Purpose

Approval to enter into a side letter to the leases granted to South Hill Park Trust by the council and other parties including Bracknell Town Council at South Hill Park Arts Centre and surrounding grounds. The side letter relates to the proposed managed car parking charging scheme entered into by the Trust at South Hill Park.

Decision

RESOLVED that the Cabinet Member for Adults, Economy and Regeneration:

·       Approves the Council entering into the temporary side letter which references the various leases and underleases in relation to the proposed South Hill Park Trust managed car parking charging scheme.

·       Delegates the execution of the agreed format of side letter to the Executive Director: Place with the Borough Solicitor to negotiate, finalise and complete the side letter and any ancillary documentation required to give effect to the managed parking arrangement.

·       Delegates to the Executive Director Place the authority to proceed with a formal Deed of Variation to the current leases and underleases subject to negotiation of terms of the Deed with The Trust to consent to the managed parking arrangements proposed by The Trust.

Reasons for the decision

The Trust has concluded that parking income is essential to ensure the arts centre’s sustainability and that the income generation is required to commence as soon as possible this autumn ahead of the busy winter programme of shows and performances.  The income will be reinvested directly into the Trust’s charitable objectives, arts programmes, community activities and the maintenance of buildings and the estate.

The Trust’s activities provide substantial social and economic benefits to the borough and its residents, contributing to health and wellbeing, education and learning, community engagement, and local economic development. The Trust’s initiatives and activities provide substantial social value that far exceeds the monetary value of the grant provided by the councils. The council is committed to supporting the Trust’s efforts to ensure its sustainability while also ensuring responsible management of its property assets, interests, and car parking in the immediate vicinity to South Hill Park.

The proposed side letter provides a temporary framework to support the introduction of the managed parking scheme whilst further consideration is given to whether formal consent via a Deed of Variation can be offered to the Trust. The consideration of whether to provide a Deed of Variation will involve relevant property and operational matters and engagement with relevant stakeholders continues.

The arrangement includes appropriate safeguards reflecting its temporary nature, including provisions enabling the council to review, amend or bring the arrangement to an end (at the council’s discretion) should circumstances require.

The decision is required because the proposed side letter does not constitute landlord’s consent: it enables an interim charging arrangement to proceed while legal, title and third-party consent issues continue to be investigated. Bracknell Town Council have approved the issuing of the side letter.

Approval has been sought to use the General Exceptions policy to set out clearly and safeguard the council’s position as soon as possible with the Trust.  The Trust have entered a parking management contract and car parking charging infrastructure was installed at South Hill Park on 8th September.

Alternative options considered

Option 1: Do not enter the temporary side letter until all legal, title and third-party consent issues have been fully resolved. This option would avoid the need for an interim arrangement pending completion of further legal and property investigations but would delay implementation of the proposed parking scheme.

Option 2: Treat the matter as a request for landlord’s consent. This is not recommended because the side letter acknowledges unresolved issues and permits charging pending further consideration, which is more appropriately treated as a strategic cabinet member decision.