Issue - meetings

1.

Title of Item/Report

Billingham Town Centre

2.

Record of the Decision

Consideration of the Report

Cabinet considered a report seeking approval for the acquisition of Billingham Town Centre from its current owner, Sheet Anchor Evolve, for a purchase price of £13 million, together with associated acquisition costs, and approval of related funding, delivery and governance arrangements intended to facilitate the first phase of a wider regeneration programme.

The report set out the regeneration case for intervention, the history of earlier negotiations and acquisition proposals, details of the proposed transaction, valuation and financial information, independent professional advice, delivery and funding arrangements, alternative options and the implications associated with both proceeding and not proceeding with the acquisition.

Background and Regeneration Context

Cabinet was advised that Billingham Town Centre had experienced a prolonged period of economic and physical decline characterised by changing retail patterns, underinvestment, property condition issues and loss of commercial vitality.

Members were advised that the acquisition proposal formed part of the Council's wider regeneration ambitions for Billingham and sought to provide the Council with greater strategic influence over the future management, development and regeneration of the town centre estate. Cabinet considered the relationship between the town centre and the wider economic, social and environmental objectives identified within the report.

Cabinet also considered the history of previous negotiations relating to the site, including an earlier proposal involving partial acquisition which had not progressed to completion. Members considered the circumstances giving rise to the current proposal and the implications of the owner's stated position for future regeneration opportunities.

Acquisition Proposal

Cabinet considered the proposed acquisition of the town centre estate for a purchase price of £13 million together with associated acquisition costs.

Members were advised regarding the negotiations undertaken with the current owner, the circumstances surrounding the proposed transaction and the implications associated with delay or failure to complete an acquisition. Cabinet also considered the implications of acquiring a substantial commercial estate and the opportunities and responsibilities which ownership would bring.

Members noted that acquisition would involve the Council assuming responsibility for the management and operation of the estate, together with associated maintenance, compliance, investment and asset management obligations. Cabinet considered both the opportunities and risks arising from those responsibilities.

Valuation, Financial and Professional Advice

Cabinet considered the valuation evidence and professional advice obtained in relation to the proposed acquisition.

Members were advised that the proposed purchase price exceeded the independent valuation assessment obtained by the Council and recognised that this difference represented a significant factor to be considered when determining whether acquisition should proceed. Cabinet considered the implications of that valuation gap together with the broader strategic and regeneration considerations identified within the report.

Cabinet received advice from the Chief Financial Officer, the Director of Corporate Services in his capacity as Monitoring Officer, and the Council's external advisers. Members considered advice from CBRE, CIPFA, DWF and other advisers together with internal financial, legal, regeneration and property assessments.

Members  ...  view the full decision text for item 5.