Purpose

 Variation to Existing Lease to Permit Assignment

Decision

Cabinet RESOLVED to:
1. Approve the regularisation of the 2019 Community Asset Transfer disposal of 318 Gladstone Street.
2. Approve the one-off licence to allow assignment of the whole of the lease from an unincorporated association to a Charitable Incorporated Organisation as set out in the exempt annex.
3. Delegate authority to the Executive Director for Place and Economy, in consultation with the Executive Director of Corporate Services and Director of Legal and Governance, to take all necessary steps to complete the variation.

Alternative options considered

Do nothing. Retaining the existing lease would leave the tenant’s occupation undocumented under its new legal identity, create uncertainty over lease compliance and potentially restrict access to funding. This option is not recommended.

Surrender and grant a new lease. A new lease to Gladca Services CIO would provide certainty but require a more extensive legal, valuation and governance process, with additional cost. A one-off licence to permit assignment would achieve the outcome more proportionately.

Retain the unincorporated association as tenant. This would separate lease responsibility from the CIO delivering the services, creating governance, liability and succession risks. This option is not recommended.

Refuse consent and negotiation to recover the property. This could enable retention, reletting or disposal, but separation from the adjoining building would require substantial works and could disrupt community services while increasing Council costs and the ability to recover will not be straightforward as the current tenant has the benefit of the long term lease. This option is not recommended.

Preferred option. Granting the one-off licence to permit the assignment to Gladca Services CIO is the most proportionate and cost-effective approach. It regularises occupation, maintains repairing and insuring obligations, supports continued community services and avoids the cost and complexity of the alternative options.