DOC

Executive - 10 October 2005 - Surrenderof lease with Heritage

By Francis Berry,2014-05-16 05:18
7 views 0
Executive - 10 October 2005 - Surrenderof lease with Heritage

    Agenda Item: 5 [h]

    SURRENDER OF LEASE WITH

    HERITAGE HOTELS FOR 5 CAR PARKING SPACES WITHIN THE

    RIVERSIDE CAR PARK

    Resolution Required

    Report of the Strategic Director (Support)

    Executive Summary

    This report seeks to obtain authority to surrender the Council’s leasing arrangements with Heritage Hotels. The Council currently leases 5 car parking spaces to the

    Thames Lodge Hotel in Staines for the use of the hotels guests and staff. The Hotel

    have informed the Council that they no longer require the spaces and therefore wish

    to surrender the lease.

Main Issues

? The details of the current arrangements

    ? The effect of entering into the surrender

Options

(a) The Council could enter into the surrender of this lease and put the 5 parking

    spaces back into public use.

    (b) The Council could refuse to surrender and leave the arrangements as they are.

Officer Recommendations:

    The Executive is asked to authorise the Head of Asset Management to

    negotiate the surrender of the lease with Heritage Hotels for the 5 car parking

    spaces in the Riverside car park in order to allow the spaces to either be put

    back into public use, subject to obtaining appropriate valuation and legal

    advice.

    Agenda Item: 5 [h]

    REPORT

1. BACKGROUND

    1.1 In 1996 the Council entered into negotiations with Surrey County Council in

    order to enable the two-way traffic scheme for Thames Street and South

    Street in Staines town centre. As a result of this new traffic scheme some

    properties adjacent to these streets were negatively affected, mainly due to

    the new scheme limiting the access to the street from these properties. 1.2 One of the properties affected was the Thames Lodge Hotel which is situated

    on the junction of South Street and Thames Street, abutting the River Thames.

    The access rights from the public highway to the hotel were affected by the

    new scheme. Also the level of car parking that the hotel could accommodate

    was reduced as a result.

    1.3 In order to rectify the situation it was proposed by the Council that 5 car

    parking spaces within the Riverside car park be allocated for the sole use of

    the Hotel, for its staff and guests. This proposal was agreed by the Highways

    and Works Committee on 29 August 1996.

    1.4 A lease was drafted and agreed between the parties for the 5 car parking

    spaces. This lease is for a term of 125 years from 28 March 2001 at a

    peppercorn rent. The Hotel is responsible for maintaining and repairing the

    spaces in good condition and paying any outgoings such as rates and taxes in

    respect of the 5 spaces.

    2. MAIN ISSUES

    2.1 The Hotel, after receiving a recent invoice for their share of the rates bill for

    this car park from the Council, approached the Council’s Head of Asset

    Management to request whether the Council would agree to let them

    surrender the lease as they were no longer making use of the spaces.

    2.2 Such a surrender could potentially allow the Council to put these spaces back

    into public use thereby creating an increase in revenue for the Council.

    3. OPTIONS

    (a) The Council could enter into a surrender of the lease with the Hotel. This

    could mean that the 5 car parking spaces could be put back into use for

    members of the public.

    (b) The Council could refuse to surrender the lease and leave the current

    arrangements as they stand. 4. PROPOSALS

    4.1 As previously stated, by surrendering the lease as indicated in option (a) the

    Council would be able to put the 5 spaces back into public use, thereby

    increasing the revenue created by this car park for the Council. The Council

    would not however be able to collect any rates on these spaces and this

    would increase the Council’s rates bill for this car park.

    4.2 If the Council chooses to exercise option (b) then the Council would not have

    an opportunity to increase the revenue made by this car park, however we

    would still be able to collect a contribution towards the rates for the car park

    from the Hotel.

5. FINANCIAL IMPLICATIONS

    5.1 The estimated revenue of 5 car parking spaces in the Riverside car park for

    the period of one year is ?3,000. Under the current arrangements this extra

    revenue would not be available to the Council until the year 2126 when the

    lease is due to expire.

    5.2 Using the latest ratings invoice for the last financial year the proportion that

    the Council could recharge to the Hotel for that year is ?873.

    It is clear from these figures that the best financial option to take would be to

    surrender the lease.

    6. LEGAL IMPLICATIONS / OTHER CONSIDERATIONS

    6.1 Any surrender would need to be undertaken through the legal section,

    preparing the necessary paperwork to ensure that the surrender was affected

    in the best possible interests of the Council.

    6.2 Valuation advice has been sought from Campsie & Co who confirmed that a

    surrender would be in the best financial interests of the Council. 7. SUPPORT FOR CORPORATE PRIORITIES

    7.1 A Surrender of the lease supports the Council’s priority of improving customer

    satisfaction with the Council’s services by potentially increasing the parking

    available to members of the public in central Staines. 8. OFFICER RECOMMENDATIONS

8.1 The Executive is asked to authorise the Head of Asset Management to

    negotiate the surrender of the lease with Heritage Hotels for the 5 car parking

    spaces in the Riverside car park in order to allow the spaces to either be put

    back into public use, subject to obtaining appropriate valuation and legal

    advice.

Contact:

    David Phillips Head of Asset Management

Report Author:

    Clare Hassard Practice Manager for Legal Services

Portfolio Holder:

    Councillor Ed Searancke

Background papers:

    There are none.

Report this document

For any questions or suggestions please email
cust-service@docsford.com