The Council made the following recommendation to the Deputy Mayor:

It was proposed by Councillor Tyerman and seconded by Councillor Cowell:

(i)            That the Council to enter into a conditional contract to lease the Town Hall Car Park to Hawkstone PLC on the terms set out below;

(ii)          That the Chief Executive of the TDA be instructed to negotiate terms for a conditional contract to grant a 199 ‘peppercorn’ year ground lease to Hawkstone PLC in return for the developer paying a premium sum of not less than £2.5m;

(iii)         That the contract to lease the land be subject to the developer achieving a detailed planning approval for a food store development together with associated car parking. The developer to submit a detailed planning application within 6 months and the development should be commenced within 12 months of planning approval;

(iv)         That the terms of any contract shall not result in a reduction of the number of parking spaces currently available for the public on the site;

(v)           The remaining terms of the contract negotiated shall be approved by the Deputy Mayor;  and

(vi)         The approval to be subject to contract, planning approval and the TDA obtaining  an independent valuation of the scheme so as to ensure the Council has (and is been seen to have) obtained best value. In the event there are changes to either the proposed scheme or the contract terms after the terms are agreed that further independent valuation advice will be sought.

An amendment was proposed by Councillor Darling and seconded by Councillor Pountney:

(ii)        That the Chief Executive of the Torbay Development Agency be instructed to negotiate terms of a conditional contract to grant a 199 year lease with an annual ground rent of not less than £50,000 plus existing car parking income (rent to be reviewed every 5 years, upwards only) together with a substantial capital receipt or a capital receipt of not less than £2.5 million, provided that such an arrangement is confirmed by the District Valuer to be in the best financial interests of the Council.

On being put to the vote the amendment was declared carried (unanimous).

The substantive motion (the original motion with revised paragraph (ii)) was then before Members for consideration.

On being put to the vote, the substantive motion was declared carried.

The Deputy Mayor considered the recommendation of the Council as set out above at the meeting and the record of his decision, together with further information, is attached to these Minutes.

(Note:  Prior to consideration of this item:

1.    the Mayor declared a pecuniary interest and withdrew from the meeting room.  In the absence of the Mayor the Deputy Mayor made the decision; and

2.    Councillor Stocks declared a non pecuniary interest as she was a trustee of Torbay Shopmobility.)