Decision details

Before the Committee was a report by the Director for Place, copies of which had been circulated to all Members and a copy of which is attached to the signed copy of these minutes as Item 13.

The purpose of this report before members was to agree the principle of two land transfers to the formative Union Gardens Joint Venture in order to secure greater certainty over the redevelopment of Union Place, prior to the Joint Venture Agreement (JVA) with Roffey Homes Ltd. being formalised. The report reflected the successful outcome of negotiations with NCP to secure the release of the current car park site to ensure that comprehensive development of the entire Union Place site (comprising sites A,B and C - Appendix 1) can take place in a timely and efficient manner. 

The council had secured an additional £5.6m of funding to connect buildings outside the town centre and extend the network to Splashpoint and Pavilion Theatre.

The report updated members of the Sub-Committee on progress with the JVA; and the outcome of negotiations to date and confirmed the interest of Homes England in providing a development funding package to support the development.

Decision

1.     That the significant progress towards the terms of the proposed Joint Venture Limited Liability Partnership (LLP) Members’ Agreement (referred to in this Report as a Joint Venture Agreement (JVA)) with Roffey Homes Ltd be noted.

2.     Agree to the principle of, and for officers to work towards:

a.     the proposed transfer to the Joint Venture LLP, of the Council’s existing two land parcels, being the NCP Car Park site (land parcel A) and the former police station site (land parcel B) as set out in Appendix 1; and

b.     the proposed transfer to the LLP of land parcel C, also set out in Appendix 1, after it is acquired from London & Continental Railways Limited (LCR), as per para 2.5 below.

These land transfers are required, to enable the regeneration of Union Place. The transfers are subject to the Committee’s formal agreement (with such Committee agreement, proposed to be requested as part of the Committee’s approval of the JVA, in June 2024). The land transfers would be on the basis that the equity share in the LLP which WBC would receive in return for the three land parcels, will reflect an up-to-date valuation report relating to the WBC-owned land, subject to deduction of the cost of purchase as set out at paragraphs 2.3 and 2.5 below.

3.     That it be agreed to surrender the current lease agreement with NCP in accordance with the Heads of Terms attached at Exempt Appendix 3, and note that the cost of surrender of the lease will be funded by the Joint Venture LLP and deducted from the Council’s deemed equity contribution (based on value of WBC land to be contributed to the LLP) to the Joint Venture, on the basis that:

a.     the surrender would only be completed once the JVA is approved by the Committee (approval proposed to be sought in June 2024), finalised and entered into; and

b.     the surrender would be accompanied by a JVA LLP commitment to grant a new 10-year lease to NCP of 146 car parking spaces (from completion of development, expected September 2026) with WBC having an option, under the JVA, to acquire the 2 landlord’s interest in that car parking at an agreed price or market value.

4.     That it be agreed to terminate the Collaboration Agreement with London & Continental Railways (LCR) for Union Place, and (irrespective of whether the JVA proceeds) pay to LCR the agreed promotional and marketing costs of £843,631.05 as set out in the report to this Committee on 11th July 2023.

5.     That it be agreed to purchase the freehold interest in the High Street Car Park site (land parcel C) from LCR for the sum of £542,500, in accordance with the Heads of Terms attached at exempt Appendix 4, to enable the regeneration and development of Union Place, and then to the surrender or other termination of WBC’s current lease under which WBC operates the LCR land car park at that property. The costs of the purchase of the LCR land will be borne by the Joint Venture LLP and deducted from the Council’s deemed equity contribution (based on value of WBC land to be contributed to the LLP) to the Joint Venture, on the basis that the purchase would only take place once the JVA is finalised and entered into (once Committee authority for the JVA is obtained, proposed to be sought in June 2024).

6.     That the Director for Place or Assistant Director for Regenerative Development be delegated in consultation with the Leader and the Cabinet Member for Regeneration, the authority to negotiate, agree and enter into agreements with NCP and the LLP (and Roffey Homes, if applicable) for the surrender in paragraph 2.3 above, and with LCR (and the LLP and/or Roffey Homes, if applicable) for the LCR agreement termination in 2.4 above and for the acquisition of the LCR land in paragraph 2.5 above, on the basis that (unless the Committee agrees otherwise) neither the surrender nor the acquisition would be completed until the JVA is approved by the Committee having regard to due diligence reports on the procurement and subsidy advice and the final terms of the detailed business plan to be received and considered by the Committee at the later meeting, and thereafter entered into.

7.     That a budget allocation of £85,000 be agreed to pay for legal costs to prepare the JV agreement, and related legal documents referred to above, in 2023/24.

Call-in

The call-in deadline for the decisions will be 5.00pm on 26 March 2024.