Construction work

Tender description

The Council will enter a Conditional Land Acquisition Agreement (CLAA) with the trustee and nominee of Standard Life Investments UK Shopping Centre Trust (SLI). Its objective is regeneration of the Brighton seafront by development of a conference and entertainment venue on the Black Rock Site owned by the Council, and any other required land (Eastern Site), and sale of the Brighton Centre by the Council to SLI, with a view to retail led redevelopment of that site and adjacent SLI owned sites (Central Site). Under the CLAA SLI must undertake pre-construction and development management services, initially at its own cost, with partial reimbursement in some circumstances. If certain conditions (including development strategies and planning permissions for both Sites, and viability and funding conditions) are satisfied, the Council will sell the freehold of the Brighton Centre to SLI at a price fixed by valuation. Although the CLAA is not a works or services contract or concession, it has been described above under "Type of contract" (II.1.3) above as being for works, in accordance with the main objects of the CLAA, and the stated CPV codes reflect the nature of the activities which SLI may in fact undertake. The value stated above represents the maximum value estimated by the Council of the arrangements, in terms of the gross turnover that may be achieved by SLI. It therefore takes account both of what gross income might be achieved by disposing of the developed Central Site to third parties, and of the maximum sum which the Council might reimburse to SLI in respect of the provision of services (the later being an amount of 8 000 000 GBP).