Agenda item

[Report of the Chief Operating Officer. To be introduced by the Cabinet Member for Environment.] The report sets out the results of the Expression of Interest process conducted earlier this year and makes a recommendation on who the lease for the site should be awarded to.

The Cabinet Member for Environment introduced the report which set out the results of the expression of interest process, instigated by Cabinet in May 2016 for development of the site and now sought agreement for the leasing of the Wolves Lane Horticultural Centre, to a successful bid from OrganicLea, for a term of 25 years based on the Heads of Terms set out in appendix 2.

The recommendations allowed the site to be retained as a community asset and to offer a new source of organically grown vegetables for supply into the local community. Residents would still be able to volunteer at the centre and would have the opportunity to learn new skills and enjoy working alongside their neighbours and other members of the community. The Cabinet Member was pleased to see the commitment of OrganicLea to work with the other bidders to explore how key elements of their bids can be incorporated to make the new offer at Wolves Lane.

Whilst current activities cease, it was expected OrganicLea would take possession of the site on the 1^st of April and commence food growing. This was a secure future for the site, over the next 25 years but it just the beginning of the process with Ward Councillors and community Friends Group expected to be fully involved.

Councillor Waters, spoke on behalf of the Friends of Wolves Lane Group, who were disappointed not to have been successful in their local bid but welcomed working with OrganicLea. They had some concerns about the timing of the possession of the site, from 1^st of April, and sought assurance from Council that they could begin discussions with OrangicLea on the 1^st of Feb to ensure handover issues, such as relocation of the animals was resolved.

There was concern that OrganicLea would not make of use the Palm House and classrooms and commitment was being sought in respect of this.

In response to concerns, Cabinet noted the following:

• OrganicLea had committed to move their, Vegetable box distribution centre from Hornsey to Wolves Lane in early April.
• Officers had met with OrganicLea and they had given commitment to engaging and working with the Friends group
• The Cabinet Member had the understanding that there were plans to use Palm House and this was to be maintained, as is, and there was to be discussion with wider partners on making use of this area. The Cabinet Member was more than happy contact the Friends Group and get a date in the diary to discuss this further but OrganicLea had given assurances of their work with the group.

In response to Councillor Newton’s questions, the Cabinet Member re – iterated that the Council were fully committed to supporting the Friends Group start their discussions with OrganicLea. Ward Councillors had been involved at all stages.

Agreed that the Assistant Director for Commercial Operations would provide Councillor Newton, in writing, the cost of staff redundancies.

The Leader thanked officers and the Cabinet Member for the significant progress made, since last year, to provide a stronger future for Wolves Lane. OrganicLea working with the Friends Group could provide a great facility and make further use of a well loved and well used centre. The Cabinet acknowledged that there were still some conversations to be had but this was the start of a new process which was setting off on the right footing.

RESOLVED

To grant a lease of the property known as Wolves Lane Horticultural Centre to OrganicLea, for a term of 25 years based on the Heads of Terms set out in Appendix 2 and that delegated authority is given to the Assistant Director of Property and Capital Projects to agree the rent beyond the initial five year total rent of £19,300.

Reasons for decision

Based on the evaluation process that all three bids were subjected to, Organic Lea’s bid scored highest on its contribution to the Council’s Corporate Plan.

Whilst the bids from FoWL and Greens and Glass proposed a greater level of rental income to the Council both are brand new organisations with no financial history. OrganicLea have a proven track record in delivering schemes similar to those they are proposing for WLHC and have a robust financial history. They also stated that they are willing to take on the site ‘as is’ with no ongoing liability to the Council.

Alternative options considered

 Cabinet’s decision in May 2016 to cease provision of services at WLHC rules out the option of continuing as now.

The option to recommend offering a lease to a consortium consisting of all three bidders was explored and whilst there were synergies between bidders there were also some significant points of difference. Based on the feedback from the bidders this option was rejected as it was not supported by all the bidders and would require a greater level of ongoing support from the Council.