Decision details

To delegate authority to the Head of Corporate Estates to grant two leases at less than best consideration, with a combined undervalue not exceeding £112,600 per year, based on the outlined terms. This includes a new three-year lease to Midsomer Norton Schools Partnership (MNSP) for the ground floor at Abbot Alphege School at nil rent, where tenants will cover service charges and utilities up to a capped amount, and a new three-year lease with annual break clauses to The Partnership Trust (TPT) for the first floor, also at nil rent, with service charges and utilities paid by the tenant but similarly capped.

The proposed lease arrangements aim to ensure affordability for both MNSP and TPT during a transition period, as charging rent, service charges, and VAT make the building otherwise unaffordable. By offering leases at nil rent but with capped service charge and utility costs, the Council enables essential education services to continue without jeopardising statutory provision or placing unsustainable pressure on budgets. This approach balances the running costs with the wider community benefit, maintains momentum for future development at Culverhay, and addresses the inability of schools to reclaim VAT. The overall impact is managed by limiting the Council’s financial deficit while supporting long-term educational goals.

Although alternative sites such as Dartmouth Avenue were considered and ultimately discounted due to high conversion costs, the charging model for the property could involve adjusted rent payments instead of service and utility charges; however, affordable rental rates would fall significantly below market value.