Decision

That authority be
delegated to the Director of Pride in Place, in consultation with
the Cabinet Member
for Place Development and Economic Growth, to agree commercial
heads of terms on the first lease granted at each unit at the
Lymington Enterprise Centre, Torquay at a market rent.

Reasons for the decision

The benefits of fully
utilising the opportunity of leasing the five light industrial
units to businesses that were in need of business premises
were:
 

Increasing employment
in the local area.
Increasing investment
in this district of Torbay.
Managing these units
on a commercial basis, minimising void periods and encouraging
occupancy of businesses would meet the funding criteria.
The rental income
from these units would service the loan for the Council’s
financial contribution into the project to redevelop the whole
coach station site.

Alternative options considered

The alternative
options were:
 
Freehold disposal; the
units have been designed to meet the demand for business use for
light manufacturing, storage and office use and were to be
commercially leased.  The Council would
also achieve its employment aims, by retaining control of the units
and selecting which businesses can use them.  Therefore, the option of a freehold disposal was
discounted.
 
A further option was
not to let out these properties on a commercial basis.  This would increase the Council’s void costs
and extend the period before the Council could gain any rental
income. This would be a significant disadvantage to the Council in
terms of lost revenue and void costs and had therefore, been
discounted.