To receive a report seeking approval to declare the Property surplus to the Authority’s requirements and to enter into the Development Agreement and sale and leaseback arrangements with the Purchaser.
Minutes:
Cabinet considered a report which proposed redevelopment of the site of former Tynemouth Library and 35 Front Street, Tynemouth (“the Property”). Through the redevelopment of the Property, it would see the Authority deliver on its commitment to re-provide a modern library service in Tynemouth following the closure of the former library in February 2020. The extent of the Property was shown by the dark outline on the Appendix Plan.
The report also sought approval for declaring the Property surplus to the Authority’s requirements and to agree to dispose of it to a bidder (the Purchaser) that recently submitted an offer to purchase the freehold interest in the Property when it was advertised for sale on the open market.
Prior to the sale of the Property, the Authority and the Purchaser shall enter into a Development Agreement which will require the Purchaser to redevelop the Property in accordance with a planning permission that the Authority secured in 2022. This was for the demolition of the Property and the redevelopment of the site with 6 residential apartments and a library and commercial unit to the ground floor. A condition of the sale will be that this unit is leased back to the Authority in shell condition for a term of 125 years at a peppercorn rent to facilitate the provision of a new library service and building society outlet.
In this respect, the Authority was already in detailed discussions regarding a proposed subletting arrangement as outlined in section 1.5.3 of the report. This was with the objective to secure the fit out of the unit so that it could be used jointly with the Authority as a new library and building society branch.
Resolved that (1) the Property be declared surplus to the Authority’s requirements and the sale of it to the Purchaser on the main terms detailed in Section 1.5.2 of the report, be approved;
(2) the Director of Resources be authorised to agree any reasonable revisions to the terms of the sale contract and a preceding Development Agreement in consultation with the Elected Mayor and the Head of Law;
(3) the Head of Law be authorised to negotiate the Development Agreement and sale contract, together with associated documents, deal with any procurement issues arising from the Development Agreement and intended Sale Contract and to complete the freehold transfer of the Property in accordance with all relevant legal requirements, the Authority’s Constitution and Financial Regulations;
(4) the Director of Resources be authorised to agree the final terms of the leaseback, sub-lease and sharing arrangements in respect of the library and commercial unit as detailed in Sections 1.5.2 and 1.5.3 of the report, in consultation with the Elected Mayor and the Head of Law, and;
(5) the Director of Resources be authorised to deal with all ancillary matters arising that are consistent with the preceding recommendations.