A report was received that (i) provided an update on the lease arrangements for the King George’s Field Trust (KGFT) retail and rental units, income from which supports the Charity to maintain park land and amenities for the benefit of Tower Hamlets residents; (ii) sought separate decisions from the KGFT Board regarding the renewal of a Green Bridge Shop unit, the renewal of a Mile End Park lease and to consider whether a Green Bridge lease should be re-geared; and (iii) provided an update on a Green Bridge unit that has breached its lease and the potential extension of a services contract with external agents who manage the Green Bridge tenants on behalf of Asset Management.

The Board:

v  Noted that King George’s Fields Trust (KGFT) Board should consider its charity’s responsibilities as landlord of the Green Bridge retail and other commercial units. This includes ensuring that all statutory requirements are met.

v  Noted that the Board has to act in the best interest of the Charity and to consider Public Benefit when taking a decision as detailed in Appendix 2 of the report.

v  Understood that decisions from the Board on several leases is requested in order for the Council’s Asset Management team to be able to instruct lawyers and the external agents to enter into a new lease with “Tenant A;” “Tenant B;” and “Tenant C.”

v  Noted that (i) the Board is requested to consider the lease breaches by a tenant and give authority to council officers to be able to take forfeiture action against the tenant if they fail to comply with the current Section 146 notices that have been issued to them; and (ii) the current external letting management agent is contracted by the Council’s Asset Management team to oversee management arrangements for retail units on behalf of Board and the Housing Revenue team.

The Chair of the Trust then Moved and it was:-

RESOLVED to

1.    Not give authority to the Corporate Director of Children and Culture and the Corporate Director for Place to enter into and conclude the renewal of the lease with “Tenant A” on the terms proposed by the tenant in restricted Appendix 3.3. The Board instructed that matters were to be resolved by way of Statutory dispute resolution.  The additional cost implications of taking matters to further dispute resolution were noted by the Board.

2.    Note the position of the discussions for the lease renewal with “Tenant B” and the Board advised they would want a term of five years.

3.    Not give authority to the Corporate Director of Children and Culture and the Corporate Director for Place to authorise the re-gear of the lease with “Tenant C” but Gave authority to document the rent review at the passing rent.

4.    Note the update provided in exempt Appendix 1 regarding lease breaches by “Tenant D” and authorised the Corporate Director of Children and Culture and the Corporate Director for Place to take forfeiture action against these breaches if they are not resolved, and then market the property as appropriate.

5.    Grant approval of an optional one-year extension with the external management Contractor to continue to oversee letting management arrangements on behalf of the Council and KGFT.

6.    Authorise the Chair of King George’s Fields Trust to review Lease Agreements on behalf of the Board prior to any formal decisions being made by the Board.