Finance Committee - 2 December 2020
Gareth Hughes, Responsible Financial Officer.
RYDE TOWN HALL BUDGET REQUIREMENT
To give an indication of the budget requirement relating to the costs of the
Council entering a three year lease of Ryde Town Hall.
The Council has agreed to enter a three year lease incoirporating the following -
1. The RTC to be granted licence to occupy during the three-year lease at £1 per annum
2. RTC to insure the building
3. RTC to keep the building watertight and free from leaks and to ensure security of the
4. RTC will negotiate and agree necessary works with IWC conservation officer to a value
of £5,000 in lieu of an ‘option to buy’ sum set at £1.
5. RTC to pay any reasonable legal costs of the vendor involved in setting up a Lease
agreement, if required
6. This agreement is contingent upon and subject to the section S215 Notice on the
Freeholder being suspended during the Lease and option to buy period
7. The Freeholder understands this agreement is to enable RTC to embark upon grant
funding/planning applications and loans for purchase and refurbishment of the property
during the three-year period.
· RTC to obtain confirmation from their insurers that they are able to secure
insurance on the building without significant premium or excess
· Clarity is needed on the condition the building is to be returned to the owner if the
option does not progress
· Clarity is needed on who will fund any costs over the £5,000, if required by either
the insurers or the Listed Building Officer.
· RTC to agree a cost cap of legal costs of the vendor
· Confirm if there is any circumstance that the section S215 Notice would have to be
· Confirm if the freeholder has to approve any planning application prior to
· Agree with vendor what happens if the building ceases to exist during this 3-year
period, does the option fall?
· The parties need to agree how the lease can be terminated before the end of the 3-
year period if needed.
· Legal advice relating to the purchase from an overseas Company
· Include the ability to assign the option to another organisation.
A - 1
4. INITIAL COSTS
Preliminary enquiries have produced the following estimated costs-
Survey for prospective insurers
Likely annual insurance premium -
Minimum annual maintenance-
5. BUDGET REQUIREMENT
An initial budget of £36,000 is likely to be the minimum budget requirement for the first
year of the proposed lease
A further contingency budget should also be considered to
protect the risk of unforeseen costs
A - 2