Purpose

The construction of the new West Bromwich
Indoor Market presents the Council with an opportunity to enhance
the development of the evening economy in West Bromwich town centre
in support of the wider regeneration aspirations of the
Council.

The Council has retained a consultancy firm, Market Curators, with
specialised experienced on developing new indoor markets and
stimulating urban regeneration initiatives. Market Curators have
recommended that the new West Bromwich Indoor Market should include
food and beverage stalls that have extended opening hours into the
evening.

Market Curators have also recommended that the model for such
stallholders is now more effectively supported by a turnover rent
arrangement rather than the more traditional fixed fee stall rents
of general retail stalls. That is, total sales are monitored for
these stalls, and they are then invoiced on a weekly basis at a
rate of 20% of their gross sales or turnover. Market Curators state
that this is likely to result in greater annual income for the
Council than comparative fixed stall fees and benefits the
stallholder as it smooths cash-flow fluctuations and helps them
manage their finances more effectively on a week-by-week basis. It
will also support these new businesses whilst they build their
customer bases after their initial fit-out investment.

In order to accurately monitor sales, stallholders would agree to
having an Electronic Point of Sale (EPOS) system installed. This
means that all transactions through their tills and card machines
will be monitored by a software system that would allow the Market
Manager real-time continuous monitoring of all sales from these
stalls. Random unannounced stall inspections and CCTV monitoring
would reveal any cash collection or additional card machines that
stallholders may be using to avoid the EPOS system.

As the turnover rent protocol will be monitored on a weekly basis,
any significant deviation from expected income projections will be
similarly monitored and will facilitate periodic reviews to ensure
that the Council is receiving best value. In the unlikely event
that turnover stall rents prove to be less effective that fixed fee
stall rents, the six-monthly break-clause that will be incorporated
into all stallholder leases would enable the Council to renegotiate
the stall rent arrangements with individual tenants.

Content

That the Executive Director - Place approves a
stall fee protocol for certain market stalls selling food products
in the new West Bromwich Indoor Market based on a turnover of sales
as an alternative to fixed fee. Specifically, to charge such
stallholders 20% of their gross turnover on all sales from their
stall or stalls on a weekly basis, pursuant to Section 123 of the
Local Government act 1972.