Agenda item

The Leader introduced the report and acknowledged that Cabinet were aware that over many years Newport Indoor Market has become more affected by contraction of the High Street.  It was noted that markets country-wide have struggled to continue to provide an offer relevant to consumers without significant investment and diversification of the offer, the trading environment and visitor experience. 

In order to try and halt the decline of the most prominent and recognisable building in the city, the Council previously invested in improving the commercial environment within Newport’s Indoor Market, with a £1m refurbishment of the entrance and forum completed alongside extensive public realm enhancements to the adjacent High Street in 2012/13. 

Further investment was made in 2016, where a £500,000 Vibrant and Viable Places project was jointly delivered by Newport City Council and Newport City Homes

However, despite those investments, the market continues to experience significant challenges. The building does not trade to its full potential with vacancy rates becoming a persistent issue and rental income declining.

In late spring 2018, the Council received interest from a developer – Loft Co, a South-Wales property development company, with prior experience in the re-imagining and re-use of heritage properties.  The company’s portfolio to date includes redevelopment of the Tramshed in Cardiff, Pumphouse in Barry and Jennings building in Porthcawl. 

Loft Co have worked with the council to develop the concept of a complete refurbishment of the building, whilst diversifying its future use.  The development offer will include the following key proposals:

•       Continued provision of a high-quality traditional indoor market

•       A food court, sitting alongside the market stall provision

•       Provision of incubation, start-up and collaborative business space on the mezzanine floor, with the aim of attracting knowledge-intensive businesses, specifically digital and technology companies

•       Provision of new, mixed-tenure of one and two-bedroom residential units

•       Creation of serviced apartments

This scheme will act as a key economic anchor for the City Centre and Northern Gateway and carries on the great tradition of Newport Market being a key asset for the community of Newport.

The Leader stressed the importance that, whilst Cabinet will make a decision today to proceed with the proposed development and to support the scheme financially, further changes may be required to the project due to the requirements of planning and listed building consent. Therefore, it was still necessary to grant delegated authority to the officers to agree any changes and finalise and complete the necessary legal and financial documentation, provided that there was no change to the nature and viability of the scheme.

The Leader thanked the Head of Law and Regulation and the Head of Finance for their work to date in taking this scheme forward.

Decision:

Cabinet agreed:

i)              To note progress made on the scheme to date and the satisfactory outcome of the legal and financial due diligence work;

ii)             To confirm their agreement to the grant of the proposed development lease and loan funding on the terms set out in the Report;

iii)           To authorise the Head of Law & Regulation and Head of Finance to finalise and complete the necessary legal and financial documentation