Consideration was given to the report of the Interim Property
Asset Services Manager setting out the rationale and methodology
for using external letting agents to provide targeted and
additional resource to support the letting of vacant industrial
units. In addition, the use of external commercial property
resource to support the Council with the management of its five
industrial estates. .
Members considered the update and the following issues
were
raised:
- The Chairman suggested that Parish Council notice boards be
utilised to display the availability of locally available vacant
industrial units. The Executive Manager – Property &
Development welcomed this suggestion and would look how best to
take this forward as units become available.
- The Chairman commented on the marketing process flow-chart
regarding the notice given and process when a let property was
about to become vacant in particular how officers plan to deal with
ensuring the unit is returned in a decent condition ready for a new
tenant. The Executive Manager Property
& Development advised that the process would typically be an
inspection around 2months prior to the end of the lease, a schedule
prepared and served on the tenant confirming works needing to be
done and then close to the end of the lease a further inspection to
determine whether this had been completed. In the event that it
hadn’t the tenant on vacation would be recharged for the
works outstanding. It was confirmed
that this would be covered in a new standard form of lease and
noted in the new Lettings Policy. The Chairman commented that this
was welcome news regarding the new agreements, however the
arrangements for vacating under the existing and hence older style
agreements needed to be monitored effectively.
- Members raised concerns regarding industrial units being used
for storage rather than for businesses use. The Executive Manager
– Property & Development confirmed that he was already
aware of this concern and was monitoring proposed new lettings
closely. Under the proposed new Lettings Policy officers will be
given greater flexibility to let to a wider range of uses and
consider a range of matters that would ensure that the right uses
for what are effectively business use units. However it was
important to note that the Council relied on the income from these
units and if storage was the only potential letting use at that
time this would need to be taken into account.
·
Members asked whether Covid-19 has affected lettings
or tenants’ ability to pay rent, and were advised that thanks
to the availability of grants administered by the Council and
regular communications with tenants, there has been so far very
little apparent impact.
- Members asked whether there were opportunities to regain
properties if tenants were not adhering to the letting agreement
criteria, and were advised that the new lease agreement would
specifically deal with this. Through effective estate management,
new lease terms and by building good working relations with tenants
the Council was looking to have effectively managed and operated
estates.
- Members commented on
whether the ability to let units had reduced as a consequence of
the pandemic and were advised that
although the current valuation work conducted had not indicated
change in values compared to the beginning of the year, it was still too early to tell what the true
impact of the pandemic would be on future lettings and income
levels.
- There was also no indication of lack of interest in the units,
and tenants had generally not fed back any concerns about their
future occupation. Members requested an
update regarding additional industrial units planned for Crease
Drove in Crowland. They also expressed
disappointment at the development fronting the Council’s
Pinnacle Close estate appearing to be more of a retail offer rather
than industrial and asked whether the Council, as adjacent
landowner, had any control over this. Members were advised that there was c15,000 square
feet of new build industrial space at Crease Drove for which the
Council had secured planning consent however the process for
procuring a building contractor was paused pending more certainty
on the ability to let these units once built. It was noted that Asset Officers were working with
their Inward Investment colleagues to determine next steps. On the
matter of the Pinnacle Close frontage unit the Executive Manager
– Property & Development confirmed that this site was not
in the ownership of the Council so other than through the planning
process had no control over how that site came forward for
development and its use.
AGREED:
That the contents of the report
be noted.