Purpose

The report to Cabinet set out
an overview of, and recommendations for, the proposed
in-principle operational models for 5A Broad Street, Green
Campus, and the Clock House Museum and Café as part of the
Thanet Regeneration Programme.

Decision

Cabinet agreed the
following:
 
1. 
Agreement in principle that a third-party operator
be appointed for 5A Broad Street in the framework of an Internal
Repairing and Insuring lease based on full market rent with an
incentive for delivering outputs - enabling the delivery of
community and economic benefits, supporting local enterprise, and
ensuring the long-term sustainability and activation of the asset.
With officers initiating open marketing and engagement activities
to secure an operator.
 
2. 
Agreement in-principle that a third-party operator
is sought for the Green Campus Blocks A and C. Block B is also
marketed as part of the third-party operator opportunity. With
officers initiating an open marketing and engagement activities to
secure an operator;
 
3. 
Agreement in-principle that the Clock House Museum
will be managed and operated by the council for a defined period of
time, ensuring continuity of service and safeguarding the asset,
while allowing time to assess longer-term operational options and
future opportunities for sustainable delivery;
 
4. 
Agreement in-principle that the Clock House
Café be leased to a third-party operator. All rental amounts
from the Cafe lease will be held in a sinking fund to support the
repairs and maintenance of the Clock House Museum.

Reasons for the decision

A decision was required on the
in-principle operational approach for each asset to provide
strategic direction and enable open engagement to progress. This is
essential to ensure that the requirements of both third-party
operators and council-managed services are embedded within the
delivery programme timeframe; as well as ensuring that they are
embedded within detailed design, specification and operational
fit-out of the assets.
 
The decision ensures a seamless
transition from project delivery to operation, any delay may result
in there being a period with no tenant or operator in place,
increasing the risk that assets remain vacant or under-utilised for
a prolonged period and therefore fail to deliver the intended
economic, social and regeneration outcomes from the grant funding
investment post practical completion of each of the schemes. A
delay may also include financial implications.
 
This is essential to ensure
that the requirements of both third-party operators and
council-managed services are embedded within the delivery programme
timeframe; as well as ensuring that they are embedded within
detailed design, specification and operational fit-out of the
assets. This is to ensure a seamless transition from project
delivery to operation.

Alternative options considered

Do nothing - the council would
need to take on the management arrangements for each of the
projects, including the need to hire staff and set up specific
budgets for the management of the assets. In light of Local
Government Reorganisation this was not being suggested. This option
was not recommended.
 
Approve the
Recommendations.
 
Change the in-principle approach on each of the projects - careful
consideration has been given to the proposals within the report.
Each project will have a final report to Cabinet for approval. This
option was not recommended.