In a decision published on 5 July, Nottingham City Council has approved the extension of a lease for two parcels of land adjacent to the Eastcroft Depot on London Road.
The lease will be held with Hartwells PLC, and the council will be the tenant in this arrangement.
The term of the lease will extend from 9 August 2023 to 8th May 2027, with a rolling 6-month break clause enforceable by either party after 8th August 2024. The lease will be exempt from Security of Tenure under the LTA1954.
The decision was taken due to the council’s operational use of the areas as part of the Eastcroft depot.
The council already holds two leases for these areas, and there is a need to extend both areas until at least May 2024, with an undefined time after.
The rent will remain the same as before, having been set in 2019 and 2020.
The option of not seeking a lease extension was considered but rejected as the land is required to maintain current services.
The extension also provides more time for long-term planning of services across Eastcroft, which could not be actioned in the remaining time of the existing leases.
The decision was made following consultations with legal, finance, and property experts.
The legal advice indicated that the proposed transaction does not raise any substantive legal issues of concern.
The finance advice, which is exempt from publication, is contained within an exempt appendix.
The property advice confirmed that the grant of the lease is ‘essential for the ongoing use of the Eastcroft Depot’ and long-term planning around the future use of the depot.
The decision was signed and dated on 3rd July 2023 by Steve Battlemuch, Portfolio Holder for Skills, Economic Development, Property & Growth, and Sajeeda Rose, Corporate Director of Growth & City Development. The decision is subject to call-in until 12th July 2023.