Referred direct by Cabinet

The Committee considered Minute 63 of the meeting of the Cabinet held on 1July 2022, which had been referred directly to the Committee for scrutiny, together with a report of the Deputy Chief Executive and Executive Director (Finance and Resources), providing an update on the Seaway Leisure legal documentation.

The Interim Executive Director (Growth and Housing) indicated that he would be willing to take the Chair and Vice Chair through the final executed suite of legal documents for the Seaway Leisure scheme.

Resolved:

1.          That the following decision of the Cabinet be noted:

“That the preparation of a final clean suite of legal documents for the Seaway Leisure scheme, be approved.”

Note: This is an Executive Function

Cabinet Member: Councillor I Gilbert and Councillor P Collins

Report of Deputy Chief Executive & Executive Director (Finance & Resources)

The Cabinet received a report of the Deputy Chief Executive & Executive Director (Finance and Resources) providing an update on Seaway Leisure legal documentation.

The Cabinet was updated at the meeting on Counsel’s advice to note the different nature of the transaction.In particular, that the arrangement is now confined to sale, leases and underlease.  It no longer includes provisions that allow the Council to enforce construction obligations.

It was asked to note that the deliverability of construction is dealt with in the agreement between the funder and Turnstone and the agreements between sub-tenants and Turnstone.  The Council will also exercise its statutory powers through its planning and building control functions. Under the new structure, the Council is not obliged to take the annuity lease until the development has been completed therefore the new suite of documents are confined to the sale, lease and underlease and do not control construction. 

Resolved:

That the preparation of a final clean suite of legal documents for the Seaway Leisure scheme, be approved.

Reasons for Decision

To enable the proposition to be presented clean, current documents for the funding market and to reduce procurement risk.

Other Options

The updated transaction could be documented by way of the approved variations but this is not considered to be optimal either in terms of managing risk or presentation to the funding market.

Note: This is an Executive function

Referred direct to Policy & Resources Scrutiny Committee for consideration

Cabinet Member: Cllrs Gilbert and Collins