Issue - items at meetings - Charter House Hotel - Proposed Future Options

Joint report of the Director of Finance & Resources and the Director of Culture and Enterprise (copy attached).

1.      That Cabinet approves and authorises:

(a)           The disposal of the Charter Hotel on a 150 year lease to a successful bidder for a premium and a peppercorn rent, following a marketing exercise, full evaluation of informal bids and recommendations by the council’s appointed agents.

(b)           That once offers have been evaluated a further report will be prepared to enable Cabinet to consider the proposals, select a preferred developer and authorise the detailed terms to be settled by the Director of Finance & Resources and the Solicitor to the Council.

79.1         The Cabinet considered a joint report of the Director of Finance & Resources and the Director of Culture & Enterprise seeking approval for the disposal of the Charter House Hotel, 12-15A Kings Road on a 150 year lease to a successful bidder for a premium and a peppercorn rent (for copy see minute book).

79.2         The Director of Finance & Resources confirmed that disposal via a 150 year lease was a standard approach, as the Council preferred not to dispose of freeholds.

79.3         In response to queries from opposition councillors, Councillor Fallon-Khan gave assurance that all possible options for the building had been considered, but that the proposals in the report represented the best possible outcome for the Council given its state of repair; the building was repossessed in 2007 due to the failure of the tenant to keep it in a fit state.

79.4         The Chairman pledged to take action to improve the appearance of the building in the short term and offered to provide Councillor Watkins with an update on the history of the building.

79.5         RESOLVED - That, having considered the information and the reasons set out in the report, the Cabinet accepted the following recommendations:

(1)         The disposal of the Charter Hotel on a 150 year lease to a successful bidder for a premium and a peppercorn rent be approved and authorised, following a marketing exercise, full evaluation of informal bids and recommendations by the council’s appointed agents.

(2)         That once offers have been evaluated a further report be prepared to enable Cabinet to consider the proposals, select a preferred developer and authorise the detailed terms to be settled by the Director of Finance & Resources and the Solicitor to the Council.