Purpose

To agree the new lease terms for The Mudchute Association for Mudchute Park and Farm, Pier Street, E14.

Decision

DECISION;

1. AGREED a 30-year lease at an initial rent level of £15k pa to be inside the provisions of the Landlord and Tenants Act 1954 to The Mudchute Association for Mudchute Farm and Park.
2. Noted the specific equalities considerations as set out in section 4.

Reasons for the decision

•         To comply with Council policy to ensure all leaseholders have an appropriate lease agreement.

•         Deliver on the Council’s Voluntary and Community Sector Strategy, specifically to support independence and long-term stability.

•         The proposed lease terms are different to those agreed at a meeting of Cabinet in June 2019 and therefore require a new Cabinet decision. The form of new lease agreed in 2019 has not been granted.

•         To recognise the unique scale and circumstances of the site- the scale, complexity and mixed use of Mudchute Farm and Park distinguish it from standard community premises. The grant of a longer lease than is standard under VCS Premises Policy is therefore justified and proportionate in this specific case.

Alternative Options

•         Offer a community lease of 5 years, at Community Rent of £14psft and on other standard lease terms with Community Benefit Rent Reduction of 80% (subject to satisfactory application) in line with the Council’s VCS Premises Policy and Procedures agreed by Cabinet in 2021.

•         The Mudchute Association have already rejected this offer as being financially unsuitable to secure long-term capital and revenue grant funding, which generally requires a lease of 10 years or more. The current lease is within the Landlord and Tenant Act  (LTA) 1954 and therefore a court is likely to award a lease of up to 15 years.

•         Take possession of the site and operate in-house: The Mudchute Association have managed, maintained and enhanced the 32-acre site since 1977 at minimal cost to the Council and provide access for free to the public. Returning the site to in?house operation would require additional revenue and capital resources and is likely to prompt strong community concern. This option also has potential issues for a two-tier workforce.

•         Do nothing: The current lease has expired and is currently holding over.  Continuing this approach would perpetuate the issues of securing long-term grant funding and further reputational damage to the Council. Not  recommended.

Action by:

CORPORATE DIRECTOR FOR HOUSING & REGENERATION (D. JOYCE)