PLANS to transform Boswells department store into a four-star hotel have taken a step closer.

A deal has been agreed between the building's owner, Oxford City Council, and the Reef Group, the company which wants to use the building as a luxury hotel, which would be named the Store.

A council official said transforming the building would help to boost the local economy by providing room for short term stays in the city centre.

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The city council's cabinet discussed entering into an agreement with property investment firm Reef to redevelop Boswells at its meeting on Wednesday night.

But most of the debate took place behind closed doors due to confidential legal and financial information being discussed.

During the public part of the meeting, Ed Turner the cabinet member for finance, laid out the reasons behind redeveloping the former department store.

Mr Turner said: "I think what we can say is we hold the freehold on Boswells.

Oxford Mail:

Boswells when it was still open

"We are looking to sell long leasehold to Reef, well Boswells are selling the long leasehold to Reef, and we will enter into a partnership approach with that going forward which will lead to the creation of a hotel."

A report written by council officer Emma Gubbins said the council currently earns £1,950 a year from the long lease of 1 to 5 Broad Street to Boswells.

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The council could earn a lot more money from the new arrangement with the Reef Group, which would be spent on public services.

Boswells lease on the building had been due to last until June 2058, but Reef has bought those 38 years of the lease from the store, and has also bought the freehold of Boswells' building on Cornmarket Street as well.

Oxford Mail:

Picture: Reef Group

Ms Gubbins report said: "Proposals which facilitate longer stays will assist in increasing spend in Oxford’s shops and restaurants which will in turn boost their viability and Oxford’s economy."

Her report went on to say that even with the coronavirus, 'there is significant unmet demand and potential for growth in all varieties of short-stay accommodation, particularly when compared with those of comparable cities'.

The Reef Group is currently waiting on the outcome of a planning application lodged with the city council to renovate the building.

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The company has previously said it wanted to retain features of the old store, including the Boswell and Co signs which sit over the entrances to the shop.

It also wants the new interior of the hotel to be inspired by the 1920s Art Deco design of the building.

Oxford Mail:

Boswells entrance on Cornmarket Street

It is expected to hear a decision on the planning application in January 2021.

Boswell and Co started trading in Oxford in 1738.

The store's management announced its doors would close forever in November last year because of adverse trading conditions.

Approximately 70 members of staff were made redundant, and Boswells finally closed in March this year with the first coronavirus lockdown.