Efforts to cut £3m-a-year rent at RMBC's Riverside House

A RESTRUCTURE of its £3 million-a-year lease means Rotherham Borough Council WILL own Riverside House after all.

The current 35-year deal — signed with landlords Evans Property Group seven years ago — has been heavily criticised.

Under the current arrangement, which has no break clause, RMBC will not own the 172,000sq ft building at the end of the lease.

The authority has also spent more than £1.1 million on repairs and maintenance since it moved its officers and library there in 2012.

A restructure will see the lease extended for seven years but the rent will be lowered. The council will also be able to buy the building for £1 at the end.

It would also give more freedom for sub-letting out part of Riverside House, which the council has previously said could bring in £160,000 a year.

The proposal was discussed during a private session at Wednesday’s scrutiny meeting.

A report to senior councillors said: “There are restrictions within the lease, the main one being the use to which the building can be utilised, with further restrictions on sub-letting parts of the building. 

“There is also a requirement to obtain the landlord’s permission to modify or make any additions or alterations to the building.

“The restructured lease will allow the council more freedoms and flexibilities such as allowing sub-lease arrangements, which would offer future income generation opportunities.”

All running costs, including repairs, maintenance and insurance, will remain with RMBC.

The restructure proposal could be completed within two months, subject to approval by the board at Evans.

The council also spent £9.9 million on furnishing Riverside House before moving from the its old civic quarter base.