To receive a report on the Edgar Street Grid.  Report to follow.

The Leader of the Council reminded Members that it was not proposed to hold a closed session on the Edgar Street Grid unless Members wished to discuss any financial issues.   The Cabinet Member for Economic Development and Community Services presented the Edgar Street Grid Development report for the selection of a preferred first phase development partner and for the authorisation of detailed negotiations with the supplier prior to consideration of a full Development Agreement.  He welcomed Jonathan Bretherton and Nigel Hudson from Advantage West Midlands.

Jonathan Bretherton advised Cabinet that a thorough and rigorous process had been carried out to find a preferred developer, which had started following the Cabinet meeting of March 2007.  He added that the ESG Hereford Ltd had been working with the current selection of developments for several months.  He outlined the components of the various schemes provided by the three developers.  In referring to all the schemes he stated that an open air scheme was a requirement in order to address a walk way between high town and the new development, with the key point being at Garrick House.  He stated that the Stanhope scheme was a distinctive scheme.  It had remarkable quality, which the developers wanted to achieve in the build and which was reflected in the costs.  A supermarket and a multi plex cinema was part of the proposal for all three developments. 

Jonathan Bretherton  advised that the Stanhope development was the scheme being recommended to Cabinet although all three schemes were high quality and had been commended by English Heritage. 

The Leader paid tribute to Jonathan Bretherton, his team and board members for their commitment and the work that had been carried out.  Cabinet noted the amount of national interest in the schemes and felt that the similarity between the schemes was reassuring.  The Leader said that the development needed to win back the status of Hereford as a market town within a large rural hinter land.  The Cabinet Member for Economic Development and Community Services thanked Nigel Hudson and his colleagues from Advantage West Midlands for their support for the project. 

A Member in attendance complimented the schemes but expressed concern as to whether the schemes would work in practice and not be a detriment to the current retail area.  Jonathan Bretherton stated that the linkage between the two areas was the most important issue.  He added that it was not solely about forming a physical link, but included a raft of linkage schemes for the old and new areas and reiterated that the board was keen to support and help the development of the city centre as a whole.

RESOLVED

THAT CABINET:

           (a) agree the selection of Stanhope as the preferred Retail Quarter Development Partner;

           (b) authorises the director of Adult and Community Services, in consultation with relevant officers, to complete negotiations regarding a Heads of Term Agreement;

(c)               authorises the Head of Legal and Democratic Services to sign a Heads of Terms agreement with the preferred development partner following satisfactory completion of the negotiations;

(d)            authorises the Director of Adult and Community Services, in consultation with the Director of Resources, Head of Legal and Democratic Services and ESG Herefordshire Ltd., to undertake further negotiations regarding a Development Agreement; and

(e) notes that a further report be brought to Cabinet, on completion of the further negotiations regarding a Development Agreement, setting out the detailed financial implications, and seeking approval to enter into a Development Agreement before being finalised with the preferred developer.