Purpose

To seek approval to proceed with the strategic
and investment opportunity to grant two new long leases at the
Leisure Park.

Decision

1.   
Authorise the grant of two new long leases and associated legal
documentation adjacent to the Ice Rink at the Leisure Park as
outlined in confidential appendices 1-3 of the report.
 

2.   
Delegate authority to the Director of Regeneration to do anything
ancillary to facilitate the action in recommendation 1.

Reasons for the decision

In accordance with good estate management
letting of the area of land will regularise its use in connection
with the adjoining leisure unit; supporting the operational use of
this leisure unit and reducing the council’s ongoing
management and maintenance liability.
 
The decision to complete the two new leases
and associated legal documentation will enhance and support the Ice
Rink and the overall Leisure offer at the Leisure Park, secure a
phased lump sum payment and reduce ongoing costs to the council for
managing both the vacant unit/land.

Alternative options considered

To not proceed with the grant of the two
leases.
 
The council could continue to market the
leisure unit to find an alternative tenant on a shorter
occupational lease but there is no guarantee this can be done
quickly or successfully given the nature of the unit and the market
conditions. This option is not recommended as the condition of the
unit is likely to deteriorate and it would mean the council would
continue to incur the holding costs with rising repair and
maintenance costs.
 
With regards to the second lease if this is
not granted it would mean the council continues to be responsible
for managing and maintaining the land together with the associated
operational costs. For these reasons it is not recommended.