The Economic Development and External Funding Manager introduced the report which set out the approach and timetable to securing tenants for Masters House and 44 Trinity Road, Sheerness.  Also, to secure an income stream for the Council and to ensure that the operation would secure local economic and community benefit.

Members were invited to make comments and these included:

·         Welcomed the progress achieved on this scheme;

·         Masters House had been derelict and its condition had deteriorated;

·         it was good to see its improved state;

·         this was an important and good investment opportunity for the Isle of Sheppey;

·         congratulations to the Chair and officers for their work on this scheme;

·         the quality of the fit-out, by a local company, was very good;

·         rental enquiries were being made;

·         was this a fully repairing lease?;

·         concerned with potential liabilities from the building;

·         was there a duty to bring 44 Trinity Road up to standard first, or would this be carried out by the new tenant?;

·         considered more discussion needed to be had with the Sheerness Dockyard Preservation Trust regarding plans for the Dockyard Church and how this fitted in with this project;

·         did not agree with the principle of the decision being made with the two recommendations and considered it should be the committee deciding, not one person;

·         welcomed the progress made on the scheme;

·         concerned that tenants might not be found;

·         in terms of the recommendations, three people should be listed to make the decisions, in both recommendations; and

·         the committee could not scrutinise every operational element of the scheme, the decisions needed to be made in the most practical and pragmatic way to get the scheme completed as effectively as possible.

In response, the Economic Development and External Funding Manager confirmed that it would be a fully repairing lease and the Chair explained that it depended on what came back from the Expressions of Interest and the requirements of the lease which would be in place.  She added that it was very important that the leases were monitored and well managed.

The Head of Regeneration, Economic Development and Property explained that the Expressions of Interest documents had stated that 44 Trinity Road had not been invested in, in the same way as Masters House.  The Council was looking for prospective investors to come forward and include what investment they would bring to the building.  The Chair explained that there was likely to be some initial works to 44 Trinity Road before the building was taken on by a leaseholder.

The Economic Development and External Funding Manager said that there had been longstanding conversations with the Council and the Dockyard Church Trust and they had met with some potential providers.  The Trust and the Council envisaged a synergy between Masters House, with a more mature stage occupier, and the Dockyard Church with youth or start-up oriented schemes.

Councillor James Hunt moved the following amendment:  That Recommendation (1) be amended to remove ‘in consultation with the Chair of the Regeneration and Property Committee’ and the matter comes back to the Committee.  This was seconded by Councillor Lloyd Bowen.   The Chair did not accept the amendment due to the financial risk of a potential tenant withdrawing, and that the decision was needed to be made as soon as possible.

There was some discussion on the number of people involved in the recommendations in the report and the Head of Regeneration, Economic Development and Property explained that three officers, not just one, would be involved in the final decision as per usual procurement processes.

The Chair proposed the recommendations, and they were seconded by the Vice-Chair.

Resolved:

(1)      That the Head of Regeneration, Economic Development and Property be given delegated authority to shortlist and select the final choice of tenant for both Masters House and 44 Trinity Road Sheerness, in consultation with the Chair of the Regeneration and Property Committee.

(2)      That the Head of Regeneration, Economic Development and Property be given delegated authority to negotiate and complete all necessary contracts, leases, deeds and ancillary deeds and documents as required, in consultation with the Chair of the Regeneration and Property Committee and the Head of Mid-Kent Legal Partnership.