Issue - meetings

Report of the Strategic Director of Regeneration and Environment

Cabinet Member:     Councillor Lelliott

Commissioner:         Kenny (in advisory role)

Recommendations:

1.    That approval be given to the surrender of the existing Asset Transfer Lease and the grant of a new 25 year Asset Transfer Lease with Rotherham Rugby Club Ltd without any break clauses.

2.    That the Assistant Director of Planning, Regeneration and Transport be authorised to negotiate the terms of the lease; and the Assistant Director Legal Services be authorised to complete the necessary documentation.

3.    That the Assistant Director of Culture Sport and Tourism be authorised to negotiate a new Service Level Agreement to monitor activities relating to sports development, community engagement and equalities.

Consideration was given to the report seeking renewal of the agreement with Rotherham Rugby Club (the Club) for the lease of three rugby pitches on Herringthorpe Playing Fields.

The Club aimed to improve the drainage and surface of the pitches with the help of funding from Sport England (the funder).  The pitches were currently leased by the Club from the Council through an Asset Transfer lease for a yearly rent of £1 (if demanded) which ran until 2038.  The lease was for land only; there were no other Council assets on the site.

In order to protect their proposed investment, the funder required a minimum twenty-five year lease with no break clause during that period.  This would make necessary the Club’s surrender of their current lease agreement and the creation of a new twenty-five year Asset Transfer lease which would end in 2042.  The Club had requested the Council’s assistance to overcome the funding obstacle.

In consultation with the Cabinet Member for Culture and Neighbourhood Working and local Ward Members in February, 2017, a number of issues relating to the Club’s management and use of the site were raised. 

Cabinet Members welcomed the report and the commitment to continued active management of the site, to continued engagement with residents within the local community and to diversifying the ethnic profile of their users. 

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-scrutiny process who were in support of the recommendations.

Resolved:-  (1)  That the surrender of the existing Asset Transfer Lease and the granting of a new twenty-five year Asset Transfer Lease with Rotherham Rugby Club Ltd. without any break clauses be approved.

(2)  That the Assistant Director of Planning, Regeneration and Transport be authorised to negotiate the terms of the lease and the Assistant Director of Legal Services authorised to complete the necessary documentation.

(3)  That the Assistant Director of Culture, Sport and Tourism be authorised to negotiate a new Service Level Agreement to monitor activities relating to sports development, community engagement and equalities.

Consideration was given to a report due to be determined by the Cabinet and Commissioners’ Decision Making Meeting on 19 February 2018 in respect of a proposal to renew a lease agreement with Rotherham Phoenix Rugby Club. It was reported that Rotherham Rugby Club Ltd aimed to improve the drainage and surface of 3 rugby pitches on Herringthorpe Playing Fields with the help of funding from Sport England. The pitches were leased by the Club from the Council through an Asset Transfer Lease for a yearly rent of £1, which was due to run until 2038. It was further reported that the lease was for land only. In order to protect their proposed investment, the funder required a minimum 25 year lease with no break clause during that period. The Club had requested that the Council assist them in overcoming this funding obstacle by renewing the lease agreement.

Members were broadly supportive of the proposed renewal of the lease agreement, but sought assurances that the Council would lose control of the land in the event of the club entering administration. It was confirmed that the Council would retain control of the land in all eventualities. Assurances were also sought in respect of the maintenance of the land during the period of the lease and it was confirmed that this would be monitored in accordance with the provisions of the service level agreement.

In response to a question in respect of the relationship with the club, the Cabinet Member for Jobs and the Local Economy and the Assistant Director for Culture, Sport and Tourism relayed how impressed they had been with the way in which the club had worked with local residents and become responsive to issues raised. Members were also assured that an equality impact assessment had been undertaken and that this had also formed part of the service level agreement with the club.

Resolved:-

That Cabinet be advised that the recommendations be supported.