Agenda item

Report of the Chief Executive (enclosed).

Councillor Alistair Bradley Executive Leader and Executive Member (Economic Development and Partnerships) will be in attendance at the meeting to answer questions of the Panel.

Members of the Committee received a report which provided contextual information and initial questions for focus in respect of the town centre including Market Walk and future development plans.

The Chair welcomed Councillor Bradley, Executive Leader of the Council and Executive Member (Economic Development and Partnerships), Councillor Danny Gee, Chair of the Town Centre Team and Chris Moister, Head of Governance to the meeting who attended to answer questions in relation to Market Walk and the town centre.

Achieving a vibrant town centre was a key objective of the Council’s corporate strategy under the priority of ‘a strong local economy’.  Performance in this area was currently strong both across the wider town centre and in respect of the Market Walk shopping centre, which was purchased by the Council in November 2013 and taken into internal management in April 2015.

The majority of key indicators for the town centre were performing above target at the end of quarter 3, 2015/16 (December 2015).  Performance for floor space improved/created and vacant town centre floor space was excellent.  The percentage occupancy of the covered market had decreased slightly compared to last year (95.7% against almost full occupancy of 99% for 2014/15) but remained above target of 95%.

Performance of Market Walk across September, October and November 2015, footfall followed a similar trend to previous years.  However, there had been a significant increase of footfall in December 2015 of 13.5%, which was likely to be a result of a successful programme of creative marketing and PR over the Christmas period.

A range of improvement activity had been undertaken in Market Walk itself which had included new wooden bins, planters PA system and replacement paving in some areas.

It was reported that since coming under Council management in 2015, the centre had continued to generate revenue above anticipated levels and provided an additional income stream for the Council.  A recent management report highlighted one vacant unit out of 35 which equates to 97% occupancy.  However, there were a number of tenants with outstanding or part payments; this applied to approximately 9 units currently showing arrears.

The report detailed town centre marketing and PR for the Christmas period which attracted significant visitor numbers to the town centre due to key attractions including –

·         Chorley’s Christmas lights switch on – 5,000 visitors

·         Santa Express from town centre to see Father Christmas at Astley Hall – 1,900 families

·         Giant Ferris wheel – 10,800 rides

The report posed a number of questions to which answers were received -

Market Walk

How do existing Market Walk tenants contribute towards:

a)    The wider marketing and promotion of the town centre?

There was no central fund for which tenants could contribute towards.  However, tenants had provided prizes/incentives to encourage shopper engagement, and some tenants had also sponsored events.

b)    Improvements and upgrades to the centre such as street furniture?

Tenants did not contribute directly.  The Council, as landlord, provided improvements and upgrades which was usual practice.  The street furniture in Market Walk had been integrated with the rest of the town centre to encourage shoppers/visitors to explore the whole of the centre of Chorley; this was one reason why tenants were not asked to contribute.  It was intended that when the Market Walk extension was built it would offer the opportunity to look at the whole configuration of Market Walk and public realm areas to make improvements.

The Committee were informed that there were examples of street furniture within the town centre that was not the responsibility of the Council.  One example was a coffee shop that rented space outside their premise in which they had placed tables, chairs and fencing. 

The report identified a number of existing tenants in arrears.  Why was this-the case and what action was being taken to address the situation?

The arrears totalled approximately £25,000, which equated to an average of just over 5 days of late payments.  This was partly attributed to the way the national or larger retailers make their payments, which did not necessarily fall on the payment due dates (eg payments were often made on a particular day of the month, bi-monthly or even quarterly).

It was also explained that some tenants were still making payments to Deloitte (the company which had managed Market Street on behalf of the Council from its purchase to April 2015), and there was a delay in Deloitte sending the rents on.  Tenants had been notified about paying the Council rather than Deloitte, but some had failed to update their records.   Most of those tenants in arrears, had arrears worth less than £1,000.  Members of the Committee were pleased to note that none of the tenants in arrears, where in that situation due to hardship.

Councillor Bradley advised that the figures for arrears needed to be reconciled and balanced, at the latest, six weeks following the closure of the financial year.

The purchase of Market Walk was expected to bring in additional revenue of £400,000 per year.  What had been the return on this investment so far and was this forecast to be maintained in future years?

It was estimated that the Council should make £1 million on this investment but was making £150,000 more than anticipated. This was due to more units than expected being let, and which also  allowed the Council to borrow less to finance Market Walk. Leases due to expire are being renewed by tenants due to the prospect of the Market Walk extension and the possibility of big name high street stores locating in Market Walk.

Market Walk extension

Please provide an update on the current position in regard to Market Walk phase 2.

 The Council was in a position that if an ‘A’ grade retailer signed a tenancy agreement, progress would be made relatively swiftly as a significant amount of preparation work had already been completed.  The Council was waiting to hear from a big name retailer about locating in Chorley. 

The next stage was giving consideration to the design, and whether the design should be prepared earlier than expected in anticipation of retailer sign up.  Whatever the design, it would be up to the expected standard for an A grade retailer.   All details would be brought before Council for approval, and if members were happy with the recommendations, work could commence reasonably quickly. 

How will the Market Walk phase 2 development impact on:

a)    Existing Market Walk tenants?

There had been more interest from tenants wanting to stay in Chorley.  One retailer was not entirely happy with the proposals, due to the potential loss of car parking and increased competition.  The Council had made certain commitments in relation to car parking, and was trying to help the retailer, but that it would not be to the detriment of the rest of the town centre.

b)    The wider town centre?

Since Market Street reopened there had been a significant increase in trading.  The public realm areas had been improved and the majority of Market Street repainted.  There had been a decrease in empty properties, and three out of the four units at the old McDonald’s site had been leased.  There was a possible tenant for the fourth unit but they had pulled out.  However, there was no intention to fill the empty unit with the first interested party as the occupier had to compliment the other units and not detract from them.

            A number of retailers/landlords to premises towards the top of Market Street had successfully secured Council grants to make improvements to shop floor and shop fronts.  This had improved the look and feel of that part of Market Street substantially.  

            It had been noted that the night-time economy had increased without any interventions from the Council.

            In response to questions raised by the Panel, it was confirmed that the Town Centre Master Plan included questions posed to residents about the type of retailers/entertainment venues they wanted to see in the town centre.  The results were fairly consistent with residents wanting big named stores, cinema and leisure opportunities. It was anticipated that on the completion of the Market Walk extension, which was proposed to include a cinema and leisure activities it would encourage visitors to extend their stay and explore the rest of the town centre, including Market Street.

What are the risks for the town centre and have mitigating actions been identified? 

There were some public realm areas, the responsibility for which lay with Lancashire County Council; that showed signs of deterioration.  It was felt that due to the anticipated service cuts by the County Council this was likely to worsen and that pressure was needed to be put on Lancashire County Council to ensure the areas are maintained.

The Panel was interested to know what impact the Asda superstore had on Market Street.  The impact from the superstore was unknown as no study/survey had been completed.  However, it was thought that there had been an increase in footfall in that area.  This could be credited due to a number of factors which included the increased parking available following the Fleet Street work.

            As well as Market Street improvements, it was reported that retailers round St George’s Street had got together to make their own improvements.

Members of the Panel discussed various aspect of the report, including the activities which took place over the Christmas period which contributed to the level of footfall.

Due to the planned extension for Market Walk and other town centre improvements, members of the Panel enquired if consideration had been made to possible improvements to alleviate congestion at the Hartwood roundabout.  It was recognised that at peak times traffic flow was slow.  However, it was not considered that the congestion was so severe that it warranted changes to the road network.

The planned development of Botany Bay was still at planning stage, but it was expected that there would be a mix of housing and retail opportunities.  It was important that the retail at Botany Bay did not duplicate the town centre.

The Chair thanked Councillor Bradley, Councillor Gee and Chris Moister for attending the meeting after which they left the room.

AGREED – That the report be noted.