Acquisition of land and associated construction works relating to proposed Becketwell Venue, Colyear Street, Derby

Tender description

Derby City Council ("the Council") has entered into contractual arrangements with SJS (4) Limited and St James Securities Group for the development of a performance venue. The Council has entered into two principal agreements with SJS(4) Limited: (1) A land sale agreement under which the Council will purchase land from SJS(4) Limited for a value of GBP 561,495 which is to be the main part of the site of the performance venue after SJS has satisfied conditions requiring SJS(4) Limited to secure planning permission for the development of the venue following approval of plans by the Council, achieve vacant possession, obtain relevant indemnity insurances and identify a tenant for the venue. (2) A forward funding agreement under which the Council will provide GBP 45,238,505 funding for SJS(4) Limited to carry out demolition and construction at the site and St James Securities Group will act as Guarantor for the obligations of SJS(4) Limited. Lot 1: The Council intends to acquire a venue which will be suitable to lease to an operating partner for the delivery of performance events with a capacity of approximately 3,500 and a guaranteed annual revenue stream. This will form part of the regeneration of the Becketwell area of Derby. The Council has entered into agreements with SJS(4) Limited under which the Council will acquire land from SJS(4) Limited and the Council and SJS(4) Limited will acquire third party land. SJS(4) Limited will carry out demolition and construction work on the land. The Council has entered into two principal agreements with SJS(4) Limited: (1) A land sale agreement under which the Council will purchase land from SJS(4) Limited for a value of GBP 561,495 which is to be the main part of the site of the performance venue after SJS has satisfied conditions requiring SJS(4) Limited to secure planning permission for the development of the venue following approval of plans by the Council, achieve vacant possession, obtain relevant indemnity insurances and identify a tenant for the venue. (2) A forward funding agreement under which the Council will provide GBP 45,238,505 funding for SJS(4) Limited to carry out demolition and construction at the site and St James Securities Group will act as Guarantor for the obligations of SJS(4) Limited. The negotiated procedure without prior publication has been used and is justified under Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015 for the award of a public works contract for the development of a performance venue. The site to be acquired by the Council meets the Council's requirements from a performance venue and there are no reasonable alternative or substitute development sites. The works can only be carried out by a particular economic operator because of its exclusive rights as landowner of most of the land within the development site.