Agenda item

This report informs members of the responses received from two parties interested in operating the former Lendal Bridge Sub-Station as a secure cycle park and the results of their investigation into grant funding and a business plan.

RESOLVED:(i) That Option C, to lease the former Lendal Bridge Sub-Station to Bike Rescue for use as a cycle park, subject to obtaining planning permission and sufficient grant funding to fully convert the sub-station, be approved, and the agreement to lease and the terms and conditions of the lease be delegated to the Corporate Landlord;

                        (ii) That, if Bike Rescue is only successful in obtaining partial grant funding, it be agreed that the Council match fund to a maximum of £50,000 from the Transport Planning Unit (TPU) capital programme, provided this will be sufficient to convert the sub-station to a secure cycle park, and the terms and conditions of the lease be delegated to the Corporate Landlord;

                        (iii) That the sale of Lendal Bridge Sub-Station be removed from the capital receipts funding schedule and replaced by the overachievement of other capital receipts already achieved.

Members received a report which informed them of the responses received from two parties interested in operating the former Lendal Bridge Sub-Station as a secure cycle park and the results of their investigation into grant funding and a business plan.

The proposals included in the two submissions, from Bike Rescue and from Lewis Hull, an entrepreneur, were set out in paragraphs 10-16 of the report, and a comparison of these bids was attached as Annex 1 of the report.

The report presented the following options for consideration:

·  Option A – Sell the sub-station;

·  Option B – The Council funds the conversion and leases it to the selected party at a rent to be agreed;

·  Option C – The Council to lease the sub-station as it stands, at a rent to be agreed to the selected party, subject to full grant funding for the conversion being obtained;

·  Option D – The Council agreed to carry out partial conversion and lease it to the selected party, subject to their obtaining grant funding to complete the conversion;

·  Option E – The Council seeks grant funding to convert the sub-station;

·  Option F – Alternative premises are sought to site the cycle park;

The sub-station was currently earmarked for sale to contribute to the funding of the Council’s capital programme.  The cost of replacing this funding with borrowing would be £17,300 pa.  However, following advice from the Environment Agency and restrictions in relation to its use, it was unlikely that the budgeted receipt would be achieved.  An overachievement of capital receipts from other asset sales meant that the current approved capital programme could be funded without a reliance on either the sale of the sub-station or borrowing, although any receipt raised could be reallocated to address the Council’s other capital priorities through the Capital Resource Allocation Model (CRAM) process.

Members thanked officers for responding to their requests to explore the use of the building further.  They expressed the hope that this would be the first of a number of secure cycle stores around the city and highlighted the need to make available appropriate support for drawing up the business plan.

RESOLVED:(i) That Option C, to lease the former Lendal Bridge Sub-Station to Bike Rescue for use as a cycle park, subject to obtaining planning permission and sufficient grant funding to fully convert the sub-station, be approved, and the agreement to lease and the terms and conditions of the lease be delegated to the Corporate Landlord;

                        (ii) That, if Bike Rescue is only successful in obtaining partial grant funding, it be agreed that the Council match fund to a maximum of £50,000 from the Transport Planning Unit (TPU) capital programme, provided this will be sufficient to convert the sub-station to a secure cycle park, and the terms and conditions of the lease be delegated to the Corporate Landlord;

                        (iii) That the sale of Lendal Bridge Sub-Station be removed from the capital receipts funding schedule and replaced by the overachievement of other capital receipts already achieved.

REASON:                  This course of action combines the best opportunity of securing a cycle park and exposes the Council to the least risk.