This report sets out the marketing and initial terms agreed for letting of the 6th floor of the Town Hall.

DECISION:

Grant permission for a 15 years lease to London Air Ambulance
To delegate authority to the Corporate Director of Housing & Regeneration, in consultation with the Mayor and the Chief Executive Officer, to conclude final negotiations and agree the terms of the lease, any rent free arrangements and plans for preparatory works and to take all necessary steps to complete the transaction.

REASONS FOR DECISION:

Given the under occupancy of the building, it would seem prudent to let the space and generate an income as soon as possible.
The proposed terms represent value for money for the Council as we will not only be receiving rent but also service charges and rates drastically reducing the council’s financial liabilities for the town hall.
The proposed rent compares favourably to the rents achievable in the area and will increase every 5 years.
The tenants propose to be physically in the building 5 days a week which will have positive impact not only on the local economy.
The tenant intends to invest funds creating meeting rooms in the space to be occupied which is a strong indication of their commitment to the building.

ALTERNATIVE OPTIONS:

Whole floor - There are limited options to the proposals presented above if the council did not want to let the floor as a whole.
Creating smaller spaces – whilst that may attract smaller organisations and possibly an increase in the overall rent, like a house in multiple occupation, there would be increased costs in marketing, costs of creating the smaller spaces and management. There would be a greater risk in terms of quality of tenant, conflict and general aggro.
Absorb - Absorbing the proposed tenants on another floor with council officers is a less attractive option for an independent organisation and likely to impact the rent proposed so lower income will be generated.

Action by: Corporate Director of Housing and Regeneration