director of Finance, and Assistant Director of Property and Asset Management, to:

(a)  Negotiate and conclude terms with relevant parties in respect of the Heads of Terms for the surrender and the Construction and Management Agreement;

(b)  Negotiate and conclude terms for disposals and acquisitions in accordance with sections 123 and 120 of the Local Government Act 1972;

(c)  Negotiate to enter into any required and/or ancillary documentation and agreements to facilitate the Broad Street Mall development, and;

(d)  Procure commercial, professional technical and legal advisors and consultants as necessary, to facilitate the Broad Street Mall development.