Appendices 1-4 to this item include exempt information pursuant to Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972. If Council wishes to discuss matters relating to the information set out in Appendices 1-4 to the report, it will be necessary for the Council to pass a resolution to exclude the press and public from the meeting (as set out at agenda item 16).

The Executive Director (Development) will submit a report to Cabinet on 12 July 2023 updating Cabinet on progress of the procurement of a development partner to regenerate a council asset in the city centre; to recommend to Council to include additional budget for the scheme; and to seek approval to enter contracts with a preferred development partner and operator consortium to regenerate 38-40 George Street, Oxford.

The Cabinet decision will be reported in the Briefing Note. The draft minutes of the meeting will be available on the Cabinet meetings webpage.

Councillor Ed Turner, Deputy Leader (Statutory) and Cabinet Member for Finance and Asset Management will present the report and present Cabinet’s recommendations.

Recommendation: Cabinet recommends, subject to the decision of Cabinet on 12 July 2023, Council resolves to:

1.    Approve an additional capital budget of £12.1 million for delivery of this regeneration scheme (see Confidential Appendix 1 for more details).

Council considered a report from the Executive Director (Development) which had updated Cabinet on the progress of the procurement of a development partner to regenerate a council asset in the city centre; recommend to Council to include additional budget for the scheme; and sought approval to enter contracts with a preferred development partner and operator consortium to regenerate 38-40 George Street, Oxford.

Cllr Brown, Leader and Cabinet Member for Inclusive Economy and Partnerships introduced the report, proposed the recommendation and answered questions in the private session.

The recommendation was agreed on being seconded by Cllr Rehman, Cabinet Member for Inclusive Communities and put to the vote.

Council resolved to:

1.    Approve an additional capital budget of £12.1 million for delivery of this regeneration scheme.

The Executive Director (Development) has submitted a report to update Cabinet on progress of the procurement of a development partner to regenerate a council asset in the city centre; to recommend to Council to include additional budget for the scheme; and to seek approval to enter contracts with a preferred development partner and operator consortium to regenerate 38-40 George Street, Oxford.

Cabinet is recommended to:

1.       Approve the appointment of the preferred developer and operator as set out in the report for the reasons provided;

2.       Recommend to Council the approval of an additional capital budget of £12.1 million for delivery of this regeneration scheme (see Confidential Appendix 1 for more details);

3.       Delegate authority to the Executive Director (Development) in consultation with the Council’s Head of Financial Services / Section 151 Officer; the Head of Law and Governance; and the Deputy Leader (Statutory) - Finance and Asset Management to: (i) agree the final terms of, and enter into, the relevant contracts; (ii) agree the final scheme and submission of any planning application; and (iii) authorise any spending within the allocated budget (see Confidential Appendix 1 for more details).

The Executive Director (Development) had submitted a report to update Cabinet on the progress of the procurement of a development partner to regenerate a Council asset in the city centre; to recommend to Council to include an additional budget for the scheme; and to seek approval to enter into contracts with a preferred development partner and operator consortium to regenerate 38-40 George Street, Oxford.

Councillor Ed Turner, Cabinet Member for Finance and Asset Management, presented the report and explained that the lease of the Odeon Cinema at Gloucester Green, which was one of the Council’s important commercial assets, was due to expire shortly.  Officers had therefore proactively explored the options for the site, noting that there was a need to focus on bringing in income for the Council as well as making the city the best place it could be.  It was important to optimise the use of the asset, which was owned on behalf of the city of Oxford, to support services for its citizens.

The result was a scheme which was both financially viable, as well as benefitting the city and immediate locality.  Councillor Turner commented that the proposal represented an exciting and important project for the Council and for the city, which would bring economic and cultural benefits in addition to the financial return for the Council. 

The proposal included an aparthotel, and Councillor Turner outlined the benefits of this, which included offering a direct alternative to Airbnb (which was important as Airbnb depleted the supply of family accommodation within the local housing market), and the benefit to the city economy arising from people staying overnight in Oxford.  The ground floor would be for community use: the focus for that element of the scheme would not be to drive value, and engagement would be needed with the local community with regard to the use of the space.  The proposal would also offer the opportunity to improve and enhance the external appearance of the building, as well as social value commitments throughout the lease term.

Whilst it would result in the loss of the cinema facility, it was noted that alternative cinema provision was available within walking distance.

Cabinet resolved to:

1.       Approve the appointment of the preferred developer and operator as set out in the report for the reasons provided;

2.       Recommend to Council the approval of an additional capital budget of £12.1 million for delivery of this regeneration scheme (see Confidential Appendix 1 for more details);

3.       Delegate authority to the Executive Director (Development) in consultation with the Council’s Head of Financial Services / Section 151 Officer; the Head of Law and Governance; and the Deputy Leader (Statutory) - Finance and Asset Management to: (i) agree the final terms of, and enter into, the relevant contracts; (ii) agree the final scheme and submission of any planning application; and (iii) authorise any spending within the allocated budget (see Confidential Appendix 1 for more details).