Agenda item

To consider the decisions made by the Cabinet at their meeting held on 16 December 2014 in relation to the above item, which has been called in by Councillors Aspden, Cuthbertson and Waller in accordance with the Council’s Constitution.  A cover report is attached setting out the reasons for the call-in and the remit and powers of the Corporate and Scrutiny Management Committee (Calling-In) in relation to the call-in, together with the original report and the decisions of Cabinet.

Members received a report which asked them to consider the decisions made by the Cabinet, at their meeting held on 16 December 2014, in relation to the establishment of a viable re-use of the Guildhall complex as a Digital Media and Arts Centre (DMAC), in accordance with the Cabinet decision on 16 July 2013. The Cabinet had given approval to proceed with the procurement of a design team and an operating partner to run the DMAC, lease the building and release monies from the Economic Infrastructure Fund for the design and the building to the planning stage.

Details of the Cabinet’s decision were attached at Annex A to the report and the original report to the Cabinet meeting, attached at Annex B.

The decision had been called in by Councillors Aspden, Cuthbertson and Waller on the following grounds:

“The report lacks many crucial details needed to support the proposal. These include: 

·            A thorough business case to justify council expenditure on the project.

·            Detail on the revenue projections including estimated rental income.

·            A proper analysis of alternative options for the Guildhall.

·            An examination of whether this is the correct location for the use being proposed or any comparison with other similar projects.

·            An analysis of how the risk could be more appropriately shared with the private sector, especially on elements which might be better handled by organisations more experienced in the specific fields of business.”

Councillor Waller addressed the meeting on behalf of the Calling In members. He confirmed their principle concern related to the lack of a business case and the risks involved relating to the funding of the project. The Members also questioned whether this was the correct location as there appeared to be no clear evidence to support the proposals for a DMAC and they felt that additional work was required prior to a final decision being made.

The Assistant Director of Finance, Property and Procurement and the Guildhall Project Manager with the assistance of the Principal Accountant, made a presentation, a copy of which is now attached to the online agenda. This set out in more detail the work undertaken in relation to the project, including the detailed feasibility study, alternative options, the financial overview together with the principles of the revenue model.

Councillor Williams, as Cabinet Member for Finance and Performance, acknowledged that the details contained in the presentation, should have been included in the report to Cabinet. He confirmed however that the business case was at an advanced stage in comparison to other projects undertaken. Although finance was required to undertake urgent work to the Guildhall roof he confirmed that a final decision had yet to be made on the whole project. Following additional work he confirmed that a report would be brought back to a future Cabinet and Council meeting.

Members questioned the Cabinet Member and Officers on a number of aspects of the project including risks to the authority, the difficulty of making a decision without all the necessary information, any restaurant/cafe lease and the need to protect the Guildhall setting and service access to the Mansion House.

Members confirmed that the majority of issues had now been answered and although they wished to protect the Guildhall, a balance had to be made between preservation and the business requirements for the site.

Cllr Potter then moved and Cllr Taylor seconded that Option A be approved and the decision of Cabinet be confirmed, as there were felt to be no grounds for referring back the decisions of Cabinet.

Cllr Runciman then moved and Cllr Healey seconded an amendment, that in light of the reasons provided for call in, Option B be approved and the decision be referred back to Cabinet to request publication of all the information in respect of the Guildhall scheme for public consideration to allow a fully informed decision to be made in respect of the future of the site.

On being put to the vote it was

Resolved:           That Option A be approved and that the decision of Cabinet be confirmed.

Reason:              In accordance with the requirements of the Council’s Constitution.