Issue - meetings

The Overview and Scrutiny Committee – Resources is to receive and note the report  on the Brightwells Yard Development, which was approved by the Executive on 5 March 2024.

A paper was shared with the Executive on 5th March 2024, at which the recommendations as set out in the attached paper were approved.

Before the meeting of the Executive on 5th March, the Chairs of the Overview & Scrutiny Committees agreed that this matter could be scrutinised post-decision.

It was also agreed that a short update on progress of the scheme would be presented at the meeting which will be in a presentation and verbal update.

84.1     The Development Programme Manager introduced the report, noting that this item was coming before the committee for post-decision scrutiny. Officers confirmed to the Vice-chair that several businesses have applied to take over retail units.

84.2     The Chair concurred with Cllr MacLeod’s comments noting the long lifetime of the Brightwells project and commending the work of officers. Officers confirmed to Cllr Atkins that there were no liquidated damages in the development agreement.

The Committee RESOLVED to note the Executive decision.

The Executive are recommended to make the resolutions set out in the report at agenda item 11.

Deputy Leader of the Council and Portfolio Holder for Enforcement and Regulatory Services.

The Executive RESOLVED:

1.     That the terms of the Brightwells Yard Development Agreement be varied as follows:

                   i.          The ultimate long-stop date for Practical Completion to change from 15 August 2024 to 28 February 2025.

                 ii.           Developer obligations to deliver the Borelli Bridge (“the Bridge”) be removed from the DA and a separate agreement entered into obliging the developer to deliver the bridge by 31 August 2025.

                iii.          That the full and final set of drawings, plans and specifications comprising the Works and agreed between the parties since the Development began, be appended to the Development Agreement thereby superseding the original documents included.

                iv.          That the previous form of Car Park Underlease be removed and replaced with a new revised version of the Car Park Underlease which takes account of agreed changes to the service charge provisions which WBC’s officers have in principle agreed.

                 v.          Authority be delegated to the Strategic Director - Place, to settle the terms upon which these changes will be documented and to authorise execution of any deeds and documents required to give effect to those changes in consultation with the Portfolio Holder for Finance, Assets and Property, the Portfolio Holder for Brightwells and Executive Head of Legal and Democratic Services.

Cllr Fairclough, Deputy Leader and Portfolio Holder for Enforcement and Regulatory Services, introduced the report and summarised:

·       That the original development agreement had been signed in 2018 with the development having started on site the same year. It was now largely complete with the cinema open and many of the residential properties were occupied

·       Some elements on site were not yet finished, including Brightwell's House, the remaining residential units, and the proposed new bridge at Borelli walk

·       Not all planning elements had been resolved but Officers and Councillors wanted to get the best result regarding the bridge in light of the planning permission that had already been granted to Crest

·       Extending the longstop date and removing the bridge from practical completion of works would allow the site to open sooner than would otherwise allow

·       There was also an opportunity to facilitate some minor amendments in the form of the under lease for the car park

·       There were no direct financial implications to the Council, however the option of not changing the longstop date had also been considered fully by the Council's legal advisors

·       The decision was a non-key decision for the Executive to make and was sited in only one Ward (Castle Ward).

Cllr Hyman, in attendance as Observer, had registered to speak in accordance with Executive Procedure Rule 5.6 a). Councillor Hyman stated that:

·       He was of the opinion that the decision was a key decision, potentially of £120million and would affect several Wards

·       The project had been controversial for many years

·       The report did not set out the potential financial benefits or disbenefits fully

·       In his opinion, Crest had not performed well throughout the development

·       The Council had been underwriting the risks of the project and the financial implications of not agreeing the recommendations had not been made clear.

Executive Members responded accordingly:

·       Governance advice was that the decision was not a key-decision as it had no direct financial implications and was limited only to the Castle Ward in which the development was situated

·       The Executive were determined to move the project forward for the residents of Waverley, and particularly Farnham

·       The report represented assurance for Crest in their negotiations with prospective tenants

·       The bridge would be built, and a guarantee in the form of a bond would be put in place. The recommendations effectively enabled the progression of a vibrant development that would be a great success.

The Development Manager clarified that the financial implications had been fully considered by the Council’s legal team as set out in the exempt Annexe.

The Executive RESOLVED:

1.     That the terms of the Brightwells Yard Development Agreement be varied as follows:

                   i.          The ultimate long-stop date for Practical Completion to change from 15 August 2024 to 28 February 2025.

                 ii.           Developer obligations to deliver the Borelli Bridge (“the Bridge”) be removed from the DA and a separate agreement entered into obliging the developer to deliver the bridge by 31 August 2025.

                iii.          That the full and final set of drawings,  ...  view the full minutes text for item 151