Issue - meetings

RESOLVED that the Council enters in to a lease agreement with Jessica Hobson on the terms agreed with the Council’s agent.

Executive considered a detailed report, presented by the Portfolio Holder for Growth, which sought Members agreement to enter into a lease agreement for 9 Church Street, Clowne, with Ms Jessica Hobson, on the terms detailed in the report.

Ms Hobson had agreed Heads of Terms which proposed a 10 year term and an above market value rent of £12,000 per annum for a fully repairing and insuring lease, meaning all financial liabilities for the day to day running of the building would be passed onto the tenant for the duration of the lease.

An upwards only rent review would be completed in the fifth year of the term and this would be based on market value.

Moved by Councillor John Ritchie and seconded by Councillor Duncan McGregor

RESOLVED that the Council enters in to a lease agreement with Ms Jessica Hobson on the terms agreed with the Council’s agent.

Reasons for Recommendation

Securing the tenancy for Jessica Hobson will ensure a continued occupation of the premises and avoid it falling into disrepair.

Agreeing the tenancy will secure rental income of at least £12,000 per annum for the 10 year term. In addition, the business rate liability, currently £4,790 per annum will be passed onto the tenant.

We are currently supporting the growth of the arts/culture sector through both a Woman’s Creative Network and through an Arts Council England (ACE) Cultural Development Fund application for a Creative Hub in the district to support the creative sector. We will engage with the tenant to support her to flourish in the District and the local community that she will engage with.

Alternative Options and Reasons for Rejection

Not to proceed with the new tenancy may result in the interested party choosing to relocate their business to alternative premises and this could potentially fall outside the district. Not only would this result in a loss of revenue income which would be a loss to the authority until an alternative tenant is identified, it could have an impact on the young people in the district who currently benefit from this much needed creative activity.

Should the authority not proceed with the tenancy they will need to complete dilapidation works to the premises to bring it up to the required standard for letting, this could delay the occupancy of a new tenant and the revenue income being received.