Members are requested to consider the report and its appendix found on pages 13-39 of the Cabinet agenda for 6 February 2024 and make the following resolution:
That the Council’s draft Capital Strategy for 2024- 25 to 2028-29 be approved.
Minutes:
Cllr Moss moved the recommendation which was seconded by Cllr Brown.
Cllr Moss then introduced the item.
Cllr Cross asked whether any council owned land is available for new commercial development. Cllr Moss explained that as part of the regeneration strategy the council would be looking at land that can be brought forward including land in the Southern Gateway. This will include both council owned land and land owned by partner organisations and other landowners.
Cllr Chant spoke about the economic and social implications of empty shop units with reference to Crane Street, St James Industrial Estate and the general high street. Cllr Chant asked Cllr Moss how or if the council will come up with a strategy to minimise the number of empty units by working with charities to ensure the council’s assets are used to their best economic and community purposes. Cllr Moss explained that the council does not own many of the properties in the high street. Where the council does own properties there are currently three empty units in Crane Street but work is underway to try to get those filled. Two of the empty units are available for pop up shops to help local start-up businesses. This gives local entrepreneurs the opportunity to trial their businesses. The council is also working closely with the BID to look at regeneration opportunities. With regard to St James Industrial Estate there is currently a 65% occupancy or under offer status following the full redevelopment of the site. Cllr Moss acknowledged that there is a demand from the charitable sector to have units in some of the council’s sites so the council is reviewing its Grants Programme taking this into account.
Cllr Bates asked as Chair of the Corporate Governance and Audit Committee at its last meeting how many of the council’s retail units owned or let out were empty. He explained that Mr Gillett had provided a written response that there are five vacant units; three vacant shop units in Crane Street, one industrial unit at Terminus Road and one industrial unit at Woodrupp Centre. He spoke about the trend for falling property prices and potential impact this could have on the value of the council’s property assets. He asked if there is any current policy to encourage greater occupancy in the council’s property portfolio. He suggested reducing rents in the short or longer term or offering the rents to the charitable sector at subsidised rates. Cllr Moss referred to his previous response. He also explained that Crane Street is becoming more vibrant which he hoped would continue to encourage independent businesses as well as chain shops to be located in the city centre. He clarified that the council’s property portfolio generates a £2.6 million per year income. £1.75 million is from assets which support the provision of local services. Investment properties generate between £850,000 and £1 million per annum depending on market trends. He acknowledged that the council has to account for market trends. He emphasised the importance of the regeneration strategy going forwards.
Cllr Ballantyne asked whether the Strategy considers the maximum benefit for all communities. Cllr Moss explained that the Capital Programme is outlined in the February 2024 Cabinet papers. He outlined the Strategies aim to get maximum impact from income to support the council’s services. He wished to commend officers for their work in helping deliver the Strategy.
In a vote the following resolution was agreed:
That the Council’s draft Capital Strategy for 2024- 25 to 2028-29 be approved.