Purpose

This report seeks approval to grant an
Agreement for Lease containing a licence for works that are subject
to planning permission and all necessary consents. Following
approvals, a subsequent 30-year full repairing and insuring lease
(FRI) of Phoenix House will be entered into with Whitbread Group
Public Limited Company (PLC) for conversion of the building to a
Premier Inn Hotel. 
 
The building requires extensive refurbishment,
which will be undertaken by the hotel operator under a
contractually binding agreement for lease. The refurbishment
requires significant capital funding which will be funded by a
reduction of income in the first part of the lease term.
 

Decision

1.   
To grant an agreement for lease with Whitbread PLC to seek planning
approval, licensing and landlord consent for conversion into a
Premier Inn Hotel and once conditions are met, grant a licence to
enable completion of a capital works programme.
 
2.   
Following completion of works, grant a 30-year full repairing and
insuring lease to Whitbread PLC for a Premier Inn Hotel on the
basis of the Heads of Terms proposed, subject to planning
permission and all other necessary consents and approvals, as set
out in paragraph 2.14