Issue - meetings

Crown House Lease

Meeting: 15/12/2021 - Executive (Item 82)

82 Crown House Lease pdf icon PDF 458 KB

Decision:

That:

 

1)              the acquisition of a 5-year lease of the Crown House building, Toutley Road, Wokingham, at a cost of £275,000 per annum for the use as long-term temporary accommodation, be approved; and

 

2)              It be noted that there is an option to renew the lease in WBC’s favour for a further 5 years, at the passing rent at the end of the initial term.

Minutes:

The Executive considered a report relating to a proposal to acquire a 5-year lease on the Crown House building situated on the Toutley Industrial Estate, Toutley Road, Wokingham.

 

The Executive Member for Finance and Resources went through the report and advised the meeting that during Covid the Council had seen a large increase in homelessness in the Borough.  This coupled with the Council’s commitment to remove all the rough sleepers from the streets and to allocate suitable accommodation had put considerable strain on the Council’s resources and assets. Councillor Kaiser reported that it was planned to meet this need by delivering over 20 units of modular temporary accommodation, similar to those planned in Reading, and this would allow short term housing until permanent homes could be found.  This was however not enough and therefore it was proposed to enter into a 5-year lease for 24 units at Crown House which would enable the Council to reduce expenditure by £163k per annum. which over the 5-year lease was a saving £815k. Currently the Council pays £436,800 per annum to use the same facilities and this would mean that the current nightly rate of £50 a night would be reduced to £32 a night, a 37% reduction.  This would also enable the Council to ensure that there would be sufficient provision for urgent use and thereby reduce the need for expensive hotels.  In addition this would also support the wider work to reduce the level of temporary accommodation.

 

RESOLVED that:

 

1)              the acquisition of a 5-year lease of the Crown House building, Toutley Road, Wokingham, at a cost of £275,000 per annum for the use as long-term temporary accommodation, be approved; and

 

2)              it be noted that there is an option to renew the lease in WBC’s favour for a further 5 years, at the passing rent at the end of the initial term.