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Ann Court site - letting to Transport and Technical Services - 4 year agreement

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A decision made 24 January 2011 regarding: Ann Court site - letting to Transport and Technical Services - 4 year agreement.

Decision Reference:      MD-H-2011-0008 

Decision Summary Title :

DS – Ann Court Temporary License Agreement.

 

Date of Decision Summary:

14th January 2011

Decision Summary Author:

 

Director of Operations

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

WR -  Ann Court Temporary License Agreement.

 

Date of Written Report:

14th January 2011

Written Report Author:

Director of Operations

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Letting of former Ann Court site to Transport & Technical Services Department on a 4 year license agreement.

Decision(s):

The Minister,

            

  1. Approved the letting of the former Ann Court site to Transport & Technical Services Department on a four year agreement commencing on 17th January 2011.

 

Reason(s) for Decision:

 

To achieve rental receipt for land prior to social housing redevelopment.

 

Resource Implications:

Financial – Income from lease £170,000 per annum.

 

Action required: Director of Operations to arrange hand over of site to Transport and Technical Services Department.

 

Signature:

 

Position:

 

 

Date Signed:

 

Date of Decision (If different from Date Signed):

 

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Ann Court site - letting to Transport and Technical Services - 4 year agreement

Date of Report: 14th January 2011

 

REPORT TO THE HOUSING MINISTER

 

Ann Court Temporary License Agreement

 

Purpose

 

To approve a 4 year license agreement with Transport and Technical Service Department enabling the former Ann Court site to be utilised for public parking prior to redevelopment for social housing.

 

Background

 

Following demolition of the Ann Court site in 2009, the Housing Department enlisted a local agent to let the site for private vehicle parking in compliance with planning permit P/2008/2409. Such letting enabled the department to recover limited receipts to offset the rental loss from the former residential units.

 

It was proposed that such letting arrangements continue during the interim period where research and approval of the replacement social housing development was achieved. Given however the Town Park Project requiring the loss of the Gas Place parking facility, the Housing Department was requested to assist the town economy by entering into a four year lease agreement with the Transport and Technical Services Department in offering Ann Court for the purposes of public parking.

 

Financial agreement set out in the below ‘Heads of Terms’ has secured equivalent financial receipts to offset that lost by the cancellation of the present lease agreement. In entering a four year agreement with T&TS it is believed that sufficient time is allowed for the Housing Department to undertake such studies and obtain the likely permissions required to commence redevelopment of the site.

 

Heads of term for License Agreement;

 

1)     The duration of the license agreement will be for a period of 4 years after which time the site will be surrendered to the Housing Department in a clear and serviceable condition. Any development thereon will be removed and the site returned in the condition in which it was provided on 17th January 2011. A cost for site clearance shall be agreed during the last year of Transport and Technical Services Departments occupation and be deducted from the final payment to the Housing Department. Any variation to the agreed period will require mutual consent of the respective Chief Officers and subject of 6 months prior notice.

 

2)     Transport and Technical Services Department will transfer a payment of £170,000 per annum to the Housing Department in a manner to be agreed by the respective Finance Directors. This transfer will be subject of annual review linked to the September Retail Price Index figure of the previous year.

 

3)     The income from parking penalty notices shall remain with TTS, as will the associated administration costs and towing fees

 

4)     The annual return shall not be reduced as a result of any works carried out on the site by Transport & Technical Services or their agents which render all or part of the site unusable for public parking permanently or temporarily.

 

5)     In the event of an incident, outside of the control of the Transport and Technical Services Department, reducing the potential for paid parking on the site for an extended period of time, payments to the Housing Department shall be adjusted accordingly, subject to the agreement of the Departments’ respective Chief Officers.

 

6)     Any permanent development on the site, above or below ground will only be carried out with the express approval of the Housing Department and only after consideration has been given to the wider development proposals for the site in the future and sureties have been provided that those wider development properties are not impaired as a result of the proposed works. 

 

7)     During the term of the license agreement the Housing Department will be undertaking a feasibility study and design works with a view to the development of the site in 2015.  These studies may require that limited site investigations are carried out during the term of the license agreement.  Subject to reasonable notice, Transport & Technical Services agree to cooperate with the Housing Department in providing access to the site for such site investigations. Should any such investigations prevent or reduce parking on the site the Transport and Technical Service Department the will deduct value of the income forgone from the Housing Department’s payments.

 

8)     During the term of the license agreement the Transport & Technical Services Department will be responsible for the Health & Safety of the users of the site and the public more widely and shall indemnify the Housing Department from any responsibility thereon.

 

9)     The Housing Department will remain responsible for the foncier rates relating to the site during the agreement period. All other costs associated with the site including any occupiers rate payable will remain the responsibility of the Transport and Technical Services Department, should such a requirement be made.

 

10) The Transport and Technical Services Department will remain responsible for applications to the Minister for Planning and Environment for extension of condition 1 of Planning Permit P/2008/2409 to authorise temporary vehicle parking thereon. (Present permit RC/2010/1552, expires on 19th January 2012)

 

11) These terms may only be varied by the mutual consent of the Chief Officers of the Housing and Transport and Technical Services Departments.

 

 

 

Recommendation

 

That the Minister:-

 

  1. Approve the license agreement with the Transport and Technical Services Department and enter into a four year term for the former Ann Court site to be used for public parking.

 

 

 

Report Prepared By:      ______________________________    ………… 2011

                                      Mike Porter, Director of Operations

 

 

 

 

Report Checked By :-   ­­______________________________  …………… 2011                                                          John Hamon, Finance Director

 

 

 

 

Report Approved By:    ______________________________   ……………2011

     Ian K Gallichan, Chief Officer

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