Agenda item

(i)                 Report by Chief Executive

(ii)               Decision of Finance and Resources Committee and Report by Director of Enterprise, Planning and Infrastructure

(A)       In terms of Standing Order 10(2), the Council received a deputation from Mr Tommy Campbell, UNITE, Ms Karen Davidson, Unison, and Mr Mike Middleton, GMB.

 

Mr Campbell urged the Council to be realistic and reject the TIF Business Case as he felt there was insufficient evidence to demonstrate that additional business rates would be generated to finance the project. Ms Davidson echoed Mr Campbell’s remarks and cited the recent increased cost of borrowing in relation to the 3Rs Project as a risk that would also apply to the City Garden Project. Mr Middleton emphasised that if the project failed the risk would lie with his members, i.e. Council staff, in terms of their future employment and the delivery of services, and this caused him deep concern.

 

Members asked questions of Mr Campbell, Ms Davidson and Mr Middleton and thanked them for their contribution.

 

(B)       The Council then received a deputation from Mr Craig Adams.

 

Mr Adams advised that he was the owner of a small business in the city centre and called on the Council to take no further action in relation to the City Garden Project. He referred to the economic report produced by Tony MacKay, which cast doubt on the robustness of the TIF Business Case, and questioned whether the project had been properly costed. Mr Adams advised that Union Square had cost £250million to build and had been a conventional construction, whereas the City Garden Project would be a highly complex construction.

 

Mr Adams emphasised that the city needed a solution that everybody could unite behind and urged the Council to explore other options.

 

Members asked questions of Mr Adams and thanked him for his contribution.

 

            (C)       The Council next received a deputation from Mr Leo Koot, Managing Director of TAQA Bratani Limited.

 

Mr Koot advised that he had arrived in Aberdeen twelve years ago to set up business and stayed in the Caledonian Hotel overlooking Union Terrace Gardens, which, at night, he felt resembled a dark and miserable unwelcoming hole in the heart of the city centre, which made him question whether he had made the right decision. The business had expanded rapidly, however he chose to base it in Westhill as Aberdeenshire Council had been very welcoming, whereas there was a perception that Aberdeen was not as welcoming towards new business.

 

Mr Koot stressed that Aberdeen needed the City Garden Project in order to expand and diversify from its reliance on oil and gas - the business case had been audited and the citizens had voted for the project, Aberdeen could and should deliver it.

 

Members asked questions of Mr Koot and thanked him for his contribution.

 

            (D)       The Council next received a deputation from Mr Denis Yule of Friends of Union Terrace Gardens.

 

Mr Yule urged members to reject the TIF Business Case as he felt there was a lack of evidence in terms of how it could be financed. Mr Yule highlighted that Union Terrace Gardens was Common Good land and questioned the legal implications therein. He emphasised that there was an enormous funding gap and drew comparisons with the Edinburgh trams fiasco, adding that the Council was effectively being asked to sign a blank cheque for the project.

 

Mr Yule called into question the objectivity of Aberdeen City Gardens Trust; underlined that the city needed greater ambition; stated that the City Garden Project had been a distraction to the Council - the Council should be leading the business community not the other way round; and asked for a truly visionary TIF Business Case to be developed.

 

Members asked questions of Mr Yule and thanked him for his contribution.

 

            (E)       The Council next received a deputation from Mr Iain Richardson of Common Good Aberdeen.

 

Mr Richardson pleaded with members to reject the TIF Business Case and instead regenerate Union Terrace Gardens. He highlighted the work of Common Good Aberdeen in relation to Union Terrace Gardens in terms of (1) the winter festival in December 2011 which had transformed the gardens into a winter wonderland; (2) plans for a community café which had recently been approved; and (3) a jubilee tea party to celebrate the Diamond Jubilee which had attracted approximately 3,500 visitors and raised thousands of pounds for charity.

 

Mr Richardson stated that these events had been organised on a shoestring budget, had been very successful and that similar events could be delivered on a regular basis if the City Garden Project was rejected and Union Terrace Gardens were simply revitalised.

 

Members asked questions of Mr Richardson and thanked him for his contribution.

 

            (F)       The Council next received a deputation from Mr Stewart Spence of the Marcliffe Hotel and Spa.

 

Mr Spence summarised his experience of the hotel and tourism industry in Aberdeen and Aberdeenshire, highlighting that there was a severe lack of things to see and do for tourists in Aberdeen, which made him focus his attentions on Aberdeenshire and further afield. He advised that the City Garden Project was a once in a lifetime opportunity which he was very excited about and called on members to support it.

 

Mr Spence added that with the recent development of the Trump International Golf Links in Aberdeenshire, Aberdeen now had its own golden opportunity which it needed to grasp in order to progress.

 

Members asked questions of Mr Spence and thanked him for his contribution.

 

            (G)       The Council next received a deputation from Mr Mike Bowyer representing the Aberdeen Institute of Directors.

 

Mr Bowyer stated that the Aberdeen business community had confirmed its support for the City Garden Project following a recent survey, and that the eyes of the country were on Aberdeen in terms of the Council’s decision today which would result in great reputational damage to the city if the project was rejected. He added that the local economy was cushioned by the oil and gas sector, and that the City Garden Project was an excellent opportunity to move in a different direction in terms of competing for inward investment with less reliance on the night time economy.

 

Mr Bowyer asked members to disregard political motivations and back the City Garden Project.

 

Members asked questions of Mr Bowyer and thanked him for his contribution.

 

            (H)       The Council next received a deputation from Mr Bill Duguid, a commercial property expert with Rydens in Aberdeen.

 

Mr Duguid stated that Aberdeen city centre was in decline, with Union Street in particular in need of regeneration. He had examined the TIF Business Case with a trained and impartial eye and concluded that the project was entirely reasonable and achievable based on his experience in commercial property, and that such a major redevelopment would act as a catalyst for further new development in the city centre and beyond.

 

Mr Duguid found it hard to believe that the Council was even contemplating rejecting the City Garden Project. He added that there were risks attached to the project however every project had risks, and questioned if any other cities would allow such an opportunity to pass them by.

 

Members asked questions of Mr Duguid and thanked him for his contribution.

 

            (I)         The Council next received a deputation from Mr John Bruce of Just Imagine.

 

Mr Bruce emphasised that the principle at stake was far greater than simply regeneration. In his opinion, a single issue referendum was the purist form of democracy - the referendum had, in the main, been demanded by the opponents of the City Garden Project and now the Labour Group was on the brink of usurping the sovereign will of the people of Aberdeen.

 

Mr Bruce added that the facts had not changed since the result of the referendum - to disregard its result would deal a massive blow to the spirit of democracy, and elected members should expect a silent shrug of the shoulders from the electorate from that point on. He concluded if the Council trusted the wisdom of the people, the people would trust the Council.

 

Members asked questions of Mr Bruce and thanked him for his contribution.

 

            (J)        The Council next received a deputation from Mr Dan McCroskrie.

 

Mr McCroskrie advised that 160 young people had signed a petition supporting the City Garden Project - it resonated with what young people wanted, they were fed up of the decline of Union Street and wanted a place to meet and gather that was not just a shopping centre or a pub. He added that the City Garden Project would encourage young people to stay in Aberdeen and would help to attract more young people to the city.

 

Mr McCroskrie stated that future generations would thank the Council if it made a brave decision today and backed the City Garden Project - saying no would signal that Aberdeen says no to creativity; saying yes would say yes to the future of Aberdeen - a brighter and better future.

 

Members asked questions of Mr McCroskrie and thanked him for his contribution.

 

            (K)       The Council next received a deputation from Professor Paul Harris, Chair of the City Garden Project Culture Working Group.

 

Professor Harris advised that he had been involved with the City Garden Project for 18 months since taking up a post at the city’s Gray’s School of Arts, and stated that Aberdeen was underperforming in cultural terms both in depth and diversity. He added that a major step change was needed and the City Garden Project was that step change in providing a truly unique experience for visitors to the city.

 

Professor Harris highlighted Aberdeen’s bid for UK City of Culture 2017 and emphasised that the city desperately needed significant investment in its cultural assets.

 

Members asked questions of Professor Harris and thanked him for his contribution.

 

            (L)       The Council next received a deputation from Mr Colin Crosby of Aberdeen City Gardens Trust.

 

Mr Crosby provided an overview of the status of Aberdeen City Gardens Trust, underlining that public benefit for the city was enshrined in the constitution and articles of association. He noted that there had been much talk of consultation - the business community had carried out its own consultation, however the biggest consultation of all, the referendum, had involved 86,000 people and the majority supported the City Garden Project.

 

Mr Crosby highlighted that 6,500 jobs would be created by the City Garden Project and an additional £115million would be injected into the local economy year on year, with the cost of borrowing paid for by business with no impact on Council services or the Council taxpayer. He concluded that the project was a win-win situation, and a no vote today would be a vote of no confidence in the city of Aberdeen.

 

Members asked questions of Mr Crosby and thanked him for his contribution.

 

The Council was advised that Ms Kirsty Moodie was not in attendance to make her deputation.

 

(M)       Members then asked a number of questions of officers, and of Mr Peter Reekie, Director of Finance and Structures of the Scottish Futures Trust, who was in attendance.

 

 

MATTER OF URGENCY

 

The Lord Provost intimated that he had directed in terms of Section 50(B)(4)(b) of the Local Government (Scotland) Act 1973, that the following item be considered as a matter of urgency to enable the matter to be resolved without further delay.

 

 

DECLARATIONS OF INTERESTS

 

Councillor Milne declared an interest in the following item of business in relation to the involvement of NHS Grampian in one of the projects contained within the TIF Business Case, by virtue of his employment with NHS Grampian, although his retirement was imminent. Councillor Milne did not consider it necessary to withdraw from the meeting.

 

Councillors Boulton, Donnelly, Kiddie and Jennifer Stewart declared interests having been appointed by the Council to the Board of Aberdeen Performing Arts but chose to remain in the meeting as Aberdeen Performing Arts was a body being a company as set out in paragraph 5.18(2)(i)(d) of the Councillors’ Code of Conduct.

 

 

            (N)       The Council had before it (1) a report by the Chief Executive seeking confirmation of whether it wished the decisions taken at its meeting of 25 January 2012 (Article 6 of the minute refers) in relation to the City Garden Project to be actioned; and (2) a report by the Director of Enterprise, Planning and Infrastructure which had been referred to it for consideration by the Finance and Resources Committee of 17 August 2012 (Article 2 of the minute refers), which advised of the current position with regard to the TIF Business Case, produced with the aim of securing investment in five city centre regeneration projects.

 

The report by the Chief Executive recommended:-

that the Council resolves either -

(i)                 that the decisions taken at the Council meeting of 25 January 2012 in relation to the City Garden Project are actioned; or

(ii)               that no further action be taken on the City Garden Project.

 

Councillor Boulton moved, seconded by Councillor Reynolds:-

            Council agrees -

(1)          that officers consult the Scottish Futures Trust on whether they would accept a revised TIF submission based on not proceeding with the current City Garden Project but including all of the below listed projects:-

·          a contribution to the Mither Kirk project

·          a contribution to the refurbishment of the Music Hall

·          a contribution to the refurbishment of the Arts Centre

·          a contribution to the redevelopment of the Lemon Tree

·          the regeneration of Union Street to complement the work being done by the Business Improvement District

·          a contribution to improve access and facilities at Union Terrace Gardens

·          continue with the other identified projects within the existing TIF submission for £22million; and

(2)          if this is not acceptable to then explore other funding sources and develop a business case around not proceeding with the current City Garden Project but all other aspects of the TIF submission but also to include the projects listed in (1) above.

 

Councillor McCaig moved as an amendment, seconded by Councillor Donnelly:-

            That the decisions taken at the Council meeting of 25 January 2012 in relation to the City Garden Project be actioned, and to instruct officers to explore options with the private sector to de-risk the Council’s position and report back to Council.

 

On a division, there voted:-

 

For the motion  (22)  -  Lord Provost; Depute Provost; and Councillors Allan, Boulton, Carle, Cooney, Crockett, Lesley Dunbar, Finlayson, Graham, Grant, Greig, Len Ironside CBE, Laing, Lawrence, Malik, Milne, Jean Morrison MBE, Nathan Morrison, Jennifer Stewart, Taylor and Young.

 

For the amendment  (20)  -  Councillors Blackman, Cameron, Corall, Cormie, Delaney, Dickson, Donnelly, Jackie Dunbar, Forsyth, Jaffrey, Kiddie, MacGregor, McCaig, Malone, May, Noble, Samarai, Sandy Stuart, Thomson and Townson.

 

Declined to vote  (1)  -  Councillor Yuill.

 

The Council resolved:-

to adopt the motion.

 

In terms of Standing Order 15(6), Councillors Blackman, Cameron, Corall, Cormie, Delaney, Dickson, Donnelly, Jackie Dunbar, Forsyth, Jaffrey, Kiddie, MacGregor, McCaig, Malone, May, Noble, Samarai, Sandy Stuart, Thomson and Townson intimated their dissent against the foregoing decision.