Purpose

The freehold of the site at Salters Lane is owned by Darlington Borough Council and is subject to an Option Agreement dated 19 April 2021 and Supplemental Agreement dated 29 February 2024 to lease the land to Cummins Limited. Cabinet Agreed to dispose of the land by way of a long lease on 3 February 2026. The lease is nearing completion and as part of legal due diligence, the option agreement and supplemental agreement must be surrendered as part of the documentation of the agreed disposal.

Decision

Accept a surrender of the Option Agreement dated 19 April 2021 and Supplemental Agreement dated 29 February 2024 to dispose of the land to Cummins Limited.

The main transaction has already been approved by Cabinet on 3 February 2026. Surrender of these agreements completes accurate documentation of the transaction.

Alternative options considered

Not to accept surrender the option agreement and supplemental agreement. This option has been considered and rejected.