Agenda item

The Executive Member for Regeneration, the Executive Member for Finance and Governance, the Director of Regeneration and Culture and the Director of Finance submitted a report for the Executive’s consideration. The purpose of the report was to set out the framework for the delivery of the recently allocated £14.1m from the Future High Streets Fund (FHSF). A significant proportion of that was proposed to be spent within the Council owned asset, the Captain Cook Square shopping centre. The report also set out the operational parameters against which officers were delegated to manage and let the asset and the formal approval to deliver the FHSF interventions, in line with the strategic business case and funding criteria as set out in the successful bid.

Middlesbrough Council had successfully secured £14.1m from the FHSF. The funding had been awarded specifically for the purposes set out in the bid and would be recoverable if not used for that explicit purpose. That included:

a)    £3.5m for residential property;

b)    £1.05m for transport adaptations and improving safety/security of town centre areas;

c)    £270,352 for cultural animation and experiences;

d)    £250k for businesses adaptations for Covid mitigations; and

e)    £9.1m for the transformation of Captain Cook Square for leisure uses, incentives, decant compensation, remodelling units, contribution to fit out and adapting public spaces.

The £9.1m dedicated to Captain Cook Square required input from both Council officers and the managing agent. The most appropriate funding structure would be identified to ensure that all works and financial incentives were procurement compliant, subsidy control regime (former state aid) compliant and were delivered to the conditions of funding set out by HMGovt.

The Council had purchased the Captain Cook Shopping Centre as part of a strategic case to support the town centre economy and to provide significant commitment to FHSF programme, demonstrating a coherent policy to intervene in, and enhance, a struggling market. That was pre Covid, in the wake of Covid, town centre issues, alongside the unfortunate number of distressed retailers, had amplified and exacerbated the problems facing retail, leading to a greater and more urgent case for intervention.

The announcements prior to Christmas, and in the recent budget, provided much needed and anticipated news, that the Council had been successful in levering in desperately required Government capital. The proposals within the report both maximised the contribution and allowed that to be used to lever in additional private finance, which minimised the Council’s risk.

By investing C. £9.1m of awarded FHSF monies in Captain Cook Square, the Council could:

a)    rebalance the town centre economy, making it more sustainable for the future;

b)    drive additional footfall into central Middlesbrough, creating benefits for all tenanted businesses;

c)    create a more sustainable retail market by reducing supply (currently there were four shopping centres in the town centre) would positively impact on demand;

d)    increase the reputational and visitor appeal for Middlesbrough;

e)    create and sustain new employment opportunities;

f)     create additional appeal in supporting the new urban living market;

g)    repurpose C. 400k sqft of retail floorspace to address oversupply, protect asset values and encourage renewal investment by property owners; and

h)    inject a new vibrancy and impetus into the town centre economy.

ORDERED

a)    That the information contained in Part A of the report be noted.

b)    That the decision be taken once all the financial or exempt information contained in Part B of the report had been considered.