Decision details

Grant of new tenancy for South Holland Centre catering

Decision Maker: Deputy Chief Executive - Corporate Development (S151)

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

To authorise the Strategic and Operational Property Manager to negotiate and conclude terms and attend to all matters leading to the grant of a short term tenancy to Resolution Pubs Limited, including the entering into contracts by South Holland District Council
Resolution Pubs Limited by virtue of this short term tenancy agreement (6 months), will take occupation of the café/bars on the first and second floors of the South Holland Centre together with their associated kitchens, preparation and ancillary storage areas. In addition the agreement will include the use of the Function Hall on the second floor. The tenant will work with the South Holland Centre team to manage bookings, promotions and operational event management of the Function Hall by virtue of this short term tenancy agreement.

Reasons for the decision:

A decision is required to enable the grant of a new tenancy agreement. The granting of a tenancy agreement at the South Holland Centre will enable space either vacant or only in occasional use to be let and income producing for the Council.
Resolution Pubs Limited will pay to the Council a base rental, a share of turnover, a contribution towards running costs and catering equipment provided by the Council at the Centre. This is new income for the Council.
The granting of a new tenancy of this space will enable not only a catering offer to be provided at South Holland Centre but also the introduction of a new business to Spalding. Resolution Pubs Limited bring to Spalding their Moninna's Pizzeria brand which will be located on the second floor and trade in a restaurant/ bar format with the Platter and Pour brand which is more a bar/café with occasional dining format on the first floor. These are two new brands for Spalding
Sitting alongside the existing theatre, arts and cinema uses in the South Holland Centre the granting of a new tenancy for catering uses will provide an excellent opportunity to increase footfall and help enhance its popularity as a key venue to visit within the town centre. Increased footfall, the introduction of a new brand and the widening of choice of places to eat and drink should have a positive impact of the town centre as a whole.

Alternative options considered:

The entering into a legal agreement with the proposed tenant is standard commercial practice capturing the terms of occupation and roles and responsibilities.
A short term lease enables the new business to get to know the centre and the town and for the Council to work with this new tenant.
Option 1 - The Council could have decided to leave the space vacant which would mean no new income is received and there is limited catering offer available to visitors to the centre. This is not recommended
Option 2 - South Holland District Council to open and operate a catering offer at the centre. The Council has a wide range of functions it delivers but catering on this scale is not its area of expertise. The Council has a tenant where the Directors and staff have significant catering expertise including venue based catering and brand. This is not a recommended option.
Option 3 - The Council could appoint Resolution Pubs Limited to manage the facility rather than granting a tenancy. This option is much more complex, requiring much greater management input to establish and likely to involve the Council taking on greater risk. This option is therefore not recommended.

Conflict of Interest: There are no known or declared conflicts of interest related to this matter.

Equalities Issues: The Council will be creating a contractual arrangement here allowing a tenant to manage space. The tenant will be required to comply with a range of legal requirements and regulations. The tenant will have use of the common parts of the building which include accessible facilities.

Contact: Richard Hodgson, Assistant Director - Strategic Projects 07977 226055, Email: richard.hodgson@sholland.gov.uk Email: Richard.Hodgson@sholland.gov.uk.

Publication date: 01/10/2021

Date of decision: 01/10/2021