13 Lease Approval for Strawberry Meadows
To receive and consider the report of the Director of Commercial.
Additional documents:
Decision:
1. To delegate approval for leases under £100k to the Director (Commercial Services) in consultation with the Executive Member (Resources) where the rents achieved are within the parameters of the approved revenue model
2. To delegate approval for leases over £100k to the Executive Member (Resources) through an EMD where the rents achieved are within the parameters of the approved revenue model
3. To approve the draft terms agreed with KA Distribution and delegate minor changes to the lease for KA Distribution to the Director (Commercial Services) in consultation with the Executive Member (Resources)
4. To set the initial management revenue budget at £80,000 per annum for Strawberry Meadows. This will be recovered from tenants through a Management Fee.
5. To approve the method of applying increases to the Management Fee as September CPI +1%
Minutes:
Peter Wilson, Executive Member (Resources) presented the report of the Director of Commercial Services which seeks approval to delegate approval of Heads of Terms to the Executive Member (Resources) and Director (Commercial Services) which will allow the legal process to flow more quickly upon officers agreeing draft terms with tenants.
Decision:
1. To delegate approval for leases under £100k to the Director (Commercial Services) in consultation with the Executive Member (Resources) where the rents achieved are within the parameters of the approved revenue model
2. To delegate approval for leases over £100k to the Executive Member (Resources) through an EMD where the rents achieved are within the parameters of the approved revenue model
3. To approve the draft terms agreed with KA Distribution and delegate minor changes to the lease for KA Distribution to the Director (Commercial Services) in consultation with the Executive Member (Resources)
4. To set the initial management revenue budget at £80,000 per annum for Strawberry Meadows. This will be recovered from tenants through a Management Fee.
5. To approve the method of applying increases to the Management Fee as September CPI +1%
Reasons for recommendations:
To expedite the occupancy of the 33 newly constructed light industrial units approval is sought to delegate approval of Heads of Terms to the Executive Member (Resources) and the Director (Commercial Services) which will allow the legal process to flow more quickly upon officers agreeing draft terms with tenants
Other options considered and rejected:
1. If all leases with a value exceeding £100k over the term were to come to Executive Cabinet for approval it will impact upon the speed at which tenancies can be signed up and essentially may go elsewhere if their business decision is time dependent.
2. There are a significant number of leases for the new development to consider all at once with some terms changing as tenant requirements change and delegated approvals allows officers to be more responsive.