Decision details
Bath Quays North, Bath.
Decision Maker: Director of Regeneration & Housing
Decision status: Approved
Is Key decision?: No
Is subject to call in?: No
Purpose:
The Development Agreement between Legal and
General Development Assets Holdings Ltd and B&NES Council was
entered into on 19 July 2019. Cabinet Decision E3122 provides the
delegation of approval to the Director of Economy and Growth, in
consultation with the Leader, Chief Executive and S151 officer to
agree all ancillary documents to facilitate the carrying out of the
redevelopment of the site.
The Development Agreement is now required to be amended by entering
into a Supplemental Agreement. The Supplemental Agreement concerns
actions required of the Legal and General developer partner ahead
of achieving the Conditions Precedents, this constitutes a
variation to the agreed terms, as follows:
Early Works
• The DA Annex 25 is replaced by the updated Early Works Cash
Flow spreadsheet appended to the supplemental agreement.
Early Works Professional Fees
• Items 1.01 to 1.14 of the Early Works spreadsheet represent
the Early Professional Fees.
• Payment of any item of Underwritten Early Professional Fees
shall operate to reduce the Maximum Commitment and Relevant Maximum
Commitment(s) as set out in the Schedule as if such item had been
claimed by the Developer i.e., the grant funding.
• In the event that the Development Agreement is terminated
prior to the Phase Conditions Satisfaction Date in relation to
Phase 1, the Council obligation contained in paragraph 2.5.1 of the
Schedule in relation to the repayment of Early Professional Fees
shall exclude any Underwritten Early Professional Fees.
Additional Planning Fees
• BANES will reimburse amounts expended by L&G in payment
of any or all of the Underwritten Planning Costs.
• L&G agree to repay to BANES any amounts expended in
payment of any or all of the Underwritten Planning Costs within ten
Working Days after the earlier of:
o the Phase Conditions Satisfaction Date in relation to Phase 1;
and
o the date of termination of the Development Agreement (unless at
the date of termination the local planning authority's planning
committee has resolved to approve or refuse the Planning
Application or the local planning authority has granted the
Planning Permission or refused the Planning Application, in which
circumstances we will not be obliged to repay you).
Decision:
To approve entering into the appended
Supplement Agreement.
This Supplement Agreement will be made pursuant to a Development
and Regeneration Agreement made on 19 July 2019 between (1) Bath
and North East Somerset Council (the "Council") (2) Legal &
General Development Assets Holdings Limited and (3) Legal &
General Capital Investments Limited (the "Guarantor") in respect of
the Property as varied and novated to BQN Limited (the "Developer")
pursuant to a supplemental agreement made on 8 October 2020 between
(1) the Council (2) Legal & General Development Assets Holdings
Limited (3) the Guarantor and (4) the Developer and as varied
pursuant to a second supplemental deed dated 16 December 2020 and
made between the Council (1) the Developer (2) and the Guarantor
(3) (the "Development Agreement").
Alternative options considered:
The BQN development has experienced delays due
to Covid and due to the complexity of achieving RMA planning
approval within a World Heritage Site.
The Developer has sought BANES early financial contribution for
planning and early works matters ahead of CP’s. Extensive
discussion has taken place to reach this supplemental agreement
position which is considered acceptable as both the planning
approval of the RMA and the completion of the Early Works will
ensure development achieves this major milestone i.e. a development
with full planning approval and extensive utility infrastructure
enabling completed.
Publication date: 11/05/2022
Date of decision: 10/05/2022