Decision details

New Lease of Ground Floor Unit, Sheep Market, Stamford

Decision Maker: The Leader and Cabinet Member for Corporate Services and Property

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

To seek approval to enter into a new lease 10 year lease at Sheep Market, Stamford.

Decision:

That approval is granted to enter into a new 10 year lease at Sheep Market, Stamford for the Ground Floor Unit.

Reasons for the decision:

The ground floor unit is in a central location within Stamford Town Centre and has remained vacant for in excess of one year. The Council have no alternative requirements for the space and therefore have put the unit back to the market for let. The recommendation is to enter into a new 10 year lease, as per the draft heads of terms, to enable the Council to benefit from an income on this unit.  The Council will also support a new business to Stamford.

Alternative options considered:

The Council owns the freehold of the property and the building is listed. The building has a ground and first floor, each floor containing a separate self-contained unit. The subject unit on the ground floor extends to approximately 308 square feet. There is an external area to the front which is within the Councils ownership and laid to pavement.

 

The previous occupier terminated their lease in December 2019 and the unit has remained vacant since.

 

The Council appointed Eddisons as letting agents to market the ground floor unit. There was limited interest however a strong application was put forward by a new business.

 

The draft heads of terms have been prepared by the letting agents Eddisons.

 

The proposed use of the building is as a Pizzeria falling within Class E of the Town & Country Planning Regulations, or for other retail or office use within Class E. The building will form part of a small restaurant and takeaway with an external seating area, subject to all the necessary licences. This is a new business and owner is believed to be experienced within the food industry.

 

The lease as above is for a term of 10 years and contracted out of the security of tenure provision of the Landlord and Tenant Act 1954. The tenant is to have the benefit of a three month rent free period at the commencement of the terms to enable them to set up and make the necessary alterations, subject to planning and listed building consent. There is a tenant break at year 5, subject to 6 months written consent. The Council do not have a break associated with this lease due to the tenant’s upfront investment.

 

The rental value to be paid, as further detailed in the draft heads of terms is above the market rent. The tenant had agreed to pay the Council a deposit and the rent is to be reviewed at the end of the fifth year of the term. The tenant is to be responsible for any Uniform Business Rates payable on the property and all other outgoings.

 

The tenant will take an internal repairing lease but will be responsible for a fair proportion of the external maintenance of the building.

 

Structural alterations are strictly prohibited, and non-structural alterations are permitted subject to consent.

 

The tenant is to obtain landlord consent, together with any statutory consents required for the design, size and location of any proposed signage on the property prior to installation.

 

The building is insured by the Council and a fair proportion of the premium will be recharged back to the tenant under the lease.

 

Publication date: 16/02/2021

Date of decision: 15/02/2021

Effective from: 24/02/2021

Accompanying Documents: