Agenda item

Report of Senior Head of Tourism and Enterprise.

Cabinet lead member: Councillor Margaret Bannister.

(1) Progress of scheme noted.

(2) Financial procedure rules waived to allow award of a 10-year lease to the University of Brighton for the café in Princes Park.

(3) Senior head, in consultation with lead cabinet member, authorised to take all necessary steps to complete the lease arrangements with the University of Brighton.

60.1 Councillor Freebody addressed the cabinet and welcomed the investment in the park.

60.2 Cabinet considered the report of the senior head of tourism and enterprise progress of CCF projects and a proposal for the café in Princes Park.  The council had been awarded a grant of £1.83m from the government’s Coastal Communities Fund in February 2015 following a successful bid.  The key criteria for receipt of the funding was the creation of 118 jobs (direct and indirect), through a mixed portfolio of capital and revenue projects, and to spend all funds by December 2016.

60.3 Delivery of projects began in March 2015 and all projects were at various stages.  The council’s partners; Towner Gallery, TechResort and Building Partnerships each had clearly defined targets/outcomes for jobs created, cash flow, individual projects, training and skills.

60.4 The improvements to the upper facades in Seaside Road were the first capital project to be successfully completed in October 2015.  Both the two commercial units being re-furbished would be complete by this summer.  Improvements to the plaza in Sea Houses Square, including new lighting, hard and soft landscaping and a community designed mosaic, would commence this month.

60.5 Over £900,000 of the CCF funds would be used to improve Princes Park in key areas; a new main entrance linked to the promenade by a new zebra crossing, a new central plaza would lead visitors from the new entrance to the café, which would be completely refurbished including new decking overlooking the lake.  Refurbishment of the café was one of the main CCF funded projects and work on this £395,000 scheme was scheduled to start this month.  The current operators of the café had agreed to surrender the lease in advance of the work commencing.

60.6 The University of Brighton had approached the council with a proposal to use the café as both an operating outlet and as a training venue for students and local people.  Heads of terms for the university’s lease had been agreed in principle; 10 years lease at a market valuation rent, 3 years rent free period, reflecting their capital investment of circa £280,000.  The university’s key requirements for the café could all be accommodated within the planned works with minimal contract variations to cover areas of overlap.  The university would separately procure and contract manage the fit out works, e.g. new kitchen, seating etc.

60.7 The report set out detailed legal advice concerning the council’s powers to enter into the proposed arrangements given that a competitive tendering process would not take place.  The council’s financial procedure rules gave cabinet the authority to waive its normal rules if there were good and objectively demonstrable grounds for doing so.  In reaching its decision, cabinet should have regard to its general fiduciary duty to its wider taxpayers and the duty to achieve best value from its procurement arrangements.  The senior head advised that the proposal offered some distinct advantages to the council and aligned with the overall regeneration ambitions being delivered through the ‘Driving Devonshire Forward’ (DDF) initiative and justified a waiver from the rules because it:

·         Represented a commitment to a continued offer in the town by the university at a time of overall strategic review and potential change. 

·         Enhanced the opportunities and offer for students living in the town.

·         Would create both an attractive café offer alongside training and job opportunities for students and local people.

·         Secured significant additional capital investment into the café and would help make sure the council could deliver the highest possible quality new facility.

·         Coupled with the long term commitment of the university, the council would secure best consideration via a commercial rent valuation.

60.8 Resolved (key decision): (1) That progress of Coastal Communities funded capital and revenue projects be noted.

(2) That a waiver of the financial procedure rules be approved, for the reasons outlined above and as detailed in the report, to allow the award of a 10-year lease to the University of Brighton for the café in Princes Park without a competitive process.

(3) That delegated authority be granted to the senior head of tourism and enterprise and in consultation with the lead cabinet member for tourism to take all necessary steps to complete the lease arrangements with the University of Brighton.