Decision Maker: Cabinet

Outcome: Decision approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: May 6, 2025

Purpose: Cabinet approval to dispose of the Rex Theatre asset on a freehold basis to Columbo Group Ltd for £3,000,000.00, including a 15-year restrictive covenant to operate the building as a cultural music venue, associated offices and affordable workspace.   Cabinet approval to accept £2.6m National Lottery Heritage Funding for Phase 2 works to Alice Billing House.   Update on wider Stratford Vision delivery including new leaseholds on Stratford Picturehouse and Gerry Raffles Square.  

Content: Decision   For the reasons set out in the report and its appendices Cabinet RESOLVED to Agree to:   i)  Approve the disposal of The Rex Theatre asset on a freehold basis to Columbo Group Ltd (Jazz Café) as per bid in Appendix 3, including a 15-year restrictive covenant to operate the building as a cultural music venue, associated offices and affordable workspace; and ii)  Delegate authority to the Corporate Director for Inclusive Economy, Housing and Culture to agree terms of the disposal, in consultation with the lead member for Inclusive Economy, Strategic Housing and Culture and the Cabinet member for Finance and Resources; and iii)  Accept the grant funding of up to £2.9m from the National Lottery Heritage Fund for Alice Billing House (Phase 2) as per Appendix 5; and iv)  Agree approval to create a capital budget of up to £3.2m through which to administer payments to Creative Land Trust (remaining costs being revenue in nature); and v)  Delegate authority to the Corporate Director for Inclusive Economy, Housing and Culture, in consultation with the lead member for Inclusive Economy, Strategic Housing and Culture, to enter into a grant funding agreement and pass the National Lottery Heritage Fund (up to £2.9m) onto Creative Land Trust (Company number 11367824).   Alternatives Considered   Rex Theatre   a)  Do Nothing to The Rex Theatre. If left, the condition of the building will further deteriorate, meaning the cost to return the building to a lettable state will increase. There are also the ongoing risks of squatting, outbreak of fire and significant water damage should the building remain unoccupied, incurring further liability costs. Do nothing is therefore not considered an option. b)  Alternative Disposal Options. The site has been openly marketed and has received a diverse range of offers. These have been discounted for the reasons set out in this paper and its appendices. c)  Use by LBN for Council service or alternative priority. Cabinet approved the leasehold disposal of the asset in July 2024 because this was the most appropriate course of action due to the amount of capital borrowing required to bring the building back into a useable state. Following the marketing process, it has been assessed that a freehold disposal is the most beneficial outcome for the Council. Alice Billing House National Lottery Heritage Funding.   Alice Billing House National Lottery Heritage Funding d)  Not accepting the funding would mean an LBN asset remaining on the Historic England At-Risk register and mean ongoing liabilities for the vacant building falling on the Council.