Decision details

To consider the report of the Cabinet member for Resources, Leisure and Culture seeking approval to restructure the existing head lease to the East Street Centre and authority for the closure of the Lime Street Car park to facilitate redevelopment to provide a supermarket.

The Council is to retain the rental income.  The operational considerations Lime Street Car Park will change and considerations will be made in regard to the revenue generated by the car park balanced against future repair obligations.

(i)  To approve the terms for the surrender and renewal of the East Street Centre Headlease as set out in the Confidential Appendix.

(ii)  That the Head of Legal and Democratic Services be authorised to enter into any legal documentation necessary in respect of the variations.

1. To facilitate a significant regeneration project. The demolition of the shopping centre and car park will open up East Street, recreating the link to St Marys Street. This will deliver significant environmental improvements.
2. A new Morrison’s Supermarket will not only bring a much needed additional supermarket to the City Centre, but will create 350 jobs. With Debenhams it will create an anchor to this part of the city, increasing footfall and improving the prospects of businesses in East Street.

1. Rejecting the proposal was considered, but this is an opportunity that may not present itself again for some time to bring regeneration to this part of the City Centre.
2. Selling the freehold was considered, but in the current market the level of receipt would not be acceptable. It was considered preferable to promote a redevelopment by way of lease and benefit from improved long term income