| State the Delegated Authority that you are relying on in order to make the decision | Delegated authority for the Strategic Director, Finance and Governance and Support; in consultation with the Deputy Mayor and Executive Member for City Centre Strategy/Executive Member for Finance and Executive Director for Growth and Place. |
| Subject of decision | To approve the contractual terms set out in the Asset Management Agreement, with regards to the marketing and letting and estate management of buildings 1 and 2 at Centre Square |
| Text of decision | On the 20th, February 2018, the Council's Executive approved the investment in office space at land east of Centre Square for the purposes of (i) securing an efficient, cost-effective and sustainable solution for the long-term accommodation of Middlesbrough Council staff and (ii) investment in a second building in the development to achieve a commercial return for the Council. Within this report delegated authority was granted to the Strategic Director, Finance and Governance and Support; in consultation with the Deputy Mayor/Executive Member for City Centre Strategy, the Executive Member for Finance and Governance and Executive Director for Growth and Place to agree: 1. The substantive rental agreement (only where this has a positive net effect on the financial case) and is within the parameters of external advice; 2. All operational decisions, site management obligations I arrangements and contractual arrangements associated with the management and administration of the principal and underlet lease agreements; 3. The eligibility criteria for tenant businesses in the sub-let property, 4. All contractual commitments for site marketing, maintenance and site management; and, 5. Final approval of fit-out specification for the Council's accommodation |
| Reason for decision | The Asset Management Agreement accords with the approved Executive report and provides a full marketing and estate management service. The Executive report stated the proposal (and costs) are inclusive of a package of professional marketing and lettings services, to advance the early letting of Building Two and the area of A3 I restaurant space Incorporated within Building One. The Asset Management Agreement references that this is only applicable to the initial lettings (first letting) of the A3 unit at Building 1 and Building Two, in the unlikely event that should a tenancy become vacant (subsequent letting) within the timeframe of the Asset Management Agreement the Council would be liable for the professional fees associated the re letting of the unlt. The Council has the ability under the Asset Management Agreement to terminate the Agreement upon the Council giving 6 months prior written notice upon the expiry of 3 years from the Practical Completion Date. If the Agreement is not terminated and continues then MSC would be liable for the cost of additional letting services (part 1 of Schedule 11 of the Agreement) should any space become available within Building 2 or the A3 Unit in Building 1. MBC is also liable to pay third party costs and expenses incurred in relation to Estate Management Services, eg legal and surveyors fees (if the same cannot be recovered from the occupational tenant) The Asset Management Agreement also references that the marketing budget for the A3 unit of Building 1 and Building 2 applies only to the first lettings, any marketing required for subsequent lettings will have to be agreed and a new marketing budget be in place, should Ashall be marketing the buildings on behalf of the Council at that point. |
| Other options considered (if any) | N/A |
| Has an Impact Assessment been carried out - if so please attach a copy to the decision using the upload attachment screen which follows | No |
| Declarations of Interest by any member or relevant local government body | N/A |
| Who have you consulted as part of the decision making process | Deputy Mayor and Executive Member for City Centre Strategy/Executive Member for Finance and Executive Director for Growth and Place. |
| Date of decision | 2 May 2019 |
| Service area | Growth & Place |
| Name of Delegated Officer making the decision - i | Delegated authority for the Strategic Director, Finance and Governance and Support; in consultation with the Deputy Mayor and Executive Member for City Centre Strategy/Executive Member for Finance and Executive Director for Growth and Place. |
| Name of the Officer making the decision - If power has been sub-delegated to another officer | N/A |
| Issue date:- | 16 May 2019 by Bernie Carr |
| Creation date:- | 16 May 2019 13:45:26 by Bernie Carr |
| Background paper/Impact Assessment | Copy of Decision Form (151K/bytes) |