Issue - meetings

Lancaster Market

 

 

Meeting: 26/07/2011 - Cabinet (Item 21)

21 Lancaster Market

(Cabinet Member with Special Responsibility Councillor Barry) 

 

Report of the Head of Property Services (to follow)

Additional documents:

Minutes:


(Cabinet Member with Special Responsibility Councillor Barry)

 

Cabinet received a report from the Head of Property Services to consider options for the future of Lancaster Market including the opportunity to integrate with the City Museum.

 

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

 

The Council had several options on how it might move the market forward. These options were based on the decision taken by Council in March 2010 to retain a refurbished and revitalised market in Lancaster.

 

 

 

Option 1:

·                     To implement the finding of the NCS review which would require the following investment

 

 

Budget Figure (£)

Entrance doors

40K per entrance

Internal layout changes

400K

Drop down banners

1K

External glazing vinyl transfers

12K (+ original images)

Demountable stalls

1K each

Part-time business development manager

20K per annum

 

·                     Review the rents to market value once the refurbishment works are completed

Advantages

·                     The NCS proposals would provide an opportunity to reinvigorate the market and potentially bring in new tenants.

Disadvantages

·                     There would be a substantial cost to the council and no guarantee that the scheme would be a success or that the existing deficit, currently estimated at £619,500 for 2011/12 would be reduced.

Risks

·                     There is a risk that reduced number of traders would continue in the market as a result of the increased rents.  This could lead to a further spiralling down of the market prior to refurbishment works being undertaken.

 

 

Option 2:

As a consequence of discussions held with the market traders there is a proposal to move all tenants down to the ground floor, and retain first floor accommodation for either a single let or a let at some other use, e.g. exhibition space. Costs of the works, including a plan of the proposal, are show at Appendix B.

·                     The costs of refurbishing the ground floor to accommodate such usage, with minimal refurbishment to the first floor are estimated at £270K including fees. However, it should be noted that this does not include the cost of any particular fitting out requirements in individual stalls other than specialist works to relocate café kitchen equipment. Market traders have expressed the view that the council should be responsible for all costs of any move, although cabinet may wish to indicate whether they feel that traders should contribute to fit out costs as part of this agreement 

·                     Consideration could be given under this arrangement to increase rents to full market value on completion of works.

 

Advantages

·                     The move of all units to the ground floor will give the traders more visibility and create a greater sense of vitality to the market

·                     Traders appear to be in agreement with the option, and this cooperation of the traders may well encourage a quicker resolution to current underutilisation.

·                     The option would cost less than full refurbishment

Disadvantages

·                     There would still be a substantial cost to the council, with no guarantee that the scheme would be a success

·                     There would be limited assurance  ...  view the full minutes text for item 21