Purpose

The freehold of the site is owned by
Darlington Borough Council. The site is let by way of three long
leases being dated 29 Jan 1982, 2 September 2002 and 15 October
1979 (the headleases). This decision is for approval to the
underletting for a term of 25 years. As part of the licence to
underlet, the headleases will be varied to include consent to
future assignment of the headleases, agree the terms of the
underlease, agree that the head tenant to provide a guarantee for
any default of payment of Business Rates and that the undertenant
will use reasonable endeavours to put in place insurance which
enables DBC to make claims against the policy. As part of the suite
of documents, the Council will also enter into a deed of covenant
to agree to grant the undertenant a direct lease should the
headlease terminate. In consideration for granting the variations
noted above, the head tenant will surrender the lease dated 29
January 1982 relating to Land on the South Side of Yarm Road
Industrial Estate.

Decision

Approval to:

- Licence to Underlet and Deed of Variation, Land Lying to the
South of Yarm Road Industrial Estate for a term of 25 years

- Licence to assign the headleases

- Licence for alterations

- Deed of covenant to grant undertenant a direct lease should the
headleases terminate

- Surrender of the lease dated 29 January 1982 relating to Land on
the South Side of Yarm Road Industrial Estate (the former rail
spur) in consideration of the above.
The underletting is considered reasonable under the terms of the
headleases. Approval of the above transactions will enable
significant private investment into the site with the benefit of a
long-term use and associated new employment opportunities. The
surrender of the former rail spur land provides the council with
connectivity across the Ingenium Parc and Morton Palms development
sites.

Alternative options considered

Not to grant permission. This option has been
considered and rejected. The terms of the headleases require the
council to act reasonably when considering applications for
underletting. The underletting is considered reasonable under the
terms of the headleases.