Decision Maker: Leader of the Council
Decision status: Recommendations Approved
Is Key decision?: Yes
To provide a report on the progress of the Heart of the City project, agreements with John Lewis and a decision on the retention or sale of the first completed building.
To provide a progress report on Heart of the City since the last public report in July 2020 and to agree the way forward with John Lewis and formally document decisions on the retention or sale of completed buildings.
That the Leader of the Council:
1) Notes the progress made to date on The Council’s delivery of the Heart of the City II development, including the establishment of 4,400 jobs out of a planned 7,000, economic activity to date of £0.9bn out of a planned £3.7bn and progress with increasing sustainability of development, reducing carbon emissions and increasing biodiversity.
2) Delegates authority to the Executive Director of Place and the Executive Director of Resources in consultation with The Executive Member for City Futures: Development, Culture and Regeneration, The Executive Member for Finance and Resources, The Director of Legal & Governance, and the Chief Property Officer,
a. to finalise terms with John Lewis and
b. Instruct the Director of Legal & Governance to complete all necessary legal documentation required to document the terms of the lease termination with John Lewis agreed in accordance with the approvals delegated pursuant to this report.
c. Instruct the Director of Legal & Governance to complete all other necessary legal documentation required to document the terms of all remaining tenancies for the various blocks within the scheme.
3) Notes the options for the John Lewis Building which will be concluded as part of the work on the City Centre Strategic Vision following public engagement including a full climate impact assessment.
4) Approves the proposal to retain Grosvenor House in the Heart of the City Development as part of the Council’s Commercial Estate until such time, through review of the real estate investment markets, that a disposal is appropriate to meet the Council’s budget requirements and with any disposal being in accordance with the Council’s disposal protocols and financial regulations.
The reasons for the recommendations are to enable the arrangements with John Lewis to be concluded, to formalise agreement on retaining the Grosvenor House Block and to note overall progress on the project.
The overall project is now in full delivery. Options for the retention or disposal of buildings and the options for the John Lewis building are considered in this report and annexures.
Publication date: 20/12/2021
Date of decision: 20/12/2021
Effective from: 25/12/2021