Purpose

To seek approval to grant a new lease for Industrial premises at Unit 7 Hazelford Way, Newstead, NG15 0DQ to Prestige Retail (Midlands) Limited.

Decision

It is recommended that:
The Leader:
1.Approves the granting of a new lease to Prestige Retail (Midlands) Limited for premises at Unit 7 Hazelford Way, shown edged blue on the Plan at Appendix 1.
2.Approves the Heads of Terms at Appendix 2.
3.Delegates authority to the Service Manager - Property, in consultation with the Chief Executive and Legal Services to negotiate and approve the form of the lease and agreement for lease.

Reasons for the decision

The new lease will allow the Tenant to continue occupation under an agreement that follows up to date legal practice.
New letting would see increased income to the Council.

Alternative options considered

An alternative would be to not agree a new lease for the current tenant and to market the space externally. However, the Tenant has been a good tenant for multiple years, and this would incur additional costs to the Council in relation to marketing and void costs, should they vacate.
Another alternative is not to grant a new Lease and the Tenant remain in occupation. However, this would prevent the Lease being agreed at current market levels causing a loss of income to the Council. The Tenant would also retain ongoing security of tenure if the current position persists.