Item 15 - Lease Disposal of Former Outdoor Education and Conference Ctr
West Dunbartonshire Council · 24 May 2023
Back to Infrastructure, Regeneration & Economic Development Committee — 24 May 2023 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer: Supply, Distribution and Property Infrastructure, Regeneration and Economic Development Committee: 24 May 2023 Subject: Proposed Assignation of Former Residential Outdoor Education and Conference Centre - McGregors Landing, Ardlui, by Arrochar 1. Purpose 1.1 The purpose of this report is to advise the Committee on the outcome of the marketing of the former Residential Outdoor Education and Conference Centre at McGregors Landing, Ardlui, by Arrochar. The report details the option appraisal process and seeks Committee approval for the proposed assignation of the property. 2. Recommendations 2.1 It is recommended that the Committee: (i) Approve the assignation of the lease of McGregor’s Landing, Ardlui, by Arrochar to Jacqui Johnston subject to the council obtaining prior written consent of the Landlord to the proposals contained within this report. (ii) Approve the granting of a rent free period of up to 18 months from the date of entry of the property (iii) Authorise the Chief Officer, Supply, Property and Distribution to conclude negotiations. (iv) Authorise the Chief Officer Regulatory and Regeneration to conclude the assignation or sub-lease to such conditions as considered appropriate 3. Background 3.1 The Council are tenants of Ardlui Outdoor Centre by virtue of a lease for a period of 25 years effective from 22 February 2010 granted by Freeland Developments Limited. The Council closed the facility on 30 June 2015. During the Council’s occupation various works were carried out both internally and externally. As a result the Council were required to obtain all necessary permissions and authorisations from both Loch Lomond and The Trossachs National Park Authority and Argyll & Bute Council for such work, and these were granted. ITEM 15
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3.2 A marketing campaign has been ongoing for this site since 2016 which resulted in a previous paper being taken to Committee in October 2016 for a similar assignation which subsequently fell through. 4. Main Issues 4.1 Jacqui Johnston is an individual who intends to operate the business under the name of Loch Lomond Lodge and at some stage in the future form a Community Interest Company. 4.2 The prospective tenant has provided the Council with details of experience and provided evidence in relation to proposed uses and officers believe she would be a suitable proposed tenant. 4.3 The business will offer a full range of products and services including accommodation, food and drink, outdoor sports packages, and equipment, led by qualified professional and friendly instructors, events, weddings, farmers markets, fitness camps, pick up and drop off service to various locations for anyone participating in any activity such as the west Highland Way and skiing. 4.4 The prospective tenant is seeking to acquire the lease of the property on the following terms:- • Assignation of existing lease to their organisation; • A rent free period of up to 24 months will be provided by the Council from the date of entry subject to entry being taken during 2023. • All running costs including prospective rent will be met by the prospective tenant including non domestic rates. 4.5 The prospective tenant will be responsible for all relevant licences to operate the business including Public/Product Liability and Employers Liability insurance as required. 4.6 The prospective tenant has identified refurbishment costs of the building inclusive of fees, outlays and VAT in excess of £0.5m in the first year of occupation. 4.7 It is envisaged that will have a positive impact on employment within the area but unfortunately this is out with West Dunbartonshire Council area. 4.8 Assignation of the lease will result in utilisation of a currently unused building and make revenue savings for the Council. 5. People Implications 5.1 There are no significant people implications other than the resources required by the Asset Management and Legal Services to conclude the proposed disposal.
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6. Financial and Procurement Implications 6.1 The creation of the assignation would decrease the burden on the Council of the future rent payable and running costs. The proposal to assign will result in savings of around £900,000 over the remaining 12 years of the lease. 6.2 There are no procurement implications. 7. Risk Analysis 7.1 The main risk associated with the disposal of the property is that the Landlord refuses to grant consent to an assignation for a variety of reasons including funding and business planning. 7.2 In the event of a refusal to an assignation by the Landlord it may be possible for the Council to mitigate the revenue stream by seeking approval of a sub- lease in similar terms contained within the head lease. 7.3 In the event of a sub-lease there is a risk that should the venture fail that the Council will be left with both the rent and other obligations as liabilities including dilapidations but to be noted this is our current liability. 8. Environmental Sustainability 8.1 The proposals from the proposed tenant have a number of sustainability aims proposed including solar panels and biodiversity schemes. 9. Equalities Impact Assessment (EIA) 9.1 An Equality Impact Assessment did not indicate any further action required in relation to this assignation. 10. Consultation 10.1 Consultations have been undertaken with Finance, Regeneration and Regulatory and Greenspace. 11. Strategic Assessment 11.1 By agreeing to this transfer the Council will remove a potential maintenance liability from the Council’s Asset Register. 11.2 Land which has lain vacant and disused for a number of years will be brought back into a use which will provide educational, cultural and employment generating opportunities. Angela Wilson Chief Officer: Supply, Distribution and Property Date: 15 May 2023
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Person to Contact: Michelle Lynn, Asset Coordinator. Email: michelle.lynn@west-dunbarton.gov.uk Appendices: Appendix 1 – Site Plan Background Papers: None Wards Affected: None