Issue - meetings

(Assets and Economic Development  Portfolio Holder) To consider the attached report.

Mover: Councillor C Whitbread on behalf of the Assets & Economic Development Portfolio Holder,

Councillor C Whitbread presented a report seeking a supplementary Capital Estimate of £990,000 to allow Glyn Hopkin to surrender their existing lease at Brooker Road and Cartersfield Road in Waltham Abbey.

Report as first moved ADOPTED

            RESOLVED:

That a supplementary Capital Estimate of £990,000 be approved.

To receive reports and any announcements from the Leader and members of the Cabinet on matters falling within their area of responsibility:

(a)        Report of the Leader;

(b)        Report of the Assets and Economic Development Portfolio Holder; (attached)

(c)        Report of the Environment Portfolio Holder; (attached)

(d)        Report of the Finance Portfolio Holder; (attached)

(e)        Report of the Governance and Development Management Portfolio Holder; (attached)      

(f)        Report of the Housing Portfolio Holder; (attached)

(g)        Report of the Leisure and Community Services Portfolio Holder; (attached)

(h)        Report of the Planning Policy Portfolio Holder; (attached) 

(i)         Report of the Safer, Greener and Transport Portfolio Holder; (attached) and

(j)         Report of the Technology and Support Services Portfolio Holder (attached).

(a)          The Leader of the Council

The Leader advised that he had attended a number of meetings which included an invitation from the Leader of Broxbourne Borough Council with Harlow and East Herts Councils to discuss the proposed Waste Incineration Plant facility at Dobbs Weir. The proposed plant would take the whole of Hertfordshire’s residual waste, operating 365 days a year. He advised that it would be an emotive planning application with a number of environmental concerns for local residents and agreed that all the councils would liaise as the application proceeded. He also continued to attend the Duty to Co-operate meetings with Councillor J Philip and Councillor R Bassett for the Local Plan. Furthermore, the Leader advised that the Council had been successful in jointly securing £500,000 for the Harlow and Gilston Garden Town bid, which covered the strategic sites to the south and west of Harlow in this District.

In addition he had been looking into the feasibility of creating a Local Housing Company with the Housing Portfolio Holder, which he would be reporting back to members about.

Finally, he attended the public meeting with the Police Crime Commissioner (PCC), Roger Hirst, which he advised had been very informative and demonstrated PCC plans for the future of the district.

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-058-2016/17).

(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.

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.