Oxford City Council breaks uneasy ceasefire with Covered Market

Last year there was an almighty row, aided and abetted of course by politicians taking opportunist (but unrealistic and possibly illegal) positions ahead of elections, about huge rent rises in the five year Covered Market rent review process. A modicum of peace was restored when the city council pledged to spend the paltry sum of £50,000 on some painting and decorating. Today we learn that the cash strapped spending slashing council has withdrawn the funding and, quite rightly, some of the traders in the market are pretty pissed off.

Image copryright SteveBell @ Flickr (I hope I'm allowed to use this!) Not only that, but today we also learned that retail property is at the head of the rush downwards with average values now below those when the rent review period began in 2003. So not only has the council managed to snag peak of the market rents but has now slashed the only sop to the traders it offered.

It's time to realize that the City Council is incapable of being a good landlord to such a sensitive building and it local trader tenants. For many people in Oxford the Covered Market is the jewel in the crown of local retailing. Many suburban centers have lost their fresh food outlets- butchers, green-grocers and so on - and on top of that the market can offer a range of products that only the center of gravity of a city could realistically support.

Whether the Westgate redevelopment goes ahead and when is also critical, as that will move the center of gravity of the city westwards, alongside the redevelopment of the whole south western quarter of the city, and the Covered Market and the surrounding streets need their landlords to plan investment now to try to maintain footfall at that end of the city center when the time comes. It will be a fair trek on foot between Waitrose and the new car parking attached to the Westgate center and the High Street, and the further reduction in scheduled bus services stopping in the High will make things even worse.

Instead of reining in its expenditure on its estate, which is largely to the east of St Aldate's and Cornmarket - the area that will be most affected by these changes over the next few years - the City Council needs to find a way of taking the lead in investing in this part of town. We all know they cannot afford to do so themselves in the current climate as they are slashing away at any expenditure they can so they need to change the way their interests in these properties are handled so that they can attract outside investment.

A Property Investment Partnership would fit the bill. The City Council, and any other landlords who want to participate to keep their estate's value up when all the changes happen, contribute the properties as owner partners, the tenants put in their rent as occupier partners and we go out and find an investor partner or several to put in whatever capital is required.

Ownership is not ceded to anyone else in the long run, the new facilities improve footfall and therefore takings, which is reflected in a higher yield from the whole development, since traders' occupation payments are based on their turnover rather than mere "rent" changing that from a fixed cost to a variable cost at this time of great pressure on retail. Everyone wins. You could even throw in other facilities such as a customer loyalty card, selling small shares to the customers so they also become partners in the thing they value so highly.

Let's face it, the city has finally realized it cannot possibly finance its leisure centers properly and has now given them away in a U-turn since castigating me for suggesting it in 2002 (which would have saved them millions over those years, enough to finance all the projects they are slashing to make ends meet today). So it has no excuse now for not looking at more imaginative ways of dealing with the rest of its non-core operations. And failure to invest now risks their long term future income faced with all the challenges I've already mentioned - which would surely be, foreseeable as it is, maladministration if it comes to pass.