Decision details

(Cabinet Member with Special Responsibility Councillor Archer)

(Mr D Buczynski, who had registered to speak on this item in accordance with the City Council’s agreed procedure and Cabinet Procedure Rule 2.7, spoke to this item on behalf of the Lancaster Market Tenants Association).

The Corporate Director (Regeneration) submitted a report asking Members to consider the current position with regard to Lancaster Market. The report requested Cabinet to consider the options set out in the exempt report and indicate its preferred option.

(Councillor Bryning left the meeting at 12.25pm.)

It was moved by Councillor Archer and seconded by Councillor Mace:-

“That Cabinet

(1)               Notes the comments received from the Lancaster Market Tenants Association

(2)               Resolves that approval be given to Officers to negotiate directly with retailers to try and procure a single retailer for the Market Hall on the basis that the preferred option would be that the current deficit is reduced to zero or, as an alternative, to report back to Cabinet should a single retailer be prepared to take up occupation of the Market Hall on the basis of the Council contributing an amount that is less than the deficit currently being faced by the Council

(3)               Requests a further report on Lancaster Market as soon as possible as part of the budget process from 2009/10, (a) identifying the financial obligations under the lease from Allied, in particular the frequency, basis and mechanism of rent reviews, and the mechanism of termination and (b) identifying the same information in respect of the leases to current sub tenants and (c) setting out options, including any firm proposal from Cooltrader, and in addition to any options resulting from resolution 2 above for mitigating the loss of £518,100 that is shown in the estimates for 2009/10 and exceeds the rent of £409,000 due to Allied.

By way of amendment, Councillor Barry proposed and Councillor Fletcher seconded:

“That Cabinet notes that approval be given to officers to negotiate directly with retailers to try to reduce the deficit of the market. This would include:

·         A report back on the intentions of Cooltrader (or other traders with similar intentions) to expand on the bottom floor

·         Look at all costs associated with service charges and identify areas where they could be reduced

·         Using parts of the market for other Council uses

·         To create a market with niche choices for shoppers. This could utilise external funding and partnership working

·         Look at other areas for increasing income, such as those outlined in subpoint 6 on page 2 of the note from the Lancaster Market Tenants Association.”

3 Members (Councillors Barry, Fletcher and Gilbert) voted in favour and 6 Members (Councillors Archer, Blamire, Burns, Charles, Kerr and Mace) voted against, whereupon the Chairman declared the amendment to be lost.

By way of an amendment, which was accepted as a friendly amendment by the mover and seconder of the original proposition, it was moved by Councillor Kerr and seconded by Councillor Burns:

“That “and the possibility of using part of the space in the market for City Council purposes” be added to 3 (c) of the proposition.”

By way of a further amendment, which was not accepted as a friendly amendment by the mover and seconder of the original proposition, it was moved by Councillor Barry and seconded by Councillor Fletcher:

“That

·         To explore options to create a market with niche choices for shoppers. This could utilise external funding and partnership working

·         To look at other areas for increasing income, such as those outlined in subpoint 6 on page 2 of the note from the Lancaster Market Tenants Association

be added to the proposition.”

3 Members (Councillors Barry, Fletcher and Gilbert) voted in favour of the further amendment and 6 Members (Councillors Archer, Blamire, Burns, Charles, Kerr and Mace) voted against, whereupon the Chairman declared the further amendment to be lost.

Members then voted on the substantive motion, as amended, as follows:

Resolved:

(7 Members (Councillors Archer, Blamire, Burns, Charles, Gilbert, Kerr and Mace) voted in favour, 1 Member (Councillor Barry) voted against and 1 Member (Councillor Fletcher) abstained.

That Cabinet

(1)               Notes the comments received from the Lancaster Market Tenants Association

(2)               Resolves that approval be given to Officers to negotiate directly with retailers to try and procure a single retailer for the Market Hall on the basis that the preferred option would be that the current deficit is reduced to zero or, as an alternative, to report back to Cabinet should a single retailer be prepared to take up occupation of the Market Hall on the basis of the Council contributing an amount that is less than the deficit currently being faced by the Council

(3)               Requests a further report on Lancaster Market as soon as possible as part of the budget process from 2009/10, (a) identifying the financial obligations under the lease from Allied, in particular the frequency, basis and mechanism of rent reviews, and the mechanism of termination and (b) identifying the same information in respect of the leases to current sub tenants and (c) setting out options, including any firm proposal from Cooltrader, and in addition to any options resulting from resolution 2 above, and the possibility of using part of the space in the market for City Council Purposes, for mitigating the loss of £518,100 that is shown in the estimates for 2009/10 and exceeds the rent of £409,000 due to Allied.

Officers responsible for effecting the decision:

Corporate Director (Regeneration)

Head of Property Services

Reasons for making the decision:

The decision allows for options to be explored to reduce the current deficit and mitigate future estimated losses for the City Council related to Lancaster Market.