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The Assistant Chief Executive submitted a report a copy of which had been circulated to each Member.
Howard Davies, Regeneration Project Manager, presented the report to the Committee.
In respect of the options set out at paragraph 5.1 of the Assistant Chief Executive’s report, it was the view of the Committee that a more flexible approach should be taken. It was too early to take a conclusive view of the approach that should be taken to the long term future of the development. It would be more sensible to take such a decision at a later stage taking into account the market conditions at the time and the impact of other developments in the area, such as the Curzon cinema and Primark. It was also suggested that it would be sensible to consult the Trading Board on the long term approach.
Officers highlighted that if the approach was to sell some or all of the units then it was important to get these on the market at an early stage. The Committee stressed that it would rely on officer’s advice on the most appropriate time to take a decision on the long term future and anticipated it would be taken no later than twelve months after development commenced.
RESOLVED that:-
(a)
The progress to date on the project to redevelop 5-6 St Nicholas Street (Jacks) be noted.
(b)
The additional scheme cost of £126,600 which has resulted from further detailed design work for the planning application be agreed.
(c)
Further consideration to be given to the options set out at paragraph 5.1 of the report, or a combination of these options, for the long term future of the asset once development was complete, with a decision to be taken no later than twelve months after development commences.
REASONS
The RIF was established to recycle capital receipts into projects that could deliver against a number of Council objectives. The RIF can be used to support wider economic growth targets and deliver infrastructure supporting regeneration but its principle function is to recycle capital funds from the sale of assets for investment into income producing opportunities which can in turn support provision of frontline Council services. This proposal delivers on a number of these objectives by, restoring a historic building in a key part of the town centre to deliver economic growth, creating new town centre living opportunities and providing a return through a robust investment case.
At the February 2016 meeting of the RIF, funding was approved for the redevelopment of Jacks and it was agreed that the delivery mechanism for the residential units would be subject to a further report to the RIF. The report sets out the recommended delivery mechanism.
ALTERNATIVE OPTIONS
Funding for the redevelopment of 5-6 St Nicholas Street was approved by the RIF on 1 February 2016, and the Assistant Chief Executive’s report outlines a number of ways for the delivery of the residential units to be managed. The only alternative option to redevelopment is to leave the building in its existing state with the current temporary tenant on the ground floor and vacant space on the upper floors. Given the age and general condition of the building it is not recommended that this option is pursued as costs of maintenance and repair will increase. Structural surveys of the building undertaken as part of the project has resulted in temporary props being required to ensure the stability of the building, therefore if the building is not redeveloped there will be an immediate need to provide a permanent solution to the existing structural deficiencies.
The building could be sold in the open market. It is unlikely that a private developer would carry out works to the existing building, as proposed by the Council. It is more likely the developer would request that the building be demolished and a completely new development take place. This would result in the loss of this popular building in Colchester. The building is not listed and protection would be unlikely.