Decision details

Recommendations

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.