Issue - meetings

The Leader of the Council introduced the recommendations of the Executive in respect of Victoria Place.  The report considered by the Executive had provided an update on Victoria Place, including around the positive positions of the new retail outlets, the Italia Conti Performing Arts Academy and The Marches residential developments.  The development had clearly led to a rejuvenation of the east of the Town Centre.  However, the opening of the hotel had been delayed as a result of a failure in the building’s cladding, and it was now expected that the new Hilton Hotel would open by Christmas 2023.

It was explained that the development cost of Victoria Place was £700m.  However, the need for further funds had now been identified for the first few years of operation.  The funding would be available over a five year period, with the money to be released on receipt of evidence of need.  It was emphasised that, without the additional support, there was a likelihood that the Victoria Place development would have to go into administration.

The proposal to provide further funding was debated at length, with concerns expressed over the increase in the level of borrowing to complete the project, recognising that the costs had risen significantly from the original proposals.  The positive impact of the retail and leisure units, together with the residential accommodation of The Marches, was emphasised and the Council was reminded that, without the additional funding, the Victoria Place development as a whole was expected to go into administration. 

Disappointment was expressed that the cycle scheme suggested in conjunction with the development would no longer be taken forward, though it was noted that the scheme had not been included in the project plans. 

The Leader of the Council addressed the points made during the debate before the recommendations were put to a vote in accordance with Standing Order 10.8.  The names of Members voting for and against the recommendations, were recorded as follows:

In favour:                                Councillors T Aziz, A-M Barker, A Boote, A Caulfield, G Cosnahan, W Forster, P Graves, I Johnson, D Jordan, A Kirby, R Leach, L Lyons, L Morales, J Morley, E Nicholson, M I Raja, D Roberts and J Sanderson and T Spencer.

Total in favour:                       19

Against:                                  None.

Total against:                         0

Present not voting:                 The Mayor, Councillor S Hussain, and Councillors A Azad, J Brown, K Davis, S Dorsett, C Kemp, S Oades and M Whitehand.

Total present not voting:        8

The recommendations were therefore carried by 19 votes in favour, with no votes against.

RESOLVED

That (i)    the work to date on the delivery of the regeneration project, to support its completion and the next stages of the regeneration of the town centre, be noted;

          (ii)   a revolving loan facility of £745m be approved, representing an increase of £45m to the £700m revolving loan facility approved in February 2021; and

          (iii) the development budget be retained at £700m with a reduced scope to exclude elements of the February 2021 approval including the  ...  view the full minutes text for item 8

Reporting Person – Giorgio Framalicco

The Leader of the Council, Councillor Barker, introduced the report which provided an update on Victoria Place and recommended to Council the approval of an additional revolving loan facility.  Councillor Barker highlighted the positive aspects of the Victoria Place major regeneration project including the new retail outlets such as Marks & Spencer, the opening of Italia Conti Performing Arts Academy which had brought university level education to Woking, and leisure operator Woking Superbowl.  It was noted that new retail occupiers were expected in the new year.  The Marches residential was performing well and demand remained strong.  Consideration was being given to Henry Plaza, named after past Councillor Henry Cawsey, and how the space could be used.  It was highlighted that Victoria Place would host the ice rink for the winter season.

Councillor Barker provided an update on the hotel and expressed disappointment that the hotel’s opening had been delayed due to a failed cladding system.  The Executive was informed that remedial work was due to be completed by the end of October 2023 with the Hilton Hotel opening before Christmas 2023.

The Executive noted the financial challenges and current economic situation facing the project.  The Executive was supportive of the proposal to make available further funding in the short-term to meet the net operating costs of VSWL between December 2022 and March 2027.  This would be a revolving loan facility, with tightly controlled drawdowns.  The Portfolio Holder for Finance, Councillor Roberts, advised the Executive that additional equity investment would be sought in the long-term.  New governance arrangements approved by Council in July 2022 were highlighted which would scrutinise the Council’s investment.

Attention was drawn to the arts provision in the Town Centre, such as the Ambassadors Theatre Group, Rhoda McGaw and Buzz Theatres, and it was suggested that opportunities could be explored with the University of Surrey’s cultural and drama departments to bring more people into the town.

Councillor Azad raised a number of questions regarding the report, including the completion of snagging work, the construction contingency amount, the percentage revenue split between the hotel, residential and retail, the sensitivity analysis to determine the impact of interest rate rises, and the advantages of holding the car park in VSWL.  Councillor Barker responded to the points raised before moving to the recommendations in the report.

RECOMMENDed to Council

That  (i)    the work to date on the delivery of the regeneration project, to support its completion and the next stages of the regeneration of the town centre, be noted;

          (ii)   a revolving loan facility of £745m be approved, representing an increase of £45m to the £700m revolving loan facility approved in February 2021; and

          (iii)  the development budget be retained at £700m with a reduced scope to exclude elements of the February 2021 approval including the Lockfield Drive pedestrian and cycle bridge, Victoria Way central reservation landscaping and Export House Building Maintenance Unit (BMU) to enable conclusion of the final account with Sir Robert McAlpine.

Reason:   To enable the successful completion of the  ...  view the full minutes text for item 7