Decision
Analysis
outcome: The Cabinet approved Option 5 to let the property on a turnover related rent, with funding for repairs and fit out costs, and delegated negotiation and completion of relevant documentation.
summary: The decision involves approving funding for repairs and fit out costs for a property, as well as negotiating and completing relevant documentation.
topline: The Cabinet has decided to approve funding for repairs and fit out costs for a property, as well as delegate negotiation and completion of relevant documentation.
reason_contentious: This issue may be contentious as it involves significant expenditure and decisions regarding property management.
affected_stakeholders: ["Council", "New tenant", "Commercial Asset Manager", "Head of Corporate Finance", "Head of Governance, People and Performance"]
contentiousness_score: 6
political_party_relevance: There are no mentions or implications of political parties or political influence on the decision.
URL: https://democracy.crawley.gov.uk/ieDecisionDetails.aspx?ID=791
Decision Maker: Cabinet
Outcome:
Is Key Decision?: Yes
Is Callable In?: Yes
Purpose: The Council has been exploring options for one of its commercial assets following the expiry of the current tenant’s lease in line with the Council’s approved Capital Strategy.
Content: Exempt Paragraph 3 Information relating to financial and business affairs of any particular person (including the Authority holding that information) RESOLVED That the Cabinet: a) Considers the options set out in Section 6 and approve Option 5 which is to let the property on a turnover related rent which will require the following virements (as identified in paragraph 6.6 of report FIN/702):- · £855,875 from the Capital Property Reserve – (Capital Receipts) to fund a contribution to Freedom Works Ltd (payable on the completion of the lease) to the fit out of the property for the new tenant (paragraph 6.6 of report FIN/702). · Up to £646,000 for the Council to spend on structural and plant rectification costs which surveys have identified (works to be commissioned on the completion of the lease). b) Approves the expenditure of up to £500k in respect of an insurance claim resulting from items stolen from and destroyed at the property. This expenditure will be funded from an insurance claim resulting in no net cost to the Council. c) Delegates the negotiation, approval and completion of all relevant documentation, including legal paperwork, to the Commercial Asset Manager, Head of Corporate Finance and Head of Governance, People and Performance. (Generic Delegations 2 & 3 will be used to enact this recommendation). Reasons for the Recommendations The dilapidations survey of Ashdown House carried out prior to the previous tenant’s lease expiry highlighted that the concrete plant room and possibly the roof of the building may be constructed of RAAC (Reinforced Autoclaved Aerated Concrete). As a result of this the Council commissioned an expert survey which found that RAAC concrete was used to form the roof of the building. A second more intrusive survey was undertaken by specialists to analyse the current condition of the concrete and advise if any remedial work is required to strengthen the roof structure. It is proposed to use the Council’s Capital Property Reserve – (Capital Receipts) which has been set up for this purpose to fund the repairs/replacement. The property is 40 years old and has been let for the last 30 years on a full repairing and insuring lease and has generated a significant rental income for the Council during this time. In 2023/24, the rental income was £677,000. Due to the previous tenant deciding not to renew their lease, the Council needs to secure a new tenant for the property. The proposed new tenant has requested a contribution for fit out costs which can be met from the Council’s Capital Property Reserve – (Capital Receipts). The use of the reserve requires a capital budget transfer (virement) which has to be approved by Cabinet (section 6).
Date of Decision: July 22, 2025