Report to Portfolio Holder
Cllr R Jayawardena, Deputy Leader and
Cabinet Member for Strategy
Subject:
Top of the Town Markets
Status:
Routine Matter for Decision
Report Ref:
Ward(s):
Eastrop
Key Decision:
No
Key Decision Ref:
Report of:
Chas Bradfield, Town Centre Project Manager
Mike Bovis, Property Services Manager
Contact:
Email: chas.bradfield@basingstoke.gov.uk
Phone: 01256 845171
1. Market specification principles
Appendices:
The following Appendices are Confidential and not for
publication by virtue of paragraph 3 of Schedule 12A of
Local Government Act 1972
2. Confidential Commercial Financial Matters
Papers relied on to
produce this report
Basingstoke & Deane Borough Council Market Place –
Market Regulations 2013-14
SUMMARY
1
This Report
1.1
The report sets out proposals to develop a stronger market offer in Top of the
Town.
2
Recommendation
It is recommended that:
2.1
A licence is negotiated with Hampshire Farmers’ Markets to operate on the
last Saturday of the month with the detailed arrangements to be agreed by the
Town Centre Project Manager with the support of the Property Services
Manager.
2.2
Procurement for a market operator is undertaken by the Town Centre Project
Manager with the support of the Property Services Manager. The aim would
be to have a new market operator responsible for all markets in the town,
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except the monthly farmers’ market, operating by summer 2014. The market
specification principles to be applied are detailed in Appendix 1.
PRIORITIES, IMPACTS AND RISKS
Contribution to Council Priorities
This report accords with the council’s Budget and Policy Framework and directly
supports the Council Plan priorities of improving economic vitality, increasing skills
and employment, creating neighbourhoods where people feel safe and want to live,
maintaining a reputation for quality arts and leisure, supporting active health and
involved opportunities.
MAIN CONSIDERATIONS
3
The Proposal
3.1
On 21 May 2013, Cabinet approved the council’s first two year rolling Action
Plan to implement the Basingstoke Town Centre Programme.
3.2
The Programme Action Plan action point 17 says the council “will consider
how to revitalise the market by understanding what is needed to ensure a high
quality market in Basingstoke thrives in the future. If appropriate, we will act to
deliver improvements to market provision in Basingstoke by summer 2014.”
3.3
The work on the Top of the Town, Basingstoke Concept Masterplan – a vision
for the future (consultation draft) has identified that developing a strong
market offer is an important component to the regeneration of Top of the
Town. It recommends an objective “To introduce specialist markets in Top of
the Town”.
3.4
Informal discussions with market operators have indicated that there is
commercial interest in operating a larger general and / or specialist market
based in Market Place, and extending to London Street, Winchester Street
and potentially Wote Street with the right type of stalls. With this type of
arrangement there is the potential for up to 50 stalls depending on size and
configuration.
3.5
It is proposed that the council procure a market operator to develop and
deliver thriving, successful and attractive markets in Basingstoke, based in
Top of the Town. The principles to be applied to this procurement are outlined
in Appendix 1 and the operation would be controlled by a licence from the
council. Such a licence will be negotiated with the successful operator, and is
likely to be for a period of several years to enable the market to grow over
time.
3.6
Hampshire Farmers’ Markets (HFM) are very keen to start a regular farmers’
market on the last Saturday of each month. They are a not for profit
organisation, and have developed a strong following in the Hampshire area
since they were last operating in Basingstoke.
3.7
When HFM last operated in Basingstoke it was on a Sunday, and in the end
the market was not as commercially successful as required and closed. A
Saturday is a stronger trading day in the town and HFM have availability on
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the last Saturday of the month for a regular market in Basingstoke. This will
also have the effect of bringing new footfall to Top of the Town and supporting
other businesses in that area which will be operating on a Saturday, but not
generally open on a Sunday.
3.8
It is proposed that a licence is negotiated with HFM to operate in Top of the
Town on the last Saturday each month. The operator would take full
responsibility for the operation of the market and the start date is to be
agreed, subject to the progress of the works to Market Place being carried out
by the County Council’s contractor.
3.9
It will be important that the council and local business community support the
new markets, in particular with regular and consistent publicity, to give the
greatest opportunity for increased attraction of shoppers to the area.
4
Options Analysis
4.1.1
Do nothing. The current market may or may not continue if nothing is
done, but it is not a strong market and does not act as an attraction to the
area. Stalls are of variable quality, and it is not a specialist market.
4.1.2
Engage a specialist market operator. The council is not a market
operator with expertise in running successful markets. In order to
implement the Top of the Town Concept Masterplan objectives,
professional market operators will be needed. The council would act as a
client, and the market be operated under licence.
4.1.3
Remove the market and turn Market Place into external seating for
food and drink, and an occasional events space. This is a viable
alternative to a market however it would not have the attraction and “buzz”
that a great market would produce. It could also be achieved on non-market
days with innovative management, and this is an option that will be
explored.
5
Corporate Implications
5.1
Financial Implications
5.1.1
The estimated net cost of operating the bi-weekly market during 2014/15 is
£11,000. This assumes that the current service provision and occupation
levels continue.
5.1.2
The operating costs associated with operation of the market comprise
mainly of business rates for the site (£2,500); market supervision fees
(£5,100); the waste collection contract (£3,300) and the cost of council staff
involved in managing the service (£14,400). It should be noted that the total
operating costs have been reduced by just under £10,000 in the last few
years. This is mainly due to lower waste collection and market supervision
costs. However, the income received by the council from market stalls has
remained at just under £20,000 per year.
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5.1.3
In addition to the above, the council forgoes car parking income of
approximately £10,500 per annum whilst car parking spaces are provided
free of charge to market traders. Currently 16 spaces at £6.30 per space
are provided in Castons Yard Long Stay. The council could therefore
receive additional income if the car parking spaces were either filled by a
paying occupant or the market traders were charged for their car parking.
5.1.4
Further financial implications are provided in confidential appendix 2 as it is
important that certain information remains commercially confidential at this
time to enable effective and satisfactory negotiation of the terms of any
licences.
5.2
Risk Issues
5.2.1
Control over the style and quality of the market needs to be exercised, and
this can be done through a licence.
5.2.2
Currently there is a reputational risk for the town as the current market is
weak with an offer that does not fit with the Top of the Town Concept
Masterplan.
5.2.3
There is a likelihood that existing market traders will be displaced by
specialist markets trading on a Wednesday and Saturday, unless they are
able to adapt and become part of that specialist market offer. This may
result in unfavourable publicity and reaction from those traders and their
customers. There are currently seven regular Saturday traders, although
not all have been operating from the temporary location during the Market
Place works.
5.3
HR Issues
None
5.4
5.4.1
5.5
Equalities
An Equalities Impact Assessment has been considered and no specific
differential impacts identified
Legal Implications
5.5.1
There has been a market in Market Place opposite the Willis Museum since
1622, originally known as the Charter Market. It is now a statutory market
governed by the provisions in Part III of the Food Act 1984. The Act
enables regulation by the local authority in respect of place, stallholders,
operation and charges. There is no legal requirement on the council to
retain the Market into the future.
5.5.2
Under the council’s Market Place – Market Regulations 2013-14 all market
lettings are on a daily basis and there is no requirement on the council to
give any notice to existing traders of changes to market lettings.
5.5.3
It is recommended that to ensure suitable operators, market layout,
management, control and financial arrangements the market is operated
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under a licence with an operator, the operator taking on the responsibility of
dealing with the traders direct. The terms of such licence are to be
negotiated with each licensee.
5.6
5.6.1
Any Other Implications
None
6
Communication and Consultation
6.1
Through the work with stakeholders on the Basingstoke Town Centre Forum
on the development of the Top of the Town Concept Masterplan there is
strong support for thriving specialist markets in Top of the Town.
6.2
Existing market traders were informed by letter dated 5 February of the HFM
proposal, as well as the possibility of further changes in the management of
the general market. Since that letter various discussions have been held both
over the telephone and face to face to understand their views on the
proposals.
6.3
In summary the feedback from existing market traders demonstrates they are
very unhappy with a change in market style and operator if that is likely to
remove them from trading in their current location in Market Place. Saturday,
in particular the last Saturday of the month, is considered a strong trading day
and they would feel aggrieved losing that trading day to other market
operators as that would be a significant loss of income to them. Whilst they
support the improvement to the market and making it a much stronger market,
they are not in favour of HFM operating on a Saturday if that means their
exclusion from trading in the same location.
6.4
Existing market traders have subsequently had a copy of this report and a
further letter explaining the decision making process and inviting any further
comments.
6.5
Throughout the procurement of a specialist market operator it will be important
to keep current traders updated of the process, and to consult them at
appropriate times.
6.6
The council would assist new market operators by publicity through the
council’s current marketing channels.
7
Conclusion
7.1
A step-change in market provision in Top of the Town is achievable with the
active support of the council.
7.2
This change is one of the key objectives of the Top of the Town Concept
Masterplan.
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APPENDIX 1
Top of the Town Market, Basingstoke
Market Operator Specification – Outline Principles
1.
1.1
Desired Offer:
Compelling “destination” market type offer – e.g. Food Market; Vintage Market;
Art and Craft Market – the type of style that lends itself to a strong brand and is
attractive to the catchment population, and gives the best opportunity of strong
marketing and promotion; commercially viable and successful
2.
2.1
2.2
Regularity:
Weekly market on one weekday and Saturday minimum
Flexible to fit with a once a month farmer’s market supplied by a separate
operator
3.
3.1
3.2
3.3
Size:
Dependant on the offer and flexible;
Capacity in Market Place for 18 stalls approx.
Capacity in Winchester Street and London Street for additional stalls,
depending on size up to 20 approx.
Potential, with stall adaptions, for use of Wote Street and Church Street.
3.4
4.
4.1
4.2
4.3
4.4
4.5
4.6
5.
5.1
5.2
6.
6.1
Market management:
Market to be comprehensively managed by the market operator to agreed
service specification under licence from the council.
Operator fully manages market including engaging, charging and managing
stall holders. Council role is of a commissioner and supervisory client only.
Licence agreement subject to negotiation but to recognise that building up a
thriving market offer may take several years. Likely period 1-3 years.
Market operator makes arrangements to dispose of waste leaving site clean
and tidy after the market
Operator liaises with current market stall holders regarding integration into new
market arrangement
Operator complies with all legal responsibilities and indemnifies the council in
terms of public liability to an appropriate level commensurate with risk
Financial arrangement:
Operator pays a fee to the council as part of licence; fee level subject to
negotiation; may initially be minimal to enable a thriving sustainable market to
be developed.
Principle is to at least fully cover any council costs once market is fully
established.
Location:
Market Place, London Street, Winchester Street, Wote Street, Church Street
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7.
7.1
7.2
7.3
8.
8.1
8.2
8.3
Approvals required:
Landowners – Basingstoke & Deane Borough Council; Hampshire County
Council
Highways authority
Fire authority
Support from the Council:
Marketing publicity through current channels – website; Facebook; Twitter;
media release; Town Centre Forum.
Parking for traders through limited number of permits
Electricity via Market Place supply at cost
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