Issue - meetings

Report of the Cabinet Member Finance

RESOLVED THAT:

1.    an early surrender of the lease to SLL be agreed, and a new lease be granted for a term of 35 years of the land shown edged red on the attached plan, on the rental basis set out in the report;

2.      authority be delegated to the Executive Director of Finance and Assets in consultation with the  Borough Solicitor, to agree the remaining terms of the lease and conclude the surrender and grant of a new lease.

The Cabinet Member Finance introduced the report, she explained that Sandford Lido Limited approached the Council to seek an early surrender of their current lease and requested a new lease for a term of 35 years. The approach was so they could more easily secure funding and grants required to carry out improvements and much needed larger repairs and modernisation.

She highlighted that the council had followed due process as set out in legislation and that failure to do so would have put the council at risk of challenge from other third sector groups and charities renting council property.

She confirmed that draft heads of terms had now been agreed between the Council and the Lido. The lease will follow the same basis as the current one, with the main differences being the current lease is for a term of 25 years, whereas the proposed new lease will be for 35 years, she proposed that the user clause would be for sporting, social, and recreational activities and other activities that the Council may permit at its absolute discretion and as a public car park. The lease would now also include provisions aimed at the Lido being financially accessible for all.

She proposed that the Lido Trust would pay a nominal rent of £5 per year and retain every pound of car parking income up to £365,000 - a figure in excess of the current income generated by the car park. In a further boost, the Trust would retain 50% of all revenue above £365,000

The Council sought two independent specialist advisors in order to help with the renewal process and to help agree appropriate new terms for the lease. The Cabinet Member thanked all those involved in the process, particularly Rebecca Conway and the Lido Trustees.

The Leader thanked all those who had been involved in the process to date and acknowledged the need to follow due process.

RESOLVED THAT:

1.      An early surrender of the lease to SLL be agreed, and a new lease be granted for a term of 35 years of the land shown edged red on the attached plan, on the rental basis set out in the report;

2.      Authority be delegated to the Executive Director of Finance and Assets in consultation with the Borough Solicitor, to agree the remaining terms of the lease and conclude the surrender and grant of a new lease.