Issue - meetings

Appendix 1 to the report is exempt from publication as it contains commercially confidential information (exempt under paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972 (as amended)).

Further to Minute 114 (20 March 2018), the Cabinet Member for Regeneration and Economic Development presented a report on the proposal to enter into a new Development Agreement with Travelodge for the conversion of the vacant ground floor retail space into 15 additional hotel rooms at the site in Yew Tree Avenue, Dagenham.

The Cabinet Member explained that the original agreement with Travelodge related to the development of a 78-bed hotel with a ground floor retail unit.  Whilst the hotel element had been trading successfully, there had been limited occupancy / interest in the retail unit.  As a consequence, Travelodge were seeking to transform the retail space into additional hotel accommodation.  The Cabinet Member alluded to the financial elements of the proposed Development Agreement, which were detailed in an exempt appendix to the report, and it was noted that the proposed terms met the required metrics within the Council’s Investment and Acquisition Strategy.

Cabinet colleagues raised the potential merits of retaining the ground floor retail space and other alternative options, particularly in view of the major developments coming to fruition in the immediate area.  The Cabinet Member confirmed that a range of options had been considered and costed but, on balance, the conversion into 15 additional hotel rooms represented the most economically advantageous proposal.  He pointed out, however, that the conversion proposal was subject to planning permission and should a potential retail tenant come forward in the meantime, the terms of any offer would be considered.

Cabinet resolved to:

(i)  Approve the entering into of a Development Agreement with Travelodge in respect of the conversion of the vacant ground floor retail space at the Dagenham East site into 15 additional hotel rooms (Option 1), in line with the terms set out in Appendix 1 to the report;

(ii)  Authorise the Strategic Director of Resources, in consultation with the Cabinet Member for Finance, Growth and Core Services and the Cabinet Member for Regeneration and Economic Development, to agree final terms for the Development Agreement (including the capital contribution), the agreement for lease and the new lease; and

(iii)  Delegate authority to the Head of Legal to execute all the legal agreements, contracts, and other documents on behalf of the Council in order to implement the arrangements.

(Note: During consideration of this item, a resolution to exclude the public and press from the meeting was passed to allow a very brief discussion of the financial information that was exempt from publication by virtue of paragraph 3 of Part 1, Schedule 12A to the Local Government Act 1972 (as amended).)