Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
The Director - Planning & Growth presented a report which provided an update relating to changes in ownership of the Flowserve site, the resulting likely impacts on the Flowserve Sports and Social Club’s occupation of sporting land on the site, and a proposition for the Council to enter into a financial relationship to provide a new landowner with an ongoing rental guarantee.
The landlord, CB Collier NK (SSC) Ltd, had informed the Council that, based on an appraisal of the financial standing of the Sports and Social club, it could only support retaining the Sports and Social Club (SSC) or other current sporting and community groups on the site if the Council were to step in to assist. Therefore, a request was made that the Council enter into an arrangement with the landlord to cover, via guarantee, up to £45,000 per annum in year 1, £55,000 per annum in year 2, and £75,000 per annum thereafter. The landlord confirmed that lease expectations were informed by advice from a firm of surveyors. It was considered that such rent levels were unsustainable and the Sports and Social Club, in conjunction with Newark Town Football Club, stated that an affordable lease was £10,000 per annum for the site.
It was considered disappointing that the Sports and Social Club and the landlord were unable to reach a mutually acceptable agreement. Ending the tenancy of the Sports and Social Club would lead to the loss of the sporting and community organisation facilities. However, the Council could act as honest broker for both parties to conclude a mutually acceptable arrangement, albeit that would require a significant reduction in lease expectations. The Council could also assist with work to find new accommodation for any club or organisation displaced if the lease was brought to an end and the Sports and Social Club or individual groups were required to vacate the site. It was noted that the site would remain as protected sports and recreational land irrespective of tenancy.
AGREED (unanimously) that:
a) CB Collier NK (SSC) Limited be informed that its proposal as detailed in paragraph 2.8 of the report is declined; and
b) the Council offers to act as a broker between CB Collier NK (SSC) Limited and the Sports and Social Club to assist the parties in reaching a mutually acceptable lease arrangement, and if necessary assist the affected clubs and associations in finding alternative accommodation.
Reason for Decision
To update Members on recent developments and to make clear the Council’s position.
Publication date: 29/03/2021
Date of decision: 26/11/2020
Decided at meeting: 26/11/2020 - Policy & Finance Committee