The Head of Corporate Property has submitted a report to seek approval for the write-off of commercial rent arrears above the limit which officers can approve under the Scheme of Delegation.

Cabinet is recommended to:

1.      Approve the write-off of arrears relatingtoEdinburgh Woollen Mill (141 High Street) as detailed in this report;

2.      Approve the write-off of arrears relating to Nosebag Restaurants Limited (6 St Michaels Street & 6-8 St Michaels Street) as detailed in this report; and

3.      Approve the write-off of arrears relating to the properties identified in the exempt Appendix 1.

The Head of Corporate Property had submitted a report to seek approval for the write-off of commercial rent arrears above the limit which officers could approve under the Scheme of Delegation.

The Cabinet Member for Finance & Asset Management, Councillor Ed Turner, drew attention to recent difficult trading conditions, including the pandemic, which had affected businesses.  Two of the traders owing arrears to the Council had entered liquidation: there was therefore no prospect of the Council being able to recover these debts.  In other cases, agreements had been reached with businesses regarding their commercial rent arrears.  The Cabinet Member highlighted that whilst the Council sought to maximise income from its commercial properties, there was also a need to balance future income streams, minimise void periods, and maintain a broad offer of businesses in the city centre.  It was also noted that the Commercial Rent (Coronavirus) Act 2022 prevented landlords taking action in respect of rent relating to lockdown periods (i.e. protected rent) and introduced an arbitration process for situations where landlords and tenants had been unable to reach agreement on rent arrears. The Council had to thereforeenter into negotiations with its commercial tenant debtors to try and reach negotiated settlements and avoid reference to an arbitrator.

Cabinet resolved to:

1.      Approve the write-off of arrears relatingtoEdinburgh Woollen Mill (141 High Street) as detailed in the report;

2.      Approve the write-off of arrears relating to Nosebag Restaurants Limited (6 St Michaels Street & 6-8 St Michaels Street) as detailed in the report; and

3.      Approve the write-off of arrears relating to the properties identified in the exempt Appendix 1.