Content

RESOLVED:
 
1. 
That the scheme for Children and Education Directorate
as set out in section 12 was approved as follows:

 
Childcare
Expansion: Resource and spend approval of
£665,761k (£400k in 2024/25 and £266k in
2025/26) is requested to support the provision of new places to
assist the expansion of 30-hours entitlement places for children
aged 9-months to 3-year-olds and wraparound provision for primary
school aged children.
 
Children’s
Home: Resource and spend approval of £1,000k
(£160k in 2024/25 and £840k in 225/26 is requested
to redevelop and repurpose two council assets into bespoke
children’s homes. Refurbishment of 38 Firsby Road and 15 Triangle Road (formerly the Ann
Taylor Children's Centre) to create two children’s homes.
 
2. 
Approved the granting of a new 15
year lease to Sainsbury's, 245 Old Street, London EC1V 9EY,
shown for identification purposes edged red on the plan at Appendix
2, incorporating the proposed Heads of Terms (subject to any
reasonable amendments during the legal process) to allow continuity
of occupation following the expiry of the lease.

 
3. 
Delegated authority to the Interim Group Director of
Finance and the Director of Strategic Property Services authority
to agree to the lease, all commercial terms and any associated
documentation and ensure that it represents best
consideration.

 
4. 
Authorised the Acting Director of Legal, Democratic and
Electoral Services to settle, agree and enter into all primary and,
where necessary, ancillary documentation necessary for these
transactions.

 
5. 
That the Quarter 1 Capital Monitoring for the year
ending 31 July 2024 in section 12 was noted.

 
6. 
That the expenditure plans and associated resources to
be carried from 2023/24 to 2024/25 as set out in Appendix 1 and
summarised below was approved:

 

Current
Directorate

Carry Forward Budget to 24/25

 

£'000

Non Housing

10,885

Housing

21,543

Total

32,429

 
7. 
That the re-profiling of the budgets as set out in
Appendix 1 and summarised below was approved:

 

Current
Directorate

Re-Profiling
24/25

Re-Profiling
25/26

Re-Profiling
26/27

Re-Profiling 27/28

Re-Profiling
28/29

 

£'000

£'000

£'000

£'000

£'000

Non Housing

(50,592)

43,980

4,790

1,752

70

Housing

(32,087)

32,578

(491)

0

0

Total

(82,679)

76,558

4,299

1,752

70

 
8. 
That the capital adjustments of the budgets as set out
in Appendix 1 and summarised below were noted:

 

Current
Directorate

Capital Adjustments

 

£'000

Non Housing

(604)

Housing

(119)

Total

(722)

 
REASONS FOR DECISION
 
The decisions required are necessary in order
that the schemes within the Council’s approved Capital
programme can be delivered and necessary to approve the property
proposals as set out in this report.
 
In most cases, resources have already been
allocated to the capital schemes as part of the budget setting
exercise but spending approval is required in order for the scheme
to proceed. Where, however, resources have not previously been
allocated, resource approval is requested in this report.
 
To facilitate financial management and control
of the Council's finances.
 
Proposed Granting of New Lease of
245 Old Street, London EC1V 9EY: Renewing the lease with
Sainsbury's at these terms ensures a stable long term income stream
and avoids a potentially costly void if the tenant were to vacate.
The proposed terms also meet Best Consideration and show a
substantial increase in rent to the HRA.
 
DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND
REJECTED
 
Proposed Granting of New Lease of
245 Old Street, London EC1V 9EY: The Council could reject the
proposal and try to obtain a higher rent from Sainsbury’s. It
could also refuse to renew the lease outright and put the property
on the market.
 
These options have been rejected on the basis
of advice provided by the Council’s specialist agent, which
supports the view that the proposed terms are acceptable to the
Council and in line with market expectations. If the Council did
not proceed with the proposed terms, there is a risk that the
tenant would withdraw from negotiations and vacate the premises,
resulting in void costs and uncertainty over future tenant covenant
and rent level.
 
There are limited options for affordable
groceries in this area, with the only other comparable supermarkets
an 8-10 minute walk from this location.
Given the high density of residential housing north of Old Street,
the loss of Sainsbury's may have a detrimental effect on many local
residents' access to fresh food. The supermarket also provides
amenities for the area's workers and visitors.