Decision details

Cabinet considered a report on the renewal of the lease for office space at Knowle Green Council offices by Surrey County Council.

Alternative options considered and rejected by the Cabinet:

·         not to provide a new lease and let the current one expire on 4 December 2016.

Resolved to approve the grant of the new Lease to Surrey County Council for office space at the Council Offices, Knowle Green for 5 years until 4 December 2021 subject to:

1.    Ensuring that the service charge element incorporates any necessary uplift to reflect the increase in business rates from 2017 onwards for Knowle Green;

2.    Receiving up to date valuation advice on the appropriate rental level (which will be greater than current income levels); and

3.    Final approval on the rental and service charge levels delegated to the Group Head for Regeneration and Growth in consultation with the Cabinet Member for Fixed Assets

Reason for decision

The five year lease will continue to bring in a rental income for the Council of at least £248,630 (rental and service charges inclusive)

There is a mutual break clause which can be exercised at any time on or after 4 June 2017 which protects the Council’s position regarding the future of Knowle Green.