Agenda item

11.1

The Executive Director, Place submitted a report updating Cabinet on the programme of activities that has been developed with Chinese partner organisations.

11.2

RESOLVED: That Cabinet:-

(a)

notes the Council’s programme of activity with Sheffield’s Chinese partners;

(b)

authorises the completion of the required legal documents which will underpin the long-term Strategic Investment Partnership with Guodong following the signing of Heads of Terms in June 2016;

(c)

notes the expression of interest received from Guodong and authorises entering into a twelve month period of exclusivity to assess the viability of developing a 5 star hotel at the Central Library building on Surrey Street;

(d)

approves the commencement of the negotiation of terms with Guodong regarding the library building on the principles set-out in the report;

(e)

in line with the principles outlined in the report, approves the development of options for both the temporary and the permanent relocation of the Central Library Service and the Graves Art Gallery that may be required as a result of the receipt of the hotel expression of interest; and

(f)

notes that the terms of the hotel proposal and the options for any impacted services will be the subject of a future report to Cabinet prior to entering into any binding agreement.

11.3

Reasons for Decision

11.3.1

The expression of interest regarding a hotel development received from Guodong presents a substantial opportunity to protect the future of an iconic building within the city centre. It also presents an opportunity to enhance the hotel offer and increase investment and employment in Sheffield.

11.3.2

This proposal provides an opportunity to give proper consideration to the future of the Central Library Service and the Graves Art Gallery, if a hotel development at this location is deemed viable.

11.3.3

Developing the investment partnership with Guodong to an operational state will enable the delivery of projects and ensure activity is performance managed.

11.3.4

The educational partnership is supported between the “Sheffield” School in Chengdu and the Oasis Don Valley Academy, along with wider collaboration between Sheffield and Chengdu, as it offers a special opportunity to increase aspiration among pupils and educators in both cities.

11.4

Alternatives Considered and Rejected

11.4.1

Alternative options considered regarding the expression of interest in the Central Library building to be developed into a 5* Hotel

Do nothing. This option does not take into consideration the imminent need for repairs to the building and the almost certain inability to secure major capital investment in the building as a library.

Market the building for sale. There is no indication that there is any interest from the market in acquiring this building.

Undertake a feasibility study for the future of the building. This is likely to take a minimum 12 to 18 months, during which time this current development proposal could be withdrawn. There will be a cost associated and no guarantee of a long term solution for the building.

Identify funding for refurbishment of the building. There will still be an ongoing maintenance cost.

11.4.2

Alternative options considered in place of establishing the trade partnership agreements with Daqing and Nanchang:

Do nothing: Not entering into these relationships limits opportunities for Sheffield and its businesses in these fast growing commercial centres. 

Ad hoc: Without the city-to-city framework being established as a protocol for joint-work between the two cities, businesses would be less likely to be able to deliver commercial and economic benefits from the relationships established in China.

11.4.3

Alternative options considered in place of establishing a strategic investment partnership with Guodong:

Do nothing: Not entering a long-term investment relationship does not support the economic and regeneration objectives of Sheffield. 

Establish Partnerships with other organisations: The review of investor and investment opportunities that was undertaken by UKTI in 2015 established that Guodong was likely the best fit long-term investment partner for Sheffield.     

11.5

Any Interest Declared or Dispensation Granted

None

11.6

Reason for Exemption if Public/Press Excluded During Consideration

None

11.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

11.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing

11.1

The Executive Director, Place submitted a report updating Cabinet on the programme of activities that has been developed with Chinese partner organisations.

11.2

RESOLVED: That Cabinet:-

(a)

notes the Council’s programme of activity with Sheffield’s Chinese partners;

(b)

authorises the completion of the required legal documents which will underpin the long-term Strategic Investment Partnership with Guodong following the signing of Heads of Terms in June 2016;

(c)

notes the expression of interest received from Guodong and authorises entering into a twelve month period of exclusivity to assess the viability of developing a 5 star hotel at the Central Library building on Surrey Street;

(d)

approves the commencement of the negotiation of terms with Guodong regarding the library building on the principles set out in the report;

(e)

in line with the principles outlined in the report, approves the development of options for both the temporary and the permanent relocation of the Central Library Service and the Graves Art Gallery that may be required as a result of the receipt of the hotel expression of interest; and

(f)

notes that the terms of the hotel proposal and the options for any impacted services will be the subject of a future report to Cabinet prior to entering into any binding agreement.

11.3

Reasons for Decision

11.3.1

The expression of interest regarding a hotel development received from Guodong presents a substantial opportunity to protect the future of an iconic building within the city centre. It also presents an opportunity to enhance the hotel offer and increase investment and employment in Sheffield.

11.3.2

This proposal provides an opportunity to give proper consideration to the future of the Central Library Service and the Graves Art Gallery, if a hotel development at this location is deemed viable.

11.3.3

Developing the investment partnership with Guodong to an operational state will enable the delivery of projects and ensure activity is performance managed.

11.3.4

The educational partnership is supported between the “Sheffield” School in Chengdu and the Oasis Don Valley Academy, along with wider collaboration between Sheffield and Chengdu, as it offers a special opportunity to increase aspiration among pupils and educators in both cities.

11.4

Alternatives Considered and Rejected

11.4.1

Alternative options considered regarding the expression of interest in the Central Library building to be developed into a 5* Hotel are:-

Do nothing. This option does not take into consideration the imminent need for repairs to the building and the almost certain inability to secure major capital investment in the building as a library.

Market the building for sale. There is no indication that there is any interest from the market in acquiring this building.

Undertake a feasibility study for the future of the building. This is likely to take a minimum 12 to 18 months, during which time this current development proposal could be withdrawn. There will be a cost associated and no guarantee of a long term solution for the building.

Identify funding for refurbishment of the building. There will still be an ongoing maintenance cost.

11.4.2

Alternative options considered in place of establishing the trade partnership agreements with Daqing and Nanchang:

Do nothing: Not entering into these relationships limits opportunities for Sheffield and its businesses in these fast growing commercial centres. 

Ad hoc: Without the city-to-city framework being established as a protocol for joint-work between the two cities, businesses would be less likely to be able to deliver commercial and economic benefits from the relationships established in China.

11.4.3

Alternative options considered in place of establishing a strategic investment partnership with Guodong:

Do nothing: Not entering a long-term investment relationship does not support the economic and regeneration objectives of Sheffield. 

Establish Partnerships with other organisations: The review of investor and investment opportunities that was undertaken by UKTI in 2015 established that Guodong was likely the best fit long-term investment partner for Sheffield.