Agenda item

To consider a joint confidential report by Councillor Hugh Evans, Leader and Lead Member for Economy and Corporate Governance and Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking approval to accept an offer of grant funding from Welsh Government for the acquisition of properties on West Parade and Sussex Street in Rhyl.

RESOLVED that Cabinet –

(a)       approves the acceptance of an offer of grant funding from Welsh Government for the acquisition of properties on West Parade and Sussex Street in Rhyl comprising the former Savoy Hotel and the Queen’s Market, Theatre and Hotel conditional upon the proposed acquisition including any associated preliminary revenue costs being externally funded, and

(b)       confirms that it has read, understood and taken account of the Well-being Impact Assessment (Appendix 2 to the report) as part of its consideration.

Councillors Hugh Evans and Julian Thompson-Hill presented the confidential joint report seeking Cabinet approval to accept an offer of grant funding from Welsh Government for the acquisition of properties on West Parade and Sussex Street in Rhyl.

Cabinet had approved the purchase of the buildings in April 2018 subject to the acquisition costs being externally funded and there being no associated revenue costs to the Council.  Welsh Government had now confirmed an initial grant funding offer of £2.5m to allow the Council to progress with the purchases and an in principle commitment of an additional £2.5m to assist with redevelopment of the sites.  The Leader highlighted the proposed redevelopment of the site as a key project to contribute to the ongoing regeneration of Rhyl, bringing partially derelict properties back into productive use, providing job opportunities and business growth, and stimulating further private sector investment in the town.  Councillor Julian Thompson-Hill highlighted the differences to the original proposition considered by Cabinet in April 2018 and reasoning behind the intention to acquire all the property in one lot as opposed to the previous approach of two lots.  He also elaborated on the detail of the grant funding offer and financial implications together with risks arising from the proposal.

Cabinet noted that the proposal had the support of Rhyl Member Area Group and the Asset Management Group, and the Strategic Investment Group had also recommended approval to proceed with the proposal.  The merits of the proposal from a regeneration perspective was also acknowledged.  During a detailed debate the Lead Members and officers responded to further questions regarding the identified risks, the impact on financial resources, the availability of grant funding and legal agreements/action required to proceed.  Having taken into account the benefits of the proposal and recognising the risks in order to proceed it was –

RESOLVED that Cabinet –

(a)       approves the acceptance of an offer of grant funding from Welsh Government for the acquisition of properties on West Parade and Sussex Street in Rhyl comprising the former Savoy Hotel and the Queen’s Market, Theatre and Hotel conditional upon the proposed acquisition including any associated preliminary revenue costs being externally funded, and

(b)       confirms that it has read, understood and taken account of the Well-being Impact Assessment (Appendix 2 to the report) as part of its consideration.

The meeting concluded at 11.22 hrs.