Agenda item

To consider the report of the Leader of the Council and Cabinet Member for Environment seeking approval to enable Officers to explore a potential development option for the Fleece Hotel site (including Longsmith Street Carpark) with the Phoenix Village Project.

109.1  The Leader of the Council, Councillor Richard Cook, introduced the report and explained that it sought Cabinet approval to explore a potential development option for the Fleece Hotel site with the Phoenix Village Project. He outlined the recommendations at 2.2 in the report and highlighted that the Appendix 1 showed the extent of the site.

109.2  Councillor Cook advised that although the site was initially earmarked for a boutique hotel or retail opportunity following receipt of Levelling Up funding for the development of the site, the Covid-19 pandemic had changed the local economy and the initial agreement had been reconsidered. He advised that the Phoenix Village Project were developing a business plan as a community hub with provision for young adults and that next steps would be work with Phoenix Village to develop a Statement of Intent for negotiations.

109.3  The Chair expressed the view that the proposals were interesting and ambitious, and asked whether the plans were realistic. The Head of Place advised that the report sought Cabinet approval to enter into negotiations, and that the Council would obtain further detailed information about the proposals once those negotiations had taken place. He noted that Officers would provide further recommendations to Cabinet based on those discussions.

109.4  Councillor Wilson stated his view that the proposals were worthwhile, but noted that he wondered why the Phoenix Village Project were particularly interested in the Fleece site. He highlighted that development of the site would be a large, expensive and demanding project. Councillor Cook noted that the Phoenix Village Project had approached the Council with their interest, and had already undertaken a visit of the site.

109.5  Councillor Hilton asked whether the Council intended to pursue a secure freehold sale for the site, where the Council intended to obtain grant funding from and whether there would be any capital implications for the Council if the funding bid was unsuccessful. He also asked for further information as to the current condition of the historic inn, and what the Phoenix Village Project future intentions were for this building. The Head of Place confirmed that the building remained in a similar condition to that of Councillor Hilton’s recent visit and that several surveys had been undertaken which had provided an idea of costs of restoration. He advised that there were 3 distinct parts to the site, and that the Council had not decided whether the sale would be freehold or leasehold and that this would form part of the negotiations. The Head of Place  confirmed that the Council had had positive discussions with a national organisation, and that the intention, subject to approval, was to make a 2-stage grant funding bid. In terms of the historic inn, he advised that he had not seen specified allocation plans for this part of the site.

109.6  Councillor Pullen expressed the view that the proposals were innovative and refreshing. He asked for clarification as to whether the Council intended to seek grant funding to prepare the site, with a view of then passing the project on to the Phoenix Village Project to develop the site. The Head of Place responded that this was correct.

109.7  In response to a further question from Councillor Pullen as to whether the public would be welcomed at some areas of the development such as shops or other initiatives, Councillor Cook confirmed that the proposals included plans for a mix of retail, food and drink and leisure opportunities. He confirmed that although some areas would be out of bounds for accommodation, there would be areas available to be enjoyed by the wider public.

109.8  Councillor Pullen asked whether there were other similar schemes in place across the country. He further asked whether it was likely that the site would be disposed of below market value. The Managing Director and Head of Place confirmed that there was a similar concept in East London and it was agreed that examples would be provided to the Overview and Scrutiny Committee in due course. Councillor Cook advised that it was too early in the process to determine the valuation of the site.

109.9  Councillor Dee noted that she was pleased that there were plans to bring an important heritage asset back to life, however she expressed the view that both the existing and unexplored structures of the building should be preserved and protected in the development. The Head of Place advised that one of the buildings at the site was Grade I listed, and that Historic England were currently viewing the other building to determine whether it ought to be regraded from Grade II to Grade I. He confirmed that the rationale behind the Council seeking grant funding rather than the developer, was so that the authority could have control over the works and protect the heritage of the buildings.

109.10          Councillor Sawyer asked if there was a visual plan available for Members to review. The Head of Place advised that the plans were at the space allocation stage and had not yet been developed into detailed visual plans.

109.11          In response to a further query from Councillor Sawyer regarding capital costs, the Head of Place advised that there might be some capital costs to the Council when it applied for grant funding or to bring the building up to the required specification. He further confirmed that these costs would be known before the Council entered into any contract.

109.12          Councillor Morgan noted that it was helpful that there were similar projects and expressed his view that it was positive that local luminaries with a wealth of experience were supportive of the project.

109.13          In response to a query from Councillor A. Chambers as to the supporters list on the Phoenix Village website, the Head of Place and Managing Director confirmed that they would ask the organisation to remove Council Officers from the list.

109.14          In response to an additional query from Councillor A. Chambers as to the valuation of the land and whether alternative options, such as selling the site via auction, could be pursued, the Head of Place confirmed that the Council had tried to market the site several times and that the repair costs needed to restore the site negated the land value. The Managing Director further highlighted the narrative in 10.2 and 10.3 outlining that any disposal for less than best consideration would require consent from the Secretary of State, and that a valuation would need to be undertaken prior to disposal to ascertain whether the land remained to have a negative value.

          RESOLVED – That the Overview and Scrutiny Committee NOTE the report.