Agenda item
Rocket House Café/Restaurant Lease Renewal
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Executive Summary |
The lease for this café/restaurant, owned by the District Council, is due for renewal. The tenant is an established business that provides jobs in the district.
Several options have been considered to demonstrate the Council’s best value duties, including renewing the lease on improved terms, ending the tenant's occupation to re-let the premises, or selling the property.
Granting a new lease on improved terms will secure the Council’s revenue at a market rent, ensuring best value is achieved while also providing security to the tenant’s business and safeguarding local jobs. It is recommended that Option 1 to agree new lease with the existing tenantat a higher rent is taken forwards.
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Options considered
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The following options have been considered to ensure the Council achieves best value from it’s letting of the property:
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Consultation(s) |
Cllr Lucy Shires - Portfolio Holder for Finance, Estates & Property Services. Cllr Tim Adams- Leader of the Council - Portfolio Holder for Executive Support & Legal Services and local member. Cllr Jill Boyle – Local member Daniel King – Assistant Director for Finance and Assets Cara Jordan - Monitoring Officer
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Recommendations
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Resolution for Cabinet to approve:
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Reasons for recommendations
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Background papers |
Rocket House Cromer Cabinet decision 15/04/2024. |
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Wards affected |
Cromer Town
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Cabinet member(s) |
Cllr Lucy Shires
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Contact Officer |
Milo Creasey – Trainee Estates Surveyor -milo.creasey@north-norfolk.gov.uk
Renata Garfoot - Asset Strategy Manager -Renata.Garfoot@north-norfolk.gov.uk
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Decision:
Decision
RESOLVED to approve
- The renewal of the 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.
Reason for the decision:
- 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 jobs in the district.
Minutes:
Cllr L Shires, Portfolio Holder for Finance, Estates & Property Services, introduced this item. She reminded members that there was an exempt appendix and said that if they wished to discuss any of the information in that, the meeting would need to go into private session.
Cllr Shires proposed option 1 – the agreement of a new lease and rent increase with the existing tenant.
The Chair said that there had been some concern locally about the reference to an option to sell the property and explained that all available options had to be considered and it was agreed that it was not the best option. He said that Option 1 was the best option for the Council and current tenant. The current business was very successful and a valued local employer and it would be hard to replicate given the pressures on the hospitality industry.
Members were invited to speak:
Cllr N Dixon said that one of his questions may need to be raised in private session, including costs.
The Chair said that he would deal with comments and questions that could be dealt with in public session and then move into private session.
Cllr A Fitch-Tillett spoke about the building in general. She said that the last few months had been exceptionally dry and she asked whether there were still signs of damp in the building. The Chair replied that this matter was not being considered today. The report related to the lease of the upper part of the building only. However, he did confirm that the damp situation was still being monitored. The space being discussed was not affected by the damp issue.
He added that a decision regarding the tenancy for the ground floor would come to a future Cabinet meeting for decision. Cllr Fitch-Tillett was concerned that the damp issues could impact on the saleability of the building in the future. The Chair replied that this was not a true reflection of the status of the building and expressed concern that the situation was being exaggerated.
Cllr V Holliday asked if there was a business case underpinning the proposals. The Chair replied that this was a standard process for the renewal of a lease. The Chief Executive added that the matter before members was for the renewal of a lease for the upper part of the building and as it was let under the Landlord & Tenant Act, the tenant had the right of renewal subject to agreeing a revised rent.
The Chair suggested that the rest of the discussion took place in private session.
It was proposed by Cllr T Adams, seconded by Cllr L Shires and
RESOLVED that under Section 100A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following item of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraphs 3 of Part I of Schedule 12A (as amended) to the Act.
The meeting went into private session at 10.27am.
At 10.50am members resolved to return to public session.
The Chair said that members had considered issues relating to the proposals in a closed session.
It was proposed by Cllr L Shires, seconded by Cllr J Toye and
RESOLVED to approve
- The renewal of the 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.
Reason for the decision:
- 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 jobs in the district.
Supporting documents:
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