Agenda item

Recommendations from the meeting of the Overview and Scrutiny Committee on 3 March 2021 following the call-in of a previous Cabinet decision.

(1)   Cabinet agreed to reconfirm the decision not to permit an assignment of the existing lease, but instead allow an options appraisal for the site to be carried out.  This should include the commitment to retain a community facility under any of the options considered.

(2)   Cabinet agreed to accept the recommendation of Overview and Scrutiny Committee to recommend that the Constitution Review Group consider and advise on how reports are prepared and published, especially with regards to what information should be provided under public and confidential reports.

Recommendation from the meeting of the Overview and Scrutiny Committee on 3 March 2021 following the call-in of a previous Cabinet decision.

At a meeting on 3 March, 2021, Overview and Scrutiny Committee recommended that Cabinet reconsider the decision not to allow the current leaseholder of Friendship House to assign the existing lease to a particular charity identified by them, and only if that fails to accept surrender of the lease and consider an options appraisal.

The Overview and Scrutiny Committee also recommended that the Constitution Review Group consider and advise upon how reports are prepared and published, in particular with reference to the split between Part 1 and Part 2 reports.

Lease Assignment

Councillor D.Bell (Executive Member, Resources), had reviewed the decision with officers, and remains of the opinion that it would have been inappropriate to permit an assignment of the existing lease in the way the current leaseholder had requested, without undertaking an options appraisal first.

An assignment to a particular charity nominated by the existing leaseholder could be unfair to other organisations and voluntary groups within the borough, who would not have had the opportunity to express an interest.

The existing lease runs until 2098 and carries an obligation to repair and maintain the building, including structural repairs, and even a complete rebuild when the property reaches the end of its useful life.  Any new tenant would need to have sufficient funding to meet these obligations.

The Council has a duty to ensure that the asset is used in a way that secures the greatest benefit for the residents of the borough as a whole.  This includes social benefit, as well as financial benefit.  We cannot achieve this unless we analyse the options first.

Members will be aware that reference has since been made to other organisations that might be interested in using the facility.  But Councillor D.Bell believed that it remains inappropriate to allow an assignment of the existing lease.  Indeed, the mention of other organisations strengthened the case for a full options appraisal.

A number of members of the Overview and Scrutiny Committee expressed concerns that a community facility could be lost.  Councillor D.Bell recognised this and recommended that an express commitment be built in to any option considered for the site, that the Council would retain a community facility within that area.

Public and Confidential Reports

Councillor D.Bell had some sympathy with the view that this particular item could, in fact, have been considered under Part 1, with care being taken to redact sensitive information.

Cabinet Members agreed that an options appraisal would be the best way forward and to help retain the community facility.

RESOLVED:

(unanimous)

(1)   Cabinet agreed to reconfirm the decision not to permit an assignment of the existing lease, but instead allow an options appraisal for the site to be carried out.  This should include the commitment to retain a community facility under any of the options considered.

(2)   Cabinet agreed to accept the recommendation of Overview and Scrutiny Committee to recommend that the Constitution Review Group consider and advise on how reports are prepared and published, especially with regards to what information should be provided under public and confidential reports.