Release of additional Funds for the Transfer of Equipped Play Area at School Lane, Dereham
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
To seek approvel for the release of £20,000 to transfer the leasehold of School Lane, Dereham play area to Dereham Town Council.
That the leasehold of School Lane play area be transferred to Dereham Town Council together with an additional sum of £20,000 to cover the rental payments due under the lease for the next 20 years and continue with the leasehold assignment.
Reasons for the decision:
Whilst recognising that there are constraints on the Council’s finances, if the Council was to retain the leasehold it would continue to be responsible for the yearly rental payment which over the 20 year period would equate to that sum currently being requested by the Town Council. If authorisation was given to transfer the leasehold (subject to the Diocese’s consent) the liability on the Council would cease to be with the Council retaining responsibility for none of the play areas.
To do nothing would result in the Council continuing to be responsible for one play area which might not be cost effective in maintenance terms and would result in the Council incurring the ongoing annual payment for the lease, and the land would still show as a liability on the Councils Asset register. The Council would still be a provider of equipped play areas.
If Members decided that they did not wish to authorise the release of any additional monies to the Town Council there was the option to terminate the lease. Under the terms of the lease the Council would need to give six months notice in writing and would be responsible for removing the play equipment from the land. The Town Council could then enter into separate negotiations with the Diocese should it wish to take on a leasehold or freehold. This is not recommended due to the potential community impact this may cause.
Alternative options considered:
Authorise the release of an additional £20,000.00 to Dereham Town Council which would cover approximately the rental payments due under the lease for the next 20 years and continue with the leasehold assignment.
Do not to release the additional £20.000.00 to Dereham Town Council and cease the leasehold transfer and retain the leasehold ‘as is’. This would mean the Council would retain this play area and continue the leasehold and its liabilities.
Do not release the additional £20,000.00 to Dereham Town Council and cease the leasehold transfer and terminate the leasehold interest. This would avoid any further financial liability, but would also mean that the landlord may cease to provide a play area at this site with no tenant in place to manage it.
Report author: Sue Bloomfield
Publication date: 03/04/2014
Date of decision: 01/04/2014
Decided at meeting: 01/04/2014 - Cabinet
Effective from: 11/04/2014