Agenda item

To consider the report of the Cabinet Member for Performance and Resources and Cabinet Member for Culture and Leisure outlining the options for the disposal of land at Hempsted Meadows by way of a lease for the provision of a dedicated event space to include a car boot sale, markets and associated amenities.

94.1    The Cabinet Member for Performance and Resources, Councillor Hannah Norman, introduced the report and explained that it outlined how the Council proposed to formalise a long-term lease for Hempsted Meadow. She reminded Members of the previous licensing arrangement and outlined the resolutions that Cabinet were being asked to approve, as set out in 2.2 of the report.

94.2    The Chair referred to Appendix 1 and asked for clarification on the map and site plans which Councillor Norman and the Investment Manager provided. The Investment Manager advised Members which areas of the map included grass and hard standing for the car park area, and noted that in order to accommodate toilets and office space on the site, the new leaseholder would look after a larger parcel of estate than the current arrangement.

94.3    Councillor Morgan queried whether there was a proposal to extend the lease to the land to the right of the access road which had been previously used for alternative purposes. The Investment Manager confirmed that the proposals covered the site included in Appendix 1 only, and the other parcels of the estate would be available for other leases or purposes, including events.

94.4    Councillor A. Chambers asked why the proposals for a long-term lease with regular break clauses were not in place previously. He further asked whether there would be joint break clauses within the new agreement. Councillor Norman advised that a license in respect of the site had been issued initially, following the hiatus where the land was used as a testing site during the Covid-19 pandemic. She expressed the view that now was the appropriate time to provide the license holder with the opportunity to continue to operate while the Council considered longer-term provision for the land. Councillor Norman also advised that the break clauses would need to be mutual.

94.5    In response to a further query from Councillor A. Chambers regarding the possibility of a replacement provider, Councillor Norman stated that there would be a competitive lease process and that the Council would be seeking a tenant who was committed to the site and financially stable.

94.6    In respect of the narrative at 3.6 and the fixed rate income, Councillor Wilson asked whether the proposed long-term lease arrangement would be index linked. Councillor Norman confirmed that this was the expectation however the valuation of the land would need to be considered for various uses to enable to Council to have the best possible consideration.

94.7    Councillor Wilson asked what the Council’s powers would be in the event of another pandemic. The Investment Manager advised that pandemic clauses were now common in lease agreements, and if there were pandemic restrictions on trading in the future, it would likely be in the new tenant’s best interest to work with the Council.

94.8    In response to a question from Councillor Pullen as to whether the new leaseholder would be able to sublease on the site, Councillor Norman advised that consideration would need to take place as part of the tender process.

94.9    Councillor Pullen referred to 3.4 in the report and the narrative concerning ground conditions. He asked whether any improvement works had been carried out and if so, what were the costs of these works. Councillor Norman explained that ground repairs had been needed prior to the pandemic and that the NHS had undertaken some repairs on the site. She noted that the Asset Management team would be looking at a maintenance schedule to improve the ground conditions.

94.10  In response to a query from Councillor Hilton regarding the control the Council would have over events on the site, Councillor Norman advised that the Council had the option to put restrictive covenants on the site if operators looked to operate outside of the lease agreement and that the police would also have the option to object to events. This said, Councillor Norman was open minded to proposals from potential tenants who wished to operate on the site.

94.11  Councillor Hilton agreed that the Council should be open minded but impressed his view that the Council should ensure that it kept some control when drafting the lease agreement. Councillor Norman confirmed that there was likely to be some stipulation in the competitive lease agreement. The Investment Manager noted that operators may also need to apply for a one-off license or planning permission for certain events.

94.12  In response to a query from Councillor Tracey as to whether the new leaseholder could sublet, Councillor Norman stated that it was her expectation that the new leaseholder would engage with the Council as landowner on such proposals.

94.13  In response to additional questions from Councillor Tracey, Councillor Norman advised that some events would require a license and the leaseholder or operator would need to adhere to the terms of that license. She noted that she had confidence that the Council’s Officers and legal team would ensure that the Council was protected in this area. She also noted that the idea of a 15-year lease was to provide incentive for investment in the site, as potential leaseholders would require a longer-term business plan when bidding for the competitive lease. If there were additional requirements for events, she noted that it was likely that these would be handled through a license.

96.14  Councillor Hiton asked whether the lease would include a clause to protect the Council should the operator and any associated business be bought out. Councillor Norman confirmed that this could be worked in as part of the negotiation process.

96.15  Councillor Zaman asked whether the lease would include provision for repairs. The Investment Manager advised that this would generally be subject to negotiation with the leaseholder.

96.16  In response to a further question from Councillor Zaman as to whether Members could be provided with a copy of the lease, Councillor Norman advised that this would usually be a task delegated to Officers.

          RESOLVED – That the Overview and Scrutiny Committee NOTE the report.