The current contract for the management of the Maylord Shopping Centre has been in place since the council obtained outright control of the asset in June this year. The management contract is for a period of one year and is due to expire on the 12June 2021. It is necessary to procure a new contract with a service provider in order that the shopping centre can operate and that rent and service charges are collected and administered.

That:

(a)        A new contract is procured for the operational and asset management of the Maylord Shopping Centre from June 2021; and

(b)        The director of economy and place, in consultation with the cabinet member procurement, contracts and assets, has delegated authority to award the new contract

1.          Not to procure a new contract: this is not recommended as the current contract expires in June 2021 and the shopping centre cannot operate without effective operational and asset management. It is likely the centre would not be compliant, safe, and secure; service charges would not be collected and administered; rent would not be collected and new lettings, lease renewals, rent reviews, consents and lease variations would not be determined.

2.          Bring the management of the shopping centre in-house: this is not recommended as there is insufficient capacity with the council’s property services department to absorb the workload and establish new systems for the administration of service charges.

3.          Extend the existing contract: this is not recommended as the current contract was secured directly and the council’s procurement and financial regulations do not permit the contract to be extended beyond its current life.