Agenda item

            The Committee was reminded that, at its meeting on 12th May, it had agreed to receive from representatives of the Deramore Property Group a presentation in relation to the Royal Exchange Regeneration Project.

            Prior to the deputation being received, the Director of Development submitted the undernoted report which provided the background to the company’s proposed scheme:

“Relevant Background Information

      Members will be aware that at the meeting of 12 May, it was agreed to receive a presentation from Deramore Property Group (Deramore).  Deramore are the owners of 41-51 Royal Avenue and 27-31 Rosemary Street, Belfast.

      Deramore have submitted a planning application to Planning Service to redevelop their premises. The application is currently going through the consultation process. The application is to provide 20,000 sq ft of retail floor space over ground and three upper floors. The intention is to provide accommodation for a single multiple operator similar to the New Look operation in Donegall Place were a completely new shop was built behind the original front façade.

      The Deramore property has a double frontage on Royal Avenue and Rosemary Street and has been planned to compliment any future Royal Exchange Schemes.

Key Issues

      On 2 December 2009 Margaret Ritchie MP, then Minister for Social Development, announced the timetable for submitting the planning application to take forward the Royal Exchange Regeneration Project.

      The developer of the project, a consortium known as Royal Exchange (Belfast) Ltd comprising William Ewart Properties Ltd, Snodden’s Construction Ltd and ING, are to submit a planning application approved by Department for Social Development (DSD) to the Department of Environment Planning Service by 31 October 2010.

      On 25May 2010 DSD Minister Alex Attwood announced that £11 million allocated to the Royal Exchange Scheme had been surrendered by the Department to the Northern Ireland Assembly Executive. Uncertainty now remains as to when and if this money will be reallocated to the scheme.

      Councillor William Humphrey, then Chairman of the Development Committee, received a letter on 26May 2010 from Nick Reid of Leaside Investments Limited (William Ewart Properties Limited) regarding the press speculation and Ministerial announcement.

      DSD will not at this stage confirm to Deramore that their premises will be excluded from the development scheme for the Royal Exchange Project.

      Deramore are seeking confirmation from the developer and DSD that their premises will not be included in the scheme and therefore not at risk from vesting, giving them the security to attract quality tenants to their redeveloped premises.

      The leases in their existing premises all terminate by July 2012. Currently their tenants, who include Harry Corry, have all indicated they are unlikely to renew their leases due to the uncertainty surrounding the Royal Exchange development and the ongoing vacancy and dereliction in the area. Many landlords are not carrying out much needed refurbishments to their property and investment is largely deficient in the area.

      Deramore have advised BCC officers that they have the funding in place to carry out their development once planning permission is granted. However the scheme can only be commenced once the uncertainty regarding the future of their premises is resolved. Deramore have requested a meeting with the Development Committee to present their development proposals and advise Members of their concerns as to when any redevelopment of the North East Quarter will be advanced.

      Members have still not received a date for a meeting with the Minister for DSD to discuss the Royal Exchange Scheme. Two previous meetings were cancelled by the DSD.

Decision Tracking

      There is no decision tracking attached to this report as it is for information only.

Key to Abbreviations

      Deramore  –   Deramore Property Group

      DSD            –   Department for Social Development”

            It was reported that Messrs. A. Carleton and R. Faloon were in attendance and they were admitted to the meeting and welcomed by the Chairman.

            Mr. Carleton advised the Members that the Deramore Property Group was seeking to deliver local investment in Belfast City centre by obtaining support for the removal of 41-51 Royal Avenue from the Royal Exchange Masterplan.  If the company’s proposed development at that location were to proceed, it would result in short-term employment of approximately 80 till 100 construction jobs over a twelve month period and sustained employment of 60 till 80 full and part-time jobs in the retail industry when the project had been completed.  He outlined the history of the company including its assets, its development portfolio and provided details of some of the schemes which the company had delivered.

            Mr. Faloon explained that the Group’s planning application, which sought to conserve the integrity of the existing building, met the requirements of the Environment and Heritage Service, would create an opportunity for a single let retail unit, complement the Royal Exchange Masterplan and promote regeneration in the City through the use of a private local company.  He reviewed the background to the company’s planning application and its current status and stated that the Department for Social Development would not, at this stage, confirm whether or not the premises would be excluded from the overall Royal Exchange development scheme.  He concluded by outlining the impact the Royal Exchange Scheme was having on the City centre, that is, the prevention of complementary private regeneration, an increase in the risk of compulsory vesting being necessary, uncertainty among current tenants and the creation of a high level of vacant properties.

            The deputation then answered a number of questions from the Members and indicated that the Deramore Property Group was seeking the Committee’s support to have its building excluded from the Royal Exchange Masterplan in order to allow it to develop its own scheme.  In addition, it would like to meet with the other parties involved in the Royal Exchange Scheme to ascertain why they had changed their views in so far as they would not allow 41-51 Royal Avenue to be developed on its own.

            The deputation then thanked the Committee for the receiving them and retired from the meeting.

            After discussion, it was agreed that:

(i)   the Chairman and the Deputy Chairman (or their nominees), together with one representative from each of the Party Groupings on the Council, facilitate a meeting between representatives of Royal Exchange (Belfast) Limited, the consortium which would be undertaking the Royal Exchange Regeneration Project, and the Deramore Property Group in order to ascertain whether a solution could be arrived at which would facilitate all parties; and

(ii)  a further letter be forwarded to the Minister for Social Development requesting that he meet with an All-Party deputation from the Council to discuss the Royal Exchange Scheme.