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That the report be
noted and the following recommendations
be approved:
 
1. 
To delegate authority to the Director of Housing Planning and
Regeneration to agree terms with the existing tenant of Churchill
Theatre, Trafalgar Group, to gift the Council’s freehold
interest in the whole site alongside negotiating a reverse premium
to be paid to Trafalgar Group on completion of the freehold
transfer to enable the tenant to invest in the building to ensure a
sustainable future for the building and to protect its future use
as a theatre. With terms, once agreed in principle, to be subject
to further approval by the Executive Committee.
2. 
As detailed within this report, the existing arrangement is not
sustainable as there are significant works required to the building
if it is it have a future, and therefore the existing lease
arrangement with Trafalgar Group needs to be terminated to enable
the works required on the building to be undertaken which cannot be
facilitated whilst the building is occupied and operational. It is
therefore recommended that the Landlord’s Break Clause in
relation to the lease held by Trafalgar Group is triggered which
must be served on or before 1st April 2024 in accordance
with the terms of the existing lease providing a minimum of 24
months’ notice thereby terminating the existing lease
arrangement as of 2nd April 2026.
3. 
Should Trafalgar Group confirm they are unwilling or unable to take
gifted ownership (and a reverse premium) of the site, then it is
recommended that the Executive Committee delegate authority to the
Director of Housing Planning and Regeneration to openly market a
999-year leasehold interest in the site to secure a private
developer to undertake the required redevelopment under a
Development Agreement, with the 999 year lease only being granted,
with vacant possession, on completion of the agreed scheme as
agreed and stipulated within the Development Agreement. All offers
received would be reported back to the Executive Committee for a
Member decision to enable Member selection of a preferred
bidder.