Permit the variation of the 2003 lease granted to South West Environmental Parks Ltd that will allow the tenant to vary the permitted use as stated and consent to a sublease of a proportion of the site to ARC Marine Ltd.

A new sub lease has been agreed in principle between South West Environmental Parks Ltd and ARC Marine Ltd on commercially acceptable terms. Torbay Council as Head Landlord is required to authorise the sub lease by way of a formal licence and give consent to the proposed amendment to the permitted use.

The Council may choose not to give consent to the sub-lease, as there is no obligation to do so. However, this would result in the building remaining fully closed and unoccupied. South West Environmental Parks Ltd have indicated they have no intention to re-occupy the site, but they retain the holding costs which are significant.

Sub-letting part would reduce the financial burden on South West Environmental Parks Ltd.

The decision may implemented immediately.

Torbay Council granted a full repairing lease of Living Coast, Beacon Quay, Torquay to South West Environmental Parks Ltd on a 125-year lease dated 25th March 2003. The tenant is part of a group of companies ultimately owned by a charitable trust called Wild Planet Trust, which operates zoological assets.

In January 2025, Torbay Council was contacted by Wild Planet Trust seeking agreement to enter an Exclusivity Agreement with both parties and ARC Marine Ltd to enable discussions to take place on the possibility of a sub lease for part of the site. As drafted the 2003 lease does not permit sub -letting of part of the property, other than to an associated company of the tenant. Furthermore, there are restrictions on the permitted use stated within the lease, limiting the use to that of a zoological, botanical or environmental exhibit space and uses ancillary to this. Consent from the Council to permit a subletting and amend the permitted use is therefore required in this regard.

Under the terms of the proposed sub lease responsibility for the site will remain with Wild Planet Trust. Discussions have been on-going, and the parties have reached a workable solution that will enable a sub-lease for 10 years to be granted to ARC Marine, to use the space for operating its ecological engineering business with a further option of an additional 10 years. This will see a proportion of the building invested in and brought back into beneficial use for the foreseeable future.

A key consideration for the Council, prior to giving its consent to the proposal, as head landlord was to ensure the sublease does not fetter the ability to re-develop the remaining areas of the site. To this end, regular mutual lease break options have been drafted into the agreement along with the Council’s ability to enter and survey the building, plant and equipment contained within to allow any development proposal, either generated by Torbay Council or Wild Planet Trust, or submitted by a third party to Wild Planet Trust to Torbay Council, for the redevelopment of the part of the site not occupied by ARC Marine to be facilitated appraised or assessed.

None that I am aware.