Decision Maker: Executive Shareholder and Trustee Committee
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
To seek authority to proceed with new lease of
charitable land at Allen House.
That the Director of Strategic Services be authorised to complete the lease to the Matrix Trust for a new 20-year term, in accordance with the Heads of Terms set out in the report submitted to the Committee, including rights for Matrix to undertake proposed works to the Pavilion and open a community café.
The lease to Matrix expired on 22 December 2019, the tenant is currently occupying the Allen House Pavilion on a tenancy at will. The new lease will generate more rental income for the Trust, allow Matrix to improve the building and open a community café. This will make Matrix more financially sustainable and allow it to expand its youth work.
Options considered and rejected by the Leader of the Council:
The Trust could renew the lease to Matrix for a further five years. It would still be necessary to undertake a public consultation and seek the ESTC’s approval before undertaking the consultation and finalising terms with Matrix. This would not provide Matrix with a long enough term to obtain funding for the proposed works to the building. Consequently, the building would not be improved, and the change of use would not be implemented, meaning that Matrix would not be able to create an income stream to invest into the charity.
The Trust could advertise the opportunity to lease the building on the open market and seek best offers. Given that the 2014 Deed of Variation restricts leases granted in respect of the Pavilion to charitable uses and projects, the demand for the building is likely to be extremely limited. A report has also been obtained from an external surveyor on the market rent and the surveyor commented that there would be no advantage to the Trust in formally advertising the proposed 20-year lease term on the open market.
Details of any conflict of interest declared by the Leader and any dispensation granted:
Details of any written submissions received and considered by the Leader from other members of the Executive, councillors or public:
Cllr Patrick Sheard (non-Committee member):
I have no issue with this.
Cllr Deborah Seabrook Sheard (non-Committee member):
Agreed. Matrix are a brilliant organisation and this proposal will enable them to increase their youth work. Thanks to Simon Goldsworthy for a clear report and presenting genuine options.
Report author: Simon Goldsworthy
Publication date: 26/03/2020
Date of decision: 24/03/2020
Decided at meeting: 24/03/2020 - Executive Shareholder and Trustee Committee