Decision details

Background
The Council leases Water Lane House (also known as Stable Block at Hertford Castle) from the Marquess of Salisbury. The current lease expires in December 2026 and the Council will need to consider whether it wishes to continue occupation and renew the lease or give up possession of the building.
The building has 2 floors of accommodation with the ground floor being used by the Council for storage while the first floor has been used by both the Council and various other organisations over the years. For the last 7 years the space has been used as a daytime learning and welfare base for an adult with severe special needs. The Tenant had previously rented a building on a local school site but when they lost this the Council agreed to lease this building to provide a safe place for their adult child. The Council's head lease prohibits any sub-lettings for a profit so the Council is only able to charge a rent that contributes a reasonable proportion towards the costs of maintaining and running the building.
Reason for Decision/Purpose of Report
The sub-lease has expired and terms have been agreed for the grant of a new lease for a further 2 years until November 2026, just before the head lease expires. The Tenant will pay a rent of £7,800 per annum as a reasonable contribution towards the costs of running the building and in addition will be responsible for any outgoings that arise as a result of their occupation of the building. The purpose of this report is to seek formal approval to the grant of this new lease.

The Head of Strategic Finance and Property, acting under authority delegated by paragraph 10.13.16 of the council's Constitution, has decided to grant a new lease for a further 2 years on the terms agreed.

Option 1 - The Council could chose not to grant a new lease of this space but there is no operational requirement for this space so the Council would be left with a vacant space and the corresponding additional costs and outgoings associated with it.