The Cabinet Member for Corporate Services introduced the item, emphasising the importance of finding a use for the historically significant site and recovering the running costs. A second tender exercise had taken place, following the withdrawal of Balfour Hospitality’s proposal; three proposals were received, with one withdrawn. The proposed leaseholder was an experienced operator in running hotels and events, including weddings.

The proposal would include £1.5 million in expenditure from the Council, with the expected rate of return classed as good over the proposed 35 year lease term.

The Cabinet Member for Communities, Leisure and Arts explained that the tender exercise had cast a wide net and lasted between six to seven months, with discussions with Historic England referenced. It was emphasised that public access to the site would be retained, with any changes to the site to be considered by the Planning Committee as required. Feedback from the Corporate Services Policy Advisory Committee had included whether the dungeon and gatehouse could be separated; this could be looked into, with any investment required likely to lead to an uplift in the rental fee charged.

The Committee entered into closed session at 7.16 p.m. to discuss the information contained within the exempt appendix to the report.

RESOLVED: That the public be excluded from the meeting for the following item of business due to the likely disclosure of exempt information for the reasons specified having applied the public interest test.

During the discussion, the Committee asked questions on conservation of the site, maintaining public access, the proposed tenant and contract terms, maintenance, and whether the dungeon and gatehouse would be considered under a separate lease.

In response:

The Director of Finance, Resources and Business Improvement stated that:

·  The Council would not generate any rental income for the first six months of the lease but would save the £250k annual running cost of the building, and this has been built into the income generated over the lease length;

·  The proposed tenant had over 20 years’ experience, with assurances given that the type of lease proposed, including the break clause, was common within the Leisure and Hospitality industry. The Council’s position would be assured through various mechanisms within the lease that were outlined to the Committee; and

·  Consideration could be given to bringing the dungeon back into use, and if possible, this would lead to an uplift in the rent charged for the site.

The Interim Property Consultant outlined the extensive surveys conducted by the Council on the site’s condition as part of the proposed programme of works and gave assurances that public access to the site would be maintained and included within the lease.

The Committee returned to open session at 8.13 p.m.

The Committee supported the proposal as it would bring the site back into use, with it felt that there were no other suitable options to pursue at the current time. Two additional recommendations were made to the Cabinet, including; to consult with the Council’s Conservation Officers at an early stage concerning landscaping works given the site’s grade listing, and to investigate issuing separate leases for the dungeon and gatehouse to bring those parts of the site back into use. 

RESOLVED to RECOMMEND to the CABINET: That

1.  Capital expenditure of £1.5 million, be agreed;

2.  The Director of Finance, Resources and Business Improvement be given delegated authority to select and appoint professional advisers to obtain all relevant consents, enter into contracts for applicable services as necessary, and to enter into a conditional agreement for lease with the preferred tenant;

3.  The Head of Legal Services be given delegated authority to negotiate and complete all necessary legal formalities for the agreement for lease and purchase of services as set out above;

4.  The Head of Legal Services be given delegated authority, in consultation with the relevant Cabinet Member/s, to conduct further cost and benefit analysis of issuing separate leases for the dungeon and gatehouse; and

5.  Advice be sought from the Council’s conservation officers at an early stage of the proposal, in relation to the proposed landscaping.