Purpose

The rent increase was presented to Cabinet on
the 17th February 2023 to support inflationary costs and increased
operational costs due to wear and tear as the building is used more
often and to ensure it is sustainable in year 3 of opening.
This building sits on HRA land and it is required to be
self-sufficient and not reliant on funding from within this account
as stated in the attached report.
This increase will take effect as tenants licences come up for
renewal over the financial year 2026/27 and for all new tenants
during this period.
This decision has been concurred via email, by Cllr Ivan Henderson,
Deputy Leader of the Council and Portfolio Holder for Economic
Growth, Regeneration and Tourism.

Content

To increase the rent for the tenants at the
Sunspot by 3% as recommended in the Cabinet report dated 17th
February 2023.
This increase will take effect as tenants' licences come up for
renewal over the financial year 2026/27 and for all new tenants
during this period.
This decision has been made to ensure the income covers increases
in the operational costs of the building due to inflation and wear
and tear.

Alternative options considered

To ensure the building is a viable,
self-sufficient asset and therefore secure during the transition to
a unitary authority.