Agenda item - Former Peter Pan site, Madeira Drive - Sea Lanes

Report of the Executive Director, Economy, Environment & Culture (copy attached).

1)           That the Policy Resources and Growth Committee notes the decision made using Officer urgency powers ( 7 (2) in Part 6 Scheme of delegation to Officers) in consultation with the Council Leader, to grant an agreement for lease for a 5 year lease with an option to take an agreement for lease for a 150 year lease at the end of the term, subject to planning approval.

46.1      The Committee considered a report of the Executive Director, Economy, Environment & Culture that set out the decision made using Officer Urgency Powers to amend the agreement between the council and Sea Lanes relating to the proposed development of the former Peter Pan site on Madeira Terraces approved by a Special Policy & Resources Committee in 2016.

46.2      Councillor Wealls asked if there would be a clause in the contract that compelled the company to clear the site should the lease be terminated after five years and whether the council had contingency to clear the site in the event the company went into administration.

46.3      The Executive Director, Economy, Environment & Culture confirmed that there was a clause compelling the company to clear the site in the event the lease was terminated. In the event the company went into administration, the council would negotiate with the appointed company administrators to recover its costs.

46.4      Referring to paragraph 3.5 of the report, Councillor Peltzer Dunn stated that he did not believe the Council’s Valuer could make a judgement that the terms of the lease would represent best value in 150 years.

46.5      The Executive Director, Economy, Environment & Culture replied that at the current position and based on current rents and how rents would rise, officers were confident that best consideration would be achieved.

46.6      Councillor Peltzer Dunn enquired as to what point within the initial 5 year lease the option of a 150 year lease could be taken up.

46.7      The Executive Director, Economy, Environment & Culture replied that specific information was not available to hand and would be confirmed in writing after the meeting.

46.8      Councillor Mac Cafferty asked if there were provisions established in the event there were complications or continued uncertain regarding the future of Madeira Terraces.

46.9      The Executive Director, Economy, Environment & Culture stated the delay to refurbishment of Madeira Terraces was the only reason for the request for a 5 year lease. The Executive Director, Economy, Environment & Culture added that redevelopment of the former Peter Pan site was seen as a method to attract investment to the area and would assist with the investment case for Madeira Terraces. The Executive Director, Economy, Environment & Culture stated that whilst it was hoped the crowdfunding would be a success there were other opportunities to renovate Madeira Terraces including devolved funding bids.

46.10   RESOLVED- That the Policy Resources and Growth Committee notes the decision made using Officer urgency powers ( 7 (2) in Part 6 Scheme of delegation to Officers) in consultation with the Council Leader, to grant an agreement for lease for a 5 year lease with an option to take an agreement for lease for a 150 year lease at the end of the term, subject to planning approval.