Decision Maker: Parvis Khansari (Corporate Director - Place)
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
To apply a new policy to allow a two-month
rent holiday for tenants affected by the Corona Virus, as of March
25 2020.
The widespread effects of the Covid 19 virus
mean that businesses occupying council’s flexible working
premises are experiencing cashflow difficulties. Requests to give
rent free periods are being received daily and tenants are
tendering their notice (easy-in, easy-out incubation workspace
terms with 1-month notice e/w).
The total exposure of the Council in cashflow terms is estimated at
£25,000 per month. If tenants give notice, the refund of
deposit monies is estimated at £25,000.
The government is offering support to business which is being
administered by the Council’s Economic Development
service.
Given this recognised pressure on business in the County it has
been agreed to put in place an emergency policy to deal with the
initial period of economic shock and population lockdown.
The policy is based on a single approach to helping TEN CENTRE
tenants – to offer a two month rent holiday (April/May). The
key points are
a. Two-month rent holiday
b. Retention of deposit monies
c. Furlough arrangement to ‘mothball’ offices over
period
d. Aligns with Government policy re: landlord responsibility and
block on evictions
I confirm that in making this decision I have considered the
following in line with Wiltshire Council’s
Constitution:
Key decision requirements: NA
Views of relevant cabinet member(s), committee chairman, area
board(s): Gold Meeting of 26 March considered this policy.
Consideration of the area boards and delegated decision checklist
for officers on the issue of when and how to involve local
councillors and area boards in decisions about local services:
NA
Implication of any council policy, initiative, strategy or
procedure: This is a new policy and ties in with the work to
support local businesses by the Economic Regeneration team
Consultation in accordance with requirements and expectations of
consultation with the public: Relevant heads of service and
directors have been consulted
Range of options available: Given the unprecedented circumstances
this is considered to be the appropriate option at this time.
Others are examined below.
Staffing, financial and legal implications: Finance and legal were
fully consulted in the decision making process. The cost of two
months rents for the five TEN centres is £50,006.
Risk assessment:This has been recorded on the corporate risk
register.
Involvement of statutory officers and/or directors: yes
Regional or national guidance from other bodies: Ties in with
regional and national support for businesses in light of national
impositions arising from Covid 19
The council’s constitution: yes
This contract is suitable for execution under the e-signature
process: NA
A rent deferral for 3 months was considered
but this would not prevent the majority of tenant businesses
electing to give notice.
Closure of the TEN Centres was considered, but Legal has advised
the Council would be in derogation of the grant of lease and
subject to damages unless we get written agreement from all the
tenants of the property.
The only other option considered is to take no action which could
result in increased impact on the business community and
reputational damage for Wiltshire Council
Conflict of Interest: Not applicable - none
Background: By power given to me pursuant to paragraph 1 of Part 3 Section D2 of Wiltshire Council’s Constitution Scheme of Delegation to Officers (as last updated in February 2016) adopted by the Council at its meeting on 9th November 2010 or any subsequent successor constitution, I am authorised to make the above decision.
Contact: Sam Fox, Interim Corporate Director - Place Email: sam.fox@wiltshire.gov.uk.
Publication date: 02/06/2020
Date of decision: 26/03/2020
Accompanying Documents: