Agenda item

13.1

The Director of Finance and Commercial Services submitted a report setting out proposals in respect of management arrangements for the Heart of the City II (HOTCII) Scheme.

13.2

RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee:-

(a) delegates approval of the financial arrangements as set out at section 1.4 of the report to the Director of Finance and Commercial Services, in consultation with the General Counsel and Chairs of the Strategy and Resources and Finance Committees; and

(b) delegates approval for the property arrangements as set out at sections1.13 and 1.15 of the report of the Director of Finance and Commercial Services, in consultation with the General Counsel and Chairs of the Strategy and Resources and Finance Committees.

13.3

Reasons for Decision

13.3.1

The decisions to operate a hotel within the HOTCII development and select Radisson as the operator under an IMA have already been made. This report allows the council to operate the hotel in an efficient manner whilst preparing for the eventual sale of the asset at a future date.

13.4

Alternatives Considered and Rejected

13.4.1

The alternative course of action would be to not enter the arrangements outlined. The main disadvantage to this approach arises when the hotel is sold, which is the current expectation with the HOTCII business case. This would attract increased SDLT costs for a purchaser and is likely to result in a lower sale price.

13.1

The Director of Finance and Commercial Services submitted a report setting out proposals in respect of management arrangements for the Heart of the City II (HOTCII) Scheme.

13.2

RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee:-

(a) delegates approval of the financial arrangements as set out at section 1.4 of the report to the Director of Finance and Commercial Services, in consultation with the General Counsel and Chairs of the Strategy and Resources and Finance Committees; and

(b) delegates approval for the property arrangements as set out at sections1.13 and 1.15 of the report of the Director of Finance and Commercial Services, in consultation with the General Counsel and Chairs of the Strategy and Resources and Finance Committees.

13.3

Reasons for Decision

13.3.1

The decisions to operate a hotel within the HOTCII development and select Radisson as the operator under an IMA have already been made. This report allows the council to operate the hotel in an efficient manner whilst preparing for the eventual sale of the asset at a future date.

13.4

Alternatives Considered and Rejected

13.4.1

The alternative course of action would be to not enter the arrangements outlined. The main disadvantage to this approach arises when the hotel is sold, which is the current expectation with the HOTCII business case. This would attract increased SDLT costs for a purchaser and is likely to result in a lower sale price.