Purpose

This property has been let to Action For Children and their lease is ending so the Service are tendering for the commissioned service. Rather than granting a lease at a market rent, which means the cost to the Council is increased, the proposal is to grant a lease at nil rent. As this would represent a disposal at undervalue a Single Member Decision is sought to endorse not only the lease for this property but also for other properties on the scheduled list.

Decision

To grant a lease at a nil/nominal rental where a commissioned service is being procured and a lease is being granted to the service provider for the property/service.

Reasons for the decision

The ability of the Council to attract tenders/bids is sometimes critical to a fair competition as some tenderers will decline to participate if it involves the requirement to procure separately the accommodation necessary, in the market, in order to provide the service to the Council.

The Council is sometimes able to provide a property from which a commissioned service can be provided which ordinarily it would be required to charge a market rent but could be abated where a commissioned service is provided from the premises.

The insertion of a market rent for council property in the lease where a commissioned service is no longer provided from the Council premises will ensure any terminated service provider will either pay the market rent specified in the lease for continuing to occupy the premises, or to vacate the premises. The rent paid would then be used to fund council services or if vacated the premises can used to house a new provider or for alternative.

Alternative options considered

None.