Decision details

To seek delegated authority for the grant of a new lease to Alcohols Ltd on terms outlined in the attached report that are compatible with the timetable for the redevelopment of Old River Lane and to pay the statutory compensation to the Tenant.

Head of Strategic Finance and Property acting under authority delegated within Part 3c, paragraph 13.15 of the council’s Constitution ‘has decided to: approve the grant of a new 3 year lease to Alcohols on the terms outlined in the attached report and to approve the payment of the statutory compensation of £122,000 plus any additional compensation as detailed in the report that becomes payable when the new lease is terminated by the Council.

Option 1 - To allow the matter to proceed to court but at risk of a decision in favour of the Tenant and incurring further cost for the Council.
Option 2 - Agreeing acceptable terms outside court to give the Council certainty on timings to achieve vacant possession of the building while also maintaining rental income and reducing outgoings for the Council.