Purpose

Cabinet Decision on 3rd March 2022 approved
the restructure and surrender of the existing lease of the Mill
Youth Centre, Easton to provide 2 separate leases to enable a) the
development of a new indoor basketball court for the occupation of
Empire Fighting Chance (EFC), b) 38 new affordable housing
development by Sovereign Housing Association c) a receipt from
Sovereign to EFC to provide future funding security to continue its
charitable purpose and d) an extension to the existing gymnasium
building. The 2 new leasehold estates would be granted to EFC at an
undervalue with no capital receipt or rental income due to the
Council.
Cabinet authorised the Executive Director of Growth and
Regeneration, in consultation with the Cabinet Member for Housing
Delivery and Homes to agree terms for the surrender and regrant of
the leases to EFC.
Full planning permission (ref 21/03532/F) was granted for the
proposed scheme on 8th August 2022. The transaction is still based
on the terms set out in the previous Cabinet Decision but is
subject to a legal variation agreed between EFC and Sovereign
Housing allowing Sovereign to take the benefit of an assigned
headlease relating to the development of the 38 affordable housing
units (rather than an underlease as previously set out in the
Cabinet report). The assignment will create a direct legal
relationship between the Council and Sovereign who will, under this
assignment (Section 106 stands alone) covenant to observe and
perform the tenants’ covenants in the headlease.
The intention is for Sovereign to grant an underlease of part for
the basketball court to EFC on completion. We have not seen the
terms of the proposed underlease of part.
EFC have also recently submitted a further planning application
(reference 23/02074/F) to extend the existing gymnasium building.
This new provision is to enable their continued delivery of
services, and the timing of its delivery will support the build
programme of the Sovereign Housing element.
In consideration of the above the principal variations agreed are
as follows:
•An assignment of the EFC headlease relating to the basketball
court site to Sovereign Housing (the Cabinet decision referred to a
999 year less 10 days underlease).
•Enter a Licence for Alterations in respect to planning
application 23/02074/F.
•To seal/ sign any other relevant documentation relating to
the transaction as required.
The delivery of the 38 affordable units falls within the auspices
of Project 1000 which was approved by Cabinet on 8th February 2022.
This delegates the Executive Director Growth and Regeneration, in
consultation with the Cabinet Member for Housing Delivery and Homes
to “take all necessary steps” to implement the various
workstreams of Project 1000 as detailed in the AHDP.

Content

To approve the surrender and revised structure
of the existing lease of the Mill Youth Centre, Easton to enable
the development of a new indoor basketball court for the occupation
of Empire Fighting Chance (EFC).