Agenda item

a)  Consultant’s Report on the Future of Kirkgate Market

To consider a report of the Head of Scrutiny and Member Development on the latest developments with regards to the Consultants draft report on the future of Kirkgate Market.

 

b)  Provision of additional information regarding Leeds Kirkgate 

  Market

  To consider a report of the Head of Scrutiny and Member Development   on additional information regarding Leeds Kirkgate Market.

 

a)  Consultation Report on the Future of Kirkgate Market

Referring to Minute 47 of the Scrutiny Board (Regeneration) meeting held on 29^th November 2011, the Head of Scrutiny and Member Development submitted a report on the availability of the Consultant’s report on the future of Kirkgate Market.

 

The Chair reported that as a consequence of his discussions with the Executive Board Member for Development and the Economy, the Consultant’s final report entitled ‘Investment and Modernisation Strategy for Leeds Kirkgate Market – December 2011’ which had been prepared by Quarterbridge Project Management Ltd had been released as a public document and circulated as supplementary information for discussion at today’s meeting. This was in advance of the Executive Board meeting which was to consider this matter on 10^th February 2012.

 

The following representatives were in attendance and responded to Members’ queries and comments:-

 

-  David Outram, Chief Officer, Public Private Partnership Unit,

Resources

-  Craig Taylor, Public Private Partnership Unit,

Resources

-  Cath Follin, Head of City Centre and Markets, City Development

-  Sue Burgess, Manager, Leeds Markets, City Development

-  Councillor G Harper, Lead Member, Development and the Economy

-  Liz Laughton, Chair of National Markets Traders’ Federation (NMTF) Leeds (Kirkgate Branch)

-  Michele Hocken, National Market Traders' Federation (NMTF) (Kirkgate Branch)

-  Simon Jones, Consultant, Leeds Markets (Kirkgate Branch)

 

The Chair outlined that the purpose of the meeting was now for the Board Members to comment on the Consultant’s final report and to make any recommendations or observations prior to it being considered at the Executive Board meeting on 10^th February 2012. The Chair made it clear to the market traders that the Council had not formulated any position at this stage on any of the Consultant’s proposals.

 

The Chair invited David Outram, Chief Officer, Public Private Partnership Unit, Resources Directorate as Chair of the Project Board to provide the meeting with background information on the Consultant’s report with specific reference to the sections relating to the Client brief; Executive summary and action list; size of the future market and the options available.

 

In summary, the Board made reference to the following issues:-

 

·  clarification as to the terms of reference and brief provided to the Consultant’s by the Directorate

·  concern that Members thought that the Executive Board had wanted the Consultant to come forward with a range of options for the future management and operation of the market not as a single option based on a Limited Liability Partnership

·  support for the Council retaining ownership of Kirkgate market and for it being run as an arms length company along the same lines as the Grand Theatre Board of Management, ALMOs  or the Leeds Arena

·  concern at the proposal to grant a 99 year lease to the Limited Liability Partnership with the possibility of extending this for a further period

·  clarification of the Limited Liability Partnership and the role of Elected Members within this process

·  clarification of the scheme and funding criteria

 

At the request of the Chair, the Board adjourned discussions of this item at 10.40am in order to discuss the item regarding the process for the registration of land as town and village greens.

 

The Board reconvened discussions of this item at 11.05am and the Chair invited further comments from Board Members.

 

In summary, the Board made reference to a number of further issues including:-

 

·  clarification of paragraphs e.12 (contingent liabilities) and g.23 (modernisation works) and whether the traders were in agreement with the views of the Consultant

·  clarification of the availability of a contingency plan i.e. removal of asbestos etc

·  the need to consider all management options

·  the potential loss of income to the Council if a Limited Liability Partnership was progressed

·  whether or not market traders would have a say on where they were relocated

·  the importance of traders having a say in all management issues in view of their continuing investment in the market

 

The Chair then invited Liz Laughton, Michelle Hocken and Simon Jones to present their initial views on the contents of the Consultant’s report.

 

In their submission, the Board specifically noted the following major concerns and omissions:-

 

·  no impact assessment had taken place

·  no social impact study had taken place

·  no advice had been sought from NABMA

 

In addition to the above comments, Simon Jones reported on the outcome of his initial findings in relation to the Consultant’s report. He made specific reference to the following issues:-

 

·  tenants reselection process and traders being offered new contracts

·  disruption to trade and subsequent relocation of tenants

·  concerns expressed about the Consultant’s report being released to the press which refers to eviction notices and the upset this had caused in the market

(The Chair responded and confirmed that it was in the best interests of the Council and all parties concerned for the report to be released in full and without further delay or censorship to ensure transparency of process)

·  outcome of discussions following a recent meeting between the Consultant and market traders

 

In concluding, the market traders expressed their grave concerns about the Consultant’s report in developing the future vision of Kirkgate Market and requested the Board to recommend to the Executive Board at their meeting on 10^th February 2012 that this issue be deferred to enable further discussions to be undertaken between interested parties.

 

The Chair summarised and proposed a number of observations being made to the Executive Board on 10^th February 2012 and on being put to the Board it was

 

RESOLVED –

a)  That the contents of the report, together with the receipt of the Consultant’s report on the future of Kirkgate Market be received and noted.

b)  That arising from detailed discussions undertaken at the meeting, this Board conveys the following observations to Executive Board prior to consideration of the Director of City Development’s report on the Consultant’s report at their meeting on 10^th February 2012:-

 

(i) The Board considered whether the report of the Consultant’s Quarterbridge Project Management Ltd complies with the Executive Board brief and intentions. Members concluded that the Consultant’s report does not meet the brief as it does not consider a range of management models, but concentrates only on that of a Limited Liability Partnership which according to the Consultant’s report will be supported by potential investors, preserve the Council’s tax position and ensure speed of establishment.  Members thought that in accordance with the resolution of the Executive Board meeting on 27^th July 2011 it was looking to consider a range of options for the management of Kirkgate Market.

  (ii) Members of the Scrutiny Board (Regeneration) had a number of

  concerns and issues regarding ownership and operation of Kirkgate 

   Market:-

 

· The Scrutiny Board does not believe that a lease to a Limited Liability Partnership of 99 years with an option to extend for a further 25 years was in the best interests of the Council. The Members were concerned that the Council could be replicating the mistakes made with that of the Corn Exchange

 

·  The proposals in the Consultant’s report had serious implications

for traders. The report states that their proposals will require a tenant reselection  process. Re-selected tenants would be offered an agreement for lease in return for surrendering their existing agreements and at the same time may be allocated new positions in the market to improve use-zoning and sightlines. A note of a meeting traders had with the Consultants on 21^st November 2011 to be submitted to the Executive Board

 

·  Referring to paragraphs e.11 and e.12 of the Consultant’s report, 

Scrutiny Board was concerned that the Council should not simply hand over assets to a body which wants to be autonomous from democratic control

 

·  The Consultant’s report states that modernisation works referred to

In paragraph g.23 were still too early to define, but Members had concerns about the costs of including tensile canopy roofs for the open market which it was proposed to be relocated on to the 1976 site once it was demolished 

 

(iii)  Members referring to paragraph h.3 consider that there were options (for example an arms length company) available to the Council to increase capital injection without supporting a Limited Liability Partnership and Executive Board should consider further the options available to it in this regard.

 

(iv)  Paragraph h.4 states that investors will be looking to reduce service

  charge costs and increase rents. The Scrutiny Board believes this

  could be achieved without entering a Limited Liability Partnership. 

 

(v)  The consultant’s report states that it has taken legal advice from the same law firm which was acting on behalf of adjacent developers. Members want assurances that there was not a serious conflict of interest as a consequence.

 

 (Councillor P Grahame joined the meeting at 10.25am during discussions 

  of the above item)

 

b)  Provision of additional information regarding Leeds Kirkgate Market

Referring to Minute 47 of the Scrutiny Board (Regeneration) meeting held on 29^th November 2011, the Head of Scrutiny and Member Development submitted a report on additional information regarding Kirkgate Market.

 

The following representatives were in attendance and responded to Members’ queries and comments:-

 

-  Cath Follin, Head of City Centre and Markets, City Development

-  Sue Burgess, Manager, Leeds Markets, City Development

 

RESOLVED –That the contents of the report be noted.