Issue details

The land the subject of this report is owned by Cheshire East Council (“CEC”) and currently leased via three separate ground leases to the Trustees of Bollington Leisure Centre (“TBLC”). The TBLC have constructed a building and car park on the land and operate it as a Leisure Centre which provides sports facilities including a swimming pool, squash courts, fitness suite, health spa and soft play area.

The land has been leased to the TBLC for approximately 36 years.  The Council has agreed terms for a new lease (which encompasses all of the land let to the TBLC under the 3 existing leases), the surrender of the 3 existing leases contemporaneously with the completion of the new lease and a supplemental agreement between CEC, the TBLC and Competition Line (UK) Limited which relates to the Sports Centre Development Agreement between the TBLC and Competition Line (UK) Limited.

The new lease provides that the Council can terminate the lease (after consulting with the TBLC) if the Trust is dissolved, it changes its objects within its constitution or it ceases operation of any one or more of the facilities detailed above.  The use of the land is limited to the purposes of a leisure centre (including the facilities listed above) and associated offices, outbuildings and car parking.  The land cannot be used exclusively or predominantly for the purposes of a private club without the Council’s consent and there is a requirement that the land and the facilities are available for such public use as shall be agreed between the Council and the TBLC.  The new lease cannot be assigned or sublet; however, assignment on a change of trustees is permitted.

The purpose of this report is to determine the rent payable in connection with the new Ground Lease between CEC and the TBLC and also to request authority for the new lease to terminate on the same date as the TBLC’s agreement with Competition Line in respect of development works to their building and the provision of supply and equipment to the TBLC.