Decision details

8.

LEASE OF LAND AT MILLHOUSES PARK ADJOINING WAGGON AND HORSES PUBLIC HOUSE, ABBEYDALE ROAD

8.1

The Committee considered a report of the Executive Director, City Futures which was a revised proposal to grant a lease of land following the originally proposed tenant going into administration.

8.2

RESOLVED (NOTE: The result of the vote on the resolution was FOR - 7 Members; AGAINST – 1 Member): That the Finance and Performance Policy Committee:

-       Note the current position and endorse the granting of a lease on the revised terms as set out in this report.

-       Note that as the land to be disposed of is open space and that prior to the disposal, notices advertising the same are required to be given pursuant to section 123(2a) of the Local Government Act 1972. Committee is asked to note that should any objections be raised pursuant to the notices a report will be brought to committee to consider the objections.

-       If no objections are raised, then the Committee notes that no further meeting is required and the Chief Property will proceed with the disposal of the land as per the revised terms set out in this report.

8.3

Reasons for Decision

8.3.1

Following the earlier Committee decision, the previous tenant (TNB) has gone into administration and the new company (TNBCo) has experienced difficult trading conditions with increased costs from suppliers and reduced demand due to the cost-of-living crisis. This has resulted in reduced sales turnover and subsequently the offer of a reduced rental for the beer garden / external trading area.

8.3.2

The offer to discontinue ice cream sales at the kiosk would remove competition and should enable trading levels to return to previous levels in Millhouses Park for the ice cream concession.

8.3.3

The space within Millhouses Park proposed for lease by TBN was an unused, low quality grassed area within the park. The area was shaded under heavy cover from large trees. It was separated from larger grassed areas by the path network. The use of this piece of land has therefore not negatively impacted on the ability of local and city residents to use the green space for recreational activities.

8.3.4

The introduction of a second refreshment offer within the park during the summer months adds to the offer available to park goers and provides a further opportunity to take on refreshments and rest whilst in the park. A second facility provides variety to park users and those passing by the park.

8.4

Alternatives Considered and Rejected

8.4.1

Alternative Option 1: To do nothing is not considered a realistic option as the Council is currently not receiving rental income from the use of the land and the occupation by TNBCo requires formalising.

8.4.2

Alternative Option 2: Withdraw the offer of a lease and seek to take back possession of the site. This does still remain an option for the Council. TNBCo have threatened to bring a legal action against the Council to recoup the costs of their investment estimated by TNBCo at circa £165,000. There is no detail of the basis of any claim by the new company and how it would recover money spent by the company that is now in administration.