Stradbroke
Parish Council
Stradbroke Health Centre - Documents & Information (Apr. 2019)
During the course of the last 3 years the Parish Council and the Stradbroke Charitable Trust have been in discussion concerning the Lease for the Health Centre in Stradbroke. These discussions concerned both rent reviews and assigning the lease to the newly established Stradbroke Trust.
Due to the commercially sensitive nature of these negotiations - the Parish Council has had to hold some of the discussions regarding these matters in closed session, but has minuted the outcomes as fully as possible.
Since the matter is now concluded, the documents relating to this matter can now be published. The Parish Council hopes that this will satisfy the requests made during the Public Forum for openness and transparency.
2018 Rent Review - to set rent from 1/4/19
The Parish Council started the latest rent review in July 2018. By October 2018 it had become apparent that no agreement would be reached between the Parish Council and the Trustees - both parties having a different view of how the rent should be calculated. The RICS (Royal Institute of Chartered Surveyors) were asked to appoint a surveyor to resolve the dispute.
Timeline
Evidence
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A Statement of Agreed facts was submitted to the surveyor
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Evidence was submitted to support the facts.
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The surveyor obtained a Legal Opinion
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Surveyor advised that a resolution could be sought. The Trust declined an invitation from the Parish Council to a meeting. The Parish Council submitted a proposal in accordance with the updated valuation received September 2018.
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Trust asked permission to surrender Lease, the PC agree.
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Lease was surrendered with effect from 1st April 2019.
Lease Assignment: 2017-2019
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The Stradbroke Charitable Trust decided to convert to a CIO (Charitable Incorporated Organisation), this offered more protection and less personal liability to individual Trustees.
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May 2017: a solicitor representing the Trustees of the Stradbroke Charitable Trust wrote to the Parish Council requesting consent to assign (transfer) the Lease to the new Stradbroke Trust.
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October 2017: PC solicitor submitted a draft Licence to Assign.
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After much correspondence, the following clauses were removed:
The Trust requested the Parish Council removed:
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Not to charge, issue a lien or debenture over, or use the lease as any other form of security, for any form of borrowing.
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Authorised Guarantee Agreement
The Parish Council requested the Trust removed:
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Variation of Lease: The schedule to the Lease is deleted and replaced by the following wording: "The rent payable under this lease shall be equivalent to 10% of the rent actually received from time to time by the Tenant for the Premises......."
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The Licence to assign was agreed in December 2018 and the Lease assigned in January 2019.
Rent review: 2016
During the early part of 2016, the Stradbroke Charitable Trust asked for the Lease for the Health Centre in Stradbroke to be reviewed. In the course of the review, it became apparent that the rent review schedule in the Lease had not been observed for some time.
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A surveyor was appointed and a valuation was undertaken. The rent was set at £1200 pa.
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The full process of the rent review is recorded in the Parish Council minutes. Extracts of these minutes have been prepared for ease of reference.
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There were very few documents available in the Parish Council files in 2016. At the end of April 2017, all documents relating to the Lease were found in the Suffolk Records Office, a review of the documents enabled the Parish Council to establish the intentions behind the rent review schedule in the Lease. These were used during the 2018 rent review.