Purpose

To consider the grant of a lease to the Percy
Centre limited for a term to expire on 23/06/2028 at less than best
consideration (below market rent).

Decision

(1) 
To delegate to the
Head of Corporate Estates and Development authority to:
 
1.1 
Formally record the
effluxion and rescinding of the decision made in 2014 [Decision
E2625] which was at the time to grant a new 99-year
lease.
 
1.2 
Grant a new lease to
23.06.2028 on the current concessionary terms and within the
provisions of the Landlord & Tenant Act 1954 [security of
tenure].
 
(2) 
To delegate to the
Head of Corporate Estates and Development the power to transfer the
property on the concessionary terms as set out in para 3.17 of the
report.

Reasons for the decision

Percy Community Centre currently occupies land and
buildings at The Percy Centre New King Street. This decision
regularises current arrangements. The
Tenant has agreed to terms for developing a business case during
the next lease period, with a view to securing a community asset
transfer [CAT].
 
Any future CAT transfer would be subject to assessment
against council policy, financial and legal frameworks.

Alternative options considered

Other options are currently limited due to the
occupation/proposal.
 
A
primary option would be an imposition by agreement or court
application of a market rental.
 
However, this property is considered as a valued local
community facility, and it is therefore proposed that a proposed
community asset transfer be considered as a primary option. This is
subject to a robust business case being submitted which is
compatible with council policy, financial and legal frameworks and
compliance with the proposed timetable.
 
The grant of the new lease enables the community to retain
a facility and community centre
resource for the short term - with a view to the Tenant working up
to and planning a sustainable operation, to transfer to a
longer-term lease opportunity by way of Community Asset Transfer -
with the default position of other options if no business case
and/or CAT is capable of delivery at end of this new
lease.