Agenda item

REPORT OF THE DEPUTY CHIEF EXECUTIVE

The purpose of this report is to further advise Cabinet of the progress of discussions for the acquisition of 14 and 15 Brand Street from Hitchin Town Hall Ltd (HTHL).

Audio Recording – Start of Item – Session 1 - 1 hour 9 minutes 40 seconds

Prior to the item being discussed Councillor Bernard Lovewell declared a declarable interest in that he was a member of the Cabinet Sub-Committee (Council Charities). He would follow the legal advice given in the past and leave the room for the duration of the debate and vote for both the Part 1 and Part two items on the agenda regarding this issue.

Prior to the item being discussed Councillor Michael Weeks declared a declarable interest in that he was a member of the Cabinet Sub-Committee (Council Charities). He would follow the legal advice given in the past and leave the room for the duration of the debate and vote for both the Part 1 and Part two items on the agenda regarding this issue.

RESOLVED:

(1)     That the content of the report be noted;

(2)     That the Settlement Agreement appended to the Part 2 report, as Appendix B, will be provided as a final offer to HTHL/HTHF. HTHL would be required to fully accept the Settlement Agreement by holding an Extraordinary General Meeting (EGM) by the 31 October 2018. Subject to agreement in principle and HTHL having set a date for their EGM, a date would then be arranged for mid-November for an extraordinary Cabinet meting and a Cabinet Sub-Committee (Council Charities) meeting to consider the final Settlement Agreement.

(3)     That in the event that:

·                HTHL/HTHF do not agree to the Settlement Agreement; or

·                HTHL does not agree to take the Settlement Agreement to an EGM by the 31   October 2018; or

·                the Settlement Agreement is not approved at an EGM of HTHL by 31 October 2018;

the Settlement Agreement and current Purchase Price offer will be withdrawn by the Council. A date for an extraordinary meeting of Full Council will be set to consider the use of Compulsory Purchase powers in relation to 14/15 Brand Street as soon as possible.

REASON FOR DECISION: To avoid any further extension to the period of negotiation. If required to move to the use of Compulsory Purchase powers as quickly as possible. All with the ultimate aim of being able to fully open the District Museum and Hitchin Town Hall as soon as possible, whilst still protecting the interests of the Council.

Councillors Lovewell and Weeks returned to the room.

Audio Recording – Start of Item – Session 1 - 1 hour 9 minutes 40 seconds

Prior to the item being discussed Councillor Bernard Lovewell declared a declarable interest in that he was a member of the Cabinet Sub-Committee (Council Charities). He would follow the legal advice given in the past and leave the room for the duration of the debate and vote for both the Part 1 and Part two items on the agenda regarding this issue.

Prior to the item being discussed Councillor Michael Weeks declared a declarable interest in that he was a member of the Cabinet Sub-Committee (Council Charities). He would follow the legal advice given in the past and leave the room for the duration of the debate and vote for both the Part 1 and Part two items on the agenda regarding this issue.

The Deputy Chief Executive presented the report, and addendum report, in respect of North Hertfordshire Museum and Hitchin Town Hall: Acquisition of 14/15 Brand Street.

The Deputy Chief Executive explained that the original report had been written prior to a response being received from Hitchin Town Hall Limited and therefore contained a number of scenarios. A response had since been received and the addendum report reflected that.

He gave a brief outline of the background of the discussions between NHDC, Hitchin Town Hall Limited and Hitchin Town Hall Finance Limited and reminded Members of the decision made by Cabinet at the meeting held on 19th June 2018, when a deadline of 31st July 2018 was set for an agreed purchase to be concluded by.

The detail of the agreement would be discussed in Part 2, however it should be noted that, although there were points of agreement, there were also areas that were not agreed and others that had previously been agreed that HTH Ltd no longer agreed with and items that HTH Ltd have sought to add.

Members expressed disappointment that HTH Ltd were still seeking to add clauses to the proposed settlement agreement and to attach conditions to the Town Hall when the proposed transaction was solely about 14/15 Brand Street

At this point the meeting moved into Part 2 discussions (Minute 49 refers).

Following the Part 2 discussions the meeting moved back into Part 1.

Audio Recording – Session 2 – 12 seconds

The Deputy Chief Executive clarified that the recommendations contained in the addendum report were those to be considered.

The date quoted for the HTH Ltd EGM of 30 October 2018 was the date indicated by HTH Ltd that this meeting could take place, although there was no commitment from them, at this time, to meet on that date. The indication of a potential meeting date had led to the timescales proposed in the recommendations.

The Executive Member for Community Engagement and Rural Affairs praised Officers and Mr Fergus from the East of England LGA for their hard work in getting to this point and again expressed disappointment that HTH continued to seek amendments to the settlement agreement.

Members of Cabinet agreed that the document presented at Appendix B to the Part 2 report was a fair settlement agreement that should be presented to HTH Ltd and HTF Ltd as a final offer and it was:

RESOLVED:

(1)     That the content of the report be noted;

(2)     That the Settlement Agreement appended to the Part 2 report, as Appendix B, will be provided as a final offer to HTHL/HTHF. HTHL would be required to fully accept the Settlement Agreement by holding an Extraordinary General Meeting (EGM) by the 31 October 2018. Subject to agreement in principle and HTHL having set a date for their EGM, a date would then be arranged for mid-November for an extraordinary Cabinet meting and a Cabinet Sub-Committee (Council Charities) meeting to consider the final Settlement Agreement.

(3)     That in the event that:

·                HTHL/HTHF do not agree to the Settlement Agreement; or

·                HTHL does not agree to take the Settlement Agreement to an EGM by the 31   October 2018; or

·                the Settlement Agreement is not approved at an EGM of HTHL by 31 October 2018;

the Settlement Agreement and current Purchase Price offer will be withdrawn by the Council. A date for an extraordinary meeting of Full Council will be set to consider the use of Compulsory Purchase powers in relation to 14/15 Brand Street as soon as possible.

REASON FOR DECISION: To avoid any further extension to the period of negotiation. If required to move to the use of Compulsory Purchase powers as quickly as possible. All with the ultimate aim of being able to fully open the District Museum and Hitchin Town Hall as soon as possible, whilst still protecting the interests of the Council.

Councillors Lovewell and Weeks returned to the room.