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Issue - meetings
Cornwallis Street Car Park - Potential Development
Meeting: 07/10/2019 - Cabinet (Item 208)
208 Cornwallis Street Car Park - Potential Development PDF 178 KB
Decision:
1. Agree to market the site, in accordance with EU procurement rules, on the basis that the Council develops the site for a hotel operator and lets the site on a long lease (20 years or more). The works only to commence once lease terms are agreed.
2. Agree to include the potential development of the site, at an estimated cost of £7m within the Capital programme when determining the Capital Programme, Capital Strategy, and Treasury Management Strategy as part of the 2020/21 budget setting process.
3. Agree to undertake the surveys required now for the subsequent development of the site at an estimated cost of up to £30,000 - funded from the General Reserve.
4. Agree to appoint an external legal firm now to draw up the procurement documents and necessary legal documentation at an estimated cost of up to £40,000 - funded from the General Reserve.
Minutes:
Councillor Forward left the chamber during discussion of this item due to a prejudicial interest.
The Assistant Director, Financial Services and Revenues and the Assistant Director, Regeneration and Culture submitted a joint report to consider the potential development of a hotel on Cornwallis Street car park.
The report was presented by the Director of Corporate Services and Governance, the Assistant Director, Regeneration and Culture and the Estates Manager.
The Council has been approached by a developer/hotel chain for the redevelopment of the Cornwallis Street car park with a new hotel.
A conditional offer has been made (subject to board approval, planning, and contract) for an 80 room hotel on the site on the following basis:
- 80 bed hotel and restaurant
- 25 year lease
- Substantial rent
The council has an obligation to test the market and ensure best value. It is proposed that in order to minimise timescales the Council will undertake initial surveys of the site.
The Assistant Director highlighted that Hastings has fewer serviced beds than neighbouring seaside towns and the development would support growth in the local tourism economy.
It was noted that the site is allocated for residential development within the Development Plan (Site Ref HTC2).
Councillor Chowney proposed approval of the recommendations, seconded by Councillor Rogers.
RESOLVED (unanimously):
1. Agree to market the site, in accordance with EU procurement rules, on the basis that the Council develops the site for a hotel operator and lets the site on a long lease (20 years or more). The works only to commence once lease terms are agreed.
2. Agree to include the potential development of the site, at an estimated cost of £7m within the Capital programme when determining the Capital Programme, Capital Strategy, and Treasury Management Strategy as part of the 2020/21 budget setting process.
3. Agree to undertake the surveys required now for the subsequent development of the site at an estimated cost of up to £30,000 - funded from the General Reserve.
4. Agree to appoint an external legal firm now to draw up the procurement documents and necessary legal documentation at an estimated cost of up to £40,000 - funded from the General Reserve.
Reasons for the decision:
The site is within the local development plan, earmarked for residential and retail.
The site presents a significant opportunity to further economic development and tourism within Hastings and St Leonards and to attract a major hotel within the town centre has been an aspiration for the Council for some time.
A viable option has been presented to the Council for a development and if the Council wishes to take the opportunity, it will need to move quickly. The EU procurement rules are complex, as will be the lease arrangements, and therefore external expertise in this instance is required.
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