Decision details

To consider the grant of a lease to the Percy Centre limited for a term to expire on 23/06/2028 at less than best consideration (below market rent).

(1)  To delegate to the Head of Corporate Estates and Development authority to:

1.1  Formally record the effluxion and rescinding of the decision made in 2014 [Decision E2625] which was at the time to grant a new 99-year lease.

1.2  Grant a new lease to 23.06.2028 on the current concessionary terms and within the provisions of the Landlord & Tenant Act 1954 [security of tenure].

(2)  To delegate to the Head of Corporate Estates and Development the power to transfer the property on the concessionary terms as set out in para 3.17 of the report.

Percy Community Centre currently occupies land and buildings at The Percy Centre New King Street. This decision regularises current arrangements. The Tenant has agreed to terms for developing a business case during the next lease period, with a view to securing a community asset transfer [CAT].

Any future CAT transfer would be subject to assessment against council policy, financial and legal frameworks.

Other options are currently limited due to the occupation/proposal.

A primary option would be an imposition by agreement or court application of a market rental.

However, this property is considered as a valued local community facility, and it is therefore proposed that a proposed community asset transfer be considered as a primary option. This is subject to a robust business case being submitted which is compatible with council policy, financial and legal frameworks and compliance with the proposed timetable.

The grant of the new lease enables the community to retain a facility and community centre resource for the short term - with a view to the Tenant working up to and planning a sustainable operation, to transfer to a longer-term lease opportunity by way of Community Asset Transfer - with the default position of other options if no business case and/or CAT is capable of delivery at end of this new lease.