Decision Maker: Director of Finance and Corporate Services
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
To enable additional work at the Tewkesbury investment site.
To authorise the additional spend on the Tewkesbury investment totalling £2.5m.
To enable the simultaneous build out of the additional 23,000 sq ft of warehouse space.
This space was for additional capacity as the tenant grew further. However the tenant has now requested that it is built at the same time as the main building as they are wanting to occupy it immediately. The benefits to the Council are:
· Buying an additional 35 year income stream with indexation
· Construction works would tie in with the main build contract
· Tidier solution to have a warranty package over the whole scheme
· Logical to have the extension as Landlord’s demise (as opposed to a Tenant’s improvement)
The basis of the investment are the same as when the opportunity was agreed by members in January 2021.
Allowing the tenant to develop the space as a tenant improvement. This would make for additional work and cost at the point in time when the Council would wish to sell the asset. In addition this option would not generate any extra income for the council.
Urgent item?: Yes
Publication date: 02/06/2021
Date of decision: 02/06/2021