This report sets out proposed changes to previously approved proposals in light of a changed market due to Covid-19 and due to new opportunities.  The Council previously approved £9,612,703 to acquire and forward fund the development of Phase 2 in November 2019 (Minute CA.26).  The Council also approved the changed terms with C4DI in July 2020 (Minute CA.64).

The subject of the decision:

This report set out proposed changes to previously approved proposals in light of a changed market due to Covid-19 and due to new opportunities.  The focus of the report was revised proposals for the delivery of the cinema and new proposals for the staff tenement building.  The Council previously approved £9,612,703 to acquire and forward fund the development of Phase 2 in November 2019 (Minute CA.26 refers).  The Council also approved the changed terms with C4DI in July 2020 (Minute CA.64 refers).  The report also covered the position with the external funding bids and the opportunities these present to improve the financial position for the Council as well as secure key anchor tenants.

Alternative options considered:

None.

The reason for the decision:

This development formed part of Central Northallerton redevelopment which was identified as a key project in the Council Plan 2019-23 and it also linked to the Council’s priority of Driving Economic Vitality. The development was also anticipated to attract further investment into the town centre.

The decision:

That Cabinet approves and recommends to Council that:-

(1)    the Council agrees to forward fund and acquire Phase 2b subject to securing external funding and staying within the existing budget envelop as agreed by Council in November 2019 (Minute CA.26 refers);

(2)    authority is delegated to the Deputy Chief Executive in consultation with the Leader to agree the final Heads of Terms and subsequent legal agreements with Central Northallerton Development Company Ltd as set out in paragraph 2.4 and with tenants as set out in paragraphs 3.1 to 3.9 of the report;

(3)    the Council agrees the revised use for the Staff Tenement Block as set out in paragraph 3.3 of the report; and

(4)    authority is delegated to the Director of Finance and Commercial (s151 officer) to finance the scheme as appropriate.

Declaration of Interest

Councillor P R Wilkinson declared a personal non-pecuniary interest as he is Chairman of the Central Northallerton Development Company Limited and he left the room prior to discussion and voting on the item.

Dr Justin Ives declared a personal non-pecuniary interest as he is a board member of the Central Northallerton Development Company Limited and he left the room prior to discussion and voting on the item.