Agenda item - Proposal for a new GP Surgery at 62/63 Old Steine and 3 Palace Place

Report of the Executive Director, Finance & Resources

1)        That, subject to final agreement with the NHS and GP Surgery, the Committee notes the grant of a new 20 year Lease at market rent of 62/63 Old Steine and 3 Palace Place to Ardingly Court Surgery for use as a GP Surgery under officer delegations.

2)        That the Committee agrees to provide an estimated £0.850million investment, funded through borrowing, to be added to the £0.813 million of ETTF grant funding to enable the redevelopment of the property for the delivery of modern fit for purposes GP facilities.

3)        That the committee agrees to add the total scheme costs of £1.663 million to the council’s capital investment programme with the financing costs of the borrowing recovered from the NHS CCG over the 20 year lease. 

4)        That committee delegates authority to the Executive Director Economy, Environment & Culture following consultation with the Assistant Director Property & Design and Head of Legal Services to approve terms.

18.1      The Committee considered a report of the Executive Director, Finance & Resources that relayed the agreement for the grant of a new 20 year lease for 62/63 Old Steine and 3 Palace Pier to the GP’s from Ardingly Court Surgery at market rent and sought agreement for the council to borrow approximately £0.850million to add to the £0.813 million funds from the NHS England’s Estates and Technology Transformation Fund (ETTF) for the development and fit out of the new GP surgery.

18.2      Councillor Sykes noted that for 7,5,00 sq ft of floor space, the council should be expecting £105,000 rental income per annum and asked if that was the case and whether there would be uplift under the new arrangement.

18.3      The Senior Estates Surveyor confirmed that was approximately the current rental income and there would be 20% uplift under the new arrangement.

18.4      RESOLVED-

1)        That, subject to final agreement with the NHS and GP Surgery, the Committee notes the grant of a new 20 year Lease at market rent of 62/63 Old Steine and 3 Palace Place to Ardingly Court Surgery for use as a GP Surgery under officer delegations.

2)        That the Committee agrees to provide an estimated £0.850million investment, funded through borrowing, to be added to the £0.813 million of ETTF grant funding to enable the redevelopment of the property for the delivery of modern fit for purposes GP facilities.

3)        That the committee agrees to add the total scheme costs of £1.663 million to the council’s capital investment programme with the financing costs of the borrowing recovered from the NHS CCG over the 20 year lease. 

4)        That committee delegates authority to the Executive Director Economy, Environment & Culture following consultation with the Assistant Director Property & Design and Head of Legal Services to approve terms.