Agenda item

REPORT OF THE PRINCIPAL ESTATES SURVEYOR

This report sets out proposals for dealing with the balance on the rent account; regularising underlettings; a new rent and details how future rent reviews will be assessed. This will enable the club to progress replacement of the pitch.

RESOLVED: That Cabinet:

(1)   Agreed to cancel (write-off or credit note) the outstanding balance on the rent account for the reasons outlined in the report.

(2)   Amended the user clause and alienation provisions in the lease to allow for existing sublettings and licence arrangements to be regularised and provision for possible future sublettings.

(3)   Agreed to accept a revised rent as outlined in the Part 2 report. Future 5 yearly rent reviews to be in line with the increase in CPI.

REASON FOR DECISIONS: A previous agreement with the club in respect of repayment of arrears and level of new rent was never finalised and the Council continued to issue rent demands based on an historic rent review. The tenant paid rent on the basis of the new rent that they understood had been agreed. The uncertainty of treatment of the rent balance prevents the club from progressing with their financial plans to replace the pitch and invest in the site. The Council also needs to regularise the new rent, outstanding balance and authorise underlettings. It is in both parties interest to have clarity on the lease going forward, and for the future success of the club, its members and users of the facilities.

Audio recording – 1 hour 35 minutes 8 seconds

Councillor Tamsin Thomas, as Executive Member for Enterprise, presented the report entitled ‘The Arena, Baldock – Part 1’ and advised that:

·       The Arena football ground was owned by the Council and had been let to Hitchin Town Community Football Club Limited (HTCFC) under a 50-year lease agreement which expired in 2045.

·       These recommendations would enable HTCFC to make investments in the pitch and wider facilities.

·       This report would resolve a long-standing issue for The Arena.

·       HTCFC operated multi facilities from the ground.

·       There was a lot of history concerning the site which was established in the 1980s.

·       Council Officers had been in dialogue with HTCFC and had reached this agreement to resolve the issues.

·       The uncertainty of treatment of the rent balance had prevented HTCFC from progressing with financial plans, including the ability to apply for grants to improve the facilities which prevented securing more senior football teams using the ground.

·       This solution would enable HTCFC to continue in discussions with Baldock Town Football Club to reach agreement for their return to play at The Arena.

In response to a question from Councillor Ian Albert, the Principal Estates Surveyor advised that following agreement of the recommendations the legal documents could be prepared quickly and signed within weeks.

The following Members took part in the debate:

·       Councillor Ian Albert

·       Councillor Mick Debenham

·       Councillor Daniel Allen

Points raised during the debate included:

·       These recommendations were a significant step forward for the Arena and should be supported.

·       It should not be forgotten that Hitchin Town Community Football Club Limited had kept the Arena going for 20 years. The Arena was a benefit for all the residents of North Hertfordshire.

Councillor Tamsin Thomas proposed and Councillor Mick Debenham seconded and, following a vote, it was:

RESOLVED: That Cabinet:

(1)   Agreed to cancel (write-off or credit note) the outstanding balance on the rent account for the reasons outlined in the report.

(2)   Amended the user clause and alienation provisions in the lease to allow for existing sublettings and licence arrangements to be regularised and provision for possible future sublettings.

(3)   Agreed to accept a revised rent as outlined in the Part 2 report. Future 5 yearly rent reviews to be in line with the increase in CPI.

REASON FOR DECISIONS: A previous agreement with the club in respect of repayment of arrears and level of new rent was never finalised and the Council continued to issue rent demands based on an historic rent review. The tenant paid rent on the basis of the new rent that they understood had been agreed. The uncertainty of treatment of the rent balance prevents the club from progressing with their financial plans to replace the pitch and invest in the site. The Council also needs to regularise the new rent, outstanding balance and authorise underlettings. It is in both parties interest to have clarity on the lease going forward, and for the future success of the club, its members and users of the facilities.