Issue - meetings

Background:

This report provided details of a proposal to dispose of the premises (student accommodation) at Doust Way, Rochester. The former City Council of Rochester Upon Medway granted Hyde Housing Association Limited a 125 year ground lease of the site from 12 September 1997 with 5 yearly rent reviews, and Hyde had granted a 30-year sub-lease of the completed development to the University for the Creative Arts for use by its students.

The proposed disposal to the purchaser would be made subject to and with the benefit of the 125 year lease to Hyde and the sub-lease granted by Hyde, both of which would continue.  The purchaser would effectively step into the Council’s shoes and take over the Council’s obligations as landlord of the premises.

The purchaser had stipulated that it must complete the purchase by 31 July 2014 and given the capital receipt was likely to be over £1 million, this would normally be a matter for Full Council. However, the next meeting of Full Council was not until 24 July 2014, therefore, this did not give sufficient time to complete the disposal by the purchaser’s deadline of 31 July 2014 and so it was proposed that the Chief Executive uses the urgency provisions as set out in paragraph 4.1 of the Employee Delegation Scheme to agree the proposed disposal on behalf of Full Council, to avoid the cost and inconvenience of holding an extraordinary Council meeting for the sole purpose of considering this disposal.  It was noted that the use of these urgency provisions would be reported to Full Council on 24 July 2014 for information.

Reasons:

To realise a capital receipt, reduce management costs and to enable improvements to the premises to take place.