Councillors have approved an investment of £1.7million to attract a new food and drink business to Lichfield city centre.
The Botanist has been lined up to be part of the development of a cinema in the former Debenhams unit.
Everyman Cinemas has already agreed a 25-year lease on the site which is being created as part of a joint venture with Evolve Estates, owner of the Three Spires shopping centre.
The development also includes the creation of a number of food and drink outlets and the local authority has been keen to secure an anchor tenant.
Cllr Andy Smith, deputy leader and cabinet member for leisure, parks and major projects, told a meeting of Lichfield District Council this evening that the agreement with The Botanist was the “best option” available.
“There has been a lot of talk about the risk of spending £1.7million, but we are not spending – this is an investment our council is making.
“We invest in councils, banks, shares and other avenues to bring in revenue. So we are simply moving £1.7million out of that into another investment.
“Evolve Estates are the experts and that’s why we’ve gone into partnership with them. What we are seeing with The Botanist is the best option available.
“All larger national firms expect the landlord to put capital expenditure in to fit out while they commit to a base rent for a number of years.
“I’m satisfied that The Botanist has committed to a lease and in that period the £1.7million will be paid back – that really de-risks things for for me.”
Cllr Andy Smith
But concerns were raised by the Liberal Democrats who said alternative options should be explored before any deal was signed.
Cllr Paul Ray said:
“We’ve agreed to put into the cinema £5.3million initially, then £3.5million for the buyout clause and now we’re being asked £1.7million. That is £10.5million in one project.
“We support the cinema and it will be good for our district, but I have concerns.
“It is a lot of public money. In this chamber we have talked about setting up a housing firm to build affordable homes ourselves, we’ve talked about investing in Burntwood and villages, and when we do the Birmingham Road Site we we want high quality public realm space – this money could be used for any of those.
“I have concerns about a lack of a proper review of the options. Our joint venture partner has put one option to the council and that involves £1.7million. There is no other really detailed, proper analysis of other alternatives.
“We have a duty to residents to properly analyse other options. Everyman has eight preferred food and beverage outlets and the one in front of us is just one of those.
“As a public body that is not enough proper analysis.”
Cllr Paul Ray
But Labour opposition group leader Cllr Sue Woodward said she had been reassured of the benefits of the £1.7million investment.
“The feedback I’ve from other colleagues across the country is that Lichfield is very, very lucky to attract an organisation like The Botanist to the city and for a relatively small city to have a national brand as part of our economic regeneration.
“We’ve got the confidence of the income and the return on investment which is very reassuring.
“I’m ambitious for this district and our residents – let’s show some ambition and get behind this.”
Cllr Sue Woodward
