A progress report on plans to acquire the Hilton Hotel at Fletton Quays will go before Cabinet members at a meeting on Tuesday 16 July, following the approval of the council’s credit bid.
At a Cabinet meeting on 30 May members gave their go-ahead for the council to submit a credit bid, which it did on 7 June. This bid, made using the council’s outstanding debt, was subsequently accepted by the administrators.
Cabinet members will now be asked to delegate authority to the council’s Executive Director for Corporate Services and Section 151 Officer, Cecilie Booth, to complete the acquisition, which includes the establishment of a new company.
Advice received by the council is that a company would be in its best interests for legal and tax reasons. Other councils have also taken this approach.
The Cabinet report also sets out that the full costs to complete the hotel are being finalised. At the same time, the council is undertaking a soft market testing exercise to assess interest from those who may look to purchase the hotel. A procurement exercise is also underway to secure a developer/operator relating to the self-delivery option, if this option was chosen.
A business case is being prepared to enable a decision on whether to complete the hotel through a self-delivery model or to sell to a third party to complete.
Cecilie Booth, Executive Director for Corporate Services and Section 151 officer, said: “We are progressing at pace because we want to see work begin to complete the hotel as quickly as possible.
“A further report will go to Cabinet in the coming months once the business case has been completed with a recommendation as to how we should proceed.
“It remains our overriding priority to protect the investment made by the council so far and to see the hotel open as quickly as possible.”
The cabinet meeting will take place on Tuesday 16 July at 4pm at the Town Hall, Bridge Street, Peterborough. People can attend in person or watch the meeting on the council’s YouTube channel.