Issue - meetings

The Cabinet is requested to consider the agenda report and its two appendices contained in the first agenda supplement, the second of which is exempt from publication and has been circulated to members and relevant officers only (see agenda item 19: Exclusion of the Press and the Public) and to make the following resolution namely that:

The updated information relating to the capital cost of the project in the confidential appendix 2 and the Return on Investment (ROI) under section 8 of this report be noted and the budget to enter into a contract with the preferred contractor, contractor (A),  to deliver the business unit scheme on Plot 21 Terminus Road Chichester be released.

RESOLVED

That the updated information relating to the capital cost of the project in the confidential appendix 2 and the Return on Investment (ROI) in section 8 of the agenda report be noted and the budget to enter into a contract with the preferred contractor, contractor (A),  to deliver the business unit scheme on Plot 21 Terminus Road Chichester be released.

The Cabinet received and considered the agenda report and its two appendices in the first agenda supplement, the second of which was confidential Part II exempt material (copies of the report and the first appendix attached to the official minutes).

The report was presented by Mr Dignum.

Mr Gregory and Mr Harrison were in attendance for this item.

Mr Dignum said this was a redevelopment by CDC of a Council owned brownfield site in Terminus Road, Chichester.  In July 2016 CDC had approved allocating £2.083m to the construction of six units ranging from of 230m² each. Planning permission had been granted. The proposed contractor had been appointed at a cost just below the budget figure. Subject to the rents achieved the return would be 7.5 to 8.4%. CDC had been advised that there was a strong market for this type of unit and that it was highly likely that if an aggressive marketing campaign was adopted some of the units could go under offer during the build-out period. A key driver behind building the scheme had been to improve the economy of the local area by attracting new employers and/or providing an opportunity for an existing Chichester-based company to relocate to the site and so expand economic activity in Terminus Road. The site represented the upper level of CDC’s offer for small businesses, The Woodruff Centre and St James Industrial Estate being the intermediate stage two and the Enterprise Centre which was now under construction being entry stage one. Completion was anticipated for May 2018.

The officers did not wish to add to Mr Dignum’s introduction.

There was no discussion of this item.

Decision

The Cabinet voted unanimously on a show of hands in favour of making the resolution set out below.

RESOLVED

That the updated information relating to the capital cost of the project in the confidential appendix 2 and the Return on Investment (ROI) in section 8 of the agenda report be noted and the budget to enter into a contract with the preferred contractor, contractor (A),  to deliver the business unit scheme on Plot 21 Terminus Road Chichester be released.