Issue - items at meetings - Shoreham Airport

That the main principles in accordance with  “List of Proposals” agreed by Worthing Borough Council (set out in Appendix 1) to the report be agred:

(i)           ASAL shall surrender Airport Lease (subject to 2.1.2 to 2.1.7 below):

(ii)          The Councils grant a long lease of the Terminal Building, Hangar and car park to ASAL on substantially the same terms as the surrendered lease;

(iii)         ASAL shall grant BCAL a lease of the Terminal Building, Hangar and car park on similar terms to the Councils’ lease to ASAL;

(iv)         The Councils grant a long lease of the Eastern Development Area and Western Development Area to ASAL on the same terms as the surrendered lease;

(v)          The Councils grant a long lease of the airport operational land (i.e. the old Airport Lease minus the sections granted under 2.1.2 and 2.1.4) to BCAL on substantially the same terms as the surrendered lease;

(vi)         The £1m deferred consideration shall be further deferred until a building built on the Eastern Development Land or Western Development Land is completed and occupied in part or whole.

That the Committee provide delegated authority to the Executive Director Environment Development & Housing and the Executive Director of Finance & Resources to enter into leases and other supplementary agreements in order to complete 2.1.

172.1.     The Executive Director for Environment, Development & Housing introduced the report, which provided an update on negotiations taking place between the Shoreham Airport freeholders; Brighton & Hove City Council and Worthing Borough Council; the lessees Albermale Shoreham Airport Limited and potential lessees, Brighton City Airport Limited (BCAL), on the future lease and management arrangements at the Airport.

172.2.     The Executive Director for Environment, Development & Housing noted that representatives from Albermale and BCAL were present, as well as Mr. Edie who was representing Shoreham Airport Operators & Tenants Association.  He stated that as the airport’s freeholders, both Brighton and Hove and Worthing Councils had an interest in the future viability of the airport and noted that protracted discussions had taken place between all parties and that the proposed transfer of the lease and management arrangements was considered to be the best way forward.

172.3.     The Chair then invited Mr. Edie to come forward and address the committee.

172.4.     Mr. Edie thanked the Chair for the opportunity to attend the meeting and outline the concerns of the Operators and Tenants Association.  He stated that the Association believed the item should be deferred from consideration as there was insufficient information to show that BCAL was a viable operation and would be able to run the airport.  The current proposals relied on an increased level of revenue but did not indicate where that would come from.  There had already been an increase in the level of rent by 30% without consultation and several owners of private aircraft had since moved their planes to other airports. He therefore asked that the matter be deferred to allow for an independent review of the operation of the airport and consultation with all the stakeholders.

172.5.     Councillor Hamilton queried when the association had first heard about the proposals to change the management and operation arrangements at the airport.

172.6.     Mr. Edie stated that it was only at the time when the requirement to speak at the committee meeting was about to expire.

172.7.     Councillor Randall asked how many members the association had.

172.8.     Mr. Edie stated that he was the Chairman and the association had 24 members.

172.9.     Councillor Peltzer Dunn queried whether a copy of the Business Plan would be made available.

172.10.  The Executive Director stated that it was not available at the meeting, but noted that a representative from BCAL was present.

172.11.  The Chair stated that the committee were not being asked to agree the Business Plan and noted that the transfer of the lease to BCAL could be made by Albermale without having to refer to the two councils.

172.12.  Councillor Hamilton referred to page 41 of the report and noted that Flying Time Aviation was a growing business and that its Directors were also listed as those for BCAL and queried whether this was appropriate.

172.13.  The Executive Director stated that it could be regarded as an advantage as the proposed new operator had a clear understanding of the business of running an airport.  He noted that Albermale was largely a property company and did not have the experience of running an airport, but wished to retain an interest in the land side of the airport.  He also noted that should an operator not be found, the responsibility would fall back to the two local authorities to find one.

172.14.  Councillor Peltzer Dunn expressed his reservations about having been sufficiently briefed on the matter and concerns about the lack of consultation with various stakeholders at the airport.

172.15.  The Chair noted the comments and suggested that the committee move into closed session to discuss the matter further and enable the representatives from Albermale and BCAL to be called in to answer any questions.

172.16.  The Chair then adjourned the open part of the meeting at 4.25pm and asked for members of the press and public to leave the chamber.

172.17.  The Chair reconvened the meeting at 6.00pm and thanked the members of the press and public for their patience.  He then stated that the report had been considered and that he would put the recommendations to the vote.

172.18.  RESOLVED:

(1)          That the main principles in accordance with  “List of Proposals” agreed by Worthing Borough Council (set out in Appendix 1) to the report be agreed:

(i)        ASAL shall surrender Airport Lease (subject to 2.1.2 to 2.1.7 below):

(ii)       The Councils grant a long lease of the Terminal Building, Hangar and car park to ASAL on substantially the same terms as the surrendered lease;

(iii)      ASAL shall grant BCAL a lease of the Terminal Building, Hangar and car park on similar terms to the Councils’ lease to ASAL;

(iv)      The Councils grant a long lease of the Eastern Development Area and Western Development Area to ASAL on the same terms as the surrendered lease;

(v)       The Councils grant a long lease of the airport operational land (i.e. the old Airport Lease minus the sections granted under 2.1.2 and 2.1.4) to BCAL on substantially the same terms as the surrendered lease;

(vi)      The £1m deferred consideration shall be further deferred until a building built on the Eastern Development Land or Western Development Land is completed and occupied in part or whole.

(2)          That the Committee provide delegated authority to the Executive Director Environment Development & Housing and the Executive Director of Finance & Resources to enter into leases and other supplementary agreements in order to complete 2.1.