AGENDA ITEM 15

REPORT TO CABINET

1 JUNE 2004

FUTURE PROPOSALS FOR THE DOLPHIN SHOPPING CENTRE

PART OF PUBLISHED FORWARD PLAN: NO

STATUS – SERVICE DECISION

1.PURPOSE AND POLICY CONTEXT

1.1.The purpose of the report is to inform the Cabinet of the basis of current discussions with Grosvenor Shopping Centre Fund and to consider a potential way forward for the immediate future.
2.DECISION REQUIRED

2.1.To authorise the Officers to continue with discussions with Grosvenor on their proposals for the future development of and improvement of the Dolphin Centre, and in addition to note that officers are progressing the development of a long term vision and strategy for the town centre.

2.2.To authorise officers to discuss with Grosvenor their request for a Memorandum of Understanding. The terms of the memorandum to be approved by the Cabinet at a future meeting.

3.BACKGROUND

3.1.Members will have received a presentation from Grosvenor prior to the Cabinet meeting.

3.2.Members will recall that following approval at the Cabinet meeting on 10 December 2002 the head lease of the Dolphin Shopping Centre was assigned to Freshney No 2 Limited Place a company in the Grosvenor Fund Management Group.

3.3.A further report was presented to Cabinet on 9 December 2003 at which time landlord approval was granted to a package of refurbishment and re branding works at an estimated cost to Grosvenor in excess of £3 million. .

3.4.This package of works subsequently received planning consent and work has now commenced on site with an anticipated completion date of October 2004.

3.5.The report to Cabinet on 9 December 2003 also made reference to possible additional proposals for a further phase of refurbishment and possible extension of the centre for which Grosvenor were in a very early stage of preparation.

3.6.Officers have been having further preliminary discussions with both Grosvenor Shopping Centre Fund Managers and Grosvenor Developments to obtain a greater understanding of Grosvenor’s rationale for future investment in the centre and the town.

3.7.To move these proposals forward to the next stage Grosvenor have requested that the Council extend to them a solus position and enter into a Memorandum of Understanding to provide that for a period of time to be agreed the Council would agree not to enter into any negotiations with any other master development company to enable Grosvenor and the local authority to progress discussions.

3.8.During this period Grosvenor will be developing their outline objectives and principles for the expansion and future positioning of the centre together with likely further catchment, market research and capacity analysis.

3.9.In terms of any additional development the Council has a duty to obtain Best Consideration which would often involve tendering the opportunity to the whole development market.

3.10.Messrs Donaldsons are advising the Council on these issues and have reported that to maximise the benefits of both physical constraints and operational issues and to ensure value is added from any extension and to the respective interests in the existing centre that a period of exclusitivity to deal with Grosvenor would be commercially justifiable.

3.11.Clearly to investigate further the merits of a meaningful improvements in the vicinity of the Dolphin Centre the Council will need the co-operation and involvement of Grosvenor as its head lessee of the existing facility.

3.12.In due course the Council could if it so wished consider other development proposals.

4.TOWN CENTRE STRATEGY AND VISION

4.1.The approach from Grosvenor is a major opportunity for the Council to take forward its aspirations to redevelop and reposition the town centre. This is one of the proposed step-change projects as set out in the emerging corporate strategy and business plan. The framework for the town centre development has been outlined in the masterplan. However, now that the plans for the waterfront regeneration are well underway, it is felt that it is timely to consider carrying out some further work on developing a clear vision and strategy for the town centre. This would take account of a range of issues, including the positioning of the town centre, transport and parking and other access issues, urban design, environment and maintenance together with mix of uses. It would give the opportunity to consider the unique opportunities and competitive advantage of the town centre as well as how to deal with some of its problems. It would also set a clear framework and brief for the design work which Grosvenor will be carrying out on the Dolphin Centre in due course and any planning context.

4.2.It will be important to involve stakeholders in this piece of work, including Grosvenor, and we would suggest working with the Town Centre Management Board to take it forward. It will also involve input from a range of officers around the Council, many of whom are already fully engaged in the waterfront regeneration and officers and management team are currently considering this resourcing issue. Members are invited to give their views on this proposal for further working up a vision and strategy for the town centre.

BACKGROUND PAPERS

Report To Cabinet 10 December 2002

Report To Cabinet 9 December 2003

Helen Harbour BSc (Hons) MRICS MBA

Head of Property Services

David Ralph

Head of Strategic Planning Services

NAME AND TEL NO OF OFFICER CONTACT

Michael Moysey - Estates & Valuation Manager Tel 01202 261280

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