Agenda item

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report and explained that Naunton Park Pavilion was located in public open space in a park in Leckhampton. The park was popular with the local community used by families visiting the playground, local and dog walkers.

The function room at Naunton Park Pavilion had been occupied under a license by the Friends of Naunton Park since 2013 and they have used it on an ad-hoc basis for hiring out for birthdays, arts club and youth club. They did not pay a license fee and it was predominantly shut during day time hours. The Council were responsible for all repairs. The function rooms have their own separate entrance with a separate toilet as shown on the attached plan.

The Cabinet Member explained that the Property and Asset Management team have been considering ways of maximising the council’s estate, especially those assets that were intended to be retained but were under-utilised. This proposal offered an opportunity to generate additional income.

She went on to explain that in September 2017, planning permission was granted for the change of use of the function room at Naunton Pavilion to a tea room  to serve the local community. Support was given unanimously by Friends of Naunton Park.

It was now proposed that the unit be marketed on a 5 year lease at a rent of £3,900 per annum. The new tenant would take on all internal repairs and pay a percentage towards the external repairs.

The Friends of Naunton Park have agreed to continue with their agreement until a suitable tenant to run a coffee shop for the local community from the pavilion could be found, Two parties had already expressed an interest in the café and it was hoped that marketing would attract additional interest.

Leasing out the space would provide the council with an annual rental income as well as an additional saving on the cost of internal repairs, which would be covered by the tenant.  There was no rent currently being charged, therefore no loss of income would arise.

The Cabinet Member informed that local members and AMWG had been consulted and were fully supportive of the recommendations.

She then proposed a slight amendment to recommendation 2, that ‘Ward Members’ was replaced with Cabinet Member Finance. This was agreed by Members.

The Leader welcomed the proposal which was positive news for the local area.

RESOLVED THAT

1.            It be agreed that the function room at Naunton Park Pavilion be declared surplus for a term of 5 years.

2.            Authority be delegated to the Head of Property and Asset Management, in consultation with the Borough Solicitor, to agree the terms of the lease of the function room at a rent which may be below the market rent  but which the Head of Property and Asset Management in consultation with the Cabinet Member Finance and Borough Solicitor consider to represent best value.

3.            The Borough Solicitor be authorised to execute a lease upon the terms agreed by the Head of Property and Asset Management and such other terms as is considered necessary or advisable.