Agenda item

RESOLVED that the Council enters into a lease agreement on a 5-year lease term with a 12 month rent-free period. 

Executive considered a detailed report, presented by Councillor John Ritchie, which sought Member’s approval to enter into a lease agreement with Bolsover Community and Voluntary Service (BCVS) for 8a Cavendish Walk, Bolsover on the terms as detailed in the report.

BCVS were a vital voluntarily service working within communities across the Bolsover District and had occupied a prominent location within Bolsover’s market square for the past two years.  The service supported local community groups, enhanced social mobility, provided signposting, delivered funding surgeries, and supported Voluntary Community and Social Enterprise (VCSE).  In addition, BCVS offered training and personal development opportunities for young adults and those at risk within the local area. Rather than profit, their objective was to create social, cultural and environmental value within the community.

The services provided by BCVS had now expanded to the extent that they required larger premises to accommodate further growth.  The expansion would facilitate additional staffing to enhance service delivery for new and existing services.

BCVS had submitted a proposal for a 5-year lease based on the market value of £5,250 per annum.  The proposal suggested a 12-month rent free period following 100% cuts in discretionary grants by Derbyshire County Council.  These cuts had directly impacted the voluntarily sector.

As part of the programmed regeneration projects, the Council would purchase BCVS current premise at 36/36a Market Place, Bolsover, which had necessitated BCVS to relocate to an alternative property.  A recent valuation of 8a Cavendish Walk, Bolsover, undertaken by the Council’s Senior Valuer, suggested an achievable rental of £5,250 per annum. Following recent viewings of the property, BCVS had submitted an offer for market value rent, subject to a 12-month rent-free period.

Moved by Councillor John Ritchie and seconded by Councillor Duncan McGregor

RESOLVED that the Council enters into a lease agreement on a 5-year lease term with a 12 month rent-free period.

Reasons for Recommendation

Securing the tenancy would ensure occupation of the premises and avoid it falling into disrepair.

Agreeing the tenancy would secure rental income of at least £5,250 per annum for the 5-year term.  In addition, the business rate liability, currently £4,191.60 per annum would be passed onto the tenant.

Supporting the relocation ensured BCVS were able to continue delivering vital services within the community.

Accommodating the services expansion, supported the Council’s priority in strengthening the local communities’ skills by delivering training and development opportunities.  Retaining BCVS within the Bolsover high street demonstrated the Council’s support of the voluntary sector and how it recognised the benefit it brought to the community.

Post Regeneration Fund project works, it was envisaged that BCVS would work alongside the Council within the community-based business hub proposed for the former White Swan public house, allowing 8a Cavendish Walk to be advertised on the open market for a further commercial letting.

Alternative Options and Reasons for Rejection

Not to proceed with the new tenancy may result in BCVS needing to relocate their services to alternative premises.  Given the absence of alternative accommodation within the district, this could result in relocation outside of the Bolsover district.  Not only would this be a financial cost to the Authority, should the building remain empty, but also a loss of a vital support service, potentially causing significant adverse effects to unmet needs and decreased support.

Should the Authority not proceed with the letting of the premises, they would need to advertise the property on the open market, delaying any new tenancy and its potential revenue stream.