Agenda item

Pentagon Centre Update and Mountbatten House

Minutes:

Background:

 

This report provided an update on the acquisition of the Pentagon Centre and sought authority to work with the owners of Mountbatten House to bring it forward for development or to acquire the building and to add it to the list of developments to be progressed by the Medway Development Company (MDC). 

 

The report also set out recommended amendments to a delegation agreed by the Cabinet in February 2019 in relation to the Pentagon Centre and the renewal of or amendment to individual leases in order to enable the Council to move as quickly as possible when dealing with such lettings. The amendments were set out at Appendix 1 to the report.

 

Decision number:

Decision:

75/2019

The Cabinet agreed to delegate authority to the Chief Legal Officer, in consultation with the Leader of the Council and the Portfolio Holder for Resources to:

 

(a)   Continue negotiations with the Mountbatten House sub tenant (Currently Mapeley Gamma Acquisition Co 2 (Ltd) in receivership) to acquire the sublease of Mountbatten House (“the building”).

 

(b)  Commission Medway Development Company to develop a residential scheme for Mountbatten House up to the obtaining of planning permission and the appointment of construction contractors.

 

(c)   Continue to explore the joint venture development of the building with the subtenant of the building (currently Mapeley Gamma Acquisition Co 2 (Ltd) in receivership) or their agents  to the extent that is more beneficial to the Council than a self-development approach.

 

(d)   Prepare a compulsory purchase order (CPO) for any or all of the remaining interests in the building  pursuant to the Council's powers under S226 of the Town and Country Planning Act 1990.

 

(e)   Make the CPO to secure any or all interests required for the regeneration of the building.

 

(f)    Submit the CPO to the Secretary of State requesting the confirmation of the CPO.

 

(g)   Respond to objections and continue negotiations with the landowner(s) following making of the CPO.

 

(h)   Give undertakings and assurances if advised to and to acquire by agreement any outstanding interests.

 

(i)     Confirm the CPO as an unopposed Order if the CPO is returned to the Council for confirmation.

 

(j)     Instruct experts (including counsel) to represent the Council at an inquiry into the confirmation of the CPO or in any written representation process or process including a hearing.

 

(k)   Attend any inquiry into the CPO and to pay the costs of the planning inspectorate for the inquiry.

 

(l)   Advertise the confirmation of the CPO if it is confirmed by either the Council as an unopposed order or by the Secretary of State.

 

(m)Serve notices to treat and enter, make vesting declarations and/or deed polls to secure all remaining interests in the site.

 

(n)  Seek to resolve issues of compensation by agreement or in default of agreement by reference to the Lands Chamber of the Upper Tribunal and/or by mediation.

76/2019

The Cabinet agreed to amend the existing delegation in respect of the Pentagon Centre to the Chief Legal Officer (paragraph 6.15 of the Employee Delegation Scheme), as set out in Appendix 1 to the report.

77/2019

The Cabinet agreed to delegate authority to the Chief Legal Officer, in consultation with the Leader of the Council and the Portfolio Holder for Resources, to acquire the sub lease of Mountbatten House and any other interests necessary to secure the development of the building on the best terms reasonably obtainable.

78/2019

The Cabinet agreed to delegate authority to the Chief Legal Officer in consultation with the Leader of the Council and the Portfolio Holder for Resources to take all steps to complete the acquisition of the sub lease for Mountbatten House and any other interests necessary to secure the development of the building.

79/2019

The Cabinet agreed to delegate authority to the Chief Legal Officer, in consultation with the Leader of the Council and the Portfolio Holder for Resources, to take all steps to enter into a joint venture for the development of Mountbatten House, if appropriate, and only in circumstances where that would represent a greater benefit to the Council than a self-development scheme, through Medway Development Company.

80/2019

The Cabinet agreed to delegate authority to the Chief Legal Officer to exercise the council's powers of appropriation in respect of any interests at the Pentagon Centre, the Council’s adjoining land and Mountbatten House.

81/2019

The Cabinet agreed to recommend to Full Council to approve the virement of up to £3M from the remaining funds in the £45M Pentagon Centre acquisition and improvement budget, for acquiring Mountbatten House either by agreement or after a Compulsory Purchase Order with compensation and the associated costs and to add this scheme to the Capital Programme.

 

Reasons:

 

To secure the development of a strategic building which is integral to the Pentagon Centre and to the centre of Chatham. To enable delivery of residential development within Mountbatten House and to enhance the regeneration and economic vitality of Chatham.

Supporting documents: