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To enter into a lease agreement with Spring
for the four additional SDC-owned units to run concurrently with
the TA contract, expiring on 1 December 2027, with options to
extend until 1 December 2029.

Reasons for the decision

The current lease is due to expire shortly.
SDC still requires housing management services for these units and
is satisfied with the performance of Spring under the TA contract.
Authority is being sought for the four units to be added to the TA
contract. As such, it is proposed that a new lease be entered into
with Spring.
 
This new lease will enable Spring to continue
using the four SDC owned properties for the purpose of delivering
housing management services.
 
If a new lease is not granted it would not be
possible for management services to be carried out under
SDC’s proposed arrangements with Spring.

Alternative options considered

The only option where a lease of the four
units would not be required would be to bring the housing
management service in house but currently SDC does not have the
capacity to do this.