CLACKMANNANSHIRE COUNCIL Report to Council of 13 December 2007 Subject: Proposed Lease of Land at Mar Place, Sauchie to Sauchie Community Group. Prepared by: Gordon Stewart, Head of Property 1.0 SUMMARY 1.1. It is proposed to provide Sauchie Community Group with the lease of an area of public open space and footpaths situated to the rear of the existing Sauchie Community Group Centre in Mar Place. This land will be used for the purpose of extending the centre. 2.0 RECOMMENDATIONS 2.1. It is recommended that the Council approves the lease of 75 square metres of land situated to the rear of Sauchie Community Group Centre, Mar Place Sauchie at a peppercorn rent for a term of 99 years subject to the stipulated terms and conditions. 3.0 BACKGROUND 3.1. At its meeting of 17 August 2006 the Council agreed to “approve the disposal of the land adjacent to Sauchie Community Group Centre, Mar Place, Sauchie at a valuation to be determined by the District Valuer”. 3.2. The land was subsequently offered to the group in exchange for a purchase price of £6,000. Their response has been however, to submit a request to the Council asking that the land might be made available for the nominal sum of one pound. 3.3. Following lengthy deliberations over the group’s request it is recommended that the Council should instead consider the grant of a long ground lease in return for a peppercorn rent. This would protect the Council’s interest and permit the group to secure funding to build an extension. Sauchie Community Group have indicated their agreement to this proposal. 4.0 TERMS AND CONDITIONS 4.1. It is proposed that a ground lease be created whereby Clackmannanshire Council will grant a 99 year ground lease to Sauchie Community Group at a peppercorn rent on terms and conditions similar to those previously approved by the Council at its meeting of August 2006. 4.2. The subjects of the ground lease extend to approximately 75 square metres presently comprising mainly an unadopted footpath and part of a shrubbery. 4.3. The Lessee would require to secure planning consent and building warrant approval for the proposed works prior to commencement of the lease and build an extension of similar construction to the existing building to provide additional meeting space, a toilet and storage facilities. 4.4. Any damage to the surrounding open space and footpaths caused by any works associated with this proposal would require to be reinstated to the satisfaction of the Council. 4.5. The existing surface drainage channel would require to be rerouted to the satisfaction of the Council. 4.6. Full landscaping proposals will need to be submitted. 4.7. Any lease would provide for the subjects being used for the stated purposes of an extension to the centre and no other. 5.0 VALUATION 5.1. The land in question comprises part of an area of shrubbery and footpaths which form part of the public open space provision. 5.2. It is considered that if the land in question were placed on the market for lease it would not attract any viable bids. 5.3. The proposed transaction does not therefore attract less consideration than might reasonably be obtained hence the matter need not be referred to Scottish Minsters for special consent. 6.0 CONCLUSIONS 6.1. The grant of a ground lease at a peppercorn rent will enable Sauchie Community Group to obtain funds and enter into a contract for an extension to the Centre while at the same time protecting the Councils interest by retaining ownership and control of the land. 6.2. Should the stipulated use of the property cease then the lease shall provide for its return to the Council via early termination without compensation or other costs being incurred by the Council. 7.0 IMPLICATIONS FOR THE COUNCIL 7.1. Financial implications: Negligible. 7.2. Staff implications: None. 7.3. Strategic aims: Make the most of Clackmannanshire's unique built and natural environment Develop a culture of personal achievement where everyone is valued Improve the health of the people of Clackmannanshire Represent and promote the interests of all of the people of Clackmannanshire Ensure that the people of Clackmannanshire receive the highest quality services for the public pound Create strong, active, safe and caring communities Achieve local economic prosperity and stability ___________________________ Head of Property ___________________________ Director