Purpose

Cabinet approval to dispose of
the Rex Theatre asset on a freehold basis to Columbo Group Ltd for £3,000,000.00,
including a 15-year restrictive covenant to operate the building as
a cultural music venue, associated offices and affordable
workspace.
 
Cabinet approval to accept
£2.6m National Lottery Heritage Funding for Phase 2 works to
Alice Billing House.
 
Update on wider Stratford
Vision delivery including new leaseholds on Stratford Picturehouse and Gerry Raffles Square.
 

Decision

Decision
 
For the reasons set
out in the report and its appendices Cabinet RESOLVED to Agree
to:
 

i) 
Approve the disposal of The Rex Theatre asset on a freehold basis
to Columbo Group Ltd (Jazz Café)
as per bid in Appendix 3, including a 15-year restrictive covenant
to operate the building as a cultural music venue, associated
offices and affordable workspace; and

ii) 
Delegate authority to the Corporate Director for Inclusive Economy,
Housing and Culture to agree terms of the disposal, in consultation
with the lead member for Inclusive Economy, Strategic Housing and
Culture and the Cabinet member for Finance and Resources; and

iii) 
Accept the grant funding of up to £2.9m from the National
Lottery Heritage Fund for Alice Billing House (Phase 2) as per
Appendix 5; and

iv) 
Agree approval to create a capital budget of up to £3.2m
through which to administer payments to Creative Land Trust
(remaining costs being revenue in nature); and

v) 
Delegate authority to the Corporate Director for Inclusive Economy,
Housing and Culture, in consultation with the lead member for
Inclusive Economy, Strategic Housing and Culture, to enter into a
grant funding agreement and pass the National Lottery Heritage Fund
(up to £2.9m) onto Creative Land Trust (Company number
11367824).
 
Alternatives
Considered
 
Rex Theatre
 

a) 
Do Nothing to The Rex Theatre. If left, the condition of the
building will further deteriorate, meaning the cost to return the
building to a lettable state will
increase. There are also the ongoing risks of squatting, outbreak
of fire and significant water damage should the building remain
unoccupied, incurring further liability costs. Do nothing is
therefore not considered an option.

b) 
Alternative Disposal Options. The site has been openly marketed and
has received a diverse range of offers. These have been discounted
for the reasons set out in this paper and its appendices.

c) 
Use by LBN for Council service or alternative priority. Cabinet
approved the leasehold disposal of the asset in July 2024 because
this was the most appropriate course of action due to the amount of
capital borrowing required to bring the building back into a
useable state. Following the marketing process, it has been
assessed that a freehold disposal is the most beneficial outcome
for the Council. Alice Billing House National Lottery Heritage
Funding.
 
Alice
Billing House National Lottery Heritage Funding
d) 
Not accepting the funding would mean an LBN asset remaining on the
Historic England At-Risk register and mean ongoing liabilities for
the vacant building falling on the Council.