Agenda item

Marketfield Way - Construction of Mixed Use Development

To consider an update in relation to Marketfield Way, Redhill.

Minutes:

Councillor Mrs N.J. Bramhall, Executive Member for Property and Acquisitions, introduced the report setting out the progress that had been made regarding the land assembly, site preparation and pre-letting of retail, leisure and residential components of the Council’s regeneration scheme at Marketfield Way in Redhill.

 

It was noted the Council’s Corporate Plan (2015-2020) identified property investment and development as one of its key objectives. It was highlighted that the mixed use scheme at Marketfield Way was the Council’s most significant development for the town centre. The Executive was informed that the development would provide a cinema, 153 residential units, restaurants and big box retail. Councillor Mrs Bramhall explained that this would contribute significantly to the vibrancy of the town centre.

 

In response to questions about the recently held Compulsory Purchase Order Inquiry, it was noted a result was expected by early January 2019 and that the ambition remained to start work on site in the first half of 2019.

 

During the discussion, a variety of matters were considered and it was noted that full details of the current financial forecasts and an update concerning financial implications had been set out in the exempt Part 2 report of the agenda.

 

Clerk’s note – At this point in the meeting agenda item 7 (Marketfield Way – Construction of Mixed Use Development) was adjourned so that the exempt information, agenda items 11 (Exempt Business) and 14 (Marketfield Way – Construction of Mixed Use Development – Exempt), could be considered ahead of making a decision.

 

Clerk’s note – The minutes of the meeting reflect the order of business listed on the published agenda, not the order taken during the meeting.     

 

During the exempt discussion, a number of issues were considered in relation to land assembly, pre-lets, the selection of a main contractor, risk management, the various stages of the project, projected scheme costs and other financial implications. In response to questions, the Director of Finance and Organisation was asked to provide a written briefing note to all Members setting out alternative assumptions to the financial implications (set out in Annex 2 of the exempt Part 2 report) of the consented scheme.     

 

On conclusion of agenda item 14 the Executive returned to agenda item 7 and:

 

RECOMMENDED that Full Council amend the Capital Programme to resource Stage 3 and Stage 4 of the Marketfield Way project subject to stage 3 and Stage 4 meeting the financial parameters set out in the financial projections provided in the exempt report in Part 2 of the Executive agenda.

 

RESOLVED that:

(i)        The progress in relation to land assembly, site preparation and the pre-letting of retail, leisure and residential components of the scheme be noted.

(ii)       The Director of Finance and Organisation be authorised, in consultation with the Director of Place Services, the Executive Member for Property and Acquisitions, the Leader and the Deputy Leader, to progress Stage 3 and Stage 4 of the Marketfield Way project, in accordance with the strategy set out in the Executive reports dated 26 February 2015, 23 March 2017 and updates set out in this report, and bring forward the development, retaining the commercial elements and pre-selling the residential flats to a private rented sector operator/residential investor.

(iii)      The Director of Finance and Organisation be authorised, in consultation with the Director of Place Services, the  Leader, Deputy Leader and Executive Members for Finance and Property and Acquisitions, to progress the Marketfield Way project in accordance with the updated financial parameters set out in the exempt report in Part 2 (Option 1) of this agenda.

(iv)      The Director of Finance and Organisation be authorised, in consultation with the Director of Place Services, the Leader, Deputy Leader and Executive Members for Finance and Property and Acquisitions to agree terms, seal and complete a construction contract or enabling contracts with construction contractors, subject to construction costs being in accordance with the updated financial parameters set out in the exempt report in Part 2 (Option 1) of this agenda.

Reason for decision: To obtain authority to proceed with stages 3 and 4 of the project, subject to meeting the criteria for the permitted scheme as set out in the exempt Part 2 report of the agenda, to secure maximum regeneration benefits for Redhill whilst retaining income streams for reinvested in the provision of Council services.

Alternative options: To investigate an alternative proposal for the development of the site, or for the Council not to progress with the development and to seek an independent funding source to do so through purchase of the site, or to do nothing and not regenerate Redhill town centre.

Supporting documents: