Agenda item

13.1

The Executive Director, Place submitted a report seeking approval to recommendations for the re-letting of the farm and in accordance with the requirements of the Trust and to improve the net income available for distribution to the beneficiaries.

13.2

RESOLVED: That Cabinet acting as Charity Trustees in accordance with the powers given to the Council as Trustee under the provisions contained in the Trusts of Land and Appointment of Trustees Act 1996:-

(a)

approves the granting of a Farm Business Tenancy of Old May House Farm to Andrew Brian and Tom Lawson in accordance with the terms detailed in the report and the attached appendix; and

(b)

authorises the Director of Capital and Major Projects to instruct the Director of Legal and Governance to complete the tenancy agreement in accordance with the approved terms and such other detailed provisions as he may consider appropriate to the letting.

13.3

Reasons for Decision

13.3.1

The proposed new letting will benefit the Charity by transferring all future maintenance liabilities to the tenant and by securing an enhanced rent, increasing the net income available for distribution to the beneficiaries of the Trust.

13.3.2

Letting to an existing tenant has the joint benefits of improving long term sustainability through economies of scale and of a tenant with a track record sympathetic to local environment sensitivities.

13.4

Alternatives Considered and Rejected

13.4.1

Freehold disposal of the farm has been considered but this would be against the objects of the charity and it is not considered that the Charity Commission would approve such a wholesale disposal.

13.4.2

A wider marketing exercise for the tenancy was considered but discounted due to the advantages of amalgamating the farm with an existing Council holding in the vicinity. These include:

·         a known tenant who will be sympathetic to the environmental sensitivities of the Mayfield Valley

·         a more viable agricultural business unit due to economies of scale, ensuring that the long term viability of the farm business and therefore the Trust’s future income.

(Note. As this was a decision by Cabinet acting as Charity Trustees the decision was not subject to call-in).