Issue - meetings

The Service Lead Place, Assets & Commercialisation presented this report that updated Members on the Council completion of the purchase of Ocean Blue on
4 March 2020; delivered in accordance with the adopted Commercial Investment Framework.

The investment opportunity was marketed in the summer 2018 and at a time prior to the Commercial Investment Framework being adopted. The Council’s Deputy Chief Executive (in post), Leader and Portfolio Holders for Asset Management, Finance and Economy (at the time) supported an offer being made; subject to the usual due diligence and Council approvals. Once the Commercial Investment Framework was adopted in February 2019, the Council then followed the approach set out within.

There were discussions concerning rental income projections re the Covid-19 situation and that the Queen’s Drive Delivery Group should be included in further discussions, with their Terms of Reference being used in schemes such as this. In answer to why it appeared to have taken 7 months for this acquisition to come to Cabinet the Chief Executive said that this was the only property the Council had required under the Commercial Investment Framework so there was always a learning process in anything new to take forward in the future and all steps taken seemed appropriate at the time.

Further discussions included the following:

·       For good commercial reasons certain discussions could not have been made public

·       Had Ocean Blue been considered for other uses?

·       The need to talk the tenants to compliment other developments along Queen’s Drive area

·       The need to consult with local residents to what their wished for from the building

·       A process was followed with ward members being brought in towards the end of negotiations

·       Were in a privilege positon as the ground lease owners which therefore enhanced its value

·       The building was in a key and iconic position on the Exmouth seafront.

·       Why were Members not told about the acquisition before the press release was sent out?

·       The need for further discussion around the issues that had been raised.

RESOLVED that Cabinet:

Note the content of the report.

REASON:

to provide enhanced awareness of the detail behind the acquisition.