Decision details

That the Commercial Revenue Committee:

1.    Agrees that Appendices 1 and 2 of this report, comprising the draft lease and draft deed of covenant respectively, are not for publication because these agreements are not finalised yet and because the equivalent agreements were exempt from the previous report, comprising proposed contractual terms currently being finalised, as per Paragraph 9 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended).

2.    Agrees for the Council to enter a new lease with Fulham Stadium Ltd for retention of the constructors’ compound to facilitate completion of the development of the stadium, particularly fitting-out work. In exchange for the benefits of the lease to FFC, it would pay the Council a rent of £282,800 p.a.x, for an overall value of £395,210 for the full lease term (but this would be less should FFC be able to trigger an option for early lease termination).

3.    Agrees for the Council to enter into another deed of covenant with FFC and the Church Commissioners for England for an extension of the temporary release of restrictive covenants on the land. This is required for granting a new lease to FFC.

4.    Agrees to delegate authority to the Assistant Director Operations, The Economy, in consultation with the Cabinet Member for Finance and Reform, the Assistant Director, Leisure, Sports and Culture and the Assistant Director, Legal Services, to finalise both property agreements with FFC to enable the requested retention of its constructor’s compound.

The recommendations allow the Council to grant a lease to FFC and to enter a deed of covenant with the Church Commissioners for England and FFC. This will enable FFC to complete as soon as possible the implementation of their planning permission for the stadium’s development (planning reference 2017/04662/FUL). Incidentally, the planning permission also included the construction of a temporary compound within Council-owned land at Bishops Park.

The development of Craven Cottage includes the provision of a new, public riverside walkway, joining up with the Thames Path at each end of the stadium.

The new lease will enable FFC to continue using the stadium for home fixtures during the stadium development period.

A decision is required because the overall rental income of £395,200, over the full, prospective lease term, is above the delegated authority limit of £300,000 for property transactions and the commercial deal provides additional income for a time- limited period.

See report.