Decision details

Grant of long lease to Parish Council at less than market value under Community Asset Transfer policy

The Cabinet Members agreed that:

1.1  The Chief Property Officer be authorised to enter into an agreement for lease and licence to occupy with Batheaston Parish Council (BPC) on the basis :

1.2  The Agreement will be conditional on BPC securing planning permission for redevelopment of the WC block and a relocated access to the car park with a long stop date of 5 years. In the interim, the Council will grant a licence to occupy.

1.3  The lease reserves a market rent which is abated to nil, subject to the tenant satisfying the landlord that it uses the property only for appropriate purposes delivering community benefits and with the Council having an option for the return of the asset at nil consideration should this use not continue.

1.4  The lease imposes restrictions ensuring that the premises can only be used for the community purposes set out.

1.5    The tenant has a 6 month rolling break option throughout the term. If this option is exercised there will be no reimbursement of costs to the tenant for any investment they have made.

At its meeting of 19th February 2013 Council resolved to note the approach to Community Assets as set out and support the progression of transfers to the organisations identified in the Annexe.

The application of this policy accords with guidance to Local Authorities on asset transfers. The idea is to help secure community benefits in line with Council priorities and objectives by transferring long term leasehold ownership of property at a nominal rental, in exchange for arrangements designed to secure community benefits in line with Council objectives.

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

None. This proposal is in accordance with the approved policy of community asset transfers.