Agenda item

This report provides an update on various operational property issues relating to the Barham Park Estate and has been submitted for consideration alongside Agenda Item 8 - Strategic Property Matters which outlines the overarching strategy from which operational activities will flow for ensuring the Barham Park Estate is sustainable, well-maintained, and aligned with the Trust's charitable objectives.

RESOLVED to:

(1)        Delegate day-to-day Trustee functions and decision-making authority to the Director of Property and Assets, replacing the Director, Public Realm (formerly the Operational Director for Environmental Services, as detailed within paragraph 3.4 of the report.

(2)        Authorise the Director of Property and Assets to renew the expired leases for Units 1, 2, and 8 and regularise any associated subtenancies, as outlined in paragraph 3.7 of the report.

(3)        Authorise the Director of Property and Assets to let Unit 7 for meanwhile use as outlined in paragraph 3.8 of the report.

(4)        To approve the use of restricted funds, under existing Charity Commission permissions, to carry out essential repairs (year one) identified in the Watts analysis, valued at £269k plus professional fees, ensuring the building remains safe and compliant, as detailed within paragraphs 3.20 to 3.26 of the report.

(5)        Note that the Director of Property and Assets will implement service charges for all tenants under their lease terms, starting from the 2025-26 fiscal year, as detailed in paragraph 3.9 of the report.

(6)         Note that the Director of Property and Assets will continue negotiations with Zenaster Properties Ltd for the potential amendment to the restrictive covenant at 776 and 778 Harrow Road, as outlined in paragraph 3.12 of the report.

(7)        Note that the Director of Property and Assets will finalise terms, submit necessary applications to the Charity Commission, address any related issues, and, if required by the Charity Commission under Section 283 of the Charities Act 2011, provide public notice of this resolution.

(8)         Note that the Director of Property and Assets will seek to agree on repayment plans with tenants in arrears, which may include re-gearing leases to ensure sustainability. If an agreement cannot be reached or a default occurs, leases may be terminated for breach, as detailed within paragraph 3.10 of the report.

(9)        Authorise the Director of Property and Assets to seek the consent of the Charity Commission where required to fulfil the recommendations in this report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Tuesday 17 September 2024

Denish Patel, Head of Property, introduced a report which provided an overview of the Barham Park Estate building's condition, summarising the essential findings and recommendations from a recent Building Survey regarding necessary repairs and associated costs in the short, medium, and long term which also were designed to enable the operational activities required to support delivery of the overarching property strategy by 2031 to be undertaken.

In outlining the operational activities on which decisions were being sought, The Trust Committee was advised these included:

·            transfer of the current delegated authority for the day-to-day management of the Barham Park Estate from the Director for Environmental Services (now Director, Public Realm) to the Director of Property and Assets in order to reflect. a recent Council senior management restructure.

·            the following landlord activities (aligned with delivery of the strategic redevelopment option approved by the Trust in 2031) to ensure that vacant units were available as required whilst income was maintained for the Trust:

Ø   Lease Renewals for Unit 1 (Tamu Samaj UK), Unit 2 (Veterans’ Club (Wembley), and Unit 8 (Brent Council - Children Centre);

Ø   Vacant Unit 7 Re-activation for "meanwhile use" reflecting a flexible and pragmatic approach towards use of the unit with an alternative temporary use to be sought if agreement could not be reached with Friends Of Barham Library;

Ø   Implementation of Service Charges and a more robust programme of rent arrears management;

Ø   Undertaking essential repairs to the Barham building valued at £269k (as detailed in section 3.20 – 3.26 of the report) in order to ensure the building remained safe and functional and mitigate the need to address more significant and expensive issues in the future whilst also ensuring compliance with the necessary safety standards and reducing the financial burden on the future redevelopment.

The Trust Committee were also asked to note the position regarding ongoing negotiations regarding a potential amendment to the restrictive covenants on 776 and 778 Harrow Road.  Members were reminded the current owner had obtained planning permission for development of the site and was now seeking to negotiate the necessary changes to the restrictive covenant on the site with any funds generated as a result becoming available for use by the Trust to support future works and the proposed redevelopment activity.

In terms of the Trust’s current financial position, members were advised of the financial constraints currently impacting on its operation with the reliance on restricted funds no longer felt to be a sustainable long-term solution and the operational property activities therefore outlined in the report (including the expansion of revenue streams through broadening tenancy options, implementation of service charges, effective arrears recovery, lease renewals, and potentially unlocking income from covenant modifications) recognised by the Trust Committee as necessary to support ongoing delivery of their charitable objectives and longer term plans and the proposals designed to balance the need for ongoing operational viability, short-term financial stability and property management with the broader strategic objective of redevelopment in 2031.

Having outlined the specific proposals, the Trust Committee was advised of the plans by officers to make direct contact with each tenant to discuss individual concerns and provide further detail on the timetable for consultation and what that process would involve with the consultation designed to provide a framework within which further information could be shared and concerns addressed proactively with all tenants.  Given views already expressed by tenants the Trust Committee advised they were keen to ensure this process was commenced as soon as possible.

In thanking officers for their ongoing work and acknowledging the efforts being made to transform use of the Estates assets to enable continued community and public benefit in line with its charitable objectives, the Trust Committee RESOLVED to:

(1)       Delegate day-to-day Trustee functions and decision-making authority to the Director of Property and Assets, replacing the Director, Public Realm (formerly the Operational Director for Environmental Services, as detailed within paragraph 3.4 of the report.

(2)       Authorise the Director of Property and Assets to renew the expired leases for Units 1, 2, and 8 and regularise any associated subtenancies, as outlined in paragraph 3.7 of the report.

(3)       Authorise the Director of Property and Assets to let Unit 7 for meanwhile use as outlined in paragraph 3.8 of the report.

(4)       To approve the use of restricted funds, under existing Charity Commission permissions, to carry out essential repairs (year one) identified in the Watts analysis, valued at £269k plus professional fees, ensuring the building remains safe and compliant, as detailed within paragraphs 3.20 to 3.26 of the report.

(5)       Note that the Director of Property and Assets will implement service charges for all tenants under their lease terms, starting from the 2025-26 fiscal year, as detailed in paragraph 3.9 of the report.

(6)        Note that the Director of Property and Assets will continue negotiations with Zenaster Properties Ltd for the potential amendment to the restrictive covenant at 776 and 778 Harrow Road, as outlined in paragraph 3.12 of the report.

(7)       Note that the Director of Property and Assets will finalise terms, submit necessary applications to the Charity Commission, address any related issues, and, if required by the Charity Commission under Section 283 of the Charities Act 2011, provide public notice of this resolution.

(8)        Note that the Director of Property and Assets will seek to agree on repayment plans with tenants in arrears, which may include re-gearing leases to ensure sustainability.  If an agreement cannot be reached or a default occurs, leases may be terminated for breach, as detailed within paragraph 3.10 of the report.

(9)       Authorise the Director of Property and Assets to seek the consent of the Charity Commission where required to fulfil the recommendations in this report.