From Thanet District Council Report 22 April, 2010.
To: Council 22 April 2010
By: Harvey Patterson, Monitoring Officer
Classification: Unrestricted
Summary: To note the urgent action taken by the Portfolio holder for
Community Services in relation to the surrender of the lease of the
Flowing Bowl Public House
For Information
1.0 Background
1.1 The Flowing Bowl Public House is adjacent to the Centre
Newington, this being the location of one of the Council's priority
housing regeneration schemes. The Council is the freeholder owner of the
Public House although the premises were subject to a long lease in
favour of Admiral Taverns. The acquisition of the Public House would
facilitate site assembly for the regeneration project and to this end
the Council had earmarked HRA capital funding to acquire the lease of
the premises (i.e. negotiate a surrender of the lease) in this financial
year (2010/11).
1.2 In the middle of March Admiral Taverns indicated that it was
willing to surrender the lease of the premises to the Council for
£125,000 (£144,688 inclusive of VAT) on condition (presumably for tax
reasons) that completion took place in the 2009/10 tax year. As a
result, the Director of Community Services instructed an external valuer
who franked the surrender value as representing market value given the
special value to the Council.
2.0 Decision to Accept Surrender
2.1 In the normal course of events the decision to accept the
surrender of the Flowing Bowl Public House for the surrender premium
could have been taken by the Cabinet Portfolio holder for Community
Services under delegated powers. However, because this would have
constituted a Key Decision which did not appear on the latest published
edition of the Forward Plan and because there was no budget to acquire
the lease in 2009/10, the Portfolio holder for Community Services could
only take the decision if the Chairman of the Overview & Scrutiny Panel
agreed pursuant to Rule 17 of the Access to Information Procedure Rules
and Rule 4 of the Budget and Policy Framework Procedure Rules that the
matter was urgent, could not reasonably be deferred and that it was not
practical to convene a quorate meeting of Council to determine the
matter.
2.2 It also followed that if the decision to accept a surrender of
the lease of the Flowing Bowl Public House should be taken as a matter
of urgency to achieve the 2009/10 tax deadline imposed by Admiral
Taverns, the decision should also be exempt from Call-In by the Overview
& Scrutiny Panel in order that it could be implemented immediately. In
this regard, only the Chairman of the Council (or in the absence of the
Chairman of the Council, the Vice-Chairman) can authorise the exemption
of a key decision from the Call In procedure pursuant to Rule 15(j) of
the Overview & Scrutiny Procedure Rules on the grounds that the decision
is urgent and any delay likely to be caused by the call-in process would
seriously prejudice the Council's interests or the public interest.
3.0 Consents Obtained
3.1 The necessary consents were obtained from the Chairman of the
Council and the Chairman of the Overview & Scrutiny Panel on 30 March
2010.
4.0 Decision Taken
4.1 On 31 March 2010 the Portfolio holder for Community Services took
the decision to authorise the acceptance of a surrender of the lease of
the Flying Bowl Public House from Admiral Taverns. On 4 April 2010 -
i.e. within the 2009/10 tax year - the Council accepted the surrender of
the premises for a surrender premium of £125,000 plus VAT.
5.0 Corporate Implications
5.1 Financial
5.1.1 Although the Council took the surrender of the lease in the
2009/10 tax year, it actually fell in the 20010/11 financial year. As a
result, there was adequate budgetary provision to meet the surrender
costs.
5.2 Legal
5.2.1 Rule 4 of the Budget & Policy Framework Procedure Rules require
that any decision taken outside the Budget on urgency grounds is
reported to the next available meeting of the Council.
5.3 Corporate
5.3.1 The voluntary acquisition of the Flying Bowl Public House will
assist in the site assembly for an important redevelopment project.
5.4 Equalities
5.4.1 None apparent
6.0 Recommendations
The Council notes the urgent action taken by the Portfolio holder for
Community Services with the agreement of the Chairman of the Council and
the Chairman of the Overview & Scrutiny Panel in authorising the taking
of a surrender of the lease of the Flowing Bowl Public House, Newington.
Background Papers. None
Contact Officer: Harvey Patterson, Head of Legal & Democratic
Services
Reporting to: Richard Samuel, Chief Executive
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