Agenda Item 8 Not for Publication Exempt information relating to the financial or business affairs of any particular person, including the authority holding that information. The information contained in this report is strictly confidential and in accordance with the appropriate Codes of Conduct, must not be disclosed to unauthorised persons Asset Management and Land Disposal Cabinet Committee 28 March 2013 Grant of Lease - Ingestre Hall Orangery, Ingestre, Stafford 1. Summary Statement 1.1 This report seeks authority to the grant of a leasehold interest in the property known as ‘Ingestre Hall Orangery’, Ingestre, Stafford to XXXXXXXXXXXXXXXXXXXXXX. The Orangery site is indicated edged bold, and the building shaded and cross-hatched on the attached plan SAM/EDE/002. 1.2 The Orangery forms part of the Ingestre Hall estate and is a Grade 2 Listed Building in a very poor state of repair. The building falls under the Learning and Culture portfolio and is managed by the Sandwell Residential Education Service (SRES). XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX. 1.3 Due to the dilapidated condition of the Orangery, the Authority is at risk of being served with a Repairs Notice by either Stafford Borough Council or by the Secretary of State, Department for Culture, Media and Sport (DCMS) using powers devolved to English Heritage. The Notice would require the Authority to bring the Orangery up to an equivalent standard to similar Orangeries across the country. 1.4 SRES has no service requirement to maintain an Orangery at Ingestre Hall. XXXXXXXXXXXXXXXXXXX has approached the Council seeking the grant of a long leasehold interest in the property. XXXXXXXXXXXX. IL0: Unclassified 1.5 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX. 1.6 As part of the SRES Capital Strategy a previous decision was made to enter into an Agreement for Lease with the group. The in principle agreement provided XXXXXXXXXXXXXXXXXXXXXXXXXX. 1.7 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX have supported them in conducting the Feasibility Study, setting up the Company and Charity as well as match funding for the AHF Grant. 1.8 The XXXXXX have volunteered over 430 hours of their time in clearing the garden areas in order to make it easier for visitors to appreciate the scope and potential of the project. 1.9 The appraisal study has determined that a minimum of £XXXXX is required to renovate the Orangery, to include the provision of services to the property. The XXXXX intend to restore the building for community purposes. Long term the XXXXXXX has considered the development of the grounds to the Orangery to provide an outdoor performance area. The grant of a lease to XXXXXXX would not create an income stream for SRES but would remove a considerable liability for the service. 1.10 Upon the grant of a leasehold interest to XXXXXXXXX would have greater security of tenure that would enable them to apply for AHF grant to fund the renovation. 1.11 It is proposed to grant XXXXXXX a lease for a term of XXXXX years (minimum period to secure grant funding), at a XXXXXXXXX, on the basis of a model lease granted to voluntary bodies. The Authority would continue to insure the building as part of the Ingestre Hall estate, but XXXXXX would be responsible for all repairs, maintenance and outgoings, including contents and public liability insurances. 1.12 Approval is requested to enter into the proposed lease agreement with XXXXXXX, and otherwise upon terms and conditions as agreed by the Area Director - Regeneration and Economy. The terms of the agreement would include an appropriate break clause to terminate the lease if the XXXXXX fails to secure sufficient funding to complete the proposed renovation of the property. 1.13 An initial Equality Impact Assessment screening has been completed and it has been identified that there are no equality implications arising from the course of action recommended in this report because the proposal will benefit the local community of Ingestre as a whole. Further details are attached for your information. IL0: Unclassified 2. Recommendation 2.1 That in respect to the property known as The Orangery at Ingestre Hall, Ingestre, Stafford, as indicated edged bold on Plan No. SAM/EDE/002, the Director – Legal and Governance Services be authorised to grant a lease to XXXXXXXX, for a term of XXXXX years at a XXXXXX, on terms and conditions to be agreed by the Area Director - Regeneration and Economy. Brian Aldridge Service Director – Learning and Culture Stuart Kellas Director – Strategic Resources Neeraj Sharma Director – Legal and Governance Services Nick Bubalo Area Director – Regeneration and Economy Contact Officers Sharon Nanan-Sen Strategic Lead for Services for Young People Tel no: 0121 569 4639 / 0845 352 7542 Martyn Roberts Team Lead – School Organisation and Development Team Tel no: 0121 569 8341 IL0: Unclassified 3. Strategic Resource Implications 3.1 There are no direct strategic resource implications as a result of this report. 3.2 XXXXXXXXXXXXXXXXXXXX. The Authority is however at risk of being served with a Repair Notice as detailed in Section 6 below which would require renovation of the building to a similar standard as similar national Orangeries. The subsequent required investment would not meet the Service’s planned outcomes as SRES has no requirement to operate an Orangery at Ingestre Hall. 3.3 The grant of a lease to XXXXXXXXXXXXXXXX together with a successful application to secure the appropriate level of grant funding to meet the cost of renovation would significantly enhance the Council’s asset and improve the strategic asset management portfolio. 3.4 Risk Implications of the Proposal The Corporate Risk Management Strategy (CRMS) has been complied with – to identify and assess the significant risks associated with this decision. This includes (but is not limited to) political, legislation, financial, environmental and reputation risks. Based on the information provided, it is the officers’ opinion that for the significant risks that have been identified, arrangements are in place to manage and mitigate these effectively. This assessment has identified there are no current “red” risks that need to be reported. The most significant risk identified is that if the proposal in this report is not approved the Authority would lose the opportunity for investment in a Grade 2 Listed Building and the property would remain in a poor state of repair and condition. To mitigate the risk occurring officers in SRES, Property Services and the External Funding Team have liaised with XXXXXXX to support it in identifying grant funding to realise their ambitions to restore the Orangery for community use. XXXXXXXXXXXXXXXXXXXXXXXXXXXX, commissioning of a comprehensive feasibility and appraisal study, to determine the level of works required to renovate the Orangery, and the ongoing costs XXXXXXXXXXX will need to meet. IL0: Unclassified 4. Legal and Statutory Implications 4.1 The Council holds the freehold interest in Ingestre Hall Orangery under a Conveyance dated 15 June 1976, a separate conveyance to the main Hall. Legal Services have investigated the title and confirm that there are no restrictive covenants that would restrict the grant of a letting to a local community group. 5. Implications for the Council's Scorecard Priorities This proposal supports the Council’s Scorecard Priority of:- Great Performance: Getting the money right. The cash available to the council faces unprecedented Government cuts. It is essential we get the best value for money from every pound we spend. This means: • balancing the budget every year • maximising efficiencies. 6. Background Details 6.1 The Orangery at Ingestre Hall, a Grade 2 Listed Building, forms part of the Ingestre estate and was conveyed to the Council on 15 June 1976. The property has fallen into disrepair and requires extensive renovation works. 6.2 The SRES has XXXXXXXXXXXXX. As the main purpose of SRES and Ingestre Hall is to operate as a residential educational centre the service has no requirement to provide and maintain an Orangery at the site. 6.3 Should the Council be served with a Repair Notice by the local Council, Stafford Borough, or the Secretary of State (DCMS) using powers devolved to English Heritage, the Notice would require the Authority to bring the Orangery up to an equivalent standard to similar national Orangeries. 6.4 Cabinet Committee will be aware that the role of the SRES Cabinet Working Group is to protect the long term interest of the Authority’s four residential centres. As part of the SRES Capital Strategy it was agreed the Authority enter into an Agreement for Lease with XXXXXX. The agreement XXXXXXXX to secure grant funding to establish itself as a Charitable Company with Charitable Status, undertake feasibility and commission a full appraisal study to determine the extent of renovation work required. IL0: Unclassified 6.5 The XXXXX have now requested that the Council grant a long term lease of the Orangery. The grant of a lease for a term of XXXX years would provide XXXXXXXX with sufficient tenure to proceed with grant applications to secure the necessary funding to renovate the property for community use. A term of XXXX years is the minimum period XXXXXX are required to hold to successfully secure funding. 6.6 In view of the estimated £XXXXXX budget required to renovate the Orangery, the Area Director – Regeneration and Economy is of the opinion that the most appropriate course of action would be to grant a lease for a term of XXXXX years, at a peppercorn rent, and otherwise upon the basis of the terms and conditions of a model lease granted to voluntary bodies. 6.7 The freehold interest in the property would remain with the Authority. As lessee, XXXX would be responsible for the renovation, ongoing repair and maintenance of the Orangery, and contents and public liability insurances. The Council would continue to insure the building with XXXX meeting the cost of the insurance premium.