Decision Maker: Cabinet Member for Finance and Smart City
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Short length new lease with existing tenant of
whole building on flexible terms for both parties and in line with
current market conditions
1. The appendices to the Report is exempt from disclosure by virtue of the Local Government Act 1972 Schedule 12A, Part 1, paragraph 3 (as amended), in that it contains information relating to the financial or business affairs of any particular person (including the authority holding).
2. The Cabinet Member approved to the grant of the proposed new lease and gave delegated authority to the Director of Property and Strategic Asset Management in conjunction with the Director of Law to enable the agreed final form of legal documentation to be executed and completed.
Reasons for Decision
The key reasons and rationale for supporting this decision are as follows:
(1) The grant of a new Lease will maintain an income stream form the subject investment property albeit the net receipts will be considerably less than that under the previous lease once the proposed rent free and adjustments are taken into account.
(2) The continued occupation of the Building will mean the Council will not be liable for any potential void costs nor the risks and costs associated with securing a new occupant
(3) The relatively short term and flexibility proposed within the new Lease gives the Council a sufficient time-frame to consider and agree a longer term strategy for the Building in conjunction with its other neighbouring investment property interests.
(4) An external rental valuation has been carried out and the agreed terms represent the best consideration obtainable by the Council in the current market conditions.
Publication date: 20/08/2021
Date of decision: 20/08/2021
Effective from: 29/08/2021