Agenda item

9.1

The Executive Director, Place submitted a report in relation to the proposed expansion of the Site Gallery.

9.2

RESOLVED: That Cabinet:-

(a)

approves the proposals to enter into the agreement to grant a lease of property at Brown St to Site Gallery on the terms set out in this report;

(b)

delegates authority to the Executive Director, Place in consultation with the Director of Capital and Major Projects and the Director of Legal and Governance to agree the terms of the documentation required to effect this transaction; and

(c)

delegates authority to the Director of Legal and Governance  to complete such legal documentation as she considers necessary or appropriate in connection with this transaction on such terms as  she may agree to give effect to the proposals set out in this report and generally to protect the Council’s interests.  

9.3

Reasons for Decision

9.3.1

The proposed expansion of Site Gallery will be a major boost for the cultural attraction of the city centre and the Cultural Industries Quarter (CIQ) in particular. This has wider economic benefits in terms of making the city an exciting place to locate and attract talented staff for businesses in the creative and digital industries which is a key growth area.  

9.3.2

The proposal to grant a lease for 22 years at a peppercorn rent will unlock a grant from the Arts Council England (ACE) of just under £1m towards a £1.7m project. The refurbishment of the property will benefit a Council owned asset which is currently in a poor state of repair.

9.4

Alternatives Considered and Rejected

9.4.1

The unit which it is proposed to lease to Site Gallery forms part of the AVEC building, part of which is above the Sheffield Archives and in other places is closely linked to the recording studios behind. It is therefore extremely difficult to sell or grant a very long term interest in the property.

9.4.2

The property was almost completely vacant for several years after Sheffield Independent Film (SIF) went into administration as it proved difficult to find tenants prepared to take the property on in its poor condition. If the property was not to be leased to Site Gallery then it could be marketed but it is felt that any potential tenants would require a significant rent free period; would not attract the level of investment available from ACE and would be very unlikely to achieve the same cultural and economic benefits as the proposed lease to Site Gallery.

9.5

Any Interest Declared or Dispensation Granted

None

9.6

Reason for Exemption if Public/Press Excluded During Consideration

None

9.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

9.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing

9.1

The Executive Director, Place submitted a report in relation to the proposed expansion of the Site Gallery.

9.2

RESOLVED: That Cabinet:-

(a)

approves the proposals to enter into the agreement to grant a lease of property at Brown Street to Site Gallery on the terms set out in this report;

(b)

delegates authority to the Executive Director, Place in consultation with the Director of Capital and Major Projects and the Director of Legal and Governance to agree the terms of the documentation required to effect this transaction; and

(c)

delegates authority to the Director of Legal and Governance  to complete such legal documentation as she considers necessary or appropriate in connection with this transaction on such terms as  she may agree to give effect to the proposals set out in this report and generally to protect the Council’s interests.  

9.3

Reasons for Decision

9.3.1

The proposed expansion of Site Gallery will be a major boost for the cultural attraction of the city centre and the Cultural Industries Quarter (CIQ) in particular. This has wider economic benefits in terms of making the city an exciting place to locate and attract talented staff for businesses in the creative and digital industries which is a key growth area.  

9.3.2

The proposal to grant a lease for 22 years at a peppercorn rent will unlock a grant from the Arts Council England (ACE) of just under £1m towards a £1.7m project. The refurbishment of the property will benefit a Council owned asset which is currently in a poor state of repair.

9.4

Alternatives Considered and Rejected

9.4.1

The unit which it is proposed to lease to Site Gallery forms part of the AVEC building, part of which is above the Sheffield Archives and in other places is closely linked to the recording studios behind. It is therefore extremely difficult to sell or grant a very long term interest in the property.

9.4.2

The property was almost completely vacant for several years after Sheffield Independent Film (SIF) went into administration as it proved difficult to find tenants prepared to take the property on in its poor condition. If the property was not to be leased to Site Gallery then it could be marketed but it is felt that any potential tenants would require a significant rent free period; would not attract the level of investment available from ACE and would be very unlikely to achieve the same cultural and economic benefits as the proposed lease to Site Gallery.