Agenda item

The Cabinet considered the report of the Head of Economic Growth and Housing that provided an update on the previous and current performance of Southport Market, and presented a preferred option that will provide a sustainable future for Southport Market and outlined the additional benefits to the wider Town Centre of Southport linking to the future Town Deal.

The Leader of the Council, Councillor Maher referred to the excellent work that had been progressed and reported that this was a good way forward for Southport Market.  The Leader of the Council requested that a Changing Places unit be included in the design.

The Cabinet Member for Adult Social Care, Councillor Cummins also sought reassurance that a Changing Places unit would be included in the design.

Executive Director, Mr Stephen Watson reassured the Cabinet that a Changing Places unit would be included in the design.

The Cabinet Member for Regulation, Compliance and Corporate Services, Councillor Lappin reported that this was an excellent opportunity for Southport and asked what the interest had been from traders.

Executive Director, Mr Stephen Watson reported that the Council had consulted widely, and the results were included within the Business Case and that consultation with current and future potential market traders had shown that interest had remained positive.  It was further reported that the Town Centre Regeneration Initiatives should also capture the interest of market traders. 

The Cabinet Member for Regeneration and Skills, Councillor Atkinson referred to the excellent work in securing investment of 1.4 million pounds for the refurbishment project of Southport Market.

Councillor Atkinson stated that the project would deliver a revitalised market space with a shift in focus to a quality food and beverage offer providing a vital boost to the local economy and continued regeneration of Southport’s market quarter and King Street.  Councillor Atkinson also highlighted the importance of the project in providing opportunities to new business start up’s whilst also creating new employment opportunities and safeguarding existing jobs.

Councillor Atkinson extended her appreciation to the Town Deal Board for their support.

Decision Made:

That:

(1)        option 3 be progressed as the preferred option and the Business Case, be agreed;

(2)    the Head of Economic Growth & Housing be authorised to implement a delivery plan outlined within the business case in consultation with the Cabinet Member – Regeneration and Skills;

(3)    the Head of Economic Growth & Housing be authorised to conduct a procurement exercise for the appointment of a contractor to undertake the capital works as outlined within the report in consultation with the Cabinet Member and be granted delegated authority to award the contract resulting from the procurement;

(4)    the Head of Economic Growth & Housing be authorised to further engage the preferred bar operator in order to finalise the final design, agree bar/floor operation and in consultation with the Cabinet Member Regulatory, Compliance and Corporate Services be granted delegated authority to award a lease.

(5)     officer’s be authorised to further engage in appropriate consultation with existing market traders;

(6)   the capital cost of the project and refurbishment of £1.400m, being funded from a £0.500m direct grant by the Combined Authority, with the remaining £0.900m being funded by the Government’s accelerated grants fund as part of the Southport Town Deal, be noted along with a subsequent supplementary capital estimate for this sum being recommended to Council for approval; and

(7)     the Cabinet note the following recommendation to the Council:

      (a)   a supplementary capital estimate of £1.400m for the redevelopment of Southport Market.  This will be funded from a £0.500m direct grant by the Combined Authority and from a £0.900m accelerated grant as part of the Town Deal process, be approved; and

 (b)   the future years revenue implications arising from the proposal and approve that such revenue implications be built into the Council’s medium-term financial planning and annual budgets, be noted.

Option 0 - Do nothing

No requirement for capital investment

Additional budget required of £209k over and above the existing budget of £75k (as at year 3)

Number of traders will continue to reduce potentially leading to closure of Market Hall (estimated April 2021)

Decline in revenues over time as remaining traders leave

Will not contribute to regeneration of Southport

Will weaken Southport’s tourism offer

Continued market uncertainty in context of COVID-19

Overall assessment: not a sustainable option.

Option 1 - Mixed goods market with rent reduction

Reduction in rent may attract a small number of new traders

No material changes to quality of offer.

Rental reductions and rent-free periods have been used before with little or no effect

Additional budget required of £226k over and above the existing budget of £75k (as at year 3)

Unlikely to contribute to the regeneration of Southport

Continue to be difficult to include into the overall tourism offer

Capital investment still required

Continued market uncertainty in context of COVID-19

Overall assessment: not a sustainable option.

Option 2 - Food concessions with Council operated bar – Full refurbishment

Change in operation and offer that would significantly contribute to the wider regeneration of Southport

Become an active part in Southport’s tourism offer

Opportunities for new business start ups

Additional budget required of £175k over and above the existing budget of £75k (as at year 3)

Council having to run bar and market floor with no prior experience

Large staff costs and no to little experience of managing a bar and food floor operation

Continued market uncertainty in context of COVID-19

Overall assessment: not a sustainable option.

Option 3 – Food & Bar Concessions with flexible events/market space

Profitable by year 3 (£101k surplus) even with prudent assumptions

Change in operation and offer that would significantly contribute to the wider regeneration of Southport

Become an active part in Southport’s tourism offer

Opportunities for new business startups, safeguarding jobs and job creation

Bar operator taking risk of bar and responsibility of running market floor

Partnership approach with the operator to create food offer along with marketing/events

Increased financial performance allowing a greater contribution to the historic borrowing on previous scheme.

New turnover rental model means Council not guaranteed set amount of rental income

New offer in Southport, therefore no actual comparison how it may perform

Additional budget required of £61k over and above the existing budget of £75k (as at year 3)

Continued market uncertainty in context of COVID-19

Overall assessment: Sustainable and preferred option