Agenda item

To consider the report of the Director of City Development on progress made with the procurement of a developer and site for the proposed Leeds Arena, on the proposed preferred and reserve sites for the development and necessary financial approvals.

Appendix 1 and Plans 1 to 3 to the report are designated as exempt under Access to Information Procedure Rule 10.4(3).

The Director of City Development submitted a report on progress made with the procurement of a developer and site for the proposed Leeds Arena, on the proposed preferred and reserve sites for the development and necessary financial approvals.

Appendices 1 and 2 and associated plans were designated as exempt under Access to Information  Procedure Rule 10.4(3). Appendix 2 and associated plans were circulated at the meeting.

Following consideration of the 2 exempt appendices and associated plans in private at the conclusion of the meeting it was

RESOLVED –

(a)  That the developer procurement competition for the arena be terminated without the award of a contract.

(b)  That Claypit Lane be approved as the preferred site for the development of an arena.

(c)  That Elland Road be approved as the reserve site for the development of an arena.

(d)  That in the event that the preferred site cannot be delivered or it ceases to be the most economically viable or it no longer offers the best value for money to the Council, the Director of City Development with the concurrence of the Executive Member for Development and Regeneration be authorised to take appropriate action to pursue the development at Elland Road as the reserve site for the proposed development of an arena.

(e)  That the acquisition of the site of the Brunswick Building from Leeds Metropolitan University on the terms detailed in the report be approved.

(f)  That the Directors of Resources and City Development be authorised to enter into a legal agreement with Town Centre Car Parks Ltd on the terms as detailed in the report on the basis that such an agreement is economically advantageous to the Council and will financially support the development of an arena on the preferred site.

(g)  That authority be given to incur expenditure as detailed in the report from existing Capital Scheme No 13307 on the acquisition of the site of the Brunswick Building, its demolition and the cost of fees to progress design/cost proposals and the project delivery model.

(h)  That officers report back on the proposed project delivery model and scheme proposals/costs for the development of an arena on the preferred site.

(i)  That the transfer of funds as detailed in the report from the Strategic Development Fund into existing Capital Scheme No 13307 be authorised.

(j)  That authority be given  for an injection of funds as detailed in the report into existing Capital Scheme No 13307, comprising funding from Yorkshire Forward (subject to formal approval from the Yorkshire Forward Board) with the balance in the first instance to be funded from unsupported borrowing.

(The matters referred to in this minute were not eligible for Call In on the basis that the City Council took the decision to pursue a two stream procurement process to select a preferred developer/site for the proposed arena at a meeting of the Executive Board on 13 December 2006.  Thereafter, at its meeting on 4 July 2007, Executive Board authorised the Director of City Development under the Council’s scheme of delegation, to approve the short listing of potential developers/sites during the Competitive Dialogue Procurement process. Both decisions taken by the Executive Board were subject to the Council’s Call In procedures.  The decisions contained within this minute which relate to the selection of the preferred site for the arena are consistent with the decisions taken by Executive Board in December 2006 and July 2007.

The matters relating to the proposed legal agreements to be entered into to progress the arena development on the preferred site, the proposed funding arrangements and the authority to incur expenditure, were also designated as exempt from Call In. This is due to the fact that under the Council’s Constitution, a decision may be declared as being Exempt from Call In if it is considered that any delay in concluding the funding arrangements and legal agreements may result in parties to the agreements seeking to renegotiate the terms of such agreements and as such could increase the level of public sector gap funding required to facilitate the arena development.)