To consider the submitted report and record of decision on the above Policy Framework document.

Further to the Council meeting held on 21 July 2016, members considered the submitted report on the Mayor’s response to the objections raised by the Council on the amendments to the Corporate Asset Management Plan.

The Mayor proposed and Councillor Excell seconded a motion as set out below:

(i)         that, a new Appendix AM-G ~ ‘Procedure for determining applications for grants to offset market rent (grants in lieu of rent)’, be added to the existing Corporate Asset Management Plan 2015 ~ 2019 (as set out in Appendix 2 to the submitted report);

(ii)        that, Appendix AM-H ~ ‘Granting of sports leases – An overarching strategy’, be added to the existing Corporate Asset Management Plan 2015 ~ 2019 (as set out in Appendix 3 to the submitted report);

(iii)       that, the existing Corporate Asset Management Plan 2015 ~ 2019 be amended to ensure that any grant from the Council to assist with a tenant’s rent will be time bound and will not extend beyond the next scheduled rent review unless there is specific approval at Full Council to the contrary; and

(iv)      that the following wording be added to the Corporate Asset Management Plan to clarify the approach to be taken respect of sports leases:

“The estimated market rent assesses the lease value against other similar leases (i.e. sports leases) across the South Devon area. An estimated market rent will take into account whether the landlord or tenant has the liability for the cost of maintenance and what income generating facilities are at the disposal of the tenant i.e. a club house & bar, private car parking, etc. The estimated market rent would also reflect the restrictive nature (sports use only user clause) of the lease and the level of the security of tenure.

A combination of the above factors can either increase or lower the valuation and so it must not be assumed that a ‘market rent’ is necessarily a high rent. In the case of sports clubs the ‘market rent’ should not be compared with the commercial rent a business might pay in the high street.”

During the debate Councillor Pentney proposed and Councillor Darling (S) seconded an amendment to the motion as follows:

(i)         that, a new Appendix AM-G ~ ‘Procedure for determining applications for grants to offset market rent (grants in lieu of rent)’, not be approvedbe added to the existing Corporate Asset Management Plan 2015 ~ 2019 (as set out in Appendix 2 to the submitted report), and the Executive Head for Business Services be instructed to prepare a new procedure for rents whereby upon expiration of current sports leases or where new leases are granted (to include Torre Valley North, Cricketfield Recreation Ground, Windmill Hill Playing Field, Barton Downs Playing Fields, Armada Park Football Pitch, Walls Hill Cricket Ground, Oddicombe Beach Club House and Foreshore Compound and Steps Oxen Cove) to ‘not for profit organisations’ they will have a peppercorn rent of £500 a year and in addition there will  ...  view the full minutes text for item 65

To consider an amendment to the Corporate Asset Management Plan, as set out in the submitted report.

Members considered the submitted report proposing amendments to the existing Corporate Asset Management Plan 2015-2019 and allow for clear and published processes to exist in relation to the award of grants in lieu of rent as well as the Council’s approach to long leases for sports clubs.

It was proposed by Mayor Oliver and seconded by Councillor Mills:

that the report be deferred.

An amendment was proposed by Councillor Thomas (D) and seconded by Councillor Tyerman:

(i)            that, a new Appendix AM-G ~ ‘Procedure for determining applications for grants to offset market rent (grants in lieu of rent)’, as set out in Appendix 2 to the submitted report, be added to the existing Corporate Asset Management Plan 2015 ~ 2019;

(ii)          that, Appendix AM-H ~ ‘Granting of sports leases – An overarching strategy’, as set out in Appendix 3 to the submitted report, be added to the existing Corporate Asset Management Plan 2015 ~ 2019; and

(iii)         that, the existing Corporate Asset Management Plan 2015 ~ 2019 be amended to ensure that any grant from the Council to assist with a tenant’s rent will be time bound and will not extend beyond the next scheduled.

On being put to the vote, the amendment was declared carried.

The substantive motion was then before members for consideration.

An objection was proposed by Councillor Darling (S) and seconded by Councillor Pentney:

            that the Council formally objects to the Amendments to the Corporate Asset Management Plan on the basis that:

i)     all current and future sports leases granted to ‘not for profit organisations’ should have a peppercorn rent up to a maximum of £500 a year.

In accordance with the Constitution at F4.9, the Council therefore requires the Mayor to consider this objection by 12 August 2016 to either:

a)         submit a revision of the Corporate Asset Management Plan with the reasons for any amendments to the Council for its consideration;  or

b)         inform the Council of any disagreement that the Executive has with any of the Council’s objections and the Executive’s reasons for any such disagreement.

A recorded vote was taken on the objection.  The voting was taken by roll call as follows:  For:  Mayor Oliver and Councillors Amil, Brooks, Carter, Darling (M), Darling (S), Doggett, Excell, Haddock, King, Manning, Mills, Morey, Pentney, Stockman, Stocks, Stringer and Stubley (18).  Against:  Councillors Barnby, Bent, Bye, Cunningham, Ellery, Hill, Kingscote, Lewis, O’Dwyer, Robson, Sykes, Thomas (D), Thomas (J), Tolchard and Tyerman (15).  Abstain:  Councillor Parrott (1).  Absent:  Councillors Morris, Sanders and Winfield (3).  Therefore the objection was declared carried and the Chairman advised that the Mayor would consider the objection and publish his response by 12 August 2016 for consideration at the Council meeting on 22 September 2016.

(Note:  During consideration of this item the following non-pecuniary interests were declared:

Councillor Darling (S)         member of Babbacombe Corinthians Sailing Club and Paignton Canoe Club

Councillor Excell                 member of Torre Table Tennis Club

Councillor Morey                 member of Brixham Rugby Club and Brixham Cricket Club

Councillor O’Dwyer  ...  view the full minutes text for item 50

The Executive Head – Business Services to present his report to the Council on proposed amendments to the Corporate Asset Management Plan.

The Mayor to answer the Board’s questions.

The Board considered a draft report which was due to be presented to the meeting of the Council to be held on 22 July 2016 on proposals amendments to the Corporate Asset Management Plan.  The processes and procedures in place to determine applications for grants in lieu of rent had been reviewed, amendment and consolidated and it was proposed that these should now be included as an appendix to the Council’s Corporate Asset Management Plan.

Further, a review of the process of granting leases for sports grounds had also been undertaken.  It was proposed that an overarching strategy for the granting of such leases also be included as an appendix to the Asset Management Plan.

A representative of Torbay Sports Council attended the meeting and shared the concerns of the Sports Council in relation to the proposals with the Board.

The Board raised questions in relation to how the market value would be assessed, the break clauses available to the Council and its tenants and whether the Executive supported the proposals.

Resolved:  that the proposals within the draft report be supported but that officers consider how an appeals mechanism (to councillors) can be included within the process for determining applications for grants to in lieu of rent.