Agenda item

Report of the Strategic Director of Regeneration and Environment

Recommendations:-

1.    That approval be given to acquire the leasehold interest of the former Higher Education Hub, Eastwood Lane up to the value of the worst case scenario in Appendix 3.

2.    That the Assistant Director (Planning, Regeneration and Transport), in consultation with the Strategic Director of Finance and Customer Services, negotiates the acquisition of the leasehold interest.

3.    That the Assistant Director of Legal Services be instructed to complete the necessary legal documentation once terms for the acquisition have been agreed.

4.    That the cost of the acquisition and demolition of the asset be funded from the approved Town Centre Capital Investment Fund.

Consideration was given to the report which sought approval to acquire the leasehold interest of the former Higher Education Hub, Eastwood Lane.

The Council owned the Freehold interest in the Higher Education Hub (formally known as the Charter Arms Public House) located on Eastwood Lane, overlooking the Markets Complex.

The Council granted a long lease (99 years) in 1976 to the Mansfield Brewery Company, which was assigned by the Brewery to Rotherham North Notts Group Further Education College (RNN) in 2014. The lease had been varied from its initial use as a Public House to its current use as the Higher Education Hub. RNN have carried out substantial improvements to the property.

RNN held the remaining 55 years of the lease paying an annual rent to the Council.

RNN no longer have a use for the building having completed the University Centre Rotherham (UCR) Campus, and the Higher Education Hub was now surplus to requirements. RNN, through agents, were now actively marketing the property for disposal on the open market and the Council were looking to acquire the long leasehold interest.

Completing this acquisition was viewed as an important step in progressing with the delivery of the Markets redevelopment as part of the implementation of the Town Centre Masterplan, building on the significant progress over recent years on a range of projects.

Resolved:-

(1)  That the acquisition of the leasehold interest of the former Higher Education Hub, Eastwood Lane up to the value of the worst case scenario in appendix 3 be approved.

(2)  That the Assistant Director (Planning, Regeneration and Transport), in consultation with the Strategic Director of Finance and Customer Services, negotiate the acquisition of the leasehold interest.

(3)  That the Assistant Director of Legal Services be instructed to complete the necessary legal documentation once terms for the acquisition have been agreed.

(4)  That the cost of the acquisition and demolition of the asset be funded from the approved Town Centre Capital Investment Fund.