Nottingham City Council has approved a significant new lease agreement for part of Loxley House.
The council’s headquarters Loxley House is located on Station Street, Nottingham.
The new lease applies to part of the fourth floor of Loxley House and promises to unlock significant financial advantages for Nottingham City Council.
According to documents released today, the terms of the lease, although commercially sensitive and not fully disclosed, have been described as favourable and well-negotiated. The agreement is expected to generate additional income, contributing positively to the Council’s revenue streams.
One of the primary financial benefits is the anticipated reduction in liability for business rates, as well as the income generated from service charge contributions. By leasing out the surplus space, the Council aims to avoid the minimal savings that would result from mothballing unused areas.
Key Details
- Capital and Revenue Value: The total value of the lease agreement, encompassing both capital and revenue components, is detailed in an exempt appendix not publicly available due to commercial sensitivity.
- Landlord Works: The decision includes a provision for “landlord works” estimated at £398,000. These works are fully funded from existing revenue budgets, with further budgetary adjustments to be finalized by the Corporate Director for Growth and City Development in consultation with the finance department.
- Revenue Incorporation: Additional income from the lease is to be integrated into the Medium-Term Financial Plan (MTFP) for the fiscal year 2025/26, ensuring long-term financial planning and stability.
The proposed occupier of the space is seen as a low-risk tenant, with assurances that they will adhere to lease covenants.
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