The Baytree Shopping Centre is a 135,470 sq ft multi-let shopping centre with 36 tenancies producing £1,157,327 gross rental income p.a. and a guaranteed initial net operating income of £675,000 p.a. until February 2023. This asset was acquired in March 2021 for £10.8m plus acquisition costs. As part of this deal there was a net operating income guarantee of £675,000 for two years after which the net operating income will drop to £402,437.

Baytree is a strategic regeneration opportunity that would enable major re-shaping of Brentwood’s town centre. This will include an enhanced mix of uses including, leisure, residential, food and retail combined with potential community uses which would create a relevant and vibrant future heart for the town.

By undertaking a proactive approach to re-generation within Brentwood the council is uniquely placed to prevent the further decline of in town services and help shape the future of the town centre.

The report set out proposals for the Council to re-develop the first phase of the Baytree Shopping Centre. The proposed redevelopment is to create a Cinema with leisure and additional retail units, residential units and new open air public space.

The total costs of the proposed re-development are forecast to be £23.340m (excluding financing costs) with a development time period of 18 months once the contractor has been appointed. This cost is split £21.898m on capital forecasts and £1.442m on revenue costs. The asset is currently leased to Seven Arches Investments Limited (SAIL) and as part of this arrangement have developed the regeneration plan. It is anticipated that Seven Arches Investments Limited will select the development partner during planning permission process and manage the redevelopment.

There are currently 36 tenants, generating a gross rental income of £1,157,327 per annum. This development would increase this to 30 tenants and a gross rental income of £1,780,000 per annum. Producing an additional £447,406 net revenue to the council per annum.

Officers and SAIL have completed an intensive feasibility study due diligence on the proposal and considered appropriate risk management implications. A detailed feasibility study on the development is set out in Appendix A of the report (exempt).

Cllr Mynott declared a non pecuniary interest due to his involvement with Brentwood Community Transport who are based at the Baytree Centre.

Cllr Hossack MOVED and Cllr Russell SECONDED that the recommendations within the report.

Cllr Aspinell MOVED to DEFER this item and Cllr Lewis SECONDED the deferral. Cllr Hossack who had moved the original motion did not accept the motion to defer.

Cllr Hossack MOVED an AMENDMENT and Cllr Poppy SECONDED for Recommendation 2 to read: That delegated authority is given to the Chief Executive, Monitoring Officer and Section 151 Officer in consultation with the Leader to take all the steps necessary, including entering into any legal agreements required to complete the development proposed at Baytree Shopping Centre, Brentwood.

A recorded vote was requested by Cllr White with 5 councillors in agreement by show of hands.

Members voted on the amendment:

FOR: Cllrs Francois, Barrett, Barber, Dr Barrett, Bridge, Gelderbloem, Heard, Hirst, Hones, Hossack, Jakobsson, McLaren, Murphy, Parker, Pearson, Reed, Russell, Slade, Tanner, White and Wiles (22).

AGAINST: Cllr Naylor (1).

ABSTAIN: Cllrs Aspinell, Cloke, M Cuthbert, N Cuthbert, Davies, Fryd, Fulcher, Haigh, Kendall, Laplain, Lewis and Mynott (12).

The AMEDNMENT was CARRIED.

Members then discussed the substantive recommendation.

During this time, Cllr Hossack requested a closure motion - 8.3.12 of the Constitution. A vote was taken by a show of hands and was CARRIED.

Members then voted on the substantive motion with the agreed amendment.

A recorded vote was requested by Cllr White with 5 councillors in agreement by show of hands.

Members voted on the amendment:

FOR: Cllrs Francois, Barrett, Barber, Dr Barrett, Bridge, Gelderbloem, Heard, Hirst, Hones, Hossack, Jakobsson, McLaren, Murphy, Parker, Pearson, Reed, Russell, Slade, Tanner, White and Wiles (22).

AGAINST: Cllr Naylor (1).

ABSTAIN: Cllrs Aspinell, Cloke, M Cuthbert, N Cuthbert, Davies, Fryd, Fulcher, Haigh, Kendall, Laplain, Lewis and Mynott (12).

The new motion taken by a recorded vote was RESOLVED.

R1. That a total capital budget of £21.898m is approved for the intended redevelopment at The Baytree Shopping Centre as set out in the report. That this budget is profiled within the Council’s Capital and Investment Strategy as follows: 2022/23 £987,730 2023/24 £12,451,880 2024/25 £8,484,483

R2. That delegated authority is given to the Chief Executive, Monitoring Officer, Section 151 Officer in consultation with the Leader to take all steps necessary, including entering into any legal agreements required, to complete the development proposed at Baytree Shopping Centre, Brentwood.

Reasons for Recommendation

The proposed phase 1 redevelopment of the Baytree Shopping Centre would allow the Council to invest in a significant town centre asset and enabling the redevelopment and regeneration of the site and providing much improved public realm, social space and street scape for the residents of Brentwood as well as a financial income to the council.

This phase 1 redevelopment will also produce new employment opportunities for the residents of Brentwood, it will help produce an evening economy based around Everyman Cinema and leisure uses which are incorporated into this redevelopment. This will provide significantly improved town centre amenities and the attractiveness of the town for further investment.