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No sly deal over market
I am writing in response to Emmett Schlueter's letter (Oxford Mail, April 30) regarding the Covered Market rent reviews.
He suggests that the current tenants are deliberately being priced out of the Covered Market by the rent review process in order to make way for a developer to create a hypermarket or supercasino.
I can categorically state that this is not the case. There are no plans to replace any of the current tenants or redevelop the market.
The rent review process is being carried out fairly and transparently, and the council is simply seeking to secure the appropriate level of rental income from the properties in the Covered Market in accordance with the leases signed by both parties.
All the rent review cases have been referred to independent arbitrators to make the final decision, the results of which are binding on the traders and the city council.
The arbitrator's awards on four of the Covered Market rent reviews have now been decided. The settlements vary, and are all at rent levels between those suggested by the council and those offered by the traders. The remaining rent reviews are now under consideration by a separate arbitrator.
Where I agree with Mr Schlueter is that the Covered Market is a primary feature of Oxford life, and this is why the council continues to support it.
JOHN KULASEK, Asset Manager, Oxford City Council
6:03pm Tuesday 6th May 2008
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CommentPosted by: Andrew Hill, Oxford on 2:44pm Wed 7 May 08
The comments from John Kulasek leave more questions than answers regarding the council's plans for the Covered Market........so here are a few more for him:
He claims that there is no plan to price out existing tenants, yet, the council are asking for an uplift in rent which is in excess of 100% across the board. This WILL price out many of the traditional food shops and therefore change the whole face of the market. Indeed this process has already begun when the council allowed a national chain of shoe repairers to buy one of the businesses a few years ago. This is tha first example of a large national chain in The Covered Market and is the thin end of the wedge.
He speaks of an Independant Arbitrator who will judge on the final rent BUT fails to mention that the council previously instructed a firm of professionals from Birmingham to come up with this ridiculous increase in the first place. I would like to know how much these people, who cannot possibly understand the nature, history and tradition of ths wonderful place, are being paid by the people of Oxford for their 'expert' information. Is it a flat fee OR is it based on a percentage of any increase in the rent achieved? if it is the latter, then of course they will ask for as much as possible!
He is correct in staing that "The settlements vary, and are all at rent levels between those suggested by the council and those offered by the traders." but this suggests that the council has started off the negotiations with a figure that they know to be too high, and have deliberatly incrurred a lengthy and expensive negotiation. we should not forget that this process will be paid for, once again, by the people of Oxford.
The final paragraph of the letter is probably the most worrying, when he says "Where I agree with Mr Schlueter is that the Covered Market is a primary feature of Oxford life, and this is why the council continues to support it." He demonstrates a very worrying lack of knowledge of the running of The Covered Market by the City Council, particularly for a man who bears the title Asset Manager. Your readers may be interested to know that rather than the Council 'supporting' The Covered Market the situation is actually the other way round. The Covered Market current pays the Council, after ALL costs have been deducted, just under one million pounds per annum,it DOES NOT rely on the support of the council and it is misleading of him to use this phrase.
What would be nice would be for the council to be pro-active about the market and invest a little bit of this windfall in tidying up the Covered Market if it is as proud of it as it calims to be. Surely a maintainance and cleaning schedule for the rafters for example and maybe even a lick of paint isn't an unreasonable request.
I hope we can get some answera from Mr Kulasek, but we may need to put up with another list of questions and excuses.
The comments from John Kulasek leave more questions than answers regarding the council's plans for the Covered Market........so here are a few more for him:
He claims that there is no plan to price out existing tenants, yet, the council are asking for an uplift in rent which is in excess of 100% across the board. This WILL price out many of the traditional food shops and therefore change the whole face of the market. Indeed this process has already begun when the council allowed a national chain of shoe repairers to buy one of the businesses a few years ago. This is tha first example of a large national chain in The Covered Market and is the thin end of the wedge.
He speaks of an Independant Arbitrator who will judge on the final rent BUT fails to mention that the council previously instructed a firm of professionals from Birmingham to come up with this ridiculous increase in the first place. I would like to know how much these people, who cannot possibly understand the nature, history and tradition of ths wonderful place, are being paid by the people of Oxford for their 'expert' information. Is it a flat fee OR is it based on a percentage of any increase in the rent achieved? if it is the latter, then of course they will ask for as much as possible!
He is correct in staing that "The settlements vary, and are all at rent levels between those suggested by the council and those offered by the traders." but this suggests that the council has started off the negotiations with a figure that they know to be too high, and have deliberatly incrurred a lengthy and expensive negotiation. we should not forget that this process will be paid for, once again, by the people of Oxford.
The final paragraph of the letter is probably the most worrying, when he says "Where I agree with Mr Schlueter is that the Covered Market is a primary feature of Oxford life, and this is why the council continues to support it." He demonstrates a very worrying lack of knowledge of the running of The Covered Market by the City Council, particularly for a man who bears the title Asset Manager. Your readers may be interested to know that rather than the Council 'supporting' The Covered Market the situation is actually the other way round. The Covered Market current pays the Council, after ALL costs have been deducted, just under one million pounds per annum,it DOES NOT rely on the support of the council and it is misleading of him to use this phrase.
What would be nice would be for the council to be pro-active about the market and invest a little bit of this windfall in tidying up the Covered Market if it is as proud of it as it calims to be. Surely a maintainance and cleaning schedule for the rafters for example and maybe even a lick of paint isn't an unreasonable request.
I hope we can get some answera from Mr Kulasek, but we may need to put up with another list of questions and excuses.
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