Decision

In line with the Constitution at Part 7 - Section 2 as set out below:
2.2.6. To accept surrenders or variations of leases and tenancies of land or buildings or any rights, including the release of covenants, where such would not be detrimental to the council’s interest and where the capital value or the rent per annum does not exceed £50,000 subject to prior consultation with the Group Head with responsibility for the current use and intended use of the property and the S151 Officer or in accordance with the council’s adopted Acquisitions and Disposal Policy.

2.2.7. In respect of paragraphs 2.2.2 to 2.2.6 above, to negotiate any of the matters therein referred to.

Decision: To authorise the forfeiture of the existing ‘legacy’ lease on the grounds of non-payment of rent. This would be actioned via peaceable re-entry.

Reasons for the decision

This decision is in accordance with our policy, as documented within ADC Asset Management Strategy.

The site is vacant and unoccupied following the completion of the new Keystone Centre. The existing ‘legacy’ lease on the former Keystone Centre remains in place as it has not been surrendered or forfeited.

Increasing pressure to provide alternative operational premises for ADC own use gives rise to an immediate need to free up this site.

By forfeiting the lease and taking possession back provides the Council with immediate control over the site, with greater flexibility and opportunity to resolve immediate operational need as well as preparing the site for future redevelopment considerations.

The site will require some initial capital expenditure to ensure it is compliant, however, this will be relatively modest as any operational need is for storage only. The intention will be to drain down the building and cap the services, so there will be no useable services or facilities within the building.

Alternative options considered

Leave the lease in place.

This option has been rejected as the site is a long term housing site, whilst being able to be used for operational need in the short term.