Issue - meetings

To introduce the Council’s recently appointed property advisers, Hartnell Taylor Cook (HTC) to the Resources Policy Development & Scrutiny Panel who will receive a presentation from HTC on the role they will be playing in supporting the Council in its strategic management of the Commercial Estate. HTC will also provide a commentary on the national and local property market.

Richard Long, Head of Property introduced representatives from Hartnell Taylor Cook (HTC) Ian Lambert and Richard Saunders. HTC, the Council’s recently appointed property advisors, gave a presentation (a copy is kept on the minute book for this Panel) on the role they will be playing in supporting the Council in its strategic management of the Commercial Estate. The presentation covered the following points:

·  Who is HTC?

·  What difference will the partnership with HTC make?

·  How well is the BANES estate performing?

·  What are the existing market conditions?

·  Conclusion

Panel members made the following points and asked the following questions on the report:

Councillor Barrett asked why HTC are being introduced now if they have been working with the Council for three years and also what are the financial implications of using HTC. The officer explained that HTC have taken on a new role after a tendering process to replace the previous property advisor earlier this year, before that process HTC had only acted with the Council on individual acquisitions. On the financial issue, the officer explained that there is a fixed rate fee per annum, the figures will be circulated.

Panel members queried some phrases used – ‘reversionary lease’ is an extended expiry date; ‘rental tone’ is the established level of rent and a ‘void’ is an empty property.

Councillor Rayment stated that the presentation focused on how to get the most money but in the long term, thought should be given to the unique aspects of the city such as independent shops. The officer stated that Bath is in an extremely fortunate position in having a high number of independent shops and the focus for HTC is maintaining the income from the prime pitches (High Street brands) as this allows breathing space in talks with independent businesses where there is a different management approach. The HTC representatives explained that they understand the value of independent shops.

Councillor O Brien asked when rents are reviewed, the officer explained that this is done on a 4 yearly basis and rents don’t automatically go up as it would depend on the tone value of the rental area. In the past it was common to have a rental period of 25 years but more recently, to respond to the market, term lengths have been brought down (4 or 8 years is common).

Councillor O Brien commented on the need to help independent shops with signage to help drive footfall to the area. Richard Saunders (HTC) explained that in certain areas of the city there are tenant collectives (e.g. Walcot Street Traders) and HTC work to try to promote such areas.

Councillor Furse referred to the gearing which is 20.8% (LTV – Load to Value) he stated that his concern is that the authority is dealing with public money so should not take high risks. Ian Lambert (HTC) commented that 20.8% is a low gearing and there is at least 10% headroom.

Councillor Anketell Jones asked the following questions (answers are shown below:

·  We  ...  view the full minutes text for item 42