SUMMARY/PURPOSE
1.
This report sets out recommendations for the sale of
the Council’s public conveniences (“WCs”) at Rope Walk, Seaview in exchange for
a local business providing the public toilet facilities in the future thereby
enabling new development.
BACKGROUND
2.
The proposal under consideration is for a lease for a
period of 125 years to be granted over the sites of the existing WCs to the
owner and operator of the Seaview Hotel (“the Hotel”). Under the terms of the proposed lease, the
Hotel will be entitled to develop and utilise the WCs as ancillary
accommodation to the Hotel in return for which the Hotel will provide at its
own expense alternative toilet facilities for public use to the satisfaction of
the Isle of Wight Council for the duration of the lease.
3.
The WCs were acquired in 1938 and each site has a
frontage to Rope Walk of 20 feet and a depth of 40 feet and is shown on the
Ordnance Survey extract appended. The
proposal to lease the Council’s property to the Hotel for 125 years from a date
to be agreed is subject to planning permission having first been granted for
further hotel rooms and ancillary accommodation to the Hotel to be developed
upon the site of the WCs.
4.
The ground lease and accompanying documentation (see
later) will contain an agreement that the Hotel will be bound to provide and
thereafter maintain conveniences for the use of the general public within the
existing Hotel to the satisfaction of the Council for the free and unrestricted
use by members of the public between the hours of 7 am and 7 pm, 7
days a week for a minimum of 360 days a year; the facilities being closed
between 22 and 28 December each year.
The monetary consideration for the lease will be a capital sum of
£30,000 (Thirty Thousand Pounds) paid by the Leaseholder plus an annual ground
rent in the form of a peppercorn with the following principal head of terms to
apply :
(a)
Under the
terms of this agreement The Lessee agrees with The Lessor that, throughout the
period of the lease, they will provide conveniences within the existing site of
The Seaview Hotel, Seaview, Isle of Wight, for the free and unrestricted use of
members of the public of all ages from 7am until 10.30pm 7days a week for a
minimum of 360 days a year. The facilities only may be closed for four days
over the Christmas period including Christmas Day and Boxing Day.
(b)
The Lessee
also agrees that throughout the period of the lease they will be legally and
financially responsible for the repair and maintenance of said conveniences to
the satisfaction of The Lessor.
(c)
The Lessee
agrees that the conveniences should be clearly marked WC with the addition of
an appropriate visual symbol both on the Toilets themselves and also nearby
post signage, to the satisfaction of the Lessor, to avoid any uncertainty or
confusion on the part of the public. The Lessee reserves the necessary rights
under the Licensing Laws to remove those persons creating a nuisance.
(d)
The Lessor
reserves the right to periodically inspect the proposed conveniences to verify
and ensure satisfactory cleaning standards are being consistently maintained,
or in the event of any complaints being received.
(e)
If it should
transpire that, in the opinion of The Lessor, the standard of cleanliness falls
below that which is expected of a public convenience, and The Lessee fails to
remedy any such breach to the satisfaction of The Lessor within a reasonable
period of time to be no greater than 28 days from notification to The Lessee of
such breach, then The Lessor will be entitled to enter the premises and carry
out such works as are required at the expense of The Lessee.
(f)
If any
dispute should arise over the operation, quality or standards of cleanliness of
the public conveniences, this may be referred, at the instigation of either
party to this agreement, to an “Arbitrator” who shall be a responsible person
nominated by the President for the time being of the Institute of Public Health
Officers or some such similar body to be agreed by the parties.
(g)
The use of
The Sites is restricted to that of hotel accommodation ancillary to the use of
The Seaview Hotel, High Street, Seaview, Isle of Wight, and for no other
purpose without the previous written consent of The Isle of Wight Council.
(h)
The Lessee
shall be entitled at their own expense to construct alternative conveniences on
the site of The Seaview Hotel or elsewhere within the centre of the village of
Seaview at the absolute discretion of the Isle of Wight Council. The Lessee will require the written
agreement of the Isle of Wight Council as to the location, design and
specification of the said conveniences.
(i)
If it should
transpire that The Lessee or their successors in Title fail to provide the said
public conveniences for whatever reason for a continuous period of not less
than 28 days, without the previous written consent of The Lessor, the Lessee
will pay to the Isle of Wight Council the sum of £5,000 (five thousand pounds)
such figure to be increased on each anniversary of the ground lease by the
level of the increase in the RPI. If the Lessee or their successors in Title
continue to fail to provide the said public conveniences for whatever reason
for a further period of 28 days, calculated from the date of the Notice of the fine,
without the previous written consent of the Lessor, the ground lease shall be
deemed to have been terminated and The Lessor shall be entitled to free and
unrestricted access and use of the site and any buildings or structures thereon
without the payment of compensation to the former Lessee.
(j)
The ground lease may only be assigned with the written approval of the
Isle of Wight Council (such approval not to be unreasonably withheld) as part
of a sale of the Seaview Hotel in its entirety and for no other purpose.
(k)
Not withstanding termination The Lessee shall remain liable to The Lessor
in respect of any breach of the terms of the lease prior to termination.
(l)
In the event of any fate befalling the Hotel over which the Lessee has no
control (Fire, Flood or Terrorist Act etc), which would render the conveniences
inoperable, the Lessee will be liable to provide a temporary facility at his
own expense.
(m)
Each party to be responsible for their own legal costs.
STRATEGIC CONTEXT
5.
By enabling the redeployment of this asset in Seaview,
the Council will be progressing the Community Strategy by fulfilling several
strategic objectives. The Council will be helping the development of a more
sustainable environment in terms of access to facilities and leisure
attractions; the promotion of a quality built environment through the
development of a new well designed toilet facility; the consequent promotion of
the local economy and economic development enabling a local business to make a
longer term investment decision; and, by transferring the management of the new
conveniences this should also enable a safer environment through direct on site
management.
PLANNING
6.
The site is located within the Development Envelope
for Seaview and Nettlestone as set out in the Unitary Development Plan and
therefore subject to provision being made for the public conveniences and
planning permission being granted for further hotel rooms, the proposal is
considered to comply with the policy objectives of the plan.
CONSULTATION
7.
This proposal has
been shared with the Local Member and Parish Council, who had no
objections. The proposals set out in
this paper have also been shared widely with operational officers in Planning,
Highways, Finance, Legal Services and Property Services, all of whom support
the scheme.
FINANCIAL/BUDGET IMPLICATIONS
8.
Under the lease arrangements the Council will be
saving maintenance costs from the existing revenue budget to the value of
£5,000 per annum in perpetuity and have an opportunity to capitalise on the
existing site which will become redundant and surplus when the new public
convenience is provided. The capital
receipt will be £30,000.
LEGAL
IMPLICATIONS
9.
There will need to be a Building Agreement with draft lease annexed
granted over the site of the WCs. To ensure the future
operation of the new toilets and as the Council will continue to be the
freehold owner of the WCs there will also have to be accompanying
documentation in the form of a Deed of Covenant between the Council and the
freeholder owner of the Hotel.
This will deal with standards, opening hours, signage, repair, maintenance,
inspection, entry, default works at Hotel owner’s expense with arrangements for
control over alternative WC arrangements plus appropriate indemnity and
penalties. The consideration will be
£30k, the covenants in the lease, the provision and availability of the new
toilet facilities throughout the leasehold term AND the Deed of Covenant. The new toilet accommodation will be
operational before the WCs are demolished and development
commenced. The Council is empowered to sell its property by the
Local Government Acts 1972 and 2000 part 1 and will be actively pursuing
objectives of the Community Strategy. Independent Consultants have issued a
report recommending this transaction as best consideration for the Council.
OPTIONS
10.
(a) That
the Council declares the site of the existing WCs as surplus to requirements
and enters into the arrangement as set out in this report and.
(b)
That the Council seeks to close the toilets and save
expense.
(c)
That the Council does nothing.
EVALUATION/RISK
MANAGEMENT
11.
The main risk to the Council will be a failure by the
purchaser to complete the works to Council satisfaction or cause some
collateral liability to the Council.
These issues can be managed by entering into a contract for the lease
conditional upon completion of the building works. These works in turn will be
to a specification agreed with the Council and all completed to the Council’s
satisfaction.
12.
Discussions
have taken place as to a capital payment in terms of best consideration but
this would not fund new toilets elsewhere.
However because the Hotel is currently being redeveloped there is the
opportunity to seek replacement toilet facilities. As such the terms being put forward by independent consultants
are being recommended on the basis that the Council will be securing best
consideration through an equity of exchange that makes savings on future
liabilities and capitalises on the retained land. Although the Council could choose to close the WCs that would
affect the general facilities available for visitors to Seaview and its tourist
attractions. In real terms such an
action would have an adverse effect on the Council’s aims and objectives. It would also be contrary to the Council’s
objective of promoting sustainable tourism, employment and economy.
13.
Equally by
doing nothing the Council would fail to take up an opportunity as now presented
which will help enable additional tourism and leisure facilities to be built.
|
RECOMMENDATIONS 14.
Option 10 (a). |
BACKGROUND
PAPERS
15.
None.
Contact
Point : Tony Flower ' 823263
T FLOWERHead of Property Services |
R BARRYPortfolio Holder for Resources
T BUTCHERSPortfolio Holder for
Sustainable Development
Environment and Planning Policy |
