Purpose

Cabinet will be asked to :
 

·      
Approve the proposal to enter into an agreement for lease with NHG
for the sole use and occupation of Eastgate House, a 34 unit
building in Basildon,under which the Council will be obliged to
take a 10 year less a day lease of Eastgate House upon completion
by NHG of refurbishment works.

·      
Approve the Council entering into an underlease with Queens Letting
and Management (QLM), a community interest company once
established, for Eastgate House on a back to back basis.

Decision

Cabinet:
 
 
4.1Approvedthe
proposal to enter into an agreement for lease with National Housing
Group for the sole use and occupation of Eastgate House, a 34 unit
building in Basildon, under which the Council will be obliged to
take a 10-year lease of Eastgate House upon completion by National
Housing Group of agreed refurbishment works.
 
4.2Upon completion of the lease
referred to above, approved that the Council may
either:
 

4.2.1     
grant a sub-underlease of Eastgate
House to a wholly owned subsidiary of the Council (envisaged to be
called Queens Letting and Management (“QLM”)) on a back
to back basis; or
 

4.2.2     
to manage Eastgate House directly.
 

4.3 Approved deficit grant funding of
up to £3.9m in total to QLM to cover the lease period.
 
4.4 Delegated to
the Director of Living Well, in consultation with the Strategic
Director of Resources, to take all steps, and to enter into all
documentation, necessary to deliver the scheme as approved by
recommendation (a) above including the discretion to decide which
of options (b)(i) and (ii) shall be progressed.
 
1.    
Noted we have
already received cabinet approval to incorporate QLM Community
Interest Company (CIC) on the 12 June 2024 – Establishment of
a joint venture company to manage properties leased in partnership
with Chalkhill.
 
2.    
Noted Eastgate
House is a permitted development scheme where from a planning
perspective has already secured prior approval for office to
residential conversion.

 

3.    
Noted
the projected costs
of leasing the property for the term outlined as well as the
projected cost avoidance.