Decision details

Further to Minute No. 108 above, the Cabinet considered the report of the Executive Director (Place) which provided details of the three-year Business Plan for the fiscal years 2022/23 to 2024/25 for the Strand Shopping Centre, Bootle. Given the current economic climate, the Business Plan included an overview of impacts on the retail sector and the challenging environment in which the centre is operating. However, the acquisition of the Strand was for regeneration purposes, and these external factors (which have a greater impact in an area such as Bootle, for reasons outlined within the report) reinforce the importance of delivering the vision for the future of Bootle town centre and the Strand.

The report therefore included a recommendation to agree to the early surrender of the lease on a unit that has been vacant for several years, to enable progression of this vision in a manner that delivers best value to both the Council and the town centre. Nevertheless, some uncertainty remains to the Business Plan at the time of writing, not only given the pressures of inflation and the cost-of-living crisis, but also the absence of feedback on the Council’s bid submission for Levelling Up funding, which will be vital to progression of the next steps.

Decision Made: That

(1)      approval be given to the three-year Business Plan for the Strand Shopping Centre, noting the uncertainties of the current economic climate and the availability of Levelling Up funds;

(2)      any material variations to the financial forecast be presented back to Cabinet for further decision;

(3)      approval be given to the early surrender of the current lease of units 28-34, 259-273 The Esplanade and 283-289 Stanley Road, for a surrender premium with delegation of the final surrender agreement and associated premium being granted to the Cabinet Members for Regeneration and Skills and Regulatory, Compliance and Corporate Services and subject to them receiving the opinion of the Council’s External Auditor on the appropriateness and Value for Money of the transaction to support their decision; and

(4)      an updated Business Plan for the three years from the financial year 2024-25 be brought to the Cabinet for approval in advance of the start of that financial year.

Reasons for the Decision:

The Council’s objectives for the acquisition of The Strand in 2017 were to ensure that it was supported to continue its role in the local community, as a key asset at the heart of Bootle critical to the town’s physical, economic and social regeneration. This remains the Council’s priority in relation to the centre.

Despite continued uncertainties given the current economic climate and its impacts on the retail sector and on Bootle, as well as given the absence of feedback on the Council’s Levelling Up funding bid submission, this report and Business Plan provide updated forecasts for the coming years, recognising the impact that the absence of progression of the repurposing vision will have on that Business Plan. However, operational decision-making must be made within the context of an approved Business Plan.

The proposed accounting treatment of the receipt for the lease surrender, detailed in Appendix 3 to the report, has been agreed with the Council’s External Auditor. The Executive Director (Place) will lead an annual review with the External Auditor of the Value for Money case for the lease surrender, as part of the annual audit.

Alternative Options Considered and Rejected:

No alternatives to the publication of an updated three-year Business Plan were considered.