Liverpool City Council is set to approve a new 10-year lease agreement for a car park on Caledonia Street. This deal with the Royal Liverpool Philharmonic Society (RLPS) is projected to generate over £1 million for the council over the next decade. The car park provides essential parking for staff and visitors to the adjacent Philharmonic Hall.
Key Takeaways
- Liverpool Council will finalize a 10-year lease for the Caledonia Street car park.
- The agreement is with the Royal Liverpool Philharmonic Society (RLPS).
- The deal is expected to bring in over £1 million for the council.
- Annual rent is set at £113,700, with an upward-only review at five years.
- The car park supports a significant cultural institution in the city.
Long-Term Agreement Follows Extensive Negotiations
The council has leased the land on Caledonia Street to the Royal Liverpool Philharmonic Society for 25 years. The initial agreement began in October 2000, with an annual rent of £25,000. For the past three years, both parties have been engaged in discussions to establish new terms for the site.
These negotiations have now concluded. The council's cabinet is expected to formally approve the new lease. This approval will secure the future of the car park for the Philharmonic Hall.
Fact File: Caledonia Street Car Park
- Location: Caledonia Street, adjacent to Philharmonic Hall.
- Tenant: Royal Liverpool Philharmonic Society (RLPS).
- Previous Lease Duration: 25 years.
- New Lease Term: 10 years.
- Primary Function: Parking for Philharmonic Hall staff and visitors.
Financial Details of the New Lease
The new 10-year lease agreement sets the annual rent at £113,700. This figure represents a significant increase from the previous £25,000 per year. Over the full term, this new rental income could exceed £1 million for Liverpool City Council.
Talks for the new agreement began in 2022. Proposed terms were outlined during these initial discussions. The council used a valuation based on comparable car park evidence from November 2022 to determine the new rent.
"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." – Liverpool City Council Cabinet Assessment
Rent Review and Break Clause Included
The new lease includes important financial and operational clauses. An upward-only rent review will occur on the fifth anniversary of the lease start date. This means the rent can only increase, not decrease, at that point.
Additionally, a break clause is part of the deal. This clause will be exclusive to the RLPS, allowing them to terminate the lease under specific conditions. These proposals will be presented to city councillors at Liverpool Town Hall on Tuesday evening for final approval.
Background: The Royal Liverpool Philharmonic Society
The Royal Liverpool Philharmonic Society is a key cultural institution in Liverpool. It operates the Philharmonic Hall, a major venue for concerts and events. The society plays a vital role in the city's arts scene, attracting visitors and supporting local talent. Maintaining accessible parking is crucial for its operations and for the convenience of its audience and employees.
Understanding the Daily Cost Per Space
The new rental terms translate to a specific daily cost per parking space. Based on a 304-day usage per year, the rent equates to approximately £7 per space, per day. This is slightly lower than the current public charge for parking at the site, which is listed as £8 for a standard stay or £16 for an overnight stay.
The council's cabinet assessment highlighted its reasoning for the £1.1 million terms. It stated that the agreed terms represent a fair market rent. This also acknowledges the RLPS's charitable status. It aims to support a significant cultural entity within the city.
- New Daily Rate: Approximately £7 per space (based on 304 days/year).
- Current Public Rate: £8 per day, £16 for overnight.
Maintenance Responsibilities
Under the terms of the new lease, the Royal Liverpool Philharmonic Society will continue to be responsible for the car park's repair and maintenance. The repair covenant within the new lease agreement ensures this responsibility remains with the RLPS. This arrangement has been in place historically, with the society keeping the car park in good condition.
This long-standing commitment by the RLPS helps to maintain the infrastructure. It also reduces the maintenance burden on the city council. The ongoing repair covenant is a standard part of such agreements, ensuring the property is kept to a good standard.
Importance for Liverpool's Cultural Landscape
Securing this long-term lease is important for the Royal Liverpool Philharmonic Society. The car park is essential for the daily operations of the Philharmonic Hall. It ensures convenient access for performers, staff, and the thousands of patrons who attend events each year.
The Philharmonic Hall is a landmark venue. It hosts a diverse range of concerts, comedy shows, and other cultural events. A stable parking solution supports the continuous operation of this venue. This contributes to Liverpool's reputation as a vibrant cultural hub. The council's decision reflects a balance between generating revenue and supporting key cultural institutions.