Issue - meetings

This report outlines the current understanding of the Council’s aims and objectives in respect of the Castle Piccadilly area, explains the legal position (particularly in relation to procurement) on the options open to the Council in achieving its objectives and seeks approval for a recommended course of action.

RESOLVED: (i)         That the Council’s aims and objectives be confirmed as:

a)                 To achieve best consideration for its land;

b)                 To achieve the Council’s vision and planning objectives as set out in the planning brief, including a high quality development which helps to meet the retail needs of the City;

c)                  A development that is viable and helps to deliver wider planning objectives for the area, e.g. provision of quality civic and open space, links across the river, riverside paths and relocation of the Castle car park; and

d)                 To achieve the comprehensive regeneration of the Castle Piccadilly area.

(ii) That the commencement of a works concession procurement process to support the bringing forward of possible alternative developer solutions in a fair, transparent and proportionate manner, be approved.

(iii) That authority be delegated to the Director of City Strategy, iin consultation with the Director of Resources, to approve a set of criteria upon which the procurement competition process will be measured.

REASON:      In order to achieve the Council’s objectives whilst complying with the Council’s own rules and the current regulatory framework.

Members considered a report which outlined the current understanding of the Council’s aims and objectives in respect of the Castle Piccadilly area, explained the legal position on the options available to achieve these objectives and set out a recommended course of action.

It was understood that the Council’s objectives were as set out in the planning brief for the site, adopted in 2006, and also to obtain best consideration for the land.  Members were asked to confirm that this was still the case.  The majority landowner in the Castle Piccadilly area was currently La Salle, who had appointed Centros as development managers.  Legal advice was that, in the light of the 2007 case of Jean Auroux v Roanne, it was no longer an option for the Council to enter into direct negotiations with a potential developer prior to selling the land to them with a Development Agreement.  Should the Council wish to achieve something more than simply payment for the land, then the Procurement Regulations 2006 would apply.

Under these Regulations, different procedures were applicable, depending on whether the public works were being delivered to or for the benefit of the Council, or whether they were, in part, concessionary in nature.  In this case the latter applied and it was therefore recommended that a works concession process be adopted, in order to progress the Council’s aims and objectives.  This would enable the Council to negotiate with potential developers and could include public consultation.  The successful bidder would have to undertake a competitive tender process to locate sub-contractors.

Officers confirmed that the legal costs associated with the Procurement Regulations could be up to £50k.  Members noted that representations had been made to one of the region’s MEPs in respect of this additional burden on local authorities.

Having noted the advice of the Shadow Executive on this item, it was

RESOLVED: (i)         That the Council’s aims and objectives be confirmed as:

a)                 To achieve best consideration for its land;

b)                 To achieve the Council’s vision and planning objectives as set out in the planning brief, including a high quality development which helps to meet the retail needs of the City;

c)                  A development that is viable and helps to deliver wider planning objectives for the area, e.g. provision of quality civic and open space, links across the river, riverside paths and relocation of the Castle car park; and

d)                 To achieve the comprehensive regeneration of the Castle Piccadilly area.

(ii) That the commencement of a works concession procurement process to support the bringing forward of possible alternative developer solutions in a fair, transparent and proportionate manner, be approved.¹

(iii) That authority be delegated to the Director of City Strategy, in consultation with the Director of Resources, to approve a set of criteria upon which the procurement competition process will be measured.²

REASON:      In order to achieve the Council’s objectives whilst complying with the Council’s own rules and the current regulatory framework.