Cabinet will be asked to :

·       Approve the proposal to enter into an agreement for lease with NHG for the sole use and occupation of Eastgate House, a 34 unit building in Basildon,under which the Council will be obliged to take a 10 year less a day lease of Eastgate House upon completion by NHG of refurbishment works.

·       Approve the Council entering into an underlease with Queens Letting and Management (QLM), a community interest company once established, for Eastgate House on a back to back basis.

Cabinet:

4.1Approvedthe proposal to enter into an agreement for lease with National Housing Group for the sole use and occupation of Eastgate House, a 34 unit building in Basildon, under which the Council will be obliged to take a 10-year lease of Eastgate House upon completion by National Housing Group of agreed refurbishment works.

4.2Upon completion of the lease referred to above, approved that the Council may either:

4.2.1      grant a sub-underlease of Eastgate House to a wholly owned subsidiary of the Council (envisaged to be called Queens Letting and Management (“QLM”)) on a back to back basis; or

4.2.2      to manage Eastgate House directly.

4.3 Approved deficit grant funding of up to £3.9m in total to QLM to cover the lease period.

4.4 Delegated to the Director of Living Well, in consultation with the Strategic Director of Resources, to take all steps, and to enter into all documentation, necessary to deliver the scheme as approved by recommendation (a) above including the discretion to decide which of options (b)(i) and (ii) shall be progressed.

1.     Noted we have already received cabinet approval to incorporate QLM Community Interest Company (CIC) on the 12 June 2024 – Establishment of a joint venture company to manage properties leased in partnership with Chalkhill.

2.     Noted Eastgate House is a permitted development scheme where from a planning perspective has already secured prior approval for office to residential conversion.

3.     Noted the projected costs of leasing the property for the term outlined as well as the projected cost avoidance.