Decision details

(Cabinet Member with Special Responsibility Councillor Barry)

Cabinet received a report from the Chief Officer (Environment) to provide and update on recent activity in the Festival Market and to seek Cabinet’s view on options for future development.  It was noted that the options had been discussed by the Overview and Scrutiny Committee meeting on 2 December 2013 although the Committee had not made any recommendations to Cabinet.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Option 1- If the Council takes the view that the current issues facing the market are symptomatic of wider issues facing Morecambe and the economy generally then the regeneration led approach that the Council is leading through the Morecambe Area Action Plan, combined with ongoing management of the market within existing budgets, provides the best way forward. However from a trader perspective in the short term it will not address the concerns that traders raise and furthermore a regeneration led approach provides no certainty for the medium to long term future of the market, as it may reveal other better options for the Market. It is an approach though that is consistent with the Morecambe Area Action Plan and supporting policies, and based on the context described above is a very reasonable one.

Option 2- If the Council takes the view that the Festival Market is absolutely essential to Morecambe and pivotal in terms of economic wellbeing and the visitor attraction then it is clear that in order to remain viable major investment in the market is required, along with a fundamental overhaul of how it operates and trades. The market faces stiff competition from supermarkets, nearby shops selling similar products, nearby private indoor and outdoor markets and internet based retailers. Clearly users of the Festival Market value what it offers and the service it provides, but to be sustainable in the long term more shoppers and traders are needed. To attract new shoppers and traders will require major investment in the market in terms of appearance, layout, types of stall, heating, lighting etc. Additional investment will require significant increase in the charges currently made to traders which in turn will change the dynamic of the market, and significantly increase both  the financial input and ongoing risk to the Council. In terms of the Morecambe Area Action Plan the area occupied by the market could well be crucial in the medium to long term for the regeneration of the area. Were a decision taken at this stage to effectively protect the market it would reduce the regeneration opportunities available for the site and Morecambe as a whole.

Option 3- In between the approaches described above there is also a view which recognises that until the regeneration led approach bears fruit there is a need to maintain the market as a going concern, so long as it continues to provide a contribution to the General Fund. This approach would require more ongoing investment in the market than is currently provided to do things like improve the internal / external appearance of the market, look at ways of attracting new traders through discounted rents, make links with colleges etc to encourage student traders, provide discounts to long serving traders through the winter months to encourage them to stay etc. This approach would require increased ongoing expenditure and therefore result in a reduced contribution to the General Fund, which in turn will require more savings to be made from other Council services, or a proportionate increase in rents.

The Council may also take the view that with Option 3 there is a requirement to address the heating issue which would also then require capital investment.  Based on the fact that the market with heating would then be moving towards more of an indoor market a fundamental review of rent and service charges would also be required.

Seeking to invest in the heating part of this approach (through the budget process) would effectively say that the need to maintain the Festival Market overrode any consideration of other regeneration opportunities that may come forward.

Based on the context of the Council’s budget prospects there are actually no easy solutions.

The report is mainly for note. However, Cabinet are requested to consider what, based on the options above, their position with regards to the future development of the market is. Subject to this officers can then provide necessary costings and financial information which can then be fed into the wider budget process.

Based on the context described the Officer preferred option is Option 1.

Councillor Barry proposed, seconded by Councillor Leytham:-

“(1)      That more detailed consideration be given to the effect that the installation of automated doors would have on the temperature in the market and this be reported back to Cabinet as part of the budget process.

(2)        That, as part of the renewable energy strategy, consideration be given to insulation costs and methods together with whether technology such as biomass and solar panels could produce a cheaper solution.”

Councillors then voted:-

Resolved:

(7 Members (Councillors Barry, Blamire, Hamilton-Cox, Hanson, Leytham, Sands and Smith) voted in favour, and 1 Member (Councillor Bryning) abstained.)

(1)        That more detailed consideration be given to the effect that the installation of automated doors would have on the temperature in the market and this be reported back to Cabinet as part of the budget process.

(2)        That, as part of the renewable energy strategy, consideration be given to insulation costs and methods together with whether technology such as biomass and solar panels could produce a cheaper solution.

Officer responsible for effecting the decision:

Chief Officer (Environment)

Reasons for making the decision:

The Corporate Plan contains the action ‘Develop the Festival, Charter and Assembly Room markets to help support their sustainability and viability.’ The decision will enable officers to develop proposals based on the recommendations and provide the necessary costings and financial information which can be fed into the wider budget process.