Agenda item

The Executive Leader Councillor Alistair Bradley presented a report updating Members on the work undertaken to progress the Market Walk Extension proposals and wider town centre plans since the last report to Council in September 2015. The report sought approval to proceed with the extension and the first phase of the town centre plans. A number of appendices with comprehensive information as background and supporting documentation accompanied the report as follows:

·         Appendix A - Planning approval and conditions

·         Appendices B1, B2 and B3 - Layout plans 

·         Appendix C - Chorley Markets Strategy 2017/26 

·         Appendix D - Markets Consultation Plan 

·         Appendix E - Gerald Eve: Review of Covenants 

·         Appendix F - Estimated Rental Value Schedule 

·         Appendix G - High Level Cost Estimate 

·         Appendix H - Phasing and Programme Plans 

·         Appendix I - Town Centre Car Parking Strategy 

·         Appendix J - Public Realm Images 

·         Appendix K - Initial Design: Existing Market Walk

Councillor Bradley asked in considering this important decision, that Members focus on why the Council was proposing to invest in Market Walk with a 7 unit retail and leisure extension; what the effects would be in the short term; and what the impact would be for the longer term. He referred to the shift of retail focus from Market Street towards the bypass and the revamped draft Masterplan proposals for the town centre and proposals for car parking.

The Market Walk extension would bring in much needed national chains for the long term viability and vitality of Market Walk and the rest of the town centre along with a cinema and more food outlets to provide evening attraction. The proposals would importantly also bring in income for the Council through rental and business rates in future years when government support would reduce significantly. It would increase the value of the shopping centre as a key Council asset.

In the short term there would be disruption to the town centre and plans to mitigate this were contained in the report but the longer term outcomes would be worthwhile. Surrounding towns were starting to revamp their town centres and it was important that Chorley did so to give it the best chance of a thriving future.

In seconding the proposals, the Deputy Leader, Councillor Peter Wilson referred to the importance of the proposals before Members, building on the Council decision of 2013 to go ahead with the purchase of Market Walk Shopping Centre. That decision had proved to be financially advantageous for the Council and these proposals would reinforce that position. Significant work had gone into looking at both the short term and the longer term financial viability of the scheme using outside expertise.

Councillor Paul Leadbetter, Leader of the Conservative Group acknowledged the extensive work that had gone into the proposals which he felt amounted to 5 distinct projects: the actual extension; the improvements to the existing Market Walk; the relocation of the Flat Iron; the creation of a civic square; and other public realm work. He referred to the impact of online shopping on the high street leading to the closure of many major and minor stores. Whilst he accepted that town centres needed to change and become more socially and economically vibrant, in his opinion the proposals under consideration provided too great a risk to Chorley Council taxpayers and he felt unable to support them.

Councillor Greg Morgan also spoke against the proposals, referring to the need for a more detailed risk assessment for the project, and queried the pre let agreements and whether these should take the form of a contractual agreement. In clarification, Councillor Wilson said the pre let contract agreements were agreements to enter into a contract - rather than a formally agreed contract at this stage.

Councillor Bradley said the Council needed to generate income to be financially viable for the future and so was investing in a number of schemes, spreading the risk - the Digital Health Village; Fleet Street Extra Care Scheme; and other commercial development. Market Walk added to that list. The national retailers interested in coming to Market Walk were fully aware of how online shopping was changing their business – the Council needed to also move with the times. Retail experts had indicated that in the private sector the level of pre let interest was more than enough to go ahead with the project.

Councillor Martin Boardman challenged the development proposals and referred to the impact of potential development at Botany Bay and the effect this may have on the town centre.

Councillors Paul Clark, Zara Khan, Danny Gee, Jane Fitzsimons and Chris France spoke in favour of the Market Walk proposals in terms of income generation; job creation and bringing the town up to date with a better offer for young people and the growing population in the borough.

Councillors Alan Cullens and Eric Bell spoke against the proposals in relation to the level of risk for Council taxpayers; the absence of a detailed risk assessment in the documentation presented; and the loss of Flat Iron car parking.

In summing up, Councillors Alistair Bradley and Peter Wilson, expressed their disappointment that the Conservative Group had chosen not to support the Market Walk proposals but also that the opposition had not provided any alternative income generation proposals. The Council was seeking to address the long term financial stability of the Council as well as creating a more viable and vibrant town centre for residents and visitors.

1.         That the following changes and updates be noted to the:

a.    site and development plans for the extension;

b.    phasing and programme plans for the extension;

c.    latest position on securing tenants to the scheme;

d.    progress made to date in developing options to relocate Shopmobility;

e.    the latest position with regards to the negotiations with the United Reformed Church on a land swap deal which would enable the Council to secure the site to develop additional car parking and the Church to build a new Church and affordable housing scheme on Friday Street;

f.     negotiations with regards to the Flat Iron covenant and the plans regarding the appropriation of the land for retail use; and

g.    initial proposal for improving the existing Market Walk centre.

2.         That subject to:

2.1 Planning approval of minor amendments through a S73   application; and

2.2 Pre-let contract agreements being in place for 75% or more of the new units.

Members agreed to:

a.    Proceed with the development of a new retail and leisure extension to Market Walk, the delivery of associated highways improvements and public realm works, at a cost of up to £12.643m excluding VAT.

b.    Approved the use of prudential borrowing to finance £9.965m of the development.

c.    Approved a budget increase of £3.035m for additional Chorley Town Centre Public Realm works bringing the total capital budget to £4.035m and noted the further proposed phases and budget estimates.

d.    Delegated responsibility to the Executive Member (Resources) to either procure the services of an employer’s agent through an OJEU compliant framework or to create and recruit to a new temporary post.

e.    Created a new permanent scale 6 post of Market Walk, Markets and Town Centre Officer, to provide additional capacity within the Market Walk, Markets and Town Centre team, freeing up more senior officers to concentrate on the delivery of the major projects as outlined in this paper.

f.     Approved the ‘Chorley Markets – Outline Strategy’ for consultation on the temporary relocation of the Flat Iron market.

g.    Extended the terms of reference of the Market Walk Steering Group meeting to include reviewing the terms of any contract awarded through the Lancashire Regeneration Property Partnership and make a recommendation to Council on their acceptance or otherwise.

h.    Approved for consultation, the town centre car parking strategy 2017 – 2018 and the changes set out within it, to mitigate the impact to businesses, traders and visitors of all the developments which are planned to start during this period.

i.      Approved the progression of the phase one and some phase two actions in the draft town centre masterplan and public realm proposals for delivery alongside the Market Walk extension.