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Vision for Bournemouth step closer to reality
TWO major Bournemouth town centre developments are a step closer to starting, following a discussion about how they would be funded.
The schemes, which will see flats and shop units built at Leyton Mount and student accommodation built at Madeira Road, are part of the wide-ranging Bournemouth Town Centre Master Vision.
Both developments have planning permission and had attracted two different funding offers.
At a special cabinet meeting on Tuesday, councillors were told the Madeira Road scheme needed to start imminently, to ensure the student accommodation is ready for September 2014.
They decided to authorise council chief executive Tony Williams, along with other senior officers, to negotiate terms with the Arts University Bournemouth and with Prudential Retirement Income Limited (PRIL).
The Arts University Bournemouth will have a 25-year lease on the student halls of residence at Madeira Road, while a 150-year lease on this site will be granted to PRIL.
The council will pay an annual rent to PRIL for 26.5 years and will then have the option of buying back the lease and buildings for £1.
The Leyton Mount scheme is funded by the council contributing £1million land value and £1m cash, while Morgan Sindall Investments are contributing £750,000 pre-development costs and £1.25m cash. The government’s Get Britain Building Fund has also offered a loan of £4m. Cllr John Beesley, leader of the council, said afterwards: “Today’s cabinet marked a significant step towards agreeing the funding arrangements for the student accommodation in Madeira Road and a mixed use residential and commercial development.
“We have received two strong funding offers and council officers will now negotiate the most beneficial proposal for delivering the project.
“These funding offers are very encouraging given the current economic climate, and demonstrate a confidence in our approach to town centre regeneration.”