Agenda, decisions and draft minutes

37.

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

37.1

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.

37.2

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.

37.3

Reasons for Decision

37.3.1

Following the earlier Committee decision, the previous tenant True North Brew (TNB) has gone into administration and the new company True North Brew Co Ltd (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.

37.3.2

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.

37.3.3

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.

37.3.4

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.

37.4

Alternatives Considered and Rejected

37.4.1

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.

37.4.2

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.

39.1

The Finance and Performance Policy Committee received a report of the Director of Finance and Commercial Services which requested the commissioning of a new 5-year contract for merchant acquiring services. It was stated that the primary goal of the commission would be to obtain more competitive transaction fees, which was expected to significantly reduce the costs associated with processing card payments.

39.2

RESOLVED UNANIMOUSLY: That the Finance and Performance Policy Committee: -

-       Approve the commissioning of a 5-year contract, with an estimated value of £4,125,000 (£825k per annum), for merchant acquiring services for Sheffield City Council.

39.3

Reasons for Decision

39.3.1

The recommendation to commission a new merchant acquiring service is aimed at securing more competitive transaction fees. By re-contracting for merchant acquiring service, it is anticipated that the Council can significantly reduce the costs associated with processing card payments. These financial savings can be reallocated to other essential services and projects, enhancing the overall fiscal health of Sheffield City Council.

39.4

Alternative Options Considered

39.4.1

As this is third party spend at a level that triggers a procurement under the Public Contracts Regulations 2015 and the Standing Orders of the Council there is no opportunity to consider options other than the route to market.

39.4.2

There is an option to do nothing, however, it would lead to increased costs for our merchant acquiring services with the current provider. Given the rising transaction volume and value, there is an opportunity for cost savings. This would also not be compliant with the Public Contracts Regulations 2015.

40.1

The Committee considered a report of the Finance Manager which provided details of proposed changes to the existing Capital Programme, as brought forward in Month 04 of 2024/25.

40.2

RESOLVED UNANIMOUSLY: That the Finance and Performance Policy Committee: -

-       That the committee approve the proposed additions and variations to the Capital Programme listed in Appendix 1

-       That the committee approve the acceptance of grant funding as identified in Appendix 2

40.3

Reasons for Decision

40.3.1

The proposed changes to the Capital programme will improve the services to the people of Sheffield.

40.4

Alternative Options Considered

40.4.1

A number of alternative courses of action are considered as part of the process undertaken by Officers before decisions are recommended to Members. The recommendations made to Members represent what Officers believe to be the best options available to the Council, in line with Council priorities, given the constraints on funding and the use to which funding is put within the Revenue Budget and the Capital Programme.