The Interim Assistant Chief Executive – Regeneration & Economy submitted a report to provide an update on the progress of a number of identified opportunities to maintain or improve the income stream from the Council’s property investment portfolio.  To seek approval for an increased budget requirement of £4,635,000 in addition to the existing approved budget of £10,300,000 to include the undertaking of additional projects.

Recommendation: The City Executive Board resolves to:

1.     Note the progress on the various schemes that had been identified and had budget approval to the value of £10,300,000. 

2.     Recommend to Council an increase of £4,635,000 to the allocated budget of £10,300,000 to deliver the development opportunities at 1-5 George Street, Standingford House, Cave Street and add the new project of refurbishing 2 flats at 11 New Road and houses at 9 and 10 Ship Street.

3.     Authorise entering into exclusive negotiations to seek financially viable agreements to lease with two identified commercial tenants at 1-5 George Street in line with the Not For Publication Appendix 7, subject to Council budgetary approval.

4.     Enter into the above agreements for lease at rental levels above the threshold of £125,000 per annum in line with the constitution.

5.     Delegate to the Interim Assistant Chief Executive – Regeneration and Economy, in consultation with the Head of Finance, the authority to alter the terms of the agreements to lease on the basis that they continue to represent best value during negotiations.

The Interim Assistant Chief Executive – Regeneration & Economy submitted a report to provide an update on the progress of a number of identified opportunities to maintain or improve the income stream from the Council’s property investment portfolio.  To seek approval for an increased budget requirement of £4,635,000 in addition to the existing approved budget of £10,300,000 to include the undertaking of additional projects.

Cllr Turner, Board Member for Finance and Asset Management, spoke to the report. The risks associated with the proposed investments were outweighed by the potential benefits given the market for leases for the types of property  in question.

The City Executive Board resolved to:

1.     Note the progress on the various schemes that had been identified and had budget approval to the value of £10,300,000. 

2.     Recommend to Council an increase of £4,635,000 to the allocated budget of £10,300,000 to deliver the development opportunities at 1-5 George Street, Standingford House, Cave Street and add the new project of refurbishing 2 flats at 11 New Road and houses at 9 and 10 Ship Street.

3.     Authorise entering into exclusive negotiations to seek financially viable agreements to lease with two identified commercial tenants at 1-5 George Street in line with the Not For Publication Appendix 7, subject to Council budgetary approval.

4.     Enter into the above agreements for lease at rental levels above the threshold of £125,000 per annum in line with the constitution.

5.     Delegate to the Interim Assistant Chief Executive – Regeneration and Economy, in consultation with the Head of Finance, the authority to alter the terms of the agreements to lease on the basis that they continue to represent best value during negotiations.