Agenda item - Circus Street Redevelopment

Report of the Executive Director for Economy, Environment & Culture (copy attached).

RESOLVED:

1)     That the Committee agrees to a Deed of Variation to the existing Development Agreement that will enable the University to withdraw as a development partner.

2)     That the land transfers as per the existing Development Agreement remain unchanged.  The University Annex site to be transferred to the council’s ownership, appropriated by Cathedral for demolition and construction as per the current planning permission, and the land allocated for the university’s proposed academic building to be transferred from the council to the university, for future development by the university.

3)     That delegated authority is granted to the Executive Director Economy, Environment & Culture and the Executive Lead Officer, Strategy Governance and Law to agree and/or sign any necessary legal documentation to enable the necessary land transactions to take place and for the Development Agreement to go unconditional.

150.1      The Committee considered a report of the Executive Director for Economy, Environment & Culture in relation to Circus Street Redevelopment. The report informed the Committee of changes to the Circus Street project, following the decision by the University of Brighton (“the University”) to seek a withdrawal from the current Development Agreement (between the Council, the university and Cathedral (Brighton) (“Cathedral”)). The University wished to reconsider its development options for its proposed academic site in the light of its current landholdings, recent estates investments and as part of a wider strategic assessment of its future development needs. The report requested authority for the Council to agree an appropriate land deal between the three parties and a revised Development Agreement between the Council and Cathedral that would enable construction work to commence at the beginning of May, to bring forward all elements of the mixed use development (aside from the academic building) while enabling the university to reconsider its future university-related development options for the academic site.

150.2      In response to questions from Councillor Meadows it was explained that any proposed change of use to the student housing on the site would require planning permission; the value of land could change based on the future use and the permissions granted. There was no intention for the Council to receive part of any potential future uplift in the value.

150.3      In response to questions from Councillor Sykes the following responses were provided. There had been construction cost inflation nationally; however, all of the Council’s major projects had the usual industry standards in relation to contingency. The Council had a good track record of achieving a strong mix of uses on major development sites, and they had worked hard with the developer to do this at Circus Street – there was also significant work undertaken to ensure the scheme remained viable in this context. Agreement had been made with the LEP to carry forward the funding into the next financial year.

150.4      Councillor G. Theobald stated without the approval of this report the whole scheme would be placed in serious jeopardy; he commended the work of Officers. He went on to highlight his support for the regional dance studio, and emphasised the importance of regenerating the site. He highlighted the historic context and amount of time it had taken to reach this stage in the development and asked that the Committee approve the report to ensure construction could begin.

150.5      Councillor Mitchell welcomed the report, as well as the commencement of construction in May. She thanked Officers for their work to bring the project forward, and welcomed the site coming back into use.

150.6      The Chair put the recommendations to the vote.

150.7      RESOLVED:

1)     That the Committee agrees to a Deed of Variation to the existing Development Agreement that will enable the University to withdraw as a development partner.

2)     That the land transfers as per the existing Development Agreement remain unchanged.  The University Annex site to be transferred to the council’s ownership, appropriated by Cathedral for demolition and construction as per the current planning permission, and the land allocated for the university’s proposed academic building to be transferred from the council to the university, for future development by the university.

3)     That delegated authority is granted to the Executive Director Economy, Environment & Culture and the Executive Lead Officer, Strategy Governance and Law to agree and/or sign any necessary legal documentation to enable the necessary land transactions to take place and for the Development Agreement to go unconditional.