Decision

Exemption from publication: There are confidential appendices to this report, which are
exempt by virtue of paragraph 3 of Schedule 12A of Part 1 of Schedule 12a of the Local
Government Act 1972 because they contain information relating to the financial or
business affairs of any particular person (including the authority holding that information).

Agree and complete renewal of lease to existing tenant

Reasons for the decision

Decision rationale: The terms of the lease renewal are in line with the market. The proposed lease renewal will generate a revenue to support delivery of the Council’s
services and meeting the Council’s obligations under Section 123 of the Local Government Act 1972.

Alternative options considered

Market the Property to seek new tenant

Benefits:
Potential (but uncertain) opportunity to achieve a higher rent. Wider tenant pool could provide different long-term occupation options

Disbenefits:
Marketing leads to vacancy period, resulting in loss of guaranteed income and additional management cost.
No assurance of securing terms better than those already agreed with the existing tenant. A new tenant may require incentives (e.g., works, rent-free), which are not required under the current agreed Heads of Terms. Increased costs to run a competitive letting
process.