The Chairman reminded Cabinet of the report that had been received at the 5 April Cabinet meeting on the Deed of Variation to the Retail Quarter.  He advised that following the call-in of that decision and the subsequent Overview and Scrutiny meeting the matter was before Cabinet as an urgent item in order that contractual arrangements could be concluded.  The Leader told Cabinet and Group Leaders that questions would only be taken from the Chairman of Overview and Scrutiny and Cabinet Members. 

The Chairman of Overview and Scrutiny referred to the five points put forward by the Committee for consideration by Cabinet, which were:

That Cabinet should ensure that:

a)    the procurement processes that have been undertaken are robust, and are content that appropriate steps have been taken to safeguard the Council’s position under the EU procurement rules.

b)    Cabinet be satisfied that a comprehensive risk assessment which identifies mitigation measures has been undertaken.

c)    an economic risk assessment, including financial impact statement on the viability of High Town and the surrounding streets, be undertaken before these Variations are approved in order to ensure that there should be no disproportionate effect on the independent trading sector.

d)    there has been a complete and robust Equality Impact assessment undertaken.

e)    further due diligence be shown to have been undertaken in demonstrating that value for money will be derived from the Variations.

In response the Cabinet Member Enterprise and Culture stated that Pincent Mason, the legal firm providing advice, had reviewed the retail quarter and had been present at the Cabinet meeting on 5 April.   They had also provided advice at the Overview and Scrutiny meeting.  The Cabinet Member assured Cabinet that although delegated authority had been given to the Director there would be continuing and appropriate review of risks.  The Director would continue to seek the advice of the Section 151 Officer to ensure value for money.  He stated the review had identified the risks to the high street shops and the new retail quarter, a copy of that advice had been provided with the Cabinet papers. 

The Cabinet Member moved the recommendations, which were seconded by the Leader.  The revised recommendations were agreed unanimously.

RESOLVED

              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 was approved; and

c)    authority be delegated to the Director for Places and Communities to finalise the necessary documents exercising continued diligence on equalities issues, value for money, risk assessments and mitigation.