Renewal of Lease - 1, 2 and 7 Flat Iron Parade - Poundland
To receive and consider the report of the Director of Commercial Services.
Decision:
1. That the terms provisionally agreed for the grant of a new lease are approved and the Director of Governance be authorised to complete the legal formalities in accordance with these terms.
2. That the Chief Executive be authorised to approve any minor adjustments to the final detailed lease terms in consultation with the Executive Member for Resources.
Minutes:
Councillor Peter Wilson, Executive Member for Resources presented the report of the Director of Commercial Services which sought authorisation for the grant of a new lease of Units 1 and 2 Market Walk and Unit 7 Flat Iron Parade to Poundland Ltd. subject to terms provisionally agreed in conjunction with the Council’s Consultant Surveyor, as set out in this report.
Decision:
1. That the terms provisionally agreed for the grant of a new lease are approved and the Director of Governance be authorised to complete the legal formalities in accordance with these terms.
2. That the Chief Executive be authorised to approve any minor adjustments to the final detailed lease terms in consultation with the Executive Member for Resources.
Reasons for recommendations
Following extensive negotiations, including possible reference to PACT (RICS Arbitration Platform) the proposed terms have been agreed in conjunction with the Council’s Retail Consultants and reflect current market conditions within the Market Walk Centre in line with other leases which have been recently agreed/completed.
Other options considered and rejected
Termination of the lease and remarketing of the units. This was rejected on the grounds of potential loss of income and creation of voids and gaps of occupation in the Centre which would reduce footfall and detract from the marketability of other units and the value of the Centre.