Purpose

In March 2021, the Cabinet
agreed to the entering into of an agreement for a long headlease
relating to the redevelopment of the Trocoll House site. 
 
The Agreement was entered into
and demolition at the site is complete. 
The Cabinet will be provided with an update on the project and be
asked to approve revised terms for the development to
proceed.

Content

Cabinet resolved to:
 
(i)  Note
that the revised offer from Railpen relating to the proposed terms
of an amended Lease Agreement for the redevelopment of Trocoll
House would not be financially viable for the Council, as detailed
in the report and the financial modelling and options
analysis set out at Appendix 1 to the report;
 
(ii)  Agree a final
counter-offer to Railpen as detailed in option 4(b) of Appendix 1
to the report, which represented a circa 9% increase to the
original starting annual lease payment while mitigating the Council’s level of risk to an acceptable
and affordable level, and delegate authority
to the Strategic Director, Resources to progress that course of
action; and
 
(iii)  Agree, subject to
Railpen accepting the terms of the Council’s counter-offer,
to delegate authority to the Strategic Director, Resources, in
consultation with the Cabinet Member for Finance, Growth and Core
Services and the Head of Legal, to enter into all necessary
and ancillary agreements to fully implement and effect the
proposals.