Agenda item

The Executive Member of the Regeneration and the Director of Regeneration and Culture submitted a report for the Executive’s consideration. The purpose of the report was to see approval to work in formal collaboration with Jomast Developments LTD and to explore development opportunities for key central Middlesbrough properties including Church House, Gurney House, the (former) Barclays Bank building on Albert Road and land on Bridge Street East detailed in Appendix A of the submitted report.

Whilst the joint venture did not amount to a financial relationship, external funding opportunities would be explored to enable investment in, and reuse of, prominent town centre properties. A joint venture relationship did not imply any undertaking for the Council to commit direct investment.

To align with Middlesbrough’s strategic priorities and to maintain coherence of vision, Jomast Developments Ltd was keen to work closely with Middlesbrough Council to align visions, market compelling proposals for prospective tenants / investors and explore external funding support to aid commercial viability. The heads of terms agreement, at Appendix A of the submitted report, outlined the purpose and framework of the proposed relationship, although that did not amount to a financial relationship or exclusivity option for any Council-owned land.

Appendix A of the submitted report set out the full scope and conditionality of a collaboration agreement / joint venture.

OPTIONS

Do not enter into a Joint Venture - The Council was not obliged to formalise a relationship with Jomast Developments Ltd, however, missing an opportunity for strategic alignment of priorities and promoting the refurbishment and reuse of properties may have taken much longer to deliver.

Enter into a Joint Venture - Historical collaborative working with the organisation had proved to rapidly progress mutual regeneration objectives for both parties. The properties in scope of that agreement were of local note and were symbolic to the local population. Bringing those properties back into use would provide a significant injection into the urban market for commercial space and residential opportunities, aiding the recovery of our local economy and building on the momentum of recent commercial and residential priorities.

ORDERED

1.     That the entering into a collaborative joint venture with Jomast Developments Ltd (Jomast) be approved, for the purposes of exploring development opportunities, and external funding, for key town centre assets - as set out in Appendix A.

2.     That the recent progress made in regenerating and occupying commercial space on Albert Road North be noted.

REASON

Private sector input was key to support the future aspirations of Middlesbrough. Church House and Gurney House were of particular local interest and had been vacant for many years. They were prominent properties on Middlesbrough’s skyline and were in dire need of investment, activity and animation. Bringing such property back into use would aid the economic ambitions for the area and provide a major boost in raising perceptions in the area.

The proposed relationship represented no financial commitment or obligations and, as such, was of minimal risk to the Council, whilst the strategic benefits could be extensive.