Issue - items at meetings - Rocket House, Cromer - Proposed new Long Term Lease agreement

Executive Summary

The RNLI is a tenant at the Rocket House, Cromer, from where it has operated the Henry Blogg Museum. The organisation gave notice to the Council of its intention to vacate the premises in July 2024.

To enable the RNLI to remain in occupation over the peak summer visitor period, a short-term temporary lease until 31 October 2024, was agreed Thereafter the Council has agreed a programme of major works at the Rocket House to address the damp issues which it is proposed be completed over the winter and spring period, with the refurbished property being available for re-occupation from the summer of 2025.

This report considers the terms under which a new long-term lease between the Council and RNLI might be agreed allowing the charity to re-occupy space on the ground and first floors of the Rocket House for the Henry Blogg Museum once the programme of works to the building are complete.

Options considered

Following previous Cabinet decisions, refurbishment works to address the long-term damp issues at the property are to be undertaken during the forthcoming winter and spring period, extending the life of the Rocket House building.

In terms of the future lease of space on the ground and first floors of the Rocket House building the following options have been considered:-

1. To obtain a market valuation and commence negotiations for a new long-term lease with the RNLI – recommended.

2. To advertise the vacant ground and part of the first floor demise on the open market to demonstrate best value – not recommended.

Consultation(s)

Local Members

Recommendations

It is recommended that Cabinet:

1. Delegate authority to the Asset Strategy Manager (ASM) to arrange for an independent rental valuation of the space previously occupied by the RNLI so as to inform future negotiations for the long-term lease of these parts of the Rocket House building.

2. Request that the ASM undertakes additional enquiries as to the social, economic or environmental factors, as detailed in the General Disposal Consent Order 2003, prior to agreeing a new long-term lease with the RNLI.

3. Delegate authority to the ASM to enter into negotiations for the long-term lease of the premises

4. To prepare a further report to Cabinet once negotiations with the RNLI are finalised to:

· Ensure Cabinet are satisfied that one or more of the General Disposals Consent Order 2003 criteria is met,

· Inform the outcome of negotiations as to rent proposed,

· Inform of the proposed lease Heads of Terms

Reasons for recommendations

To provide an opportunity to the RNLI tenant, subject due governance and successful negotiation, to return to the building, under a long-term lease following completion of repairs.

Background papers

N/A

Wards affected	Cromer Town and Suffield Park
Cabinet member(s)	Cllr L Shires, Cllr H Blathwayt, Cllr A Varley, Cllr L Withington
Contact Officer	Renata Garfoot Asset Strategy Manager. Renata.Garfoot@North-Norfolk.gov.uk

Decision

RESOLVED

1. Delegate authority to the Asset Strategy Manager (ASM) to arrange for an independent rental valuation of the space previously occupied by the RNLI so as to inform future negotiations for the long-term lease of these parts of the Rocket House building.

2. Request that the ASM undertakes additional enquiries as to the social, economic or environmental factors, as detailed in the General Disposal Consent Order 2003, prior to agreeing a new long-term lease with the RNLI.

3. Delegate authority to the ASM to enter into negotiations for the long-term lease of the premises

4. To prepare a further report to Cabinet once negotiations with the RNLI are finalised to:

· Ensure Cabinet are satisfied that one or more of the General Disposals Consent Order 2003 criteria is met,

· Inform the outcome of negotiations as to rent proposed,

· Inform of the proposed lease Heads of Terms

Reason for the recommendations:

To provide an opportunity to the RNLI tenant, subject due governance and successful negotiation, to return to the building, under a long-term lease following completion of repairs.

Cllr L Shires, Portfolio Holder for Finance & Assets, introduced this item. She explained that the purpose of the report was to obtain a market valuation for the property for rental. Once this was obtained, the Council would work with the prospective tenants to negotiate a final figure.

The Surveyor added that the Rocket House café lease was due for renewal in 2025 and the market valuation would provide a good basis to renegotiate this lease too.

The Chairman invited members to speak.

Cllr J Toye said that he was pleased that the project was being assessed on a holistic basis, rather than just the financial gain.

It was proposed by Cllr L Shires, seconded by Cllr J Toye and

RESOLVED

1. Delegate authority to the Asset Strategy Manager (ASM) to arrange for an independent rental valuation of the space previously occupied by the RNLI so as to inform future negotiations for the long-term lease of these parts of the Rocket House building.

2. Request that the ASM undertakes additional enquiries as to the social, economic or environmental factors, as detailed in the General Disposal Consent Order 2003, prior to agreeing a new long-term lease with the RNLI.

3. Delegate authority to the ASM to enter into negotiations for the long-term lease of the premises

4. To prepare a further report to Cabinet once negotiations with the RNLI are finalised to:

· Ensure Cabinet are satisfied that one or more of the General Disposals Consent Order 2003 criteria is met,

· Inform the outcome of negotiations as to rent proposed,

· Inform of the proposed lease Heads of Terms

Reason for the recommendations:

To provide an opportunity to the RNLI tenant, subject due governance and successful negotiation, to return to the building, under a long-term lease following completion of repairs.

Issue - meetings

Rocket House, Cromer - Proposed new Long Term Lease agreement

Meeting: 08/07/2024 - Cabinet (Item 13)