Issue - meetings

This report seeks the Cabinets decision as to the future use of the former Elderly Persons Home (EPH) at Oliver House, which is becoming available as part of the EPH review.

RESOLVED:             That Cabinet approve the granting of a 20 year lease to a Voluntary Sector Management Group, at a commercial rental to be confirmed through a formal valuation, and to be reviewed every 5 years. This would cover the cost of prudential borrowing in lieu of a capital receipt, with a subsequent review of selling the property. The lease will be on full repairing and insuring terms. It will also be contracted out of the security of tenure provisions of the Landlord and Tenant Act.

REASON:                  This option will achieve the income stream required to cover the increased revenue cost of the Elderly Persons Homes review, and contribute to the priorities set out in the Council plan whilst retaining the asset in the long term.

Members considered a report which detailed options for the future use of the former Elderly Persons Home (EPH) at Oliver House, which was becoming available as part of the EPH review. It was reported that this was a valuable, high profile city centre property with potential for both sale or an alternative use for the site.

Further information in relation to the options to sell or retain and the potential future uses; a Health and Social Care Hub, student accommodation or for affordable housing were set out in paragraphs 10 to 24 of the report.

Consideration was given to the following options:

Option 1 – Health and Social Care Hub

The property will be let to a Voluntary Sector Management Group for a term of 20-25 years at a commercial rent with a 5 yearly review of the rent to cover the cost of the prudential borrowing in lieu of a capital receipt. The groups who would use the site currently pay sufficient rent to meet the costs but would need to secure some investment funding to convert the building for their use. This could come from borrowing or grant funding.

Option 2 – Student Accommodation

The property would be let to YSJU for a term of 5 years, with the option to break at the end of the 3^rd year. YSJU have indicated that they would be able to meet the required level of rental income with the proviso of a 6 months rent free period to fund the refurbishment.

Option 3 – Affordable Housing

Option 4 – Sale

Clarification was sought in relation to the timescales, if the property was let to a Voluntary Sector Management Group. Officers confirmed that it was envisaged that the property would be in use in around 9 months, however this detail had yet to be confirmed.

RESOLVED:          That Cabinet approve the granting of a 20 year lease to a Voluntary Sector Management Group, at a commercial rental to be confirmed through a formal valuation, and to be reviewed every 5 years. This would cover the cost of prudential borrowing in lieu of a capital receipt, with a subsequent review of selling the property. The lease will be on full repairing and insuring terms. It will also be contracted out of the security of tenure provisions of the Landlord and Tenant Act. ^1.

REASON:                  This option will achieve the income stream required to cover the increased revenue cost of the Elderly Persons Homes review, and contribute to the priorities set out in the Council plan whilst retaining the asset in the long term.