Decision details

Members were asked to consider the reauthorisation of the surrender and re-grant of three ground leases.

Members also considered the alternative option to retain the existing leases.

RESOLVED that approval be given to the reauthorisation of the Cabinet decision of 11^th June, 2015 as detailed below:-

a)        to surrender by way of Deed the three existing leases between Ashfield District Council and the tenant, on the terms as set out in the report;

b)        to re-grant leases of the three sites to the tenant on renegotiated terms to include the Council’s standard terms along with:-

deferral of the rent reviews due every 21 years on the sites for the first 5 years of the new lease term, subject to an additional rental payment during the remaining 16 years before the next rent review.  The tenant will continue to pay the Council the current rent during this deferred period;

c)         delegated authority be granted to the Director of Business and Transformation and the Director of Legal and Governance, to agree any updates or variations on the current lease terms and for the Director of Legal and Governance to complete the necessary transactions.

Reasons:

The tenant has now expanded the business on the three Council owned sites in Kirkby-in-Ashfield with the associated investment and employment into the District.  In addition, following the initial 5 year deferral, the Council will receive additional rent over the next 21years.