To agree lease terms and authorise officers to conclude a new 25 year lease of the Osmani Centre to Osmani Trust.

The recommendations were amended and then agreed.

The Mayor noted the concerns about the tight timescales to sign the contract that may need discussion with the Commissioners.

DECISION

1.    Following consultation with the Mayor and Lead Member, to authorise the Corporate Director, Development & Renewal, to conclude a lease of the site known as the Osmani Centre, 58 Underwood Road, London, E1 5AW to the Osmani Trust;

2.    To agree that the lease will be for a 25-year term, commencing 1^st August 2011;

3.    To agree that the lease will incorporate a four-year rent free period from commencement and the rent in the fifth year will be £46,000;

4.    To agree that the rent from 1^st August 2016 should be the open market rental value for community use;

5.    To agree that the lease should incorporate a landlord’s (and tenant’s, if requested) option to break by giving to the tenant (or landlord) not less than 12 months’ notice in writing;

6.    To agree that the lease is to be excluded from the security of tenure provisions of the Landlord and Tenant Act 1954 at the end of the 25-year term;

7.    In the event of failure to conclude the lease on the above terms by 31^st August 2016, to authorise the Corporate Director, Development & Renewal, to seek to recover possession of the property on behalf of the Council; and

8.    To note that under the Directions issued to the Council by the Secretary of State for Communities and Local Government in 2014, the Council will need to secure the prior written agreement of the DCLG-appointed Commissioners before entering into the lease.

Action by:

CORPORATE DIRECTOR, DEVELOPMENT AND RENEWAL (A. DALVI)

(Service Head, Corporate Property and Capital Delivery (A. Sutcliffe)