The Forum, King's Quarter, Gloucester

Description

The Council, RG17 Limited and Reef Estates Limited consider their arrangement to be a joint endeavour to work together to revitalise an area of the City Centre. An element of the arrangements includes an obligation on RG17Limited / Reef Estates Limited to lease the proposed incubator office space for 5 years and further to provide a guarantee to the Council in relation to rental income from the proposed hotel. In order to be transparent the Council has listed the total value at £94,000,000 (Indexed) – some 86% of that value will be subject to public procurement. OJEU procurement or Frameworks (for Phase 1) and after 31st December 2020 under the UK's 'Find a Tender Procedure' or existing OJEU Frameworks which the Council has access to. The development will be delivered in two Phases. Phase 1 is a site in Market Parade Gloucester City Centre and has a value of approximately £8 million (Indexed).This will deliver retail and residential space. Phase 2 will be centred at the Forum, King's Quarter site Gloucester City Centre and has a value of approximately £86 million (indexed). This phase will deliver office, hotel and leisure space, together with a multi-storey car park. Phase 2 will be subject to a viability test which may result in changes to the uses and size of buildings delivered or even that Phase 2 does not proceed. The medium and long term economic impact of Covid19 on urban spaces is still uncertain. The parties may enter into ancillary agreements with each other and/or with those third parties which they procure to provide development services/works. The parties also contemplate entering into lease and guarantee agreements with each other in order to give effect to RG17 Limited/Reef Estates Limited's commitment to lease the proposed incubator office space and provide a guarantee to the Council in relation to rental income from the proposed hotel. RG17 Limited and Reef Estates Limited are part of the same group of companies and it is possible (though not expected) that another of their group companies could be involved in these arrangements. As part of the arrangements RG17 Limited/Reef Estates Limited will also provide general management and maintenance services for a period of 5 years.