Decision details

Dispose of the council’s freehold interest to facilitate the development of a new care home in support of the corporate commitment towards improved provision in the borough.

RESOLVED:

1.  That the lease of 4 D’Eynsford Road, held by Excelcare Limited be varied, to permit redevelopment of the property as an 80+ nursing bed and residential care home (subject to planning).

2.  That arrangements for the block contract booking by the council of beds in the new care home, including a rebate mechanism should the council from time to time agree to release, at Excelcare’s request, any of the beds reserved for its use (see paragraph 12 of the report) be noted.

3.  That the council’s freehold interest in 4 D’Eynsford Road be disposed of to Excelcare Limited’s property company “Latchworth” subject to:

a)  Satisfactory completion and opening of the new building

b)  Its registration with the Care Quality Commission

c)  Entering into a care contract of 25 years duration with Excelcare operating company “Giles Court” under an agreed price structure

d)  A payment to the council for the freehold, via a rebate and balancing mechanism

e)  A time-limited overage clause to protect against alternative use, requiring the transferee to pay the council a proportion of any additional value released through the subsequent development of the property (if any) within a 15 year period.

4.  That the use of the property shall be restricted to social care including accommodation with support for vulnerable people for a term of not less than 15 years, unless the council decides that it no longer requires care services to be provided under the block contract arrangement.

5.  That subject to the above, the negotiation of detailed terms, sign off of due diligence and agreement of transactional documents shall be delegated to director of regeneration, in consultation with the strategic director of finance & governance.