To receive and consider the report of the Director of Commercial Services.

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.

Councillor Alistair Bradley, Executive Member for Economic Development and Public Service Reform presented the confidential report of the Director of Commercial Services on behalf of Councillor Peter Wilson, Executive Member for Resources which sought Member authorisation for the grant of a new lease of Units 28-29, Market Walk to Ryman Group Ltd. subject to terms provisionally agreed by the Council’s Consultant Surveyor as detailed in this report. 

Decision:

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.

Reasons for recommendations:

Following extensive negotiations with The Tenant’s Agent, the proposed terms have been provisionally agreed in conjunction with the Council’s Retail Consultants and reflect current market conditions within the Market Walk Centre in line with other leases on similar units which have recently been agreed/completed. A market commentary is provided for information at Appendix 2.

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. The Tenants already have a secure tenancy so it would be difficult to find valid ground to determine the Tenancy in any case.