Decision details

The Assistant Director Finance presented a report which sought Members’ consideration, together with a request for additional funding to deliver the new Exeter Bus Station, as part of the redevelopment scheme for the existing Bus and Coach Station site. The request for £6.25 million would be added to the City Council’s capital programme, with £4 million to be set aside from Community Infrastructure Levy, (CIL), and £2.25 million from capital receipts.

The Assistant Director Finance made a short presentation, and included details of the proposed Exeter Bus station facilities, and the practical aspects of the delivery of the Bus Station site.  He also presented the financial options that had been considered. He assured Members that the project would be subject to ongoing scrutiny to ensure value for money and additional governance arrangements would be put in place to ensure a successful outcome for the delivery of the project.

A Member sought clarification as to how the requested sum would be used. The Assistant Director Finance responded to the Member and stated that further borrowing should not be required. He confirmed the sum of £6.25m was required to deliver the bus station, and that the request would not result in a rise in council tax. 

A Member enquired why the City Council was taking this action, when Devon County Council was the transport authority. The Assistant Director Finance referred to the need to expedite the delivery of this project to progress the overall scheme.  The Corporate Manager Property provided information on the statutory rights of approved bus operators using the Bus Station and also discussed the current and potential rental income streams from any future operator.  It was also confirmed that the outline planning application for the entire Bus and Coach Station site, including the leisure complex would be submitted to an Extraordinary meeting of Council on 20 January 2016.  

Councillor Thompson had submitted questions in advance of the meeting, to which the Assistant Director Finance offered the following responses - 

·         the matter was not considered to be a key decision, as it was a decision being taken by full Council (key decisions relate only to matters being decided by the Executive).

·         the City Council had the aspiration to deliver a comprehensive scheme facilitating the new leisure complex, bus station, commercial property and public realm on the Bus and Coach Station site. The location and layout of the current bus station prevented this from being possible. The proposed bus station layout was set out in the outline planning application.

·         in respect of the scheme being seen as value for money, the wider development provided the opportunity for the Council to secure some long term income streams, which would support the revenue budget in the future.  If approved, the total commitment for the Council would total £32.25m.  In terms of future maintenance, it was expected that the maintenance of the Leisure Complex would form part of the management contract and the bus station maintenance would form part of the lease obligations.  Both were expected to be net contributors to the Council’s income.

·      the Council would continue to own the freehold of the whole Site. A long lease would be granted to the developer of the commercial parts of the scheme, with a ground rent being received. The bus station would be let to an operator at an occupational rent.

·      there were no new legal implications arising as a consequence of the report.

·      the passing rent for the Bus and Coach Station was advised. 

·      the applicants have submitted an outline planning application and the City Council have resolved to work with them on a development agreement to deliver the scheme should it secure planning consent.

·      no costs have been incurred in respect of the Bus Station site.  The Leisure Complex had incurred some costs against the approved budget, which included site acquisition and operator procurement costs.

The Chair suggested that, to ensure an appropriate debate in the public arena, a further report should be included in the open part of the forthcoming Executive agenda, as well as for the session closed to the public.  He proposed an additional recommendation, that information would be extracted from the confidential report to enable the subsequent meeting of the Executive to discuss as many of the issues relating to the funding of the Bus Station site, in the public arena.   A Part 2, confidential report would still be discussed to ensure the opportunity for a full debate by Members.

Councillor Sheldon seconded the motion, which was carried.

Scrutiny Committee - Resources requested Executive to approve a budget of £6.25 million to be allocated to the delivery of a new bus station in Exeter.