To seek Cabinet approval to vary the terms of the retail quarter development agreement.

THAT:

                     (a)          regard was given to the matters contained in the exempt report;

(b)             the terms of the Deed of Variation, Deed of Novation and Option Agreement with Stanhope Plc and British Land Plc described in the report be approved; and

(c)             authority be delegated to the Director for Places and Communities to finalise the necessary documentation.

Most of the pre-conditions to enable development work to commence have been, or are in the process of being met including securing of detailed planning permission, and securing pre-lets under offer for food store, department store, cinema and other restaurant/retail uses. After months of negotiation, Stanhope Plc are seeking variations to the development agreement to enable them to secure the funding necessary for the scheme to proceed.

1.            Not to agree the amendments. This would leave Stanhope Plc without funding to deliver Phase 1 of the old livestock market redevelopment. This would defeat the long-held ambition to see the redevelopment of the former livestock market site and the community and economic benefits that redevelopment will bring.

2.            To agree some but not all of the amendments. The amendments proposed form a negotiated package and it is not open to the council to be selective in this regard. It is therefore considered that this option would have the same result as not agreeing any of the amendments.