Purpose

 The report sets out the Palm Court development design, importance to upgrading the centre bringing new activity, costs and economic benefits. The report will seek the approval of the budgets and delegations to deliver Palm Court, initiate and progress with the design and build contract procurement to enable the full scheme, and additional workstreams. In addition progress on the Ely Court area and timetable for decision on the full scheme in April 2027.

Decision

 RESOLVED –

1. That the Palm Court scheme as the first phase of the Royal Victoria Place (RVP) development designed to Royal Institute of British Architects (RIBA) Stage 3 (Developed Design) in accordance with Full Council, Decision FC28/25 on 16 July 2025 and all relevant Cabinet and delegated decisions be endorsed and:

a.                  that the Palm Court Scheme for funding and delivery be approved; and

b.                  that the Palm Court scheme can be delivered independently of the Ely Court scheme if any delay to the delivery of the Ely Court scheme or the Full Scheme (hereafter defined) adversely impacts timetables making it uneconomical or detrimental to delay the Palm Court scheme be confirmed.

1. That the Council’s objective for delivery of the Palm Court scheme and Ely Court scheme as the full scheme (the Full Scheme) where this remains viable, affordable and deliverable to maximise value and economic benefits be endorsed and :

a.      that the further development of the Ely Court scheme through the RIBA stages, and submission of planning application in line with decisions taken by Full Council in July 2025 be further endorsed.

b.      that the strategy to commence a 2-stage Design & Build contractor procurement for the Full Scheme to enable the Ely Court scheme to catch up and if in future approved by Full Council be delivered as part of the Full Scheme be further endorsed.

c.      That all reasonable and proportionate steps and formalities are taken to protect the Council’s position in bringing forward the Full Scheme be further endorsed.

d.      that development proposals for Market Square are not progressed as part of the Full Scheme at this stage be further endorsed.

e.      that the development and delivery of a communications and engagement strategy focussed on the residents, businesses, occupiers and the wider economic community of the borough of Tunbridge Wells be further endorsed.

1. That:

a.      an additional gross capital budget of £23.5m, rounded, (additional to the £3.3m approved in July 2025) for the delivery of the Palm Court scheme be approved and authority to determine the sources of funding to deliver the Palm Court scheme which can include internal and external borrowing be delegated to the s151 Officer in consultation with the Portfolio Holder for Finance and Property, and : 

b.      the creation of an RVP Development Reserve to ensure the successful delivery of the Full Scheme be approved and the management of receipts and payments through the reserve be delegated to the s151 Officer in consultation with the Portfolio Holder for Finance and Property; and

c.      Ta budget of £400,000 to commence and procure Stage 1 of the Design and Build contract for the Full Scheme be approved.

1. That:

a.      the  procurement of a 2-stage Design and Build contract (in accordance with the Procurement Act 2023, the Council’s Contract Procedural Rules and advice from the Procurement and Legal Teams) be approved and all related and necessary steps be delegated to the Head of Economic Development and Property and the s151 Officer, in consultation with the Cabinet Member for Finance and Property and the Cabinet Member for Economic Development to take all steps necessary or incidental to progress the Palm Court scheme and the Full Scheme through Stage 1 of Design and Build process.

b.      the preferred contractor (and all sub-contractors) be awarded and entered into contract with at Stage 2 Design & Build and the development of the Palm Court scheme be progressed to completion and  all related necessary steps be delegated to the Head of Economic Development and Property and s151 Officer, in consultation with the Cabinet Member for Finance and Property and Cabinet Member for Economic Development.

c.      the inclusion of the Ely Court scheme as part of the Full Scheme within the Stage 1 procurement process (to preserve the Council’s position) be approved, provided that the Ely Court scheme will only proceed to delivery as part of the Full Scheme if endorsed by Full Council following a further report in April 2027 or at a later date as may be required.

1. That the Head of Economic Development and Property, and s151 Officer, in consultation with the Cabinet Members for Economic Development and Finance and Property be given Delegated authority to:

a.      submit further planning applications and amendments and approve and implement such surveys, investigations, enabling works, pre-construction activities to ensure the Palm Court scheme and where applicable, the Full Scheme is delivered.

b.      progress early access arrangements, stopping up orders, neighbourly and other planning and property matters and take such other actions as required to progress the Palm Court scheme and enable the Full Scheme.

c.      submit details to discharge the conditions of all planning matters and conditions and comply with statutory requirements.

d.      market, negotiate and complete necessary legal transactions and documentation to enable delivery of the Palm Court scheme including but not limited to agreements for lease, pre-lets, lettings and other arrangements with prospective occupiers.

e.      approve design development, contract variations and associated decisions necessary to deliver the Palm Court scheme and the Full Scheme provided that these remain within the approved budget and do not significantly alter the scope of the business case approved by Full Council.

f.        take such management, operational and commercial decisions as are necessary to protect the Council’s interest as owner and landlord of the RVP centre during the pre-construction and construction phases.

1. That the Head of Legal services be given Delegated authority to complete all legal formalities as are necessary and incidental to the recommendations in this Report and that all necessary agreements deeds and documents arising from or ancillary or incidental to the delivery of the Palm Court scheme and the Full Scheme be negotiated ,executed and completed  or that such firm(s) be appointed as may be selected following a procurement exercise to act on behalf of the Council in respect of some or all such matters.
2. That the cross-party Investment Advisory Panel (IAP) will continue to be engaged as appropriate for delivery of the Palm Court scheme and the Full Scheme in accordance with its terms of reference be agreed, and that the RVP development will continue to be subject to good governance through regular reporting to and oversight by relevant Cabinet Members, the s151 officer and IAP be noted.
3. That:

a.      all consultancy fees identified in the report are spent at risk and that there will be abortive costs      the buildings are not developed.

b.      the economic benefits of the Palm Court scheme.

c.      that the full economic benefits identified as part of the RVP long leasehold acquisition strategy can only be delivered through the Full Scheme.

d.      the recommendation by Historic England and decision by Department for Digital, Culture, Media and Sport (DCMS) not to list 3-7 Camden Road.

e.      the Equality Impact Assessment.

f.        the project risks as identified in the risk register which will be regularly reviewed and updated
and any key risks will continue to be reported through the Council’s strategic risks. In addition,  there will be s151 Officer oversight, financial monitoring, IAP engagement, regular Cabinet Member updates and consultation, risk management and project governance arrangements.

    be noted by Full Council.

REASON FOR DECISION: 

The adopted Council Strategic Plan identifies the RVP development as a strategic project, by revitalising RVP to make it a better destination for shopping and leisure, this will support the Vibrant Economy strategic objective.