Decision details

Westmorland Shopping Centre - Headlease transcation

Decision Maker: Cabinet

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: No

Purpose:

Report to consider resolving historical head lease issues relating to the Westmorland Shopping centre, Kendal Market and Multi-storey car park.

Decisions:

Summary

 

The Finance and Resources Portfolio Holder presented the report on the headlease transaction for the Westmorland Shopping Centre. He detailed the complex previous arrangements and the proposals set out in the report.

 

Lengthy discussion on the item raised a query over the impact of the Statute of Uses 1535 on intermediary leases, the Legal, Governance and Democracy Lead Specialist advised that this would be investigated before any legal work commenced.

 

The Leader asked the meeting if the motion was agreed. There was no dissent.

 

Decision

 

RESOLVED – That:-

 

(1)   proceeding with and completing legal documentation to surrender the head lease over the Westmorland Shopping Centre, Westmorland multi-storey car park, Kendal Bus Station and Kendal Indoor Market Hall be approved;

 

(2)   proceeding with and completing legal documentation to effectively surrender the under leases relating to Westmorland multi-storey car park, Kendal Bus Station and Kendal Indoor Market Hall be approved; and

 

(3)   agreement of the terms of the leasehold transaction and any supplemental documentation that may be required to effect the leasehold transaction be delegated to the Director of Customer and Commercial Services in conjunction with the Operational Lead for Delivery and Commercial Services and the Lead Specialist for Legal, Governance and Democracy.

 

Reasons for Decision

 

The Westmorland Shopping Centre Headlease Transaction links to the Council priorities for economy and culture, create opportunities for young people by:-

·        unlocking development sites and enabling local businesses to grow;

·        understanding the needs of local businesses;

·        encouraging graduate retention; and

·        using culture and built heritage to support our unique offer.

Alternative Options

 

To do nothing, this will likely lead to no investment by the current owners of the Westmorland Shopping Centre into thescheme which will mean that the first floor will continue to fail and potentially lead to partial closure of the first floor. This is not a recommended route.

To replace and extend the Head leasehold interest and subsequent two underleases with 999 year leases. This is not a recommended route when considering that the buildings are not expected to survive for such a length of time and SLDC would require approval for any works or alterations needed to the Car Park and Market Hall and this would increase the repair liability for SLDC over time. It would be in SLDC’s interest to remove the Head Lease arrangement, therefore this is not a recommendedroute.

Report author: Sion Thomas

Publication date: 19/03/2021

Date of decision: 17/03/2021

Decided at meeting: 17/03/2021 - Cabinet

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