Agenda item - Longley Industrial Estate and New England House

Report of the Executive Director for Economy, Environment, & Culture (copy attached).

14.1    RESOLVED:  That the committee:

(i)            Approves the Heads of Terms appended to this report for an agreement for lease and new lease on the Longley Industrial Estate;

(ii)          Grants delegated authority to the Executive Director for Economy, Environment & Culture, Assistant Director Property & Design and the Executive Lead Officer Strategy, Governance & Law to enter into an agreement for lease and a lease with Legal & General that will secure a premium in respect of the Longley

Industrial Estate;

(iii)         Grants delegated authority to the Executive Director for Economy, Environment & Culture, Assistant Director Property & Design and the Executive Lead Officer Strategy, Governance & Law to make minor amendments to the Heads of Terms, settle all the legal documents and take any other necessary steps required to implement the recommendation at 2.1.2;

(iv)         Delegates authority to the Executive Director for Economy, Environment & Culture to appropriate the Longley Industrial Estate for planning purposes, once the council has received an appropriate indemnity from L&G in relation to any costs associated with overriding third party rights; and agrees in principle that the council will authorise the use of S203 and delegates the final decision to authorise the use of S203 powers to the Executive Director for Economy, Environment & Culture;

(v)          Agrees to ring-fence the premium received for the extension and refurbishment of New England House;

(vi)         Notes the work which is progressing in relation to New England House and notes that there will be a further report brought to Committee to seek approvals in relation to that project.

14.1    The Committee considered the report of the Executive Director Economy, Environment & Culture, regarding the Longley Industrial Estate. The Chair noted that this matter also included information within Part Two (Item 19), and asked that the Committee avoid discussing issues covered in Item 19, whilst the meeting was being held in public.

14.2    The Executive Director Economy, Environment & Culture proposed the following amendment to Recommendation 2.1.4 (changes shown in italics):

2.1.4   Delegates authority to the Executive Director for Economy, Environment & Culture toappropriates the Longley Industrial Estate for planning purposes, once the council has received an appropriate indemnity from L&G in relation to any costs associated with overriding third party rights; andagrees in principle that the council will authorise the use of S203 and delegates the final decision to authorise the use of S203 powers to the Executive Director for Economy, Environment & Culture

The reason for the proposed amendment was that officers were expecting the indemnity referred to in the report to have been signed prior to the meeting, but it had not been and so the recommendation was amended to give the Executive Director for Economy, Environment & Culture delegated authority to appropriate the Longley Industrial Estate once that indemnity had been received. The Committee noted the proposed amendment.

14.3    Councillor Mac Cafferty thanked officers for the work undertaken. He referred to paragraph 1.2, and asked how the Authority would ensure that the proposed development went ahead on that site. The Executive Director Economy, Environment & Culture said that the proposals did not place any legal obligation on Legal & General to build the proposed development. If the Council did place a legal obligation on them, it would amount to a works contract which the Council would have to procure, but the proposal was to enter into a new lease arrangement, and if they chose to develop they would have to do so to in such a way to meet the Council’s planning requirements. 

14.4    Councillor Mac Cafferty noted that the rent at New England House was reasonable, and asked that when the rent increases were considered that they were modest. The Executive Director Economy, Environment & Culture said that New England House had market rent, but due to the nature of the building they were quite low rents, and if they increased it would be at a reasonable level.

14.5    The Committee accepted the amendment to recommendation 2.1.4 as proposed by officers.

The Committee noted the information contained in Item 19.

14.6    RESOLVED:  That the committee:

(i)            Approved the Heads of Terms appended to this report for an agreement for lease and new lease on the Longley Industrial Estate;

(ii)          Granted delegated authority to the Executive Director for Economy, Environment & Culture, Assistant Director Property & Design and the Executive Lead Officer Strategy, Governance & Law to enter into an agreement for lease and a lease with Legal & General that will secure a premium in respect of the Longley

Industrial Estate;

(iii)         Granted delegated authority to the Executive Director for Economy, Environment & Culture, Assistant Director Property & Design and the Executive Lead Officer Strategy, Governance & Law to make minor amendments to the Heads of Terms, settle all the legal documents and take any other necessary steps required to implement the recommendation at 2.1.2;

(iv)         Delegated authority to the Executive Director for Economy, Environment & Culture to appropriate the Longley Industrial Estate for planning purposes, once the council has received an appropriate indemnity from L&G in relation to any costs associated with overriding third party rights; and agrees in principle that the council will authorise the use of S203 and delegates the final decision to authorise the use of S203 powers to the Executive Director for Economy, Environment & Culture;

(v)          Agreed to ring-fence the premium received for the extension and refurbishment of New England House;

(vi)         Noted the work which is progressing in relation to New England House and notes that there will be a further report brought to Committee to seek approvals in relation to that project.