Decision

RESOLVED
that:
 
A    
The council enters into an agreement for lease and
related lease for a letting of the upper floors of Market House on
the terms described in Exempt Appendix A, and delegates authority
to the Executive Director for Communities and Regeneration in
consultation with Monitoring Officer to approve the terms of the
legal documentation to implement this.

 
B    
The council enters into a pre-contract services
agreement (PCSA) with Thomas Sinden Ltd to carry out the works
described in Exempt Appendix B including the works approved by
Cabinet at the time of purchase.

Reasons for the decision

In line with the corporate mission to
‘rebuild our town’, the Building Harlow’s Future
plan states that this year, we will “deliver
the comprehensive regeneration of Market Square” in
order to “transform the northern end of the
town centre into a vibrant destination for residents and visitors
to enjoy leisure, hospitality, and nightlife”.
 
To secure a proven high-quality operator of
office/co-working space, which will have a transformational impact
on Market Square and the wider town centre, including provision for
an estimated 300 new jobs and the multiplier effect these will have
on the sustainability of other town centre activities and
investments. This is a Key Decision as the income receivable from
the lease is greater than £500,000.
 
Complete necessary maintenance to address the
past neglect of Market House, an important and highly recognisable
town centre building that has been vacant and unfit for occupation
for approximately seven years, and conclude preparatory work to
enable it to be completely rejuvenated and brought back into
beneficial use for the benefit of Harlow’s business
community, and to create new opportunities for Harlow residents;
while maintaining the original architectural integrity of its place
as the centrepiece of Market Square.

Alternative options considered

Before progressing discussions
with Co-Space or developing detailed refurbishment plans, the
council carefully evaluated alternative options for Market House.
One option considered was full demolition and comprehensive
redevelopment for residential use. This was ruled out as it would
have required significant compensation to existing shop owners,
resulted in the loss of an important architectural landmark, and
delivered none of the employment benefits outlined in this
report.
 
Having determined that
reinstating office use offered the greatest strategic value, the
council also explored a more limited refurbishment. However, this
approach was rejected as it would have produced a lower-quality
building, making it harder to attract high-calibre occupiers and
increasing risk. It would also have led to higher energy
consumption, greater operating costs, and increased long-term
maintenance liabilities for the council.
 
Finally, alternative tenancy
and leasing models were assessed. One option was for the council to
manage the property directly and target medium and larger
businesses for long-term leases. This was discounted due to the
higher risk profile and because it would exclude smaller local
businesses, which are central to creating a diverse and vibrant
workspace community at Market House.