The Finance, Innovation and Transformation Cabinet Advisory Board met on Monday 05 October 2026 to discuss the proposed refurbishment of the Royal Victoria Place shopping centre's Palm Court, and to approve new term contractors for building maintenance. The Board noted the report on property transactions at Royal Victoria Place between July and September 2026. The Board supported recommendations to approve the entering into of a new agreement for lease and lease for three units in Royal Victoria Place. The Board supported recommendations to approve the appointment of contractors for the successful lots and to delegate authority to extend the existing contracts for mechanical and lift services for up to 12 months, while also authorising a retender for these two lots. The Board supported recommendations to approve the grant of the lease for 65-67 St John's Road and delegate authority to the Head of Economic Development and Property and the Head of Legal Services to negotiate and agree the terms and complete the necessary formalities. The Board supported recommendations that officers continue to work towards plans to reduce the projected budget deficit and report back in December with draft proposals prior to public consultation.

Royal Victoria Place Development - Palm Court

The Board considered plans for the refurbishment of the Palm Court area within the Royal Victoria Place (RVP) shopping centre. A public speaker, Mr. Tansley, raised concerns about the financial assumptions in the business case, including the proposed 50-year loan period, the assumed interest rate from the Public Works Loan Board (PWLB), and the contingency figures. He argued that the project would not be self-financing and called for the business case to be reconsidered, all data to be released, and for independent financial experts to review any proposal.

Councillor Christopher Hall, Cabinet Member for Finance and Property, introduced the plans, highlighting the positive trajectory of RVP with increasing footfall and new tenants. David Candlin, Head of Economic Development and Property, and Andrew Goodwin from RivingtonHark, presented the detailed report. They addressed concerns about the financial reporting standards, stating that International Accounting Standard 16 allows organisations to determine asset useful lives, and that the structural nature of the refurbishment justifies a 30-50 year lifespan. They also explained that while PWLB rates may rise, there are mechanisms to manage borrowing costs, including drawing down funds as needed and potentially refinancing loans.

Concerns about past project overspends, such as the Amelia build and Calvary Square projects, were addressed by noting that these were affected by unforeseen circumstances like COVID-19 and Brexit, and that recent projects like the RVP car park refurbishment had been completed on time and budget. The projected revenue increases from Palm Court were based on expert advice from Cushman and Wakefield, and the refurbishment was expected to transform a currently underperforming area into a vibrant leisure and retail space. The plans include creating approximately 18,000 sq ft of new space in the former food court area, which is currently operating at a negative net operating income.

The Board discussed the potential impact on existing businesses, with assurances that the refurbishment would activate the centre and improve footfall. Councillor Ukonu Obasi questioned the demand for new space, and was informed that there is a need for larger, enhanced units, and that dialogue with existing tenants like Next is ongoing to ensure they can trade through the works and potentially extend their leases. Councillor Andrew Wallace raised points about the long-term cultural and purchasing behaviour changes, and the need for flexibility, which were addressed by highlighting the focus on creating a flexible, sustainable space and diversifying uses to include leisure.

The Board was asked to support the recommendations to proceed with the Palm Court scheme as the first phase of the RVP development. This includes approving the scheme for funding and delivery, confirming it can be delivered independently of the Ely Court scheme if necessary, and endorsing the strategy to commence a two-stage design and build contractor procurement. An additional gross capital budget of £23.5 million was approved for the delivery of the Palm Court scheme, bringing the total approved budget to £26.8 million. The Board also supported the recommendations to approve the procurement of a two-stage design and build contract and delegate authority for various steps to progress the scheme.

RVP Investment Transactions July to September 2026

Diane Brady, Investment Property Manager, presented a report on property transactions completed at Royal Victoria Place (RVP) between July and September 2026. Four lease renewals and two new leases were completed, along with four tenancy-at-will letters and two licences for short-term use. Councillor Ukonu Obasi commented positively on the new leases and retention of existing tenants, viewing it as a vote of confidence from businesses. The Board noted the report.

New Lease in Royal Victoria Place, Royal Tunbridge Wells

Diane Brady also presented a report seeking endorsement to enter into an agreement for lease and associated documentation for three units in Royal Victoria Place, which would be combined to create a new letting space. The proposal is to enter into an agreement for lease to enable works to be undertaken before a 10-year lease is finalised. The terms were recommended by specialist advisors Rivington Hart and Cushman and Wakefield. The Board supported the recommendations to approve the entering into of the new agreement for lease and lease, and to delegate authority for various steps to progress the scheme.

Appointment of Term Contractors for Building Maintenance

David Candlin, Head of Economic Development and Property, presented a report on the appointment of term contractors for building maintenance. The Council's existing five term maintenance contracts were due to end on 31 December 2026. The report detailed the procurement process for six work lots, with successful appointments recommended for building fabric, electrical, fire and security, and asbestos management. However, the procurement for mechanical and lift services (Lots 3 and 4) was unsuccessful. The Board supported the recommendations to approve the appointment of contractors for the successful lots and to delegate authority to extend the existing contracts for mechanical and lift services for up to 12 months, while also authorising a retender for these two lots.

65-67 St John's Road - Agreement of a Lease

James Ponsford, Estates Surveyor, presented a report on the agreement of a lease for the property at 65-67 St John's Road. The double-fronted unit, opposite Sainsbury's, had been empty for most of the year. Following marketing, terms had been agreed with a franchise of Venture Photography, who intend to open a second outlet there and run a photography school. The proposed tenant has experience running a similar franchise in Maidstone. The Board supported the recommendations to approve the grant of the lease and delegate authority to the Head of Economic Development and Property and the Head of Legal Services to negotiate and agree the terms and complete the necessary formalities.

Budget Update Report 2027-28

Jane Fineman, Head of Finance, Procurement and Parking, presented an update on the budget projections for 2027-28 and medium-term forecasts. A budget deficit of £801,000 is currently forecast for 2027-28. The report noted that the government's pause and review of Local Government Reorganisation (LGR) means the council needs to budget for 2028-29. The Board supported the recommendations that officers continue to work towards plans to reduce the projected budget deficit and report back in December with draft proposals prior to public consultation.