Agenda item

Report of  the Cabinet Member Built Environment

The Cabinet Member Built Environment introduced the report which had been circulated with the agenda. He explained that the Council had, over many years, entered into a variety of property letting arrangements with the voluntary or “third sector”, sometimes providing grant assistance or preferential tenancy terms. Increasingly the council was being asked to consider similar arrangements for community based organisations on a subsidised basis rather than at “best consideration”. A more consistent, transparent and streamlined process had been developed to facilitate officer negotiations by the development of an assessment tool and St Margaret’s Hall was the first time it had been put into practice.

The results of the assessment were set out in appendix 2 and demonstrated that St Margaret’s Hall scored highly on all the criteria and was the kind of organisation that the council should be supporting. The application had been supported by the ward councillor, Councillor Jo Teakle. 

Norman Ashworth, Senior Estates Surveyor, highlighted to members that a 15 year lease had been provisionally agreed, it was currently 10 years. The subsidised rent was for a period of five years which would then be reviewed at the same time as the rent review/lease renewal dates, the first of these being in 2016.

The Cabinet Member Housing and Safety thought this was a very positive example of the new transparent process and supported the valuable services that St Margaret’s Hall provided to the community.

The Leader supported the recommendations and commended the work done in creating the policy. He confirmed that the Cabinet would ensure that the five-year review of the subsidised rent would be carried out.  

Resolved that:

1. The non implementation of the outstanding 2006 rent review, and an extension of the original matching rent grant to cover the period from June 2006 to the expiry date of the current lease (5^th June 2011) be agreed, thereby avoiding costly administrative time in negotiating a new rent and subsequently producing a report to ‘write-off’ an outstanding debt.
2. The Trustees of the St Margaret’s Hall User Group be granted a new full repairing lease of the premises from 6 June 2011 at a rent to be formally stated in the documentation of £13,500 per annum exclusive of rates, insurance and other charges and with a rent review at the end of the fifth year.
3. The subsidised rent of 100% of the above rent figure of £13500 per annum be approved until a new rent is determined at rent review or lease renewal in accordance with the Council’s agreed Property Lettings and Disposals to the Third Sector policy with the proviso (as advised at the meeting) that the subsidy be reviewed on a five yearly basis at the same time as the rent review/lease renewal dates, the first of these to take place in 2016.
4. The Trustees of the St Margaret’s Hall User Group be required to continue to pay the annual building insurance premium throughout the new  lease.
5. Authority be delegated to the Head of Property & Asset Management, in consultation with the Head of Legal Services, to negotiate and finalise the lease terms with the Trustees of the St Margaret’s Hall User Group and complete the new Lease.