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  be a surplus share rent approach with the Council receiving 40% of suplus (after deducting any running costs and any costs identified within the club’s development plan) which are made by the club, this scheme will not apply to organisations that have a turnover of £100,000 or more;

(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.”

The amendment was put to the vote.  Less than two-thirds of members present and voting cast their vote in support of the amendment and it was declared lost.

In light of no amendments being approved and in accordance with the Council’s Standing Orders in relation to the Budget and Policy Framework, the Chairman declared that the Mayor’s proposals (as outlined in the original motion (i) to (iv) above) would stand.

(Note:  During consideration of Minute 65, Councillor Darling declared his non-pecuniary interest as he was a member of Babbacombe Corinthian Sailing Club and added that he was a committee member of Acorn Youth and Community Centre.)