Council chiefs say they are approaching the final hurdle when it comes to a new cinema development in Lichfield.
A meeting of Lichfield District Council next week will decide whether to agree a buy-out clause for the new multi-screen facility in the former Debenhams building.
The development is taking place as part of a partnership between the local authority and Evolve Estates which owns the site.
If approved it will see the council agree to buy out their partners for between £3.5million and £3.9million within two years.
A meeting of the cabinet this week saw Cllr Janice Silvester-Hall ask for assurances that the wait for a cinema would soon be over if the deal was approved. She said:
“It has been a long time coming and I think having some assurances this is the final hurdle would be good as I do think this is about place-shaping.
“This council isn’t an investment bank – we are here for residents and the sooner we get this underway the better.
Cllr Janice Silvester-Hall, Lichfield District Council
Cllr Andy Smith, deputy leader and cabinet member for leisure, parks and major projects, said things were nearing completion.
“On the final hurdle, I’ve been reassured that we are very confident now – I understand that if council are willing to support this next week we are ready to go with contracts.”
Cllr Andy Smith, Lichfield District Council
“They want this to be a success”
The council has already approved a £5.7million investment in the partnership, with Evolve Estates matching that figure with cash and the building itself.
As part of the agreement, the building would not need to be purchased with the owners of the Three Spires shopping centre seeking only a financial return and the costs of the development.
Despite not wanting to be longer term partners in the cinema, Cllr Smith said Evolve Estates remained committed to the city.
“The cinema will really have a big positive place-shaping effect on our city and the wider district. It will make a big difference to the night-time economy and it will boost that shopping centre.
“Anyone who’s been recently will see that since Evolve Estates have been involved there’s hardly any empty units. It’s looking really good and they’ve made a positive contribution.
“Essentially, after two years from the opening of the development Evolve are wanting to get out of the cinema. They are a commercial investment operator and are about numbers and double digit investment returns. We want that too, but we want to shape the place as well.
“Evolve will remain involved in Three Spires as the owner of retail units. They’re a commercial partner with a different driver and we knew this when we agreed to create the partnership.
“The relationship has allowed for the introduction of expertise and for them to make this project happen for us, which we would struggle to deliver ourselves.
“Our imperative is to bring forward the long-awaited place-shaping that everyone has been waiting for us to do.
“Let’s remember that Evolve own that shopping centre so they absolutely want us to make a success of this venture – they’ve had other options for that site but they want this to be a success.”
Cllr Andy Smith, Lichfield District Council
The deal will also allow the council not to buy Evolve Estates out of the partnership, but they would need to meet any shortfall from the agreed purchase price and any figure achieved if the company sold their share in the cinema on the open market.
A decision will be made on whether to agree to the new buyout clause at a meeting of Lichfield District Council on 12th December.
