Agenda item

Old River Lane, Bishop's Stortford - Update

Note – Essential Reference Papers, C and D are enclosed for Members only as they contain exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972.  In considering these matters, the meeting may exclude the press and public as detailed at item 7.

Minutes:

The Chief Executive provided Members with a summary timeline of decisions taken regarding the Old River Lane development site and an update on the progress made so far.  The Chief Executive explained that Essential Reference Paper “B” referred to an increase in the level of capital investment needed of £28M (from an initial estimate of £20-£25M) which could go up or down depending on the final scheme. 

 

Members debated the report at length and raised a number of queries in relation to:

 

·       capital funding and revenue costs, loan requirements, financing costs, potential funding partners and the impact on the Medium Term Financial Plan (future years); and

 

·       land assembly requirements.

 

The Old River Lane Draft Heads of Terms (HoT) was debated at length when a number of Members expressed a range of concerns in terms of its content, legal standing and enforceability.  Mr Hewines (Montagu Evans) explained that the HoTs would eventually be novated into the final Development Agreement.  He provided assurances on a number of points therein and explained that the Development Agreement (DA) was the key document and that this document would be legally binding.

 

The Chief Executive explained that a final report would be presented to the Executive and then to Council for decision on 5 March 2019.  The Chief Executive undertook to provide Members with an email confirming that the Heads of Terms were not legally binding but that the content was important as this would form the basis of the Development Agreement. 

 

Councillor J Jones sought and was provided with an update in terms of the current Judicial Review and its impact on the Old River Lane proposals. 

 

The ORL Project Manager explained the use of Building Information Management technology to explore and control costs. 

 

In response to a suggestion that Members be given sight of the contract before it was signed, the Chief Executive undertook to provide Members with a formal briefing early next year which would review the content of the Heads of Terms and the Development Agreement.  This was supported.

 

Members supported the recommendations now detailed and that their comments detailed above, be referred to the Executive.  It was moved by Councillor B Deering and seconded by Councillor I Devonshire that the recommendations, as detailed, be approved.   After being put the meeting and a vote taken, the recommendations were declared CARRIED.

 

RESOLVED – that the Executive be advised that (A) Members noted the update on the competitive dialogue procurement current underway for a development partner at Old River Lane;

 

(B)   the latest brief for the Arts and Entertainment Centre, Section 3, (Essential Reference Paper “B”), the estimated budget for the centre and the likely funding partners be noted;

 

(C)   the draft Heads of Terms for the Development Agreement on the ORL main Site (Exempt Essential Reference Paper “C”) be noted and Members concerns be forwarded to the Executive;

 

(D)   the final Business Case for the Multi-Storey Car Park and adjoining residential/commercial units at Northgate End (Exempt Essential Reference Paper “D”) known as “Northgate End Developments”, the estimated capital allocation for the build costs of these developments and the proposal to procure a contractor (Section 5) be noted;

 

(E)    the commencement of construction of the Northgate End Development  being conditional upon the following, be noted:

 

1            removal of the challenge to the planning permission granted in July 2018 or a new permission being granted (currently subject to a judicial review);

2            capital funding being allocated by Council on 29 December 2018; and

3            that the final Heads of Terms for the main ORL site being approved by Council on 5 March 2019 and subsequently signed by the Council and Developer.

(F)    the land assembly requirements relating to lane owned by Hertfordshire County Council and Bishop’s Stortford Town Council, be noted;

 

(G)   the Chief Executive provide Members with an email confirming that the Heads of Terms were not binding and that a formal briefing for Members be arranged early next year which would review the content of the Heads of Terms and the Development Agreement, prior to its consideration by Council on 5 March 2019. 

 

Supporting documents: