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Decision details

Delivery of Heart of the City Phase 2

Decision Maker: Co-operative Executive

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

This report seeks:

 

1/ Approval/endorsement for the Councils revised masterplan and delivery strategy for the Sheffield Retail Quarter/Heart of the City 2 scheme.

 

2/ Delegated authority for the delivery of the next and future phases of the Sheffield Retail Quarter/Heart of the City 2 scheme subject to compliance with the Councils budget processes, financial regulations and capital approval processes

 

3/ Approval for the budget to deliver the next phase and for the site wide development management and master planning for the remainder of the phases

 

4/ Confirmation that the Council will be prepared to use its Compulsory Purchase powers, if necessary, as a last resort in order to complete any acquisition required within the proposed development site.

 

Decision:

15.1

The Executive Directors, Place and Resources submitted a joint report seeking:-

 

(i) Approval/endorsement for the Councils revised masterplan and delivery strategy for the Heart of the City II scheme, formerly known as the Sheffield Retail Quarter (SRQ).

 

(ii) Delegated authority for the delivery of the next and future phases of the Heart of the City II scheme subject to compliance with the Council’s budget processes, financial regulations and capital approval processes

 

(iii) Approval to re-allocate the remainder of the previously approved Sheffield Retail Quarter budget to carry out the Pre Construction Services for the remainder of the phases of the revised masterplan and the stabilisation works to Leahs Yard

 

(iv) Authority to purchase land and/or property by agreement for the Heart of the City II scheme, but in the absence of agreement to use, if necessary, as a last resort, its Compulsory Purchase powers in order to complete the acquisition of the whole of the proposed development site.

 

(v) Authority to award priority for rehousing on the grounds of demolition for any residential tenants effected by delivery of the next and future phases of the Heart of the City II scheme

 

 

15.2

RESOLVED: That Cabinet:-

 

 

 

(a)

endorses the masterplan for and approves the strategy outlined in this report of a phased delivery of the Heart of the City II development and acknowledges the indicative development programme and estimated financial envelope;

 

 

 

 

(b)

delegates authority to the Executive Director of Place and the Executive Director of Resources in consultation with The Cabinet Member for Business and Economy, The Cabinet Member for Finance, The Director of Legal & Governance and the Chief Property Officer, to:-

                          

·         Approve the detailed delivery plan for the development of the first phase namely Blocks B (Laycock House, 68- 82 Pinstone Street),C (Pepperpot Block, 88-104 Pinstone Street), E (Telephone House podium), G1 (38 Carver Street) and H1 (Leahs Yard)

 

·         Submit detailed planning applications as necessary for the development of the first phase namely Blocks B, C, E, G1 and H1and any adjoining public realm improvement works and to secure all necessary consents to enable delivery to proceed.

 

·         Approve the detailed delivery plan for each of the subsequent development phases at the appropriate time.

 

·         As necessary submit detailed planning applications for the development of the remaining blocks within the Heart of the City II development site and for any adjoining public realm improvement works and to secure all necessary consents to enable delivery to proceed.

 

·         Continue the appointment of the full professional team to progress the detailed design work on the planning permissions and the public realm improvement works.

 

·         Commission and agree terms with any other specialist consultants to advise the Council as necessary throughout the course of the Heart of the City II project

 

·         Submit an outline planning application for Block F (Trafalgar Works), and if conducive to the redevelopment of the whole site place on the open market for sale as a residential development site and dispose of the site to the best offer.

 

·         Develop and then implement a public realm management strategy for the public realm within the Heart of the City II development.

 

·         Pursue Sheffield City Region Investment Fund (SCRIF), Historic England (HE) and any other funding streams that are available, where applicable, to assist in the funding of the Heart of the City II development, and where appropriate accept any obligations or restrictions that the funding is subject to.

 

·         If necessary, serve the requisite notices to obtain vacant possession on all existing tenants

 

·         Enter into negotiation and if possible acquire by agreement under s.227 Town & Country Planning Act 1990 powers, the Carver Street car park situated south of St Matthews House 45 Carver Street, and 30 Cambridge Street.

 

·         Instruct the Director of Legal & Governance to complete all necessary legal documentation required to document the terms of any transactions agreed in accordance with the approvals delegated pursuant to this report;

 

 

 

 

(c)

approves:-

 

·         The re-allocation of the remainder of the previously approved Sheffield Retail Quarter budget to carry out the Pre-Construction Services for the remaining phases of the revised masterplan and stabilisation of Leah’s Yard up to a maximum of £24m.

 

·         For all relevant budgets to be able to be fully funded through Prudential Borrowing and be subject to the phasing of the spend going through the Council Capital Approval process;

 

 

 

 

(d)

delegates authority to the Executive Director, Resources in consultation with the Executive Director, Place:

 

  • On satisfactory completion of the requisite Pre-Construction milestones of each block to approve the budget to carry out the construction of the properties and all necessary public realm improvement works. 

 

·         To determine and action the most appropriate disposal strategy for the Council for the Heart of the City II development and if necessary for the Council to sell the whole, any block or any part of a block as an investment.

 

 

 

 

(e)

confirms the principle that the Council will be prepared to use Compulsory Purchase powers as a last resort if terms cannot be reached by agreement to acquire the Carver Street car park situated south of St Matthews House 45 Carver Street, 30 Cambridge Street and office space within Barkers Pool House, Burgess Street, to complete the scheme. The use of such powers, if needed, will be subject to a further detailed report to Cabinet; and

 

 

 

 

(f)

delegates authority to the Director of Housing and Neighbourhood Services to award priority for rehousing on the grounds of demolition at an appropriate level to the residential tenants in Laycock House with effect from the date of approval of the detailed delivery plan pursuant to Recommendation (b) above.

 

 

 

15.3

Reasons for Decision

 

 

15.3.1

As outlined in the report, there is a still a very clear strategic and economic case to justify the Heart of the City II development, and to maintain project momentum.

 

 

15.3.2

The Executive Director, Place and the Executive Director, Resources believe that the Heart of the City II development is vitally important for the regeneration of the city centre.

 

 

15.3.3

The reasons for the recommendations are to provide a way forward for the Council to deliver the Heart of the City II development

 

 

15.3.4

For the above reasons it is proposed that the Cabinet adopts the recommendations set out in this report.

 

 

15.4

Alternatives Considered and Rejected

 

 

15.4.1

The do-nothing option i.e. complete only the delivery of the first phase (the HSBC/Retail block) and cease work on the wider Heart of the City II scheme has been considered, not only has a potentially worse financial impact but also has many negative outcomes for the Council.

 

 

15.4.2

The status of city centre will continue to diminish, the Councils long term economic aspirations for the City and the city centre will become less feasible, there will be a lack of confidence for other projects and the reputation of both the City and Council will also suffer.

 

 

15.4.3

The Council will also make a loss if the Heart of the City II development is not delivered, as its investment to date in working up the scheme will be lost.

 

 

15.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

15.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

15.7

Respective Directors Responsible for Implementation

 

 

 

Laraine Manley, Executive Director, Place and Eugene Walker, Executive Director, Resources

 

 

15.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Economic and Environmental Wellbeing

 

 

 

 

 

 

Report author: Laraine Manley

Publication date: 27/03/2018

Date of decision: 21/03/2018

Decided at meeting: 21/03/2018 - Co-operative Executive

Effective from: 05/04/2018

Accompanying Documents: