Amendment to recommendations added 30 June 2023.

The Building Manager introduced the report which sought agreement to lease the first and part of the ground floor of Swale House to generate an income and mitigate the Council’s costs in relation to provision of services and Business Rates.

The Chair invited Members to make comments, which included:

·      The recommendation sought officers to report back to committee when appropriate, but felt that more regular updates to the committee was needed;

·      did officers expect to lease out all the space that was available?;

·      hoped that if the Council could not find business to lease the available space that officers would invite charities to the available office space;

·      there was no other town centre office space available, so SBC had an opportunity to create income; and

·      agreed that offering office space to charities was a good option.

The Head of Regeneration, Economic Development and Property and Interim Head of Planning responded to say that it was officers’ intention to keep the property market under review to establish the best option for Swale House. She added that without properly advertising the rental space at Swale House, companies had already been in touch about the possibility of renting the office space and they hoped that all available space at Swale House would be let out. She added that if there was any office space left over that an option to offer it to charities would be explored by officers.

Councillor Mike Whiting proposed the following motion:

‘That this committee agreed to delegate to the Head of Regeneration, Economic Development and Property the authority to appoint an agent to manage the letting of surplus office space on the ground and first floors of Swale House and bring a progress report to the next meeting of this committee’.

This was seconded by Councillor Mark Tucker and the Chair invited Members to make comments, which included:

·      Wanted to make sure that the space was filled quickly so no potential income was lost;

·      needed to consider an agent to help the Council understand how much floor space was available to lease out and the cost SBC could charge for the office space;

·      what was the length of leases that officers were looking at offering businesses?; and

·      could a clause be included in the leases offered to businesses around the sale of Swale House?

The Head of Regeneration, Economic Development and Property and Interim Head of Planning, responded to say that the ideal length of leases was three to five years and that appropriate break clauses would be considered. 

The Chair proposed an amendment to the motion for a progress update report to be presented to a cross-party working group of the Regeneration and Property Committee by the end of November 2023. The proposer and seconder of the motion agreed the amendment. On being put to the vote the amendment was agreed.

Resolved:

(1)   That it be agreed to lease the first and part of the ground floor of Swale House to generate an income and mitigate the Council’s costs in relation to provision of services and Business Rates.

(2)   That delegated authority be given to the Head of Regeneration, Economic Development and Property and the Interim Head of Planning in consultation with the Chair of Regeneration and Property Committee to appoint an agent to manage the letting of surplus office space on the ground and first floors of Swale House and bring a progress report to a meeting of a cross-party working group of the Regeneration and Property Committee by the end of November 2023. 

(3)   That officers continued to review the balance of operational requirements and surplus space and bring forward related recommendations as appropriate.