Agenda item

Recommendations

That the Executive:

       i.         Note the report and the new HSRA powers that the Council can utilise.

     ii.         Grant consent to begin community engagement relating to the designation of a High Street Rental Auction (HSRA) area in Scarborough.

    iii.         Delegate powers to designate the final HSRA area and delegate powers to implement individual rental auctions to the Corporate Director for Community Development; and that

    iv.         Continual evaluation to be undertaken during the Scarborough pilot to assess the outcomes, impacts and resource implications. Authorisation to extend application of the powers to be delegated to the Corporate Director for Community Development in consultation with the Executive Member for Open to Business.

Considered a report by the Corporate Director Community Development in respect of a proposed new High Street Rental Auction Pilot in Scarborough which aimed to work proactively with property owners to bring empty units back into commercial use and stimulate footfall in the area.

Introducing the report, the Executive Member for Open to Business, Councillor Mark Crane explained that Scarborough had been selected due to the significant number of long-term empty properties. Using this new legislation, the Council’s intention was to engage with landlords to encourage re-occupation, using a ‘carrot and stick’ approach. The new power for local authorities required landlords to rent out persistently vacant commercial properties to new tenants such as local businesses or community groups through an auction following a preliminary ten week notice period; however, early adopter councils had demonstrated that dialogue with councils was enough to effect change without recourse to further action.

Local division member, Councillor Liz Colling addressed the meeting asking to what extent the scheme depended on Pride in Place funding, as decisions on that funding were expected on 27 March and also whether the Council would fund improvements to premises to make them lettable and, if so, how such expenditure would be recovered.

In response, Councillor Colling was advised that while Pride in Place funding would be beneficial, alternative Council funding could be explored if necessary. Any investment in private property would be secured through a lien so that funds could be recouped upon sale. Further clarification was provided that the Council was seeking new burdens funding for operational elements of the scheme, while Pride in Place funding would act as the incentive for landlords.

Members of the Executive then commented on the report. Concerns were raised about the poor condition of some buildings and longstanding issues with particular landlords holding onto assets. Members urged caution about taking on liabilities and expressed preferences for encouraging a diverse range of tenants rather than an over-concentration of vape shops, charity shops, and betting outlets. It was noted that the intention was for agreements to remain between landlords and tenants, with the Council facilitating the process rather than taking ownership. Members also questioned the absence of involvement from the regional Mayor, who held responsibilities for economic development across York and North Yorkshire.

Resolved that the Executive

       i.         Note the report and the new HSRA powers that the Council can utilise.

     ii.         Grant consent to begin community engagement relating to the designation of a High Street Rental Auction (HSRA) area in Scarborough.

    iii.         Delegate powers to designate the final HSRA area and to delegate powers to implement individual rental auctions to the Corporate Director Community Development

    iv.         Approve that continual evaluation to be undertaken during the Scarborough pilot to assess the outcomes, impacts and resource implications. Authorisation to extend application of the powers to be delegated to the Corporate Director for Community Development in consultation with the Executive Member for Open to Business.

Reasons

To address a long-standing regeneration issue in an area with the highest vacancy rate amongst our urban centres that has been consistently raised from numerous quarters as a priority need for Scarborough.

Use of new HSRA powers are recommended given the limitations of existing powers and initiatives to effect significant improvements.