Tenant to take over disused nursery school building
Council chiefs in Sunderland have backed offering a rent concession to help bring a former nursery building back into use.
City council chiefs explained the former Millfield Community Nursery School, in Bell Street, is in a “poor condition” with outstanding repairs needed estimated to cost £178,050.
A tenant has been identified to take a lease of the property, which is owned by the council,andinitialtermshave beenoutlinedforthegrantofa 15-year lease at an annual rent of £28,000.
The tenant has agreed to undertakeanumberoftheessential works at the property needed to make it fit for occupation, subject to the grant of a rent concession equal to the costs of those works.
Therefore proposals went before the city council’s latest cabinet meeting to authorise thegrantingofa£125,000rent concession,whichwasunanimouslybackedbycouncillors.
Councillor Claire Rowntree, deputy leader of the council and portfolio holder for environment and transport, said: “The nursery has remained vacant since its closure in late summer 2019 and is currently in a poor condition.
“It has some significant items of outstanding repair which need to be addressed in order for the property to be broughtuptoastandardfitfor occupation.
“Anyoutstandingworknot coveredbytherentconcession will be undertaken by the tenant at their own expense. This will enable the repair and the letting of the property.”
The total cost of the essential works to be undertaken by the tenant is estimated at £111,000, which was used to calculate the rent concession sum.
The cabinet report states a furtherconcessionof£14,000, equal to six months rent-free, willbegrantedasanincentive to take the lease, in line with commercial practice, bringing the total concession to £125,000.
Thetenantwillberequired to undertake the works to the satisfaction of the council, demonstrate the costs represent value for money and provide evidence of the expenditure incurred.
Thereportwarnedwithout the rent concession the property would “not be brought up to a standard fit for occupation” and the council “may find it difficult to let” the site.