Sparks occupied Council Piccadilly site without permission

Containers being installed on 4th September

Tenancy agreement only signed on 9th November – 2 months after shipping containers arrived.

A response to a Freedom of Information request, recorded with the City of York Council on 15th November, has revealed irregularities with the lease for the site on which the containers were installed at the beginning of September.

It has emerged that the operator Sparks had, and still has, no lease for the site.

A “tenancy at will” was signed as recently as 9th November 2017.

In effect the company was able to park their assets on Council land for 2 months without permission or payment.

In November 2016 the Council’s Executive had agreed to lease 17/21 Piccadilly for the storage container village. The development was to start trading in May 2017 and the lease would expire in June 2020. The Council agreed to stump up £40,000 to cover the cost of providing water, electric and gas supply.

The Council was to have had a representative on the Sparks Board to look after its financial interests.

The Council expected to receive a basic rent plus a 30% share of “profits” (sic). The minutes of the meeting were clear that a lease (and hence rent payments) had to be in place to underwrite any Council investment.

A year later and the development has not been completed. No lease is in place. The Council has received no rent payments. No business rates have been paid on the site.

Risk warning Nov 2016

The containers have yet to be fitted out.

However, it has also emerged that the Council has already spent £31,500 (of the £40,000 budget) on facilitating the development.

Sparks has said that the earliest the container village could open is in March 2018. That would leave just 2 years for the Council to recover its investment.

The development has been described as an ugly eyesore made worse by its proximity to several sensitive historic buildings

Later this week a Councillor will be asked to extend the area to be covered by the lease to Sparks.  The area has most recently been used for car parking.

No additional payment is being sought from the developer for the extra land.

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