Agenda item

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

Referring to Minute 68 b) of the Scrutiny Board (Regeneration) meeting held on 17^th January 2012, the Head of Scrutiny and Member Development submitted a report on additional information regarding Kirkgate Market.

The Chair reminded Members of the lack of time available at the last meeting to deal with this item and his subsequent request that this matter be discussed fully at today’s meeting. to allow a proper opportunity to question and comment officers on the information the Board had requested on lettings issues in Kirkgate Market.

In addition to the above report, the Board’s Principal Scrutiny Adviser circulated for the attention of the meeting a note of a visit to Kirkgate Market on 7^th February 2012 by Members of Scrutiny Board (Regeneration).

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

-  Sue Burgess, Manager, Leeds Markets, City Development

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

  Branch)

-  Lacky Singh, National Market Traders' Federation (NMTF

(Kirkgate Branch)

At the request of the Chair, the Manager, Leeds Markets provided the Board with the latest figures in relation to notices to quit; leases agreed and on footfall numbers prior to and after the Christmas period.

Detailed discussion ensued on the contents of the report and appendices.

In summary, specific reference was made to the following issues:-

• clarification as to whether consideration had been given to reducing rents in Kirkgate Market at least for a time limited period  in order to try and retain existing traders and attract new ones and consequently increase footfall during the current economic climate.

(The Manager responded and informed the meeting that the Directorate was considering a range of options to maintain a vibrant and prosperous market with fewer vacant stalls, but a detailed financial analysis was required in order to consider this as it would have an impact on the markets income. As £500k had already been hypothecated from next year’s return to central budgets, this would place further pressure on an already reduced return. She also stated that management would like to reduce the number of differing rent levels across the market. This would form part of the current review and management of the market. Specific concern was expressed following the Board’s visit to the market at the departure of a number of long standing tenants from the market many of whom stated to Members that they were finding it more difficult to make a living in the market following a significant rent rise in 2002)

• concern at the substantial capital expenditure in transferring the Markets Information Centre to another location in the market and the provision of a market hospitality suite in the former upstairs café.

(The Manager responded that these schemes were only possible as a consequence of the Council releasing £250,000 to the customer improvement fund. She explained that the costs of transferring the Markets Information Centre had increased from £25,000 to £52,000 largely because the walls and roof needed more work than originally anticipated. She reported that the Information Centre was now in a better location and the vacated units were double fronted units and more easy to let. An interested party for these units had yet to sign the lease and was waiting to see what happened regarding redevelopment of the market)

• Reference was made to the Council’s ability to offer traders financial assistance to try and prevent further stalls becoming vacant

(The Manager commented that in accordance with the Council’s Financial Regulations she could only offer financial assistance when traders where in arrears. Members disputed this statement and the Manager agreed to clarify this issue outside of this meeting with the Chair) 

• the concerns expressed that 80 units were currently vacant in the market

(The Manager confirmed that £709.8k per annum was being lost as a result of vacant stalls)

• the need to address the following key areas as a matter of urgency:-

- high vacancy rate

  - high rent levels

• Members also referred to the possible introduction of Sunday trading 

  and the expansion of credit card facilities throughout the market which 

  were not generally supported by the traders

Prior to considering the above resolution proposed by Councillor B Atha, the Chair invited Michelle Hocken, National Market Traders' Federation (NMTF) (Kirkgate Branch) to comment on the issues discussed at the meeting.

RESOLVED –

a)  That  the report be noted.

b)  That the Executive Board be recommended to consider a reduction in Kirkgate Market rents for all traders for a time limited period

c)  That this Board be kept informed of continued progress via the Kirkgate Markets Forum.