Cabinet Member for Regeneration

Cabinet considered the report of the Interim Head of Economy and Community Services and the above Cabinet Member.  This set out the background and relevant information to request delegated authority to the Interim Director of Regeneration, in consultation with the Leader and Cabinet Member for Regeneration, to agree a Third Deed of Variation to the Development Agreement entered into between the Council and Spirit of Sittingbourne on 19 September 2012.  This was subsequently varied by the First Deed of Variation and the Second Deed of Variation, both dated 20 January 2015.

The Cabinet Member introduced the report and explained that this proposal had a degree of significance for both the Council and residents.  He confirmed that demolition had commenced today on the old depot site, which he considered to be a significant milestone.

In response to a question, the Cabinet Member advised that the request to make the amendments to the Development Agreement was the result of a collaborative approach, and the decision on allowing the developer to vary the minimum percentage profit margin was agreed by U+I. 

The Head of Finance explained that the agreement would specify what the Council’s financial input was, and that profit would be determined by the final costs.

The Cabinet Member gave the following verbal update: “the Cabinet report under Recommendation 1 (i) requests delegated authority to amend the Developer’s Phase 1 Conditions and, for clarity, this relates to all of the Developers Phase 1 conditions necessary to deliver the Phase 1 projects on a site by site basis.

Members should note that Section 3 of the report identifies only the most important conditions that need to be varied to allow the development to be de-coupled so that it can proceed on a site-by-site basis. It does not contain all of the conditions that will need to be varied in detail and the Stopping Up Condition and the Necessary Consents condition that relate to stopping up of the highways and highway consents will also be varied to allow delivery on a site by site basis. In addition, the Developer can, without further approval from the Council waive the Pre Let/Sales Condition and the Anchor Units Condition.”

Resolved:

(1)      That delegated authority be given to the Interim Director of Regeneration, in consultation with the Leader and the Cabinet Member for Regeneration to agree a Third Deed of Variation to the Development Agreement to:

(i)        amend the Developer’s Phase 1 Conditions;

(ii)       remove the Council’s obligation to pay section 106 costs;

(iii)     remove the Council’s obligation to pay a contribution from the multi-storey car park budget;

(iv)     allow the Developer to vary the Developer’s minimum percentage profit margin;

(v)      allow for construction works to elements funded by the Council to be carried out under an access licence rather than a building lease.