Content

5.1

The Council acquired the former Cole Brothers
Building from John Lewis in January 2022 and marketed it through
external agents CBRE from May 2022. This report informs Committee
of the very exciting outcome of this marketing and recommends a
preferred bidder to take forward with detailed negotiations

 

 

5.2

RESOLVED UNANIMOUSLY: That
Strategy and Resources Policy Committee:-
 

 

(a) notes the outcome of the marketing
exercise conducted in respect of the former Cole Brothers Building
by CBRE on behalf of the Council and notes the outline of the
preferred bid as set out in this report;
 
(b) endorses proceeding with proposed scheme
(Option 1) as set out in Parts 1
and 2 of this report and a conditional
agreement for a 250-year lease of the Cole Brothers Building;
 
(c) notes that when further discussions have
better particularised the lease terms, a further report will be
brought to this Committee as soon as is reasonably practicable for
a further decision; and
 
(d) notes that as well as the preferred bid,
the Council received a number of other credible bids and thank all
bidders for their interest and endorses discussing alternative
opportunities within the city which they may be interested in
pursuing.

 

 

5.3

Reasons for
Decision

 

 

5.3.1

The proposed agreement for lease to the
preferred bidder will result in the delivery of an exciting
mixed-use scheme comprising flexible workspace and
cafes/retail/leisure/cultural uses/event space which are all
considered to be complementary uses to the rest of the Heart of the
City project. The scheme will create space for new jobs, places to
shop, eat and visit and will help to increase the vibrancy and
attractiveness of the city centre for residents and visitors.

 

 

5.3.2

The bidder has a strong track record of
working with many public sector parties. The proposed project team
have redeveloped many challenging and listed buildings, including
both historic and post-war structures.

 

 

5.3.3

Bringing this vacant listed building back into
active use will be hugely beneficial both for the wider city centre
and the surrounding Heart of the City Scheme. Retaining the large
majority of the structure, whilst improving the thermal performance
of the building, should have a positive impact on climate
change.
 

5.3.4

The building was openly marketed over a
significant period of time and the preferred bidder submitted the
highest financial offer.

 

 

5.4

Alternatives
Considered and Rejected

 

 

5.4.1

The summary report annexed to the Part 2
report explains why the preferred
bidder is being recommended to progress with
rather than the other bidders.

 

 

5.4.2

As stated in the previous reports to this
Committee in August 22 and March 23,
the Council could decide not to progress with
a disposal of the building at the
present time. However, to do so would lead to
further delays and uncertainty
around what is an important building for the
regeneration of the city centre and
of a lot of interest from many people both
within and outside of Sheffield. There
is also a risk that developers currently
interested in the scheme could withdraw.

 

 

5.4.3

Retaining the building without securing its
redevelopment will have financial implications for the Council both
in vacant property management, security and holding costs and in
potential blight suppressing values and interest in the surrounding
property and the Heart of the City Scheme.