Decision

To enter into a three-month Exclusivity Agreement with Nowans Community Trust, operating as Lives of Colour, to enable the parties to negotiate terms for a potential property transaction relating to Sandford Park Lodge, 10a College Road, Cheltenham, GL53 7HX.

The Exclusivity Agreement does not commit the Council to a lease, freehold disposal or any other substantive property transaction. Any subsequent transaction will remain subject to contract, satisfactory due diligence and the Council’s usual governance and approval processes.

Reasons for the decision

Sandford Park Lodge is owned by the Council, is currently vacant and requires significant investment to return it to use.

The Council has been in discussions with Lives of Colour regarding the property. A three-month Exclusivity Agreement will provide a defined period in which:

• the Council will not market the property, negotiate with another party or enter into a competing transaction;
• Lives of Colour can undertake legal, technical, planning, financial and property due diligence;
• the parties can negotiate Heads of Terms for a potential transaction;
• Lives of Colour can provide evidence of its governance, funding and financial capability; and
• progress can be monitored through fortnightly update meetings and an agreed transaction programme.

The defined period is intended to provide clarity and structure while preventing the property from being tied up indefinitely. No extension to the three-month period is agreed

Background Information

Sandford Park Lodge forms part of the Council’s wider registered freehold title for Sandford Park, title number GR353412. The building is currently empty and was last occupied as offices by a community organisation, which vacated in 2021. The Council has been talking to LoC since April 2024.

Lives of Colour is the community project name used by Nowans Community Trust, registered charity number 1137971. Discussions have considered leasehold, long leasehold and freehold options. No substantive transaction terms have yet been agreed or approved.

During the exclusivity period, Lives of Colour will be required to progress due diligence, provide evidence of funding and financial capability, maintain a transaction programme, engage with the Council’s planning service and provide regular progress updates.

The Council will provide relevant property and title information held by it and will engage in negotiations. Each party will meet its own legal, professional and advisory costs unless otherwise agreed in writing.

Alternative options considered

Do not enter into an Exclusivity Agreement. This would allow the Council to consider other interest in the property, but would not provide Lives of Colour with an exclusive period in which to progress funding, due diligence and negotiations.

Continue negotiations without exclusivity. This would allow discussions to continue while retaining the Council’s ability to engage with other parties. This option would provide less certainty to Lives of Colour and potential funders and would not establish the same defined milestones and reporting arrangements. There will be no clear programmed goals, preventing meaningful progress or milestones.

Market the property or pursue other expressions of interest. The Council has received interest in the property from other community, private and commercial parties. This option could be reconsidered if the Exclusivity Agreement is not completed or does not result in sufficient progress.