Decision details

To agree a capital bid to facilitate revised lease arrangements for this site in Brooker/Cartersfield Road, Waltham Abbey.

The Portfolio Holder for Asset Management & Economic Development presented a report on the proposed surrender, and renewal, of the lease with Glyn Hopkin for their premises on the corner of Brooker Road and Cartersfield Road in Waltham Abbey.

The Portfolio Holder stated that Glyn Hopkin Ltd operated a motor car dealership located on the corner of Brooker Road and Cartersfield Road in Waltham Abbey.The current lease was due to expire on 29 April 2068, and had approximately 52 years remaining. Negotiations had been underway with their representatives for the surrender of their existing lease and the terms of a renewal, and it had been agreed that Glyn Hopkin Limited was to surrender to the Council the current lease dated 30 April 1969 in consideration of a payment of £990,000, to be paid by the Council to Glyn Hopkin on completion of the surrender. Immediately following completion of the surrender, the Council was to grant to Glyn Hopkin a new Lease for the whole of the premises demised by the existing Lease dated 30 April 1969. The principal terms of the new Lease were reported to the Cabinet; the new lease would be for a term of 25 years, with upwards-only rent reviews every five years.

The Portfolio Holder reported that there was no existing provision within the Council’s Capital Programme for the proposed payment of £990,000 to Glyn Hopkin and therefore a supplementary estimate was required and requested. However, the Council had recently benefitted from a windfall capital receipt of £2million, as a result of negotiations last year to grant landlord consent for the change of use on the former Golden Lion Public House in Loughton. This payment was conditional on planning permission being granted for residential development on the site, which had now been obtained. Therefore, it was recommended that the £990,000 sought to achieve the surrender of the current lease with Glyn Hopkin was funded from this other asset management generated capital receipt.

Cllr Mohindra, as Finance Portfolio Holder, endorsed the recommendations as it supported the principle of utilising capital investment to generate future revenue for the Council.

Decision:

(1)        That the surrender of the balance of the Lease to Glyn Hopkin at a consideration of a payment of £990,000 be agreed and, immediately following completion, a new 25-year lease be entered into, as per the terms outlined in the report; and

(2)        That a Capital supplementary estimate in the sum of £990,000 be recommended to the Council for approval, to be funded from the £2million premium for landlords consent for development at the former Golden Lion Public House in Loughton.

Reasons for Decision:

To maximise the benefit of the Council’s estate and in accordance with Council policy to generate revenue returns from capital investment.

Other Options Considered and Rejected:

To not agree to the renewal of the lease. However, this might compromise the future of the business, which was a prominent local employer.