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The Big Debate Over: Loan Would Help Ensure Timely Completion So Anchor Store Stays'

The document discusses a proposal for Newport City Council to borrow up to £90 million to loan to developers to ensure that the Friars Walk shopping and leisure centre is built. It provides arguments for and against the proposal from two Newport businessmen, with one businessman arguing that the loan would help ensure timely completion of the project so that an anchor store remains committed to opening. It also includes other local news briefs on issues like illegal parking at a hospital and Christmas events.

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34 views

The Big Debate Over: Loan Would Help Ensure Timely Completion So Anchor Store Stays'

The document discusses a proposal for Newport City Council to borrow up to £90 million to loan to developers to ensure that the Friars Walk shopping and leisure centre is built. It provides arguments for and against the proposal from two Newport businessmen, with one businessman arguing that the loan would help ensure timely completion of the project so that an anchor store remains committed to opening. It also includes other local news briefs on issues like illegal parking at a hospital and Christmas events.

Uploaded by

api-120443862
Copyright
© Attribution Non-Commercial (BY-NC)
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southwalesargus.co.uk

Monday, November 25, 2013

NEWS IN BRIEF
Parking at hospital warning for drivers
ABERGAVENNY Neighbourhood Team are tackling illegal parking outside Nevill Hall Hospital. There are double white lines in the centre of the road and when people park on the pavement or close to the junction on Brecon Road they are causing other drivers to cross the double white lines. This illegal parking also causes obstructions for ambulances trying to quickly drive into or out of the hospital. Last week officers gave out 17 fines to drivers causing a hazard.

The big debate over


Tomorrow Newport councillors will make one of the biggest decisions in the citys history as they vote on a plan to borrow up to 90 million and then loan it to developers to ensure the Friars Walk shopping and leisure centre is built. Here the council explains the background to the proposal while two Newport businessmen tell us why they are for and against the plan

Statement by Newport City Council


THE proposal for Newport City Council to obtain finance to build the Friars Walk shopping scheme is subject to a full council meeting on Tuesday, November 26. It is based on a publicly available report which outlines the material facts in relation to the proposal and is available for all to read on the councils website. The meeting tomorrow will be attended by the elected representatives of the people of Newport who will consider and vote on this topic, and it would be inappropriate for the council to comment in advance of this meeting and the decision of its members. Residents who have a view on the building of a new shopping centre for Newport can discuss this issue with their ward councillors in advance of the meeting, and members of the public are welcome to attend and listen to the democratic debate in the council chamber on the day .

Christmas festival

A CHRISTMAS festival will be held in Pill, Newport. The festival, run by local residents and Pill carnival committee, will include Christmas stalls, a toy drop for St Davids Foundation Hospice Care and a Christmas carol service from local school pupils and the Royal British Legion. The festival will be held on December 7, starting at noon.

Help with recycling

A NEW website is challenging children in Caerphilly county borough to care for the environment by becoming Recycling Rangers. Caerphilly councils new Kids Go Green website encourages children to improve the world around them by making less waste and helping others to learn to reduce, reuse and recycle. Visit your. caerphilly.gov.uk/kidsgogreen for information.

FRIARS WALK: How the proposed development would look from Kingsway

Rubbish for holiday

BLAENAU Gwent council is reminding residents that over the Christmas period refuse and recycling collections may change. On Wednesday December 25, Christmas Day, waste collection has been moved to Friday December 27.

Loan would help ensure timely completion so anchor store stays


For the proposal Robert Twigg, commercial property partner at Everett Tomlin Lloyd & Pratt Solicitors.
THE success of the Friars Walk development is seen as being a key part of the future of Newport city centre, and it is therefore crucial that the scheme is not only completed, but also completed on time. As has been reported, the Friars Walk development is now 40 per cent pre-let, with deals having been done with Debenhams, Cineworld, Next, Top Shop, Nandos, Cosmos, Frankie & Bennys Prezzo and Chiquittos. However, in order for the agreement with Debenhams to proceed, the development must be completed within a timescale which would enable the new store to open in November 2015 or, failing that, March 2016. If that does not happen it is likely that the developer will become liable for penalties and/or that Debenhams will become entitled to pull out of the deal altogether. Assuming that the other pre-lets are conditional on Debenhams completing its lease, if Debenhams does pull out, it is likely that the other prospective tenants will do likewise. It is therefore vital that Queensberry secures the necessary funding to commence and complete the development as soon as possible. By providing Queensberry with the necessary funding, Newport City Council will help to ensure that the development is completed on time and that any prospective tenants who have signed up conditionally will complete their leases and open their stores, restaurants and cinema. In addition, the certainty that the development will actually happen, which the councils funding will provide, should also encourage other potential tenants to sign up to the scheme. Even if Queensberry were to obtain private funding it is likely that Newport City Council would be required to guarantee the developers obligations FOR: Robert Twigg under the private funding arrangements. to provide funding direct to QueensAlthough there are certain risks inberry, the obligations under any herent in the council borrowing money guarantee which the council would be required to give to a private funder would not be without risks either. By lending the money itself, however, the council will be able to retain some control by taking appropriate security providing the same rights to step in and complete the development, should Queensberry default, that any private funder would have insisted on having. Under the development agreement with Queensberry, the council is entitled to a profit share which, in the event of the scheme being sold or re-financed, would give the council a share of any surplus profit after repayment of the development expenses. The loan will help to ensure the timely completion of the development and hopefully avoid any surplus profit being eaten into by penalties for late completion. Yes, Newport City Council will itself have to borrow the money which it wishes to lend to Queensberry and it will have to pay interest on the money borrowed. However, it is to be hoped that the council will be able to borrow the money at a lower rate of interest than that which it will charge on the loan to Queensberry. The resultant surplus interest will, in addition to any surplus profit mentioned above, go back into the public purse.

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