Decision details

Market Walk Rents Position

Decision Maker: Executive Cabinet

Decision status: Recommendations approved

Is Key decision?: Yes

Is subject to call in?: Yes

Decisions:

Councillor Alistair Bradley, Executive Member (Economic Development and Public Service Reform), presented the confidential report of the Director of Commercial Services which seeks approval granting a new lease for Bodycare at units 14/15 Market Walk, approval for the application of Covid Terms in the Sports Direct lease, and seeks delegated authority to conclude a number of outstanding Covid rent relief claims for tenants who are mid-lease.

 

Decision:

1.    To approve the terms agreed in the Heads of Terms (Appendix 1) for Bodycare.

2.    To approve the application of Covid Terms contained within the Sports Direct lease resulting in:

a)    a rent commencement date of 5 June 2022 (subject to any further lockdown periods)

b)    rent reverting to 5% of turnover for a maximum period of 12 months.

3.    To request delegated authority, to Director Commercial Services in consultation with Exec Member for Resource, to negotiate outstanding claims for Covid relief with tenants outside of lease negotiations, but to note that this will be applied by way of credit notes where the tenant is in arrears, a significant amount of which is already accounted for within the bad debt provision for 2020/21.

 

Reasons for recommendation(s):

1.    The Council will receive a rental income for the occupation of the premises.

2.    The Council will avoid having void units and costs associated with managing/reletting them.

 

Alternative options considered and rejected:

1.    The Premises would remain empty until such time as a new tenant might be found.

2.    In the current economic climate it is likely that it would take some time to agree a new letting of the premises.

3.    The Council would bear the costs of running and maintaining the empty premises.

4.    Any incoming tenant would likely demand similar terms or worse in order to fit out a new store.

Report author: Conrad Heald

Publication date: 21/06/2021

Date of decision: 17/06/2021

Decided at meeting: 17/06/2021 - Executive Cabinet

Effective from: 26/06/2021

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