COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF SOUTH DUBLIN COUNTY COUNCIL
Monday, February 11, 2008
HEADED ITEM NO. 8(a)
Grant of Lease of Upper Floor Office Space at Block C, Chamber House, and 40 Car Spaces at Basement Level – 3, Block A, Tallaght Cross East, Tallaght, Dublin 24 to Health Service Executive (HSE)
The Council at its Meeting held on the 14th January 2002, Minute No. C33-02 resolved to dispose of a site comprising 3.85 acres or thereabouts at Belgard Square North/West, Town Centre Tallaght to Keenbury Properties Ltd. The conditions of disposal provided “inter alia” that Keenbury Properties Ltd would, at its own expense, provide the Council with an office suite of not less than 40,000 square feet gross to a modern “shell” specification referred to as Block “C” Chamber House. Following consultation and agreement between the parties it was agreed that as the new County Arts Building involved the demolition of a section of the County Library that Block “C” would be relocated to Council owned lands adjacent to the Library to facilitate replacement space for the space lost and for further expansion of the Library into the lower and upper ground floors of Block “C”, Chamber House. This relocation facilitated the expansion of the County Library and the creation of a more viable Public Square in the Keenbury Development. The relocation has had no financial impact on the negotiated package.
Block “C” Chamber House has been built in accordance with Planning Permission Reg. Ref. SD05A-0085 and in full compliance with Building Regulations and is fit for immediate occupation. The building is circa 47,738 sq feet (4,435 Sq m). The Library is currently expanding into the lower and upper ground floors. The remaining 4 upper floors in Block “C” Chamber House are accessed from a separate entrance off the Public Square via a lobby with its own lifts and toilets. This lettable office space/accommodation is surplus to the Councils requirements and is available for Lease.
An application has been received from the Health Service Executive (HSE) to acquire by way of Lease the remaining accommodation in Block “C”, Chamber House. It is proposed in accordance with Section 211 of the Planning and Development Act, 2000 and subject to the provision of Section 183 of the Local Government Act, 2001 that the Council dispose of the 4 upper Floors together with the ground floor access lobby in Block “C” , Chamber House comprising 2,257 sq. m(24,295 sq.ft) nett internal area of office space and 40 car spaces for staff use only in Basement Level -3.The Councils Valuer has recommend acceptance of the following terms and conditions which he considers to be fair and reasonable:-
1. That the Lease shall commence on an agreed date (see Condition 3 below) and be for a period of twenty-five years.
2. That the Lease demise to the Health Service Executive (HSE) shall include floors 1, 2, 3 & 4 in Block C, together with a ground floor access lobby at Block C onto the Civic Square. The net internal area of the office space is 2,257 sq m (24,295 sq ft).
The demise will include 40 underground staff use only car spaces reserved in one location at basement Level – 3, Block A”, Tallaght Cross East, Tallaght, Dublin 24. Access to the car spaces to be available at all times but via a card operated barrier system or equivalent system. The location of the spaces to be determined by the Council. Each authorised user must display a valid parking permit clearly indicating that the vehicle is authorised to park in the designated area.
It will be a matter for the Lessee in conjunction with the Car Park Management Company to ensure control of unauthorised car parking in the allocated spaces.
3. That the rent for the first five years of the Lease shall be in the sum of €703,080 per annum (seven hundred and three thousand and eighty euro) inclusive of rent in respect of car spaces payable quarterly in advance by electronic transfer. There shall be a rent-free period with rent becoming payable as and from 1st July, 2008 (unless there is a third party appeal to An Bord Pleanála against a planning permission arising under 10 below whereupon the rent would become payable on a date three months from the date of grant of planning permission by An Bord Pleanála.
Note: In the event of a refusal of permission by the Planning Authority or by An Bord Pleanála following a third party appeal, the Council, at its absolute discretion, may decide to terminate this agreement. For the purposes of clarity the Council would also reserve the right to terminate the Agreement if the HSE choose to appeal a Planning Authority decision arising under 10 below.
4. That this transaction shall impose no VAT liability on the HSE.
5. That the Lease shall be on a full repairing and insurance basis with the HSE also liable for rates and any other statutory charges and taxes.
6. That there shall be no service charge or estate charge liability on the HSE in respect of Block C. The HSE shall pay for recorded use of electricity, gas, water and any other utility services provided by the Council or others.
7. That the HSE will be liable to pay a service charge in respect of the 40 underground car spaces which will be billed annually in arrears based on an apportionment of any charges and costs incurred by the Council in the operation and usage of the Level –3 Block A car park.
8. That the lease shall incorporate five yearly rent reviews from the date of commencement of the lease with the passing rent to be revised to the full open market yearly rental value of the demised areas or the passing rent, whichever is the greater.
9. That the lease shall incorporate a ‘break’ clause at the end of year fifteen subject to the Council receiving at least six months notice and a lump sum penalty payment equivalent to six months rent (of the passing rent at that time) in addition to any rental payments due.
10. That the demised area shall be used for office and low level medical type uses incorporating public attendance, consultation, treatment and exercise areas, together with staff car parking only in the 40 underground car spaces. Full planning permission will be required for the uses, any works and signage proposed by the HSE. In this respect a planning application must be lodged by the HSE no later than 29th February 2008.
In relation to medical uses the following special conditions shall apply:
a) Any ‘out of hours’ (i.e. between the hours of 6pm to 8am weekdays and all day at weekends) services to be operated by the Lessee shall be by appointment only. Any variation of the provisions of this special condition shall be by prior agreement between the parties to the proposed Lease.
b) There shall be no drug addiction counselling nor any methadone or drug related dispensing services provided at the premises, and
11. That the Block C demised area shall be maintained to a very high standard in terms of security, cleanliness, queuing systems, avoidance of loitering, anti-lttering measures, non-obstruction of public areas, passageways and windows and shall seek to avoid or cause any nuisance, noise or disturbance to the public library below and adjoining the demised area.
12. That the Council’s Law Agent shall prepare a draft Lease and shall include terms and conditions to reflect the agreement reached and to protect the Council’s interest in the demised area and in adjoining areas (including the Civic Square) and buildings.
13. That each party shall be responsible for their own fees in this matter.
14. That the proposal is subject to the necessary approvals and consents being obtained.
15. That no agreement enforceable by law is created or intended to be created until an exchange of Contracts has taken place.
The lands being disposed of were acquired from (Dublin Corporation) now Dublin City Council in 1992 and 1994 for the development of the Civic Offices and Extension. Block “C” Chamber House was constructed on Council owned lands by way of Building Licence. The car spaces being disposed of are being acquired from Keenbury Properties Ltd by way of a Long Lease.
J. Horan,
County Manager.