Decision details

To consider the future of the Market Operator’s Licence

The Portfolio Holder for Asset Management & Economic Development presented a report regarding the licence for the North Weald Market.

The Portfolio Holder reported that, at the meeting of the Asset Management and Economic Development Cabinet Committee on 21 October 2014, it was recommended and subsequently agreed by the Cabinet that the Council would vary the current licence to Hughmark International, the operator of the North Weald Market.  This variation eliminated a fixed fee; instead the Council would receive 75% of any profit, after Hughmark’s operational costs were met. This decision was taken to reflect the trend of declining trade and income generated by the market. In reaching this decision, the Cabinet sought a formal review of the variation to the licence after six months of further trading.

The Portfolio Holder stated that this review was undertaken at the Asset Management and Economic Development Cabinet Committee meeting on 23 April 2015. In reviewing the performance of the market over the last six months, the previous trend of declining trade and income had continued, and the Cabinet Committee felt that the overall position could not be improved. Therefore, it had been recommended that the Council should exercise its right to terminate the Licence, and re-tender the opportunity to hold regular outdoor events on the current market area at North Weald Airfield. Under the terms of the current Licence, the Council had to give notice by 30 June 2015 for the Licence to expire on 31 December 2015. Consequently, it had also been recommended that the call-in period for this decision should be waived under the Special Urgency rules in the Constitution.

The Cabinet acknowledged that the Market had provided a significant income to the Council in the past, but that the current trading conditions had worsened. It was also noted that the Council had provided every possible support to the Market in the previous two years but that it had become no longer sustainable.

Decision:

(1)        That, as recommended by the Asset Management & Economic Development Cabinet Committee, the Council’s right to determine the Licence for North Weald Market be exercised, giving six months notice by 30 June 2015, due to the unlikely prospect of an improved trading position by the current market operator Hughmark International;

(2)        That the opportunity to hold regular outdoor events on the current market area at North Weald Airfield be re-tendered by the Council, and to include but not restricted to outdoor markets;

(3)        That the results of the procurement exercise in (2) above be reported to a future meeting of the Cabinet; and

(4)        That, pursuant to Overview & Scrutiny Rule 21 (Special Urgency), the Chairman  of the Council be requested to waive the call-in arrangements for this decision due to the urgency arising from the contractual obligation to give notice of determining the licence by 30 June 2015.

Reasons for Decision:

To reduce the financial risk to the Council from the continued under-performance of the Market at North Weald Airfield.

To maximise the potential future return to the Council through the re-tendering of the opportunity to hold other outdoor events, including Markets, on the current market area at North Weald Airfield.

Other Options Considered and Rejected:

To allow the Market to operate under the current terms of the revised Licence. However, this would risk the Council being exposed to further reductions in income.

To seek further alterations to the current Licence. However, it was not thought likely that the Operator would make further concessions to the Council to improve its financial position.