October 2003: DBC keen to proceed with a Tesco store

2 October 2003. From John Buxton to Tesco: Confidential "Following our conversation I have set down the points we discussed and also added a couple of others. 1. More detail and hopefully a drawing of how the store would be designed to fit the setting...real concerns about the aesthetics and design issues. 2&3 Missing 4. Even if DBC do opt for Town Centre offices we would still like to have a facility within the store...we might also want to explore with you the relocation of the Tourist Information Centre...5. I know that the opportunity to incorporate other mixed uses within the proposed development is not considered viable by yourselves but it would make it a much better development from our point of view...As I have said before there are development and service procurement issues...we are doing our very best to bring all these together as quickly as we can and I would hope that we will have been able to come to a firm decision as to what we are going to do within the next couple of months... Rest assured our interest in this proposal has not diminished in any way and we do want to move on just as quickly as we can." 8 October 2003. From John Buxton to Tesco: "It is important to us that we make real progress in the next few weeks so that we can make a decision to fully commit to progressing the proposal or pull out. I still feel that it is much more likely to be the former, hence my willingness to give up a day's hols."

Planning for an out-of-town civic centre

9 February 2004: John Buxton to Tesco: ...To confirm that we do have architects and QS designng layouts and costing our accommodation requirements based on an out of town centre location.

April 2004: DBC drop earlier plan to move the Town Hall on to an Industrial Estate and decide to build it on Beaumont Street.

8 April 2004: From Tesco to John Buxton: "I have picked up your message about needing a plan to write a report presumably for a Committee on Tesco's proposals for a town centre site. As you are aware when 'x' attended the meeting last Thursday he had plans showing Tesco's proposals for the site which included a well worked up residential scheme...Following the Council's change of direction on their office requirement location 'x' has reinstructed the architects on the scheme to show an office block on the site...Every effort is being made to move this opportunity along and hopefully unless your colleagues have a change of heart again the new drawings will allow us to appraise the opportunity and confirm the financial implications we have previously discussed.

April 2004: still talking about a cinema on the site

24 April 2004: John Buxton to Tesco: "I know it is usually you chasing me but is there anything imminent on the issues that we have been discussing recently: Town Hall offices located on site; 2 deck car park alongside AXA building; Multiplex; Site Plan. I have done as much as I can with my report for Management Team but am unable to complete it and diary in the meetings to makle progress until the above are dealt with."

Summer 2004: Tesco store is fixed; negotiations move on to other matters

17 June 2004: From Tesco to architect: "I had a conversation with John Buxto of Darlington Council this morning. I think you have met John...but if not John is the officer in charge of redeveloping the town centre. John wishes to look at the detail on the office development, in particular the access and aspects onto the roundabout...This is nothing to do with the store which is fixed and merely detail." 23 June 2004: From John Buxton to Tesco: "Thank you for making arrangements for your architects to work with us to further develop the proposals for our offices."

10 August 2004: John Buxton to Tesco: ...I want to ensure that the paper I finish for the Management Team and our Cabinet covers all issues with the Tesco position on all of them being accurate and agreed...I need to see the latest designs that your architects are producing by mid-August.

7 September 2004: John Buxton to Tesco: "We have had a look at the possibility of access from the Inner Ring Road and for a bus garage we think it would be OK"

Town Hall costs increasing

10 November 2004: John Buxton to Tesco: I have been re-working our figures and in doing so have realised that all our costings to date have been for naturally ventilated offices. If a/c is included the cost of the project to DBC increases to an unaffordable level...it must be a low cost solution.

November 2004: Need for outline planning policy

17 November 2004: John Buxton to Tesco: "...outline planning policy for the site and the work that we think will be required as part of the application."

Development to become public knowledge (after 15 months of detailed negotiations)

30 December 2004: John Buxton to Tesco: "I am concerned that the proposed development will shortly be going public as I am on timetable for decisions by the Council on the way forward."

January 2005: Reassurances from Tesco

27 January 2005: From Tesco to John Buxton: "Apologies that I have not been in touch but please rest assured we are progressing matters with this project...I can assure you a lot of effort is being put into this project."

March 2005: New designs being considered

21 March 2005: Tesco to Darlington Officer: I would suggest the following timescales for production of revised layouts...preparation of drawings indicating the general layouts of the store together with an indication of he allocated space for residences and the new Civic HQ, by 21 March...details of the housing requirements by 4 April...detailed design of the Civic HQ, ten days later...detailed design brochures including 3D design model, 21 days after this.

Production of designs

12 April 2005: John Buxton to Tesco: "Is there any prospect of the drawings, elevations and 3Ds in particular being available by the end of tomorrow."

Councillors concerned about Tesco power

6 June 2005: John Buxton to Tesco: "...BBC2 had a half hour programme about the might of Tesco, I haven't seen it yet (taped)...30% of the food market, has a monopoly position, an overdominant operator and it is time the Competition Commission and the DTI did something about it, of course it wasn't all one-sided there were answers to the questions but the overall thrust of the piece was against the supermarket...The recent PR (BBC2 last week and Today this morning) is causing some concern here with Members"

Cost cutting needed

30 June 2005: John Buxton to Tesco: The cafe and sprinklers can be removed...But this still puts the cost at around xxx above the maximum capped price that I notified to you and xxx in my letter of November 10, 2004 and is not affordable...

The need for consultation

3 August 2005: The Board meeting is too late for the scheduled Council meeting on the 15 September however there is a possibility that the Council meeting will be put back a week, I will know today if this is to be the case. If it is then I can take my reports to the September meeting. If not the next Council meeting is the 17 November which would make it most unlikely that you would be able to submit planning applications this year (especially as pre-application consultation is to be undertaken and DBC would not want this to go ahead before the Council has made decisions on the proposed development).

Despite the requirement to consult, Tesco assume a planning application will go ahead and be granted!

3 August 2005: Tesco to John Buxton: "In terms of the overall project, I can at best guestimate the timescales as obviously there are a number of factors which will determine how it progresses. We, like you believe that it is essential that all parties meet in advance of an application so that all aspects of the proposal are ideally supported. ..Ideally, we would hope to be in a position to submit a planning application this year, once all contracts are in place. As discussed, a road closure order will be required once planning has been granted and you were going to confirm if notice was needed to close the car park."

August 2005: detailed plans of the Civic HQ in production

24 August 2005: From Tesco to John Buxton: "The attached drawings illustrate the addition of two stories of office to the Houndgate frontage which has the advantage of providing: additional office space, space for the Contact Centre at ground level, space for the call centre directly above the Contact Centre, additional street presence to Houndgate and Feethams...I can probably get a copy of the crest sent to you...the main signage to the roundabout we had envisaged would be the official Crest mounted under the corner roof feature."

25 August 2005: From Tesco to John Buxton: " Our impression is that the office space will provide constraints that may cause difficulty in achieving our desired objective of 90sqft per person. I hink it will be necessary to include a full fourth floor...a further lift would be required at the south west corner...This email continues to discuss the details of where various offices are to be located within the new town hall.

September 2005: Tesco stalling on costs, but topographical survey proceeds

September 9, 2005: From John Buxton to Ada Burns, Paul Wildsmith: "The Tesco board deferred the scheme on Wednesday...she thinks it is down to insufficient detail on the apportionment of the capital costs of the components of the scheme."

September 15, 2005: From Tesco to John Buxton: "Subject to Contract. The paper did not go out last week as the costs needed to be apportioned between the various aspects of the development and our in house value management team were not happy with the figures quoted."

September 21, 2005: From Tesco to John Buxton: " "x" has asked if I can see whether you would be available to meet with her and he quantity surveyors next week as the costs of developing the scheme seem to have escalated dramatically."..."Adding a full office floor gives more office area than required so we are currently lookng at reducing the overall footprint to give the net required."

September 28, 2005: From Tesco to John Buxton: "Further to our meeting today, I would be grateful if you could arrange for our Regional Property Director and I to meet with your Chief Executive and yourself to run through the proposals."

September 29, 2005: From ? to ?: "Topographical Survey, Darlington Town Hall. With regard to your requirement for a topographical survey of the above site, I have pleasure in enclosing the following quotation..."

September 30, 2005: From ? to ?: "Darlington Topo Survey: I have agreed your quotation with Tesco, so please go roceed as soon as possible. We will need to agree access and advise dates...to the Council and Arriva. By copy to "x" tells me that you have a contact for Arriva - can you prime him for us. By copy to "x" we will need to speak to our pals at Darlo Council to ensure that they can provide access to all other areas."

October 2005 to March 2006: haggling over costs continues with Tesco trying to reduce costs

October 17, 2005: From Tesco to John Buxton: " Please find enclosed two spreadsheets with and without the rooftop car park costs."

November 22, 2005: From Tesco to John Buxton: " Please can you give me a call when you come in tomorrow to discuss the build cost and ground rent for the site.

March 20, 2006: From Tesco to John Buxton: "Private and Confidential. I thought it would be prudent to forewarn you of the Tesco Board's thinking about the proposed deal. As expected the financial return on the proposed deal is too low for the Board to approve. It is suggested we try and rework the basis upon which you occupy the proposed new offices and/or have a very hard look at the building costs of the offices."

Our view

Whilst we have only been given selected extracts from emails and letters between Tesco and DBC - for reasons set out at length by the Council's Freedom of Information Officer - some themes are clear:

Negotiations go back to before October 2003 with DBC eager to develop a scheme with Tesco as quickly as possible. At this stage, DBC were planning on moving the town hall out of the town centre. There was still talk of mixed use for the site, including other shops, a multiplex cinema and flats.

Things proceed sedately during 2004 while details such as the location of sewers are sorted out.

During 2005 the negotiations speed up, with detailed plans for the new town hall the main topic for discussion. There is an assumption throughout from Tesco that planning permission would be granted. It is only relatively recently that DBC inform Tesco that a public consultation will be held before the scheme goes for planning permission.

Late in 2005 and into 2006, Tesco start haggling over costs and attempt to find some way to reduce their expenditure on the new town hall or otherwise re-apportion the costs.

It seems to us that recent claims by Tesco that the scheme was little more than a set of drawings is disingenuous. Clearly there have been substantial costs incurred from architects, quantity surveyors and topographical surveyors gong back over three years. Discussions were so detailed that the exact space and position of the various offices and departments within the new town hall were considered.

Finally, we wonder just what DBC had to concede after March 2006 to re-ignite the Tesco Board's interest in the scheme! After all, Tesco is notorious for screwing every last penny out of farmers, food producers and manufacturers. I'm sure they adopt the same approach to their dealings with local authorities!