Issue - meetings

That (A) the comments of Corporate Business Scrutiny Committee be received;

(B)     community lettings leases are recognised, as set out in paragraph 2.6 of the report submitted, in order to comply with the Local Government Transparency Code 2015;

(C)    the community lettings policy, as set out in paragraph 2.11 of the report submitted, be approved;

(D)    a market rent policy be introduced whereby as each lease comes up for renewal alongside an established grant application process, there would be a maximum rent discount of 80% on the understanding that Officers have discretion to make adjustments to this; and

(E)     the level of community use be included and monitored via the wording of future lease documents.

The Executive Member for Finance and Support Services submitted a report setting out options for consideration in formulating a community lettings policy, in order to demonstrate transparency in documenting the subsidies provided to community groups who leased land and buildings from the Council.

The Corporate Business Scrutiny Committee, at its meeting held on 12 July 2016, had supported the approach and requested the Executive to consider two additional recommendations.  Firstly, relating to a market rent policy being introduced, whereby as each lease came up for renewal alongside an established grant application process, there would be a maximum rent discount of 80% on the understanding that Officers had discretion to make adjustments to this.  Secondly, that the level of community use be included and monitored via the wording of future lease documents.

The Executive approved these suggestions.

The Executive approved the revised recommendations as now detailed.

RESOLVED - that (A) the comments of Corporate Business Scrutiny Committee be received;

(B)      community lettings leases are recognised, as set out in paragraph 2.6 of the report submitted, in order to comply with the Local Government Transparency Code 2015;

(C)      the community lettings policy, as set out in paragraph 2.11 of the report submitted, be approved;

(D)      a market rent policy be introduced whereby as each lease comes up for renewal alongside an established grant application process, there would be a maximum rent discount of 80% on the understanding that Officers have discretion to make adjustments to this; and

(E)      the level of community use be included and monitored via the wording of future lease documents.

The Head of Strategic Finance and Property submitted a report that set out the options for consideration in formulating a community lettings policy.  The report also demonstrated transparency in documenting the subsidies provided to community groups who leased land and buildings from the Council.

The Executive Member for Finance and Support Services referred to lease arrangements being considered on a case by case basis as they were due for renewal.  He referred to the local government transparency code and detailed the four options for Members to consider as detailed in paragraph 2.8 of the report submitted.

Members were advised that the preferred option was for the introduction of a market rent policy as each lease came up for renewal alongside the establishment of a grant application process subject to a maximum rent discount of, for example, 80%.

Councillor R Brunton commented on whether there was any latitude to extend the maximum rent discount beyond 80% to 90 or 95%.  Councillor B Deering referred to the importance of being even handed when dealing with the discretionary assessment of needs.

The Executive Member for Finance and Support Services commented that the matters referred to by Councillors R Brunton and B Deering would be closely monitored in lease documentation.  He stated that Officers took a view on what land was worth as well as the level of commercial rent.  He referred to the importance of moving from the current situation to where the Council wanted to be.

The Chief Executive advised that it was the role of the Council to set the market rent policy.  Following a query from Councillor M Casey, she referred to a number of factors Members should consider as well as guidance regarding the role of Councillors.

The Committee debated a number of other issues at length regarding market rent and the level of market value.  The Executive Member for Finance and Support Services commented on the importance of fairness and a level playing field regarding the policy and market rents and the maximum levels of rent discounts.  Members received the report and approved the recommendations now detailed.

RESOLVED – that (A) the report be received;

(B)   community lettings leases be recognised, as detailed in paragraph 2.6 of the report submitted, as being in compliance with the Local Government Transparency Code 2015;

(C)   the Executive be requested to consider whether a market rent policy could be introduced, whereby as each lease comes up for renewal alongside an established grant application process, there would be a maximum rent discount of 80% on the understanding that Officers would have discretion to make adjustments to this; and

(D)   the level of community use be included and monitored via the wording of future lease documents.