Tight deadline for Rother on Next Wave decision

Members of the council's services overview and scrutiny committee will be given this news on Monday evening.

On Thursday afternoon cabinet is due to decide what to do about the project.

The deadline for accept the grant is the following day.

Members will be advised that because the Colonnade is now Grade II Listed (following a submission by objector Jack Seabrook) any development there will now require English Heritage approval.

A national chain and two local businesses have already shown interest in the Colonnade development.

The authority must decide by next Friday whether to sign the CABE (Commission for Architecture in the Built Environment) funding agreement or lose the 1m grant.

Director of services Tony Leonard is advising that the agreement constitutes a binding contract between CABE and Rother, which under EU law will have to tender Europe-wide for the work to be done.

For Rother, the good news is that the grant is not conditional on the inclusion of the Colonnade shops and restaurants plan '“ the most controversial element of the Next Way proposals.

Mr Leonard advises: "The particulars make no specific reference to the Colonnade and discussions with CABE have confirmed that they do not regard their grant as being dependent on this element of the Next Wave proposals."

The duration of the agreement is five years, which is the period during which any conditions, including the risk of the "clawback" of the money, would apply.

Fifty per cent of the grant would be received after the signing of the agreement with another 40% paid at the end of next July, subject to a progress report and the final 10% on completion at the end of April 2010.

Rother still needs to clarify points with CABE such as what happens if its bid for Interreg IV European funding fails and what happens if Rother wants to amend elements of the scheme.

Mr Leonard says the Sea Change programme bidding guidelines stipulated a period of 18 months for delivery of certain elements of the project.

He warns that with the need to meet EU tendering requirements, programming and delivery of the project will be "extremely difficult" to achieve within the 18-month deadline.

In a report setting out how the authority is marketing the Colonnade scheme, Mr Leonard says: "The intention at this stage is to invite expressions of interest in order to gauge whether the scheme is of interest to commercial operators.

"This is an essential precursor to deciding whether to commit to the capital investment required to implement the council's preferred option, or whether to review the options in order to pursue an alternative strategy.

"The Colonnade is Grade II-listed and therefore any development will require approval from English Heritage.

"An information pack has been prepared which includes summary details of the scheme, together with a copy of the Investment Opportunities brochure which has been updated and re-printed."

Mr Leonard says: "At this stage the marketing is to seek 'expressions of interest' only.

"Depending on what enquiries arise, these will be followed up by more detailed discussions on an individual basis.

"As the scheme is 'conceptual' at this stage, it is not possible to do more that identify potential occupiers and ascertain their level of interest.

"The council is not in a position to secure tenancies at this stage, although if interest is particularly strong it may be possible to proceed to an agreement to a lease.

"Our discussions with potential occupiers will also give the council the opportunity to consider any changes or improvements to this scheme as currently designed."

He adds: "It is always difficult, even in strong market conditions, to sell 'off plan' and the current economic downturn will make this even more so.

"This is therefore an initial marketing exercise to gauge responses to the scheme's concept and to identify the most productive future lines of enquiry.

"Some informal interest has been expressed already as a result of publicity generated by the Next Wave proposal, by a national chain, and two local businesses."