Agenda item

(a)  That the proposed termination of the existing 42-year lease agreement with Bharani Enterprises (UK) Limited and release of the overage on the property at 450 Bath Road, Slough where the Council was the beneficiary of the overage for the negotiated one-off payment of £1m plus VAT, be approved; and

(b)  That delegated authority be given to the Executive Director Housing and Property, in consultation with the Lead Member for Financial Oversight and Council Assets, the s.151 Officer and the Monitoring Officer, to negotiate the terms of severance, and approve the associated documentation to affect the termination of the lease and release of the overage.

The Lead Member for Financial Oversight & Council Assets introduced a report that relation to the land at Greenwatt Way that had been acquired in 2020 to facilitate the proposed construction of the Chalvey Extra Care Housing Initiative.  The Council had not pursued the scheme but had entered into a lease agreement which did not have provisions to protect the Council’s interest in the event that it did not progress the scheme. 

The report set out the proposed settlement terms and review the key lessons learned.  The Cabinet noted the Part II appendices during consideration of the Part I report without disclosing any of the exempt information.

(Councillor Akram left the meeting)

The key lessons included the lack of an adequate business case; lack of a valuation to inform decision making; lack of project management; issues with the lease and overage provisions.  The Cabinet reviewed and noted the lessons learned.

In relation to the recommended settlement terms with Bharani Enterprises (UK) Limited, the Cabinet agreed that were the best outcome in the circumstances and would significantly reduce future liabilities.  The recommendations were therefore agreed.

Resolved –

(a)  That the proposed termination of the existing 42-year lease agreement with Bharani Enterprises (UK) Limited and release of the overage on the property at 450 Bath Road, Slough where the Council was the beneficiary of the overage for the negotiated one-off payment of £1m plus VAT, be approved; and

(b)  That delegated authority be given to the Executive Director Housing and Property, in consultation with the Lead Member for Financial Oversight and Council Assets, the s.151 Officer and the Monitoring Officer, to negotiate the terms of severance, and approve the associated documentation to affect the termination of the lease and release of the overage.