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Issue - meetings

Proposal to offer a conditional 2 year lease extension to Spark:York for 17-21 Piccadilly

Meeting: 14/02/2020 - Decision Session - Executive Member for Finance and Performance (Item 4)

4 Proposal to offer a conditional 2 year lease extension to Spark:York for 17-21 Piccadilly pdf icon PDF 264 KB

The report sets out a proposal to grant a further lease of 17-21 Piccadilly to Spark:York, when their existing lease expires on 30th June 2020, until March 2022 when the site will be needed for redevelopment as part of the Castle Gateway regeneration.

Additional documents:

Decision:

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 1st July 2020 until 31st 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.

 

Minutes:

The Executive Member considered a report which sets out a proposal to grant a further lease to 17-21 Piccadilly to Spark:York, when their existing lease expires on 30th June 2020, until March 2022 when the site will be needed for redevelopment as part of the Castle Gateway regeneration. 

 

It was proposed that this further lease would only be granted when: (a) Spark York are in full compliance with the existing planning permission and (b) only if and when they obtain planning permission for continued use of the site for its present use for the duration of the further lease.  The current planning permission would expire on 1st July 2020 unless the council as Local Planning Authority (LPA) granted an extension prior to that date.

 

The Assistant Director of Regeneration and Asset Management and the Property Manager – Commercial, werein attendance to present the report and to respond to questions. 

 

Officers explained how this scheme had been initiated by the Castle Gateway regeneration, as a lack of footfall had been identified in that area.  The lease had been offered to Spark:York to generally enliven the area through growing small businesses.  Officers recognised that there was a balance to be struck with energising this area and the needs of local residents.  The businesses in Spark:York must work within the boundaries permitted, particularly in relation to evening events.  The officer report had recommended a continuation of the positive aspects of the scheme with clear restrictions in relation to the prevention of amplified live music and DJ sets and full compliance with all of the conditions to the site’s existing planning permission, cladding the units and controlling noise nuisance.

  

The Executive Member stated that he was making his decision in consultation with and representing full Executive.  It would not be possible to bring an end to this scheme and to evict Spark:York as it supported a number of small businesses that would need to re-locate.  He was supportive of how this scheme had regenerated that area, noting that although a number of proposals for that area had been put forward, it had been difficult to find a project that all relevant parties could agree upon.  This scheme had seemed ideal as it had offered a coffee culture environment and attracted city workers for the 5-8 pm time period.  Although he considered that Spark:York had been positive for the City, he fully understood and appreciated residents’ concerns regarding how the scheme had impacted upon their amenity.  He considered that these concerns could be resolved with an improvement in communication, enforcement and the planning process.  He stressed that having considered the concerns raised by residents, a zero tolerance approach to compliance would be taken. 

 

Resolved: That the following be 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 1st July 2020 until 31st March 2022 (at basic rent of £13,333 per annum payable monthly in advance  ...  view the full minutes text for item 4


 

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