Decision details

Purpose of Report: To set out a proposal to extend the existing short term lease of 17-21 Piccadilly to Spark:York for a further 2 years until the site is ready for redevelopment as part of the Castle Gateway regeneration.

The lease will be conditional upon compliance with the existing planning permission and also to the agreement of an extended planning permission by the Local Planning Authority.

The proposed lease extension will maintain the benefits of the existing lease to create footfall and economic vibrancy within the Castle Gateway area and continue to provide start up business development space for SMEs in the city centre until the site is ready for redevelopment.

The Executive Member will be asked to approve the conditional 2 year extension of the Spark:York lease.

Resolved:        That the following was confirmed by the Executive Member for Finance and Performance:

                           (i)        To offer Spark York a new lease for the use of 17-21 Piccadilly from 1^st July 2020 until 31^st March 2022 (at basic rent of £13,333 per annum payable monthly in advance rather than annually in arrears, plus an additional rent equal to 30% of Spark’s annual profit payable at the end of each year) to continue to operate a shipping container development for start-ups and street food,

                         (ii)        That the new lease will require Spark: York will to pay a Bond/Deposit sum of £5,000 to the council towards securing compliance with the tenant’s obligations in the new lease (such as payment of rent)

                        (iii)        That the new lease will require a director of Spark: York to act as guarantor for the performance by Spark:York of the tenant’s obligations in the new lease

                        (iv)        That the new lease will contain a clause setting out the council’s right to terminate the lease should Spark/the tenant breach their obligations in the lease (including breaching planning laws)

                         (v)        That the new lease will specifically preclude Spark: York from running amplified live music or DJ sessions in the evening

                        (vi)        That the new lease will only be granted if and when:

(a)           Spark:York are in full compliance with all of the conditions to the site’s existing planning permission, cladding the units and controlling noise nuisance.

(b)           Spark: York obtain an extension from the LPA of the  validity period of the existing planning permission from 1st July 2020 to 31st March 2022.

(c)           Spark: York have settled all existing debts to the council.

(d)           A communication plan is in place which would be a two way communication agreement with Spark:York and local residents.

(e)           That authority be delegated to the Assistant Director of Regeneration and Asset Management in consultation with the Executive Member for Finance and Performance to investigate the viability of reducing the time for the sale of alcohol by half an hour from the current operating hours.  Current hours are in accordance with statutory permitted times.   

Reason:  To allow the continued use of 17-21 Piccadilly to

support SME businesses and create footfall and economic activity in advance of the long term redevelopment of the Caste Gateway scheme.