Purpose

To seek Cabinet approval for the grant of a new 10-year lease of the Site to the party referred to in the Exempt Annex.

Decision

Cabinet  RESOLVED to:

1. Approve the grant of a new 10-year lease of the former Unimetals Recycling Site, Fourth Drove, Fengate, and the completion of all associated legal documentation, substantially in accordance with the Heads of Terms contained within Exempt Annex.
2. Authorise the Executive Director of Place and Economy, in consultation with the Director of Legal and Governance, and Executive Director of Corporate Services, to agree any necessary modifications to the final lease terms, provided that such changes do not materially alter the substance or commercial basis of the decision approved by Cabinet.
3. Note that having regard to the recent marketing exercise, independent valuation evidence and the overall commercial terms of the proposed transaction, the Council is achieving best consideration reasonably obtainable.

Reasons for the decision

1.1        The proposed letting follows recovery of vacant possession and a subsequent marketing exercise which tested both freehold and leasehold interest.

1.2        The proposal seeks to:

• generate income from a vacant Council-owned asset;

• retain the Council’s freehold ownership;

• reduce ongoing vacancy, security and holding-cost exposure;

• secure appropriate repairing, environmental and reinstatement obligations;

• preserve flexibility for potential future municipal use; and

• ensure that the Council achieves Best Consideration from the proposed property disposal.

1.3        Approval is required because the proposed lease disposal falls outside the relevant officer delegation as the aggregate value exceeds £250,000 and requires Cabinet approval in accordance with the Council’s Constitution and governance arrangements.

Alternative options considered

As set out in the report.