Content

12.1

This paper sets out a proposal to
review the service charge paid by traders at Crystal Peaks Market
Place. There has not been an increase passed on to traders in
several years despite the operational cost of the market
increasing.
 
This report sets-out the impact of
under-recovery and proposes options in relation to service charges
going forward.

 

 

12.2

RESOLVED
UNANIMOUSLY: That Waste and Street Scene
Policy Committee requests that the report comes back to a future
meeting of the Committee to enable the Committee to review the
service charge paid by traders alongside consideration of future
plans to improve the performance of the markets.

 

 

12.3

Reasons for Decision

 

 

12.3.1

The Committee rejected the officer
recommendations due to concerns that increasing the service charge
would have an adverse impact on the occupancy levels of the market
and footfall. The Committee requested that a review be undertaken
of the options for improving the performance of the market in
conjunction with a review of the service charge; this would enable
the Committee to consider the options for setting the service
charge and the implications that an increase would have on traders
and customers.

 

 

12.4

Alternatives Considered and Rejected

 

 

12.4.1

The alternative options that were
considered were outlined in paragraphs 1.6.1 to 1.6.3 of the
report. The option to do nothing (1.6.1) had been rejected due to
the unsustainable nature of the increasing subsidy required on
operational costs.

 

 

12.4.2

The option to move straight to full
cost recovery (1.6.3) would be too much of an impact on the
tenants. It was likely to create significant cost pressures that
were too large to pass straight on to customers and may increase
the markets vacancy rate, which would negatively financially impact
the budgets for service charges and rents. Overall, it could
undermine the financial position rather than improve it.

 

 

12.4.3

The Committee rejected the
recommended option of an increase of 50% (1.6.2) so that a review
of the plans to improve the performance of the market could be
undertaken prior to a decision on the service charge.