Agenda item

12.1

This paper sets out a proposal to review the service charge paid by traders at Crystal Peaks Market Place. There has not been an increase passed on to traders in several years despite the operational cost of the market increasing.

This report sets-out the impact of under-recovery and proposes options in relation to service charges going forward.

12.2

RESOLVED UNANIMOUSLY: That Waste and Street Scene Policy Committee requests that the report comes back to a future meeting of the Committee to enable the Committee to review the service charge paid by traders alongside consideration of future plans to improve the performance of the markets.

12.3

Reasons for Decision

12.3.1

The Committee rejected the officer recommendations due to concerns that increasing the service charge would have an adverse impact on the occupancy levels of the market and footfall. The Committee requested that a review be undertaken of the options for improving the performance of the market in conjunction with a review of the service charge; this would enable the Committee to consider the options for setting the service charge and the implications that an increase would have on traders and customers.

12.4

Alternatives Considered and Rejected

12.4.1

The alternative options that were considered were outlined in paragraphs 1.6.1 to 1.6.3 of the report. The option to do nothing (1.6.1) had been rejected due to the unsustainable nature of the increasing subsidy required on operational costs.

12.4.2

The option to move straight to full cost recovery (1.6.3) would be too much of an impact on the tenants. It was likely to create significant cost pressures that were too large to pass straight on to customers and may increase the markets vacancy rate, which would negatively financially impact the budgets for service charges and rents. Overall, it could undermine the financial position rather than improve it.

12.4.3

The Committee rejected the recommended option of an increase of 50% (1.6.2) so that a review of the plans to improve the performance of the market could be undertaken prior to a decision on the service charge.

12.1

The Interim Operations Manager City Centre Maintenance and Sheffield Markets introduced a report reviewing the service charge paid by traders at Crystal Peaks Market Place. There had not been an increase passed on to traders in several years despite the operational cost of the market increasing. The report set out the impact of under-recovery and proposed options in relation to service charges going forward.

12.2

Members raised concerns that the proposed service charge increase would have a detrimental impact on the number of market traders and negatively impact footfall to the market. Members requested that a report be submitted to the Committee meeting in September that provided proposals on how to improve the performance of the market and a longer-term plan for increasing the service charge.

12.3

RESOLVED UNANIMOUSLY: That Waste and Street Scene Policy Committee requests that the report comes back to a future meeting of the Committee to enable the Committee to review the service charge paid by traders alongside consideration of future plans to improve the performance of the markets.

12.4

Reasons for Decision

12.4.1

The Committee rejected the officer recommendations due to concerns that increasing the service charge would have an adverse impact on the occupancy levels of the market and footfall. The Committee requested that a review be undertaken of the options for improving the performance of the market in conjunction with a review of the service charge; this would enable the Committee to consider the options for setting the service charge and the implications that an increase would have on traders and customers.

12.5

Alternatives Considered and Rejected

12.5.1

The alternative options that were considered were outlined in paragraphs 1.6.1 to 1.6.3 of the report. The option to do nothing (1.6.1) had been rejected due to the unsustainable nature of the increasing subsidy required on operational costs.

12.5.2

The option to move straight to full cost recovery (1.6.3) would be too much of an impact on the tenants. It was likely to create significant cost pressures that were too large to pass straight on to customers and may increase the markets vacancy rate, which would negatively financially impact the budgets for service charges and rents. Overall, it could undermine the financial position rather than improve it.

12.5.3

The Committee rejected the recommended option of an increase of 50% (1.6.2) so that a review of the plans to improve the performance of the market could be undertaken prior to a decision on the service charge.

(NOTE: During the discussion of the above item, the Committee agreed, in accordance with Council Procedure rules, that, as the meeting was approaching the 2 hours and 30 minutes time limit, the meeting a) should be extended by a period of 30 minutes and b) should be extended by a further period of 30 minutes.)

(NOTE: Councillors Christine Gilligan Kubo, Sioned Mair-Richards and Ruth Mersereau left the meeting during the discussion on the above item.)