Date 14/7/2011. Date 25/7/2011. Date 14/7/2011. Date 14/7/2011. Date 11/7/2011. Date 29/07/2011. Date 01/08/2011. Name of BGO Andrew Charlwood.

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1 SUBJECT: The grant of a new lease to the Rainbow Centre Users Group, The Rainbow Centre, Dollis Valley Way, Barnet, EN5 2UN Control sheet All of the following actions MUST be completed at each stage of the process and the signed and dated report MUST be passed to the Governance Service for publishing All reports Business Governance Service receive draft Name of DSO Chidilim Agada report Date 14/7/ Business Governance Service cleared draft report as being constitutionally appropriate 3. Finance clearance obtained (report author to complete) 4. Staff and other resources issues clearance obtained (report author to complete) 5. Trade Union response received (Staffing issues only) 6. Legal clearance obtained from (report author to complete) 7. Policy & Partnerships clearance obtained (report author to complete) 8. Equalities & Diversity clearance obtained (report author to complete) 9. The above process has been checked and verified by Director, Head of Service or Deputy(report author to complete) 10. Signed & dated report, scanned or hard copy received by Business Governance Service for publishing 11. Report published by Business Governance Service to website Name of DSO Chidilim Agada Date 14/7/2011 Name of Fin. officer Jane Fitzgerald Date 25/7/2011 Name of Res. officer Judith Ellis Date 7/7/2011 Name of TU rep. N/A Date Name of Legal officer Robert Prater Date 26 July 2011 Name of P&P officer Julie Pal Date 14/7/2011 Name of officer Julie Pal Date 14/7/2011 Name Chris Booth Date 11/7/2011 Name of BGO Andrew Charlwood Date 29/07/2011 Name of BGO Andrew Charlwood Date 01/08/2011 Officer reports: 12. Head of Service informed report is published and can be implemented. Name of BGO Date Cabinet Member reports: 13. Expiry of call-in period Date 14. Report circulated for call-in purposes to Name of BGO Business Management OSC members & Date copied to Cabinet & Head of Service Date Andrew Charlwood 01/08/2011

2 ACTION TAKEN BY CABINET MEMBER(S) UNDER DELEGATED POWERS (EXECUTIVE FUNCTION) Subject The Rainbow Centre, Dollis Valley Way, Barnet, EN5 2UN Cabinet Member(s) Cabinet Member for Resources and Performance Date of decision 28 July 2011 Summary Officer Contributors Status (public or exempt) Wards affected To authorise the grant of a new lease of the Rainbow Centre, Dollis Valley Way for a Term of five (5) years to the Trustees of the Rainbow Users Group Suzanna Ellis, Principal Valuer Public Underhill Ward Enclosures Plan Ref. No: 23222/1 Reason for exemption from call-in (if appropriate) N/A Contact for further information: Suzanna Ellis, Principal Valuer, Serial No. 1368

3 1. RELEVANT PREVIOUS DECISIONS 1.1 None. 2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 2.1 The Corporate Plan commits the Council to delivering Better services with less money. A key principle of the medium term financial strategy is to continually review the use of Council assets so as to reduce the cost of accommodation year on year and to obtain best consideration for any surplus assets to maximise funds for capital investment and/or the repayment of capital debt. The letting of the Rainbow Centre would allow for investment in the building which would support the Council s priorities and maximize the premises use. 3. RISK MANAGEMENT ISSUES 3.1 Not proceeding with the letting will increase the risk of further building dilapidation and continued decline in an already underused facility which potentially attracts misuse. 3.2 I consider the issues involved are unlikely to raise significant levels of public concern or give rise to policy considerations. 3.3 It should be noted the property falls within an estate which is subject to potential Regeneration proposals where the existing estate could be replaced with up to 850 new homes, with an estimated cost of delivery which could be in the region of 200 Million. The regeneration programme will involve either the total or partial demolition of the existing 436 flats and maisonettes, which will be replaced by either totally new properties or a combination of new properties and rebuilt existing blocks or affordable, rented and shared equity homes for existing residents as well as homes for sale on the open market. 4. EQUALITIES AND DIVERSITY ISSUES 4.1 The recommendation has been evaluated against the principles in the Equalities Policy and Equalities scheme and there are no adverse implications for specific groups. 5. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) 5.1 There are no procurement, performance and value for money, staffing, IT or sustainability implications. The financial and property implications are set out in paragraph 8.11 below. 6. LEGAL ISSUES 6.1 The provisions of Sections of the Landlord and Tenant Act 1954 (continuation and renewal of tenancies) are to be excluded from the lease to enable the Council to reacquire the premises and take possession at the expiry of the term or by operating the break clause.

4 7. CONSTITUTIONAL POWERS 7.1 Part 3 (Responsibility for Functions), paragraph 3.3 of the Council s Constitution states that Cabinet Members powers include the power to discharge the executive functions that fall within their portfolio, whether or not they are also delegated to officers, except for matters specifically reserved to Council, Cabinet or Cabinet Committees. 7.2 Part 3 (Responsibility for Functions), paragraph 3.2 of the Council s Constitution details the responsibilities of the Cabinet Member for Resources and Performance which includes to lead on budget and policy formulation and implementation, including: in relation to asset management. 8. BACKGROUND INFORMATION 8.1 The existing premises, The Rainbow Centre, is located on the east of the Dollis Valley Estate, accessed from Dollis Valley Way. 8.2 The premises is located in The Dollis Valley Estate which was built in the late 1960 s and early 1970 s and comprises of two and three storey houses and five storey blocks of flats and maisonettes. The estate lies to the north of the borough on the outskirts of Chipping Barnet. The estate is on a south facing slope within an area of traditional suburban housing. Dollis Valley Way is accessed from Mays Lane which links to the A1000 Great North Road, the A411 Barnet Road giving easy access onto the A1. There is good access to public transport links with High Barnet tube station, some 1 mile to the east. 8.3 The subject property is owned freehold by the Council, and comprises of a small parcel of land some 0.5 acres (edged with a bold black line on the attached plan Ref No 23222/1). The property comprises a single storey timber clad building with a flat felt roof. There is a small grassed area to the south and west of the building and a parking area and basketball court to the north. The property is in a very weathered condition. The buildings are used by the user group to carry out community group work and activities for example youth and education schemes. Current usual use of the Building (The premises has been closed from Friday 17 th June 2011, as the building is subject to repairs following vandalism): Monday: Play Rangers: /9.00pm Tuesday: None Wednesday: Barnet College: 9 am pm Thursday: Barnet College: 9 am pm Friday: Barnet College: 9 am pm Saturday: Somali Group: 10 am 2 pm Sunday: Somali Group: 10 am 2 pm. The parties listed above form part of the Rainbow Users Group and the above timetable will be included under the new lease, albeit will be subject to changes with the group intending to attract greater use to the building.

5 8.4 This Housing Revenue Account property was operated by The Children s Service, Youth and Connexions, whom due to budget cuts have had to relinquish this management and financial responsibility of this building on 31 st March 2011, however the community groups who let this property from the Service wished to continue to rent the building and build up more use. 8.5 The lease proposed is for a short term and will be excluded from Sections (Continuation and Renewal of Tenancies) of the Landlord and Tenant Act 1954 due to the pending Regeneration proposals, to ensure the building can be reacquired by the Council so the regeneration plans can be implemented. Permitting the group to use this property may help towards fulfilling other corporate commitments such as the Estates and Community Building Strategies. 8.6 At the outset as the property since The Children s Service moved out there has been two significant vandalism incidents which equates to some 4,000 the Trustees of the user group have made an application for a grant to cover these costs for repairs to the building. We understand the external parts of the property are maintainable in no worse state by Barnet Homes (acting ALMO, on behalf of Housing Services). As the building is in such a poor state of repair a schedule of condition is to be attached to the lease. 8.7 The following Heads of Terms in principle have been agreed to: RENT: Rent is for 7,500 per annum and, subject to an annual review to take place on 1 st September each year, to make a further payment at the Council s discretion of 30% of the annual net income generated by the Rainbow Centre Users Group hiring of the Premises to specific groups. (For the purpose of determining net income only the costs incurred by the Rainbow Users Group in relation to the actual hiring out of the premises shall be offset against such income). Based on: Existing Building. TERM: 5 years from 1 June 2011 to 31 May 2016 to be contracted out of the security of tenure provisions in the Landlord and Tenant Act 1954 A Break Clause to enable the Landlord to implement if Regeneration Timescales change with a 6 month notice period in writing which can be triggered at any time. A Break Clause if the building becomes too costly to maintain.

6 USER: Premises to be used for a community centre including social, educational, community, charitable and recreational uses. MAINTENANCE COSTS: Subject to the maintenance obligations and responsibility for such costs of each party being set out more particularly within the lease, the parties agree in principle to the following: The Landlord is responsible for keeping the building wind and water tight. The tenant is to be responsible for internal repairs of the demise including electrical wiring, heating and plumbing and Statutory Obligations. The tenant agrees to external decoration upkeep of the building including external and gutters. The tenant agrees to keep the property in no worse a condition as it is at present. AGREEMENT COSTS: The tenant shall cover the legal and surveyors fees in relation to the preparation of the new lease. Legal Fees: 974 Surveyors Fees: Wavered due to special circumstances. Such other terms may be included within the lease as agreed by the Council s Property Services Department or as advised by the Council s Legal Department. 8.8 There is an opportunity for the Council to secure a vulnerable property and create activities which will restore wider groups in the community to use the facility. 9. LIST OF BACKGROUND PAPERS 9.1 None.

7 10. DECISION OF THE CABINET MEMBER(S) I authorise the following action 10.1 That a new lease for the Rainbow Centre, Dollis Valley Way, Barnet, EN5 2JU for a term of five (5) years to include the terms provided for in the contents of this report be granted to the Trustees of the Rainbow Users Group. Signed Cabinet Member for Resources and Performance Date 28 July 2011

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