In August 2007 the Committee approved a report recommending the acceptance of the broad content of the Easterhouse Town Centre Action Plan (ETCAP), which had been prepared for the Council by RPS, independent planning consultants.

The ETCAP’s analysis drew a number of conclusions about the operation of the Easterhouse Town Centre.  These include:

•  Glasgow Fort/Morrisons and the Bridge Cultural Campus worked effectively at either end of the Town Centre, and the focus of any change should be to build on these successful uses to improve facilities and linkages through the central part of the Town Centre;

•  The Shandwick Square Shopping Centre was in serious decline and the case for its retention was questionable in financial and urban design terms;

•  Proposed commercial leisure uses at the Fort were unlikely to attract operators in the foreseeable future and new uses needed to be considered to allow both the completion of the Fort development and the creation of new linkages to the rest of the Town Centre;

•  The existing planning policy framework did not identify any retail capacity which could allow an extension of new retail floorspace within Easterhouse Town Centre, unless it could be demonstrated that this was part of an overall package which would assist the regeneration of the Town Centre.

•  There was a need for other facilities within the Town Centre to aid its regeneration. Potential regeneration measures include:

- A new sports centre to cater for the needs of an expanding population;
- A visitor and interpretation centre to emphasise the significance of Provanhall House and integrate it into the Town Centre;
- Improved transport linkages into and through the Town Centre; and
- New Community and childcare facilities

The August 2007 report to the Executive Committee, therefore, sought the creation of a Development Framework which would enable a package of regeneration measures to be drawn up to be developed in association with proposals to increase retail floorspace within the Town Centre.  The Development Framework would become the focus of discussions with any party seeking to develop further retail floorspace within the Town Centre.

The current position is that the City Council has entered negotiations with Hercules Unit Trust (HUT to bring forward a Development Framework in response to its submission of two Planning Applications for retail development in Easterhouse Town Centre.  HUT has made it clear its continued aspiration to build on its success by extending the retail space within the Fort and has accepted that a Development Framework based on the ETCAP is the mechanism through which this aspiration can best be delivered.

There are a number of components to the emerging Development Framework:

•  the Phase 2 expansion of the Fort;

•  the managed decline of the Shandwick Square Shopping Centre including its demolition and clearance; and

•  the proposed relocation site at Westerhouse Road to accommodate approx some 57,000 square feet of local retail, office and space for a crèche.

The following terms and conditions have been provisionally agreed between the Council and HUT and its agents British Land:

•  A premium of £10 million pounds plus VAT will be paid by HUT to the Council as a contribution towards the regeneration of Easterhouse Town Centre.   These monies must be spent within the TCAP area and will be the subject of a Section 69 or 75 Agreement between the parties.

•  The payment of the premium will be subject to the following conditions:

- granting of the planning permission for the Phase 2 retail proposals at Glasgow Fort, application no. 07/ 02933 / DC, validated on 12 September 2007 
- granting of the planning permission for the proposed Westerhouse Road retail, office and crèche development, application no. 08/ 00665 /DC, validated 28 April 2008.
- The Council approving the demolition of Shandwick Square Shopping Centre. 
- The Council approving all the necessary consents and approvals needed to deliver the Westerhouse project.
- HUT obtaining vacant possession of Shandwick Square. Thereafter the cleared site would be delivered to the Council at no charge.
- The granting of a 175 year ground lease by the Council to HUT for the development at Westerhouse Road  for use of the site as identified in planning application no. 08/ 00665 /DC.
- The extinguishment of the existing ground lease between the Council and HUT for Shandwick Square Shopping Centre. The Council would be entitled to the capitalised value of the ground rental stream as at 31 December 2007. This would be agreed between the parties, failing which, settlement by an agreed third party.
- The completion of a formal legally binding document between the parties in relation to all of the above

The Development Framework and associated binding legal agreements aim to provide a regeneration package which will aid implementation of the ETCAP and ensure that all of the projects included can be completed satisfactorily.   This is required to comply with the provisions of national and local retail planning policy.

The various residual valuations used to agree the figures have been based on existing known costs.   These are always subject to change and provision in the agreement to reflect any such changing conditions will require to be made.

•  The relocation site in Westerhouse Road matches the known requirements of those retailers currently trading within Shandwick Square who wish to remain in the immediate area;

•  The Council will receive a capital sum, the cleared site at Shandwick Square together with the certainty that the alternative retail and commercial location will be developed out;

•  The creation of local office and crèche facilities within the Westerhouse Road development is significant for the provision of local services.   There is currently no other cost effective way of producing these much needed facilities; and

•  Other contributions from the other stakeholders within the Town Centre will allow further progress to be made with the ETCAP.