Agenda item

The Director of Finance and Business Improvement presented his report setting out details of proposed ongoing investment in Lockmeadow.

The Director of Finance and Business Improvement advised the Committee that:

·  The Council acquired the Lockmeadow Leisure Complex in November 2019 in order to support the Strategic Plan priority to make Maidstone a Thriving Place and to provide a financial return in line with the Commercial Investment Strategy.

·  When the Policy and Resources Committee originally agreed the acquisition of the long leasehold interest in the Lockmeadow Leisure Complex it was always envisaged that further investment would be required above the £19m purchase price.

·  Completion of the purchase of Lockmeadow was conditional on Odeon entering into a new 15 year lease at an increased rent and a deed of works under which refurbishment works to upgrade to a “Luxe” format would be carried out within 12 months of entering into the lease, with a landlord contribution to the work.

·  The refurbishment was due to commence on 23 March 2020 but had been postponed due to the coronavirus pandemic.  It was understood that Odeon still wished proceed with the works as they would result in additional footfall when the cinema reopened.

·  The other part of the proposed investment in Lockmeadow related to some landlord works to coincide with the Odeon’s refurbishment.  Whilst the fabric of the building was in good condition, a number of things could be updated and improved to make the Complex more attractive including signage, façade details, external lighting, landscaping, access and redundant structures in the car park.  It was anticipated that some of these works could be progressed during the coronavirus lockdown.

·  The cost of ongoing investment at Lockmeadow was included within the Council’s Capital Programme and could be funded from borrowing subject to there being confidence that the investment would generate a return.

During the discussion on this report it was suggested that in agreeing the recommendations Members would be demonstrating their confidence in the local economy and that they are making plans for recovery following the coronavirus pandemic.

RESOLVED:

1.  That delegated authority be given to the Director of Finance and Business Improvement in consultation with the Chairman and Vice-Chairman of the Policy and Resources Committee to agree any amendments that are required to the deed of works for refurbishment of the Odeon cinema in light of the temporary postponement of these works.

2.  That delegated authority be given to the Director of Finance and Business Improvement in consultation with the Chairman and Vice-Chairman of the Policy and Resources Committee to seek planning permission for and deal with associated planning matters in relation to the landlord works described in the report of the Director of Finance and Business Improvement and to undertake a procurement process and award such contracts for delivery of the works in line with financial procedure rules and applicable public contracts regulations and principles.

3.  That the Head of Mid-Kent Legal Services be authorised to negotiate and complete all necessary deeds, agreements and ancillary documents relating to (i) any variation to the deed of works, (ii) the landlord's works and (iii) the appointment of contractors and consultants on the terms as agreed by the Director of Finance and Business Improvement in consultation with the Chairman and Vice-Chairman of the Policy and Resources Committee.

Note:  Councillor Mortimer did not participate in the voting due to connectivity issues.