The Cabinet considered a report of Executive Director (Finance and Resources) presenting options for Cabinet to decide how it wishes to proceed in relation to the proposed development of the Seaway Car Park and associated land (“the development”) and the agreement for Lease and Sale dated 10^th December 2014 made between the Council and Turnstone Southend Ltd (“Turnstone”) (and subsequently varied on 2^nd May 2019 pursuant to Minute 605 of Cabinet held 17^th January 2019, Minute 668 of Policy and Resources Scrutiny Committee held 30^th January 2019 and Minute 734 of Full Council 21^st February held 21^st February 2019).

On consideration of the report, the Leader drew attention to an email he had received from Murray Foster, on behalf of Southend Business Partnership (and the businesses who are members), in support of the Seaway Development.

Resolved:

1. That option 2 set out in the submitted report be approved, namely the Council maintains its support for the Development and does not serve notice to terminate the Agreement at least until such time as the final decision has been made on the planning application 18/02302/BC4M.

Such support would be maintained on the basis of:

-       The economic case including the significant job opportunities that the development will bring;

-       The contribution to the Council’s published Ambition and Outcomes;

-       The level of commitment made by the Council and Turnstone;

-       The desire to maintain the currently committed tenants;

-       The progress which has been made to date;

-       The reduced risk of the Homes England funding claw back.

2. That while the planning appeal is running, negotiations be progressed with Turnstone about the possibility of a lease-wrapper/income strip lease model to accelerate delivery and provide additional rent for the Council through a different model and any other matters which would accelerate delivery.

Reasons for decisions:

To determine a way forward in relation to the proposed development of seaways car park and associated land.

Other options:

1. The Council does not serve notice to terminate and maintains its support for the Development but does not seek to secure any benefits by renegotiation.  This option is not dealt with in detail because it does not do anything to help or accelerate delivery.

2. The Council serves notice to terminate (recommendation 2.2(a) of the report) and then separately enters into negotiations with Turnstone for alternative arrangements.  This option is not dealt with in detail in the report because terminating the Agreement will put current sub-tenant commitments at risk and would only cause complications.

Note: This is an Executive Function

Eligible for call-in to: Policy & Resources Scrutiny Committee

Cabinet Member: Cllr Woodley