Issue - decisions

To delegate to the Head of Corporate Estates & Development authority to:

(1)  Grant a new lease to 28.09.2028, which will be outside of the security of tenure provisions set out in the Landlord and Tenant Act 1954 at an annual rent of £1,200 per annum.

(2)  The lease will be predominantly on the basis of the Tenant taking on the responsibilities for the property with a costs transition by way of grants from the Council. Revenue costs to the Council to 31.03.2024 were £54,200 with anticipated for the current financial year to be £47,300 pa, with a similar level for running/revenue costs to the end of the lease. The ultimate aim is for the Tenant to assume full responsibility for the property and to be ready to do so by 28.09.2028 without any council grants or other assistance from the Council.

(3)  There are no current delegations or resolutions to allow these transfers to take place at less than best consideration; best consideration being based on market values. The report, therefore, seeks to give such authorisation to the Head of Corporate Estates & Development [in consultation with the Monitoring Officer and s.151 Officer].

(4)  During this next lease period the tenant intends to further develop plans to apply for a further Community Asset Transfer (CAT) for a new longer lease [25 years]. The Tenant will during the lease period arrange and develop stand-alone funding, business and any partnership plans in consultation with the Council. The Tenant under the CAT will become responsible for all aspects of the property, including repairs, utilities etc. The lease would enable them to apply for external funding for repairs and other works, subject to any listed building consents.

(5)  To note that the Tenant has not managed to obtain funding and develop plans for taking ownership of the property under a longer-term lease and CAT in the last granted lease. This current lease should be regarded as the last opportunity.

(6)  An independent valuation confirms that the property is a valuable asset which could be utilised for other council services and programmes including realising capital for other capital requirements/services or paying down debt.