Issue - meetings

Executive Summary

The lease for this industrial unit, owned by the District Council, is due for renewal. The tenant is an established business providing skilled jobs in the district.

Options, which look to demonstrate the Council’s best value duties, have been considered including renewing the lease on improved terms, marketing the property for reletting, and selling the property.

Granting a new lease at the property on improved terms will secure the Council’s revenue income from the property at a market rent ensuring best value is achieved.

Granting a new lease at the property will provide security to the tenant’s business and secure local jobs in the district.

It is recommended that Option 1 to agree new lease with the existing tenantat a higher rent is taken forwards.

Options considered.

The following options have been considered to ensure the Council achieves best value from the letting of the property:

·       Option 1 - Agree new lease and rent increase with the existing tenant. – Recommended.

·       Option 2 - End the tenant’s occupation and relet the premises – Not recommended.

·       Option 3 - Sale of the property - Not recommended.

Consultation(s)

Tenant

Andrew Woodley - Surveyor

Stuart Quick - Economic Growth Manager

Kate Rawlings - Climate & Environmental Policy Manager

Recommendations

Resolution for Cabinet to approve:

• A new lease with the existing tenant as per Option 1 detailed in the exempt appendix.
• Delegate approval to the Asset Strategy Manager to agree the exact terms of the above legal agreement.

Reasons for recommendations

·       Granting a new lease at the property will secure the Council’s revenue income from the property at a market rent ensuring best value is achieved in line with the Council obligation under the Section 26 of the Local Government Act.

·       Granting a new lease at the property will provide security to the tenant’s business and secure skilled jobs in the district.

Background papers

N/A

Wards affected

Lancaster North

Lancaster South

Cabinet member(s)

Cllr Lucy Shires  

Contact Officer

Milo Creasey – Trainee Estates Surveyor -milo.creasey@north-norfolk.gov.uk

Renata Garfoot - Asset Strategy Manager -Renata.Garfoot@north-norfolk.gov.uk

Links to key documents:

Corporate Plan:         

A strong responsible and accountable Council

Medium Term Financial Strategy (MTFS)                                

The proposal secures an increased income from this asset for the duration of the lease term.

Council Policies & Strategies

Asset Management Plan 2018 - 2022