Decision details

A report to confirm the letting of Community Assets to a number of organisations at less than market value, on long leases in pursuit of Council resolution of February 2013

The Cabinet Members agree that

·  The Chief Property Officer is authorised to enter in to long-leases of the properties set out within the body of the report at Schedule

o  The Leases to be granted subject to:

o  The organisation accepting full repairing and insuring terms

·  Use being restricted to community purposes and uses ancillary thereto, with the Council having an option for the return of the asset at nil consideration should this use not continue

·  Prior to the leases being entered in to, Council officers to be satisfied that the individual occupiers have in place a constitution that is robust and sufficient.

The lease to reserve a market rent.  However, the lease will abate the rent to zero on the condition that, every year there is an annual progress report setting out the community benefits achieved, and every five years, the group provides a copy of its constitution, articles of association and other supporting documentation to satisfy the Council that it continues to operate the property for appropriate purposes.

As there are no current delegations in place to officers it is necessary to give specific authority to enter in to these transactions at less than market value.  The proposals give a structure, the use of which can demonstrate the audit trail that lead to the grant of a leasehold disposal at less than market value.

An alternative would be to bring each of these disposals for cabinet approval.  So long as the individual decisions are taken using the guidance offered by the RICS this level of sign off is seen as being unnecessary. 

Entering in to these agreements without a policy decision that a principle of sale at less than market value is agreed would mean that the Chief Property Officer was acting outside of his delegated authorities and would therefore be acting unlawfully.