Decision details

Councillor Lunn, Lead Executive Member for Finance and Resources presented the report which outlined the current position in respect of the four commercial property sites currently owned by the Council, outlined options for rent increases and proposals for the future management of the units.

The Lead Executive Member for Finance and Resources explained that the Council should have carried out a rent review every three years however this had not been consistently undertaken and implemented for the industrial units. It was explained that a recent review had been undertaken and that following calculations, rent increases were being proposed which had met with objections from the tenants. It was noted that four options for consideration had been outlined in the report.

The Leader of the Council informed the Executive that he had agreed to let Councillor Buckle, Ward Councillor for Sherburn in Elmet to speak on this item. The following discussion took place:

·         The tenants for the industrial units at Swordfish Way had raised concern at the large rent increases proposed and felt this was unfair.

·         Concern had been raised by the tenants at Swordfish Way regarding the lack of maintenance undertaken by the Council on the sites and the lack of response to communication on this in the past. It was explained that the Council had met all of its legal requirements with regard to maintenance of the units and had undertaken a condition survey of the units identifying future maintenance requirements. It was also noted that additional funding had been agreed in the Council’s budget to undertake further maintenance work to improve the general condition of the units,

·         A staggered rent rise should be implemented to demonstrate support for local businesses.

Discussion took place on the options outlined in the report and clarification was sought from officers on the differences between the options outlined along with the financial and legal implications. Following the discussion and responses received, the Executive were supportive of phasing in the increase over five years with a further rent review to be carried out at three years. It was agreed to word the resolution to this effect to avoid any confusion.

RESOLVED:

To agree to a phased increase of rents over five years with a rent review to be carried out at three years.

REASON FOR THE DECISION

·         To deliver the objectives of the Asset Management Strategy.

·         To enable implementation of outstanding rent increases to established tenants, ensuring a continued income stream for the Council.

·         To affirm the approach to implementation of rent increases for new tenants.

·         To standardise tenancy agreements across the industrial stock, ensuring management consistency moving forwards.