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

The Leader of the Council presented the report to Cabinet and was asked by the Independent Group Leader as to the legality of the meeting as the Chief Officer Finance and Commercial, who is the Section 151 officer, was not present.  Cabinet was informed that there was no requirement in law for the Section 151 Officer to be present.

In the open session of the debate the following points were made by Cabinet:

·         It was emphasised that what was before Cabinet was a variation to the original contract and that approval of the original scheme had been agreed by Cabinet in June 2009 and Council in July 2009.  The first variation had been agreed in March 2011.  There were only six variations proposed to the contract and the impact financially was minor.

·         Cabinet was referred to the Montague Evans papers contained in the agenda.  It was stated that the advantage of the old livestock market site was that it was next to the city centre and not out of town. 

·         It was important to note that local companies would be able to tender for contracts providing jobs in the construction phase.  In addition there would be a skills academy offering apprenticeships to young people.

·         Cabinet was reminded that it would affect everyone if Hereford was unable to attract young people in the 20 – 45 age group to live in Hereford.  It was felt that this development would attract young people back into Hereford.

·         It was noted that retailers had wished to move to Hereford for some years but had failed to find large enough premises for their requirements.  Consequently retail spend for Hereford had declined as shoppers went out of county for their shopping.

·         It was stated there would be an impact on the Enterprise Zone when companies were considering relocating to the county, which would add to the economic recovery of the county.

·         Cabinet was reminded that the Next store proposal to expand and move to the Holmer site had been refused by the Inspector at a Public Inquiry due to the proposals relating to he old livestock market site.

·         It was believed that not only residents would return to shopping in the county but Hereford would also win back the shoppers from mid Wales.  Failure to develop the site would course further decline.

·         Hereford residents have indicated they would welcome a department store, multiplex cinema and a food hall.  Proposed facilities would aid in keeping young people in the county.

·         Cabinet was referred to the conclusions on page 29 of the report and in particular paragraph 19 which stated that the proposed transaction was the best obtainable outcome for the public interest.

·         Cabinet was reminded of the Hereford Futures sustainable policy which Stanhope and Sir Robert McAlpine had signed up to under the joint venture.

·         Cabinet was advised that it was quite normal to have variations to a contract such as this one, however, it was unusual to have only six variations which were of a  ...  view the full minutes text for item 158