Decision

Decision:
 
For the reasons set out in
the report and its appendices Cabinet RESOLVED to Agree to:
 

i) 
Entering into a lease for 70-73 The Mall, Stratford Centre
(Stratford Market Village) with Unex
(No 21) Ltd on the basis of the Heads of Terms set out in exempt
Appendix 1;

 
ii) 
Note that the terms are for a 15-year lease, with a single one year
break in the event that the contracted rents do not meet an agreed
threshold, and with assignment allowed throughout the lease
period;
 
iii) 
Delegate the agreement of the final lease to the Corporate Director
of Inclusive Economy and Housing Delivery in consultation with the
Portfolio Lead for Inclusive Economy and Housing Delivery, Climate
Emergency; and Performance and Transformation;
 
iv) 
Delegate the negotiation and authorisation of a Deed of Variation
for Good Growth Funding to the Corporate Director of Inclusive
Economy and Housing Delivery in consultation with the Portfolio
Lead for Portfolio Lead for Inclusive Economy and Housing Delivery,
Climate Emergency; and Performance and Transformation.
 
Alternatives
Considered
 

a) 
The Council could have declined the opportunity to
enter into this lease and continued to encourage Unex to secure an alternative operating partner.
This option is not considered appropriate because the longer the
period for which the market is closed the less marketable it
becomes to other market operators, who would have to invest in
rebuilding the tenant base and footfall.
 

b) 
The Council could have rejected the Deed of
Variation and instead returned the surplus Good Growth funds and
bid to GLA for them to be redeployed on other Newham regeneration
projects. This option was rejected because it presented less
certainty of funding and because other projects, while 7 important,
were of less immediate priority to our Community Wealth Building
Agenda than reopening SMV.