Decision Maker: Executive Board
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Executive Board are requested to approve the lease of the vacant shop units at 34-40 New Briggate at a market rent and, to offer a rent free period for a timescale to be agreed and, Authority to Spend for the payment of a reverse premium of up to £750,000 to Opera North having regard to the significant capital investment the company proposes to make in the vacant units. Approval is also sought to variations of both Leeds Grand Theatre and Opera North’s leased areas required to facilitate the proposed works and that the Director of City Development be authorised to approve the final terms of all legal agreements needed to deliver the proposed Opera North works.
Further to Minute No. 85, 19th October 2016, the Director of City Development submitted a report which sought support for proposed Opera North works to be undertaken in order to refurbish the vacant shop units at 34-40 New Briggate for restaurant/bar use, in order to improve access to the Howard Assembly Room above (properties in the ownership of the City Council) and the adjacent Premier House (owned by Opera North), which form the headquarters of Opera North. In addition, the report also sought related, specific approvals from the Board in order to enable such proposals to be progressed.
In response to a number of enquiries made by a Member, it was highlighted that the purpose of the submitted report was to agree the Council’s position on the shop units it owned and also on the nature of the support that the Council would be prepared to provide for the proposed scheme. The Members also received further information on how scheme looked to contribute towards the improvement of the cultural offer in that area of the city centre, whilst clarification was also provided that in order for the scheme to be progressed, Council approval was required as the freeholder of the Grand Theatre, and consent of the Grand Theatre Board of Management was also required as leaseholder.
Following consideration of Appendix 1 to the submitted report designated as exempt from publication under the provisions of Access to Information Procedure Rule 10.4(3), which was considered in private at the conclusion of the meeting, it was
(a) That approval be given to the leasing of 34-40 New Briggate to Opera North Ltd. at a market rent, and that approval also be given to the offer a rent free period from the commencement of the new lease: the rent free period being determined against the landlord’s improvements that Opera North make, relative to the rental value of the premises once the scheme has been developed on the terms as detailed within exempt Appendix 1 to the submitted report, with the remaining areas to be leased to Opera North at a peppercorn rent as per their existing lease;
(b) That approval be given to the payment of a reverse premium of up to £750,000 to Opera North, in order to make the future occupation of the shop units at 34-40 New Briggate commercially viable, on the terms as detailed within exempt Appendix 1 to the submitted report;
(c) That ‘Authority to Spend’ up to £750,000 from Capital Scheme No. 32615 as the reverse premium payable to Opera North, be approved;
(d) That subject to the agreement of both Leeds Grand Theatre and Opera House Ltd. and Opera North, approval be given to authorise variations to their respective leased areas in order to allow the delivery of the proposed Opera North works;
(e) That subject to consultation with the Executive Member for ‘Economy and Culture’, the necessary authority be delegated to the Director of City Development in order to enable the Director to negotiate and approve the final terms of all legal agreements associated with the proposed delivery of the Opera North capital project, in accordance with the Council’s officer delegation scheme;
(f) That the following be noted: the actions required to implement the Board’s decisions; the proposed timescale to progress the proposed works, as detailed within the submitted report; and that the Director of City Development will be responsible for the implementation of such matters.
(With regard to the resolutions made by the Board on this matter, as Councillor B Anderson was in attendance as a non-voting Member, he drew the Board’s attention to the fact that if he were able to, he would abstain from voting on the decisions referred to within this minute)
Reason Key: Expenditure > £250,000;
Wards Affected: City and Hunslet;
Portfolio Holder: Executive Member for Economy and Culture
Other reasons / organisations consulted
By report and emails
Executive Member for Economy and Culture
The Board of Leeds Grand Theatre and Opera House Ltd
Arts Council England
Heritage Lottery Fund
Contact: Chris Coulson 0113 378 7738 Email: email@example.com.
Report author: Chris Coulson
Publication date: 27/03/2018
Date of decision: 21/03/2018
Decided at meeting: 21/03/2018 - Executive Board
Effective from: 04/04/2018