This report updates the Sub-Committee on the progress with implementing the decisions made at the 20 June 2018 meeting, including consultation with the Charity Commission on the proposed grant of a lease to the Secretary of State for Housing, Communities and Local Government of part of the Recreation Ground.

Further to Minute 5 of the meeting held on 20 June 2018 the Head of Legal and Democratic Services submitted a report providing the Sub-Committee with an update on the steps taken to facilitate the grant of a Lease of part of the Recreation Ground to the Secretary of State, and an update on consultation with the Charity Commission in relation to the proposed grant of the Lease.

The report explained that, following the Sub-Committee's meeting on 20 June 2018, the Head of Legal & Democratic Services had instructed VWV (external solicitors advising the Council as trustee of the Charity) to write to the Charity Commission to notify them of the decisions taken by the Sub-Committee, and to seek their views and advice on the power of disposal exercisable by the Council (as trustee of the Charity) in order to grant the Lease.  Having reviewed all of the material submitted to the Sub-Committee and the decisions taken at that meeting, the Commission had confirmed that they agreed that the Council (as trustee of the Charity) could rely upon the statutory power of disposal conferred by section 6 of the Trusts of Land and Appointment of Trustees Act 1996 (TLATA) in order to grant the Lease to the Secretary of State; and that they also agreed that the Council (as trustee of the Charity) had complied with the statutory requirement under section 121 of the Charities Act 2011, so that no further publication of the proposal to grant the Lease was required.

The Charity Commission had also advised that the Council (as trustee of the Charity) did not need the Commission's consent to grant the Lease and that the Commission would now close its regulatory authority case in relation to the Charity.  The Commission would not be actively monitoring the implementation of the decision to grant the Lease but had suggested that the Sub-Committee might wish to notify them of any key developments and milestones.  The Commission's advice meant that, subject to the points raised below, the Sub-Committee was now in a position (under charity law) to grant the Lease.

The report also explained that, following the Sub-Committee’s decision at the previous meeting, the Head of Legal & Democratic Services had engaged with the Education and Skills Funding Agency (ESFA) in order to seek to agree the arrangements for the grant of the Lease. It was proposed that, subject to the outcome of a judicial review, officers be authorised to take the following steps:

• An Agreement for Lease (AFL) and form of Lease should be negotiated and agreed with the ESFA; the Lease to be substantially in the form of the draft lease previously approved by the Sub-Committee and in line with the non-legally binding heads of terms previously entered into with the ESFA;
• The AFL should be entered into as soon as possible, but the grant of the Lease be subject to the judicial review proceedings having been completed and the review being unsuccessful;
• A Community Use Agreement for use of the Free School's facilities to be entered into with the School and the agreed form annexed to the AFL;
• The AFL and Lease should be entered into by the Council as Charity trustee of the Charity in reliance on the general power conferred by TLATA to dispose of land;
• The premium of £1.36m due from the Secretary of State in respect of the grant of the Lease to be paid on completion of the Lease;
• Provisions to be agreed with the ESFA in relation to the consequences of any legal challenge being brought in relation to the entry into the AFL and/or the grant of the Lease.

Resolved –

(1)     That the Head of Legal and Democratic Services be authorised to:

a)   Negotiate and agree the terms of the agreement for lease (‘AFL’), community use agreement (‘CUA’) and Lease on the basis proposed in Section 4;

b)   Arrange for the AFL to be entered into by the Council as trustee of the Charity;

c)    Arrange, subject to the resolution of the judicial review proceedings on a basis which it was considered enabled the Council as trustee of the Charity to properly grant the Lease, for the Lease and CUA to be entered into by the Council as trustee of the Charity;

d)   Take all other such steps as considered to be reasonably necessary to implement the decisions taken by the Sub-Committee on 20 June 2018;

e)   Report to the Charity Commission on such milestones and other developments as considered appropriate.

(2)     That a report be submitted to the next meeting of the Sub-Committee on the completion of the AFL, CUA and Lease and on any other issues it was considered should be brought to the attention of the Sub-Committee.