Agenda and minutes

Apologies were received from Councillors Leung, Yeates, Hawkins and Booker. Councillor Booker later joined during Item 5.

There were no declarations of interest received.

The minutes of the previous meeting held on November 14th, 2023, taken as read, were approved as a correct record, subject to the following changes:

·       Changing “Chase Terrace” to “Chase Town” in the Medium Term Financial Strategy Item.

·       Correcting the attendance details of Cllr Ho and Cllr Whitehouse.

RESOLVED: “That as publicity would be prejudicial to the public interest by reason of the confidential nature of the business to be transacted, the public and press be excluded from the meeting for the following items of business, which would involve the likely disclosure of exempt information as defined in Paragraph ? of Part 1 of Schedule 12A of the Local Government Act 1972”.

IN PRIVATE

Item 4 was deferred until discussions on the publicly available main body of the Cinema report were completed. Item 4 was formally moved later, to facilitate members questions on the confidential appendix to the report.

RESOLVED: “That as publicity would be prejudicial to the public interest by reason of the confidential nature of the business to be transacted, the public and press be excluded from the meeting for the following items of business, which would involve the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972”.

The Chair introduced the item by requesting members not to refer to the specifics in the confidential section of the report as that would mean the meeting would have to exclude the public at an earlier stage than he planned.  Before inviting questions from members, he drew attention to the Recommendations that are to be considered by members.

The committee scrutinised the cinema report, due for Cabinet discussion on Tuesday 5th December, raising questions and providing feedback to be incorporated.

·       Members asked who the independent valuer was.

It was confirmed that Aspinall Verdi were specialists in regeneration, with expertise in the holistic aspects of regeneration as well as valuation.

·       Members asked why no business plan had been produced yet.

Cllr A. Smith (Deputy Leader and Cabinet Member for Leisure, Parks & Major Projects) agreed that he had raised the same question previously. He confirmed he wanted the finalised business plan to come before O&S when it is available. It was noted that the business plan would not cover the operation of the cinema as LDC would be operating as a landlord in that environment. Simon Fletcher (Chief Executive) added that the authority has a clear focus on development alongside the business case. The business plan will need to be approved before trading begins but development of the scheme would be focused on first.

·       Members asked for clarification on the differing figures mentioned in the report.

Anthony Thomas (Assistant Director Finance & Commissioning) explained that £3.5 million is the figure that Evolve Estates have put forward as the potential cost of the buyout. The £3.999 million figure is related to the cost of the development but that an element of the calculation related to the development cost is a moveable number, and based on the Council’s independently reviewed budget this would account for £200,000 of additional budget, and the potential for stamp duty land tax around £300,000 – this could potentially be mitigated, reduced or not payable. Mr Thomas highlighted it was his responsibility to put forward a budget that takes account of that risk.

It was confirmed that the sum of costs would include the £3.999 million in addition to the £5.788 million set out in the capital programme.

·       Members asked when it would be possible to see the draft business plan.

Mr Fletcher confirmed the authority had worked closely with Evolve to understand both the cost of the development and the projected income from the first 3-5 years of trading. This would be shared with the committee following the meeting.

·       Members asked when the legal advice would be available.

It was confirmed a draft version of the legal advice had been received. The outstanding parts remain ‘best value’ and that there are no subsidy control concerns. It was expected that would be closed by the time of Full Council on 12/12/2023.

Cllr A. Smith confirmed the Cabinet decision is fully dependent on that legal advice.

·       Members asked for reassurance on changes to the original budget.

Mr Thomas explained that  ...  view the full minutes text for item 44a