Issue - meetings

Decision:

The Executive approved the grant of a new 5-year lease at less than best consideration to Yvonne Arnaud Management Limited at Old Town Mill.

Reason(s):

To support Yvonne Arnaud Management Limited.

Other options considered and rejected by the Executive:

1.       Terminate the Tenancy at Will with immediate effect. This option did not give YAM Ltd. sufficient time to vacate the property and find suitable alternative accommodation to relocate the facility. The Council would acquire a financial liability because the loss of rent would impact the revenue budget and the works required to prepare the building for reletting would impact the capital budget.

2.       Propose a lease to YAM Ltd.at the full market rent of £65,000 per annum. This option exceeded their maximum affordability and restricted their ability to operate the building. As above, the tenant would have to vacate the property and the Council would acquire a financial liability.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.

The report was introduced by the Lead Councillor for Finance and Property.

The Council had leased the Old Town Mill Studio to the Yvonne Arnaud Management (YAM) at 50% below best consideration, amounting to £22,750 per annum. It was used as office space, storage and studio space, notably for the delivery of the Creative Learning Programme. The YAM would find it challenging to operate without this facility.

The building was classified as property type E and consequently could be developed by the Council for other purposes. An external market valuation put the potential income for lease of the building at £65,000 per annum. However, it was a Grade 2 Listed Building, which would impact any financial return and the manner of any redesign. It was also noted that the redevelopment of the Debenhams site next door would cause disruption to the immediate area for a number of years. For this reason, it would be difficult for the council to let the building at full market value for the next few years.

The Council wished to continue to support the theatre and to grant a new lease to the YAM. YAMs financial accounts had been reviewed and its level of affordability exceeded the maximum discount of the estimated annual market rental value that could be approved under officer delegation. Therefore, approval was sought from the Executive to grant a new lease to YAM for a term of 5 years at the current rate of less than best consideration.

It was noted that the detailed terms of the lease were the subject ongoing discussion between the council and the YAM.

RESOLVED:

To approve the grant of a new 5-year lease at less than best consideration to Yvonne Arnaud Management Limited at Old Town Mill.

Reason(s):

To support Yvonne Arnaud Management Limited.