Purpose

To consider the grant of a short term lease at
a less than market rent, prior to and in preparation for a
Community Asset Transfer by 28.09.2028.

Decision

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.