Plans for a new cinema in Lichfield could move a step closer next week as council chiefs debate funding the project.
The former Debenhams store has been earmarked to be converted into the new facility as part of a scheme which would also include the creation of new food and beverage outlets.
A meeting of Lichfield District Council’s cabinet next week will discuss plans to commit millions of pounds to enable the project to progress.
The proposals would see the local authority enter into joint venture agreement with Evolve Estates which owns the Three Spires Shopping Centre.
The agreement will see both parties fund the refurbishment of the store to create a multi-screen cinema and five or six food and drink units.
A report to the meeting said a “well-known, small but high-quality” cinema operator had been identified to run what would be a five-screen facility.
“The operator will enter a 25-year lease for the cinema space and fund 50% of the cost of refitting that space to create the multi-screen offering a mixture of small – up to 48 seats – and large – up to 120 seats – screens.
“Evolve Estates purchased the Three Spires Shopping Centre earlier this year with an ambition to ensure the shopping centre remains a viable and thriving part of the district economy.
“It is essential to the success of Three Spires that the council’s regeneration ambitions are brought to life – this very clearly matches with the council’s ambition for the area.
“Evolve also bring key skills to the table, as a partner, which the council would otherwise have to procure separately. They have delivered several similar schemes in the past, have a solid understanding of the cinema and food and beverage markets, and are able to apply strong commercial nous to the arrangements with potential commercial leases.”
Report to Lichfield District Council’s cabinet
Cabinet will be asked to agree a number of financial commitments to the new cinema scheme, including a budget for the joint venture loan advance of £5,349,000.
Part of the funding for the project will also come from the sale of Venture House which has previously been a community training centre.
Members will also be asked to authorise a budget of £1,070,000 to allow “enabling works” to begin across the Birmingham Road Site.
The report added that the cinema development would be a key component of the wider proposals for the area, which had previously been earmarked for the failed Friarsgate scheme.
“This opportunity has arisen principally because of the change of ownership of the Three Spires Shopping Centre and early engagement with the new owners over theirs and the council’s ambition for the city centre.
“Engagement led to a conversation about the old Debenhams store, and the difficulty in letting the store as a single unit, alongside our desire to enable a cinema.
“We agreed to investigate the potential to jointly invest in converting the retail unit into a cinema, through shared ownership of the entity that would bring it forward.
“This option learns lessons from the previous attempts to regenerate this site where the council has sought a single developer, capable of delivering all elements of the regeneration – albeit with a balance which favours achieving maximum return on their investment over the place shaping ambitions of the council.
“Our preferred approach now is to bring forward regeneration of the site in zones, with potentially multiple developers rather than one.
“For this proposal, in this first zone of activity, the council in partnership with Evolve Estates becomes the developer.
“Evolve Estates is an organisation we have identified which has shared objectives and common aims – to help ensure a vibrant city and increased footfall which will benefit the rest of the city.”
Report to Lichfield District Council’s cabinet
The meeting of Lichfield District Council’s cabinet will take place on Tuesday (11th October).
