Agenda item

The Town Clerk directed Members attention to the documents included in the circulated reports pack, including the draft Lease from Cornwall Council, the Lease report from the Town Council’s solicitor and relevant title searches.

The Town Clerk, as the Proper Officer to the Town Council, spoke of the importance to provide professional feedback on the draft Lease, highlighting key areas of concern for Members’ consideration.

Omission of agreed funding;

No mention of the previously agreed £5,000 contribution towards the railing works. Instead, the draft Lease states that Saltash Town Council is responsible for repairing and repainting the exterior railings at its own cost, which has been estimated to exceed £125,000, with completion required within three months of signing the lease.

Lack of break clause;

The Lease does not include a break clause, meaning there is no option for early termination within the proposed five-year term.

No reference to Freehold transfer;

The Lease makes no reference of a freehold transfer following the five-year period. This was a key aspiration of the Town Council when entering discussions regarding the devolution of Victoria Gardens and the Maurice Huggins Room.

Risk to Town Council;

Potential financial risk to the Town Council, there is no obligation for Cornwall Council to offer a Freehold after five years. It could result in significant Town Council investment over the Lease period, only for the site to revert back to Cornwall Council without compensation.

Restrictions on permitted use;

The Lease stipulates that the site can only be used as ‘public open space’ by community groups. Additionally, the Town Council would be required to take out building insurance in joint names.

Restrictions on permitted use;

The Lease instructs the Town Council to redecorate both the interior and exterior at least once every five years, as well as within the final six months of the Lease term. This places strict conditions on how the Town Council manages the refurb of the site, despite bearing full financial responsibility.

Maintenance and decoration obligations;

No alterations may be made beyond those necessary to maintain the space as a public open area. Any proposed changes would require an application for approval, with no guarantee of consent.

No compensation for improvements;

The Lease specifies that no compensation will be provided for any works or improvements carried out by the Town Council. A Town Council survey has been conducted and included in the reports pack, however, if further surveys identified additional issues these costs would fall entirely on the Town Council.

The Town Clerk advised that taking on the site would increase the Town Council's precept. While efforts would be made to secure external funding, such funding is not guaranteed, and many projects may not meet identified funding criteria.

The Town Clerk raised concerns that if the Town Council chose not to proceed with the draft Lease with Cornwall Council, it could potentially strain future partnership relations.

There was unanimous disappointment among Members regarding the unfavourable terms highlighted by the Town Clerk and outlined in the Lease, with Members considering it a poor deal for the Town Council and the community.

It was proposed by Councillor Bullock, seconded by Councillor Bickford and resolved to RECOMMEND to Full Council to be held on 6 February 2025 to refuse the Lease based on and detailed above:

1.  Omission of agreed funding;

2.  Lack of break clause;

3.  No reference to Freehold transfer;

4.  Risk to Town Council;

5.  Restrictions on permitted use;

6.  Maintenance and decoration obligations;

7.  Restrictions on alterations;

8.  No compensation for improvements.