Long-term city centre car park deal could land Liverpool Council more than £1m
Liverpool Council could be in line to net more than £1m as it looks to complete a long-term deal for a city car park.
For the past quarter of a century, the local authority has leased out a patch of land it owns on Caledonia Street to the Royal Liverpool Philharmonic Society (RLPS). An initial three-year term was granted in October 2000 for £25,000 a year. Negotiations over the terms of a new deal have been ongoing for the past three years between the city council and the RLPS.
Now the council’s cabinet is expected to sign off on a 10-year lease for the site, which could boost the city’s coffers to the tune of more than £1m across the next decade. The land provides parking for staff and visitors to the adjoining Philharmonic Hall.
Having initially taken up the land for three years more than two decades ago, an extension to enter into a new agreement has been agreed for next month. Talks began in 2022, with proposed terms set out at that stage.
Liverpool Council provided a valuation based on comparable evidence from November 2022 car parks within the city. As a result, a new 10-year lease has been agreed at a rent of £113,700 per annum – which could bring in more than £1m subject to completion of the full term.
An upward only rent review at the fifth anniversary of the lease commencement date will be initiated, with a break clause also forming part of the deal to go before city councillors tomorrow. This would be exclusive to RLPS to exercise.
The new terms of the rent equates to £7 per space, per day, based on a 304-day usage per year. The current charge on site is listed as £8 or £16 for an overnight stay. The cabinet assessment set out the council’s basis for the £1.1m terms.
It said: “On the basis the RLPS is a charitable organisation the agreed terms are reflective of a fair market rent while supporting a significant cultural entity within the city.”
RLPS has kept the car park in repair and will continue with this responsibility due to the repair covenant within the new lease. The proposals will go before members of the city council’s cabinet when they meet at Liverpool Town Hall on Tuesday evening.
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