PAPER C

 

                                                                                                                Purpose : for Decision

                        REPORT TO EXECUTIVE

 

Date :              2 JUNE 2004

 

Title :               SEAVIEW ROPE WALK TOILETS SALE AND ALTERNATIVE PROVISION AT SEAVIEW HOTEL

 

            JOINT REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES AND PORTFOLIO HOLDER FOR SUSTAINABLE DEVELOPMENT, ENVIRONMENT AND PLANNING POLICY

 

IMPLEMENTATION DATE : 14 June 2004


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 FLOWER

Head of  Property Services

R BARRY

Portfolio Holder for Resources

 

T BUTCHERS

Portfolio Holder for

Sustainable Development

Environment and Planning Policy