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Commercial Shops Policy

POLICY STATEMENT

1. GENERAL

Three Rivers District Council own some 85 retail outlets spread throughout their area.  These are as follows:

1 - 38 Bridlington Road, South Oxhey

1 - 22 St Andrews Parade, South Oxhey

1 - 39 The Parade, South Oxhey

1 - 8 Station Approach, South Oxhey

295 - 309 (odd) Baldwins Lane, Croxley Green

1 Sherwood House,College Road Abbots Langley

57/59 and 60/63 High Street, Bedmond.



2. WHY DO WE OWN COMMUNITY SHOPPING?

To ensure that a suitable spread of retail outlets is maintained to sustain key aims and objectives of the Council, namely to work with businesses to increase prosperity and protect jobs while maintaining a healthy and sustainable community.

Policy: Council owned shops should be retained and operated to provide employment and prosperity to the local community and income to the Council.


3. SHOULD THE COUNCIL RESTRICT THE TYPES OF SHOPS IN IT'S PARADES?

All the leases granted by this and predecessor Councils have relied upon user clauses to retain a suitable "tenant mix". The purpose of such a mix is to ensure that certain basic trades are represented within the Council shopping parades that are essential for all local residents but more particularly the disadvantaged or those unable to travel to Watford, Harrow or Northwood.

Policy: Whilst competition in some trades is to be encouraged where possible, user clauses should be enforced to ensure the profitable trading of all businesses to avoid empty shops and to maintain Council income.


4. THE IMPORTANCE OF KEEPING SHOPS OPEN.

It is a key task for Officers to ensure that where possible shops remain open even in times of difficult trading conditions. The reasons why a certain tenant will seek to relinquish his lease are many, but lack of trade and increased competition are the main causes. Although still responsible for rent even when closed there has been a tendency in recent years to close a shop but continue to pay rent in the anticipation of opening in more favourable trading conditions. Void properties have a corrosive effect on the trading of adjoining tenants giving a "run-down" appearance to a parade if allowed to continue.

Policy: Officers to continue a pro-active estate management policy of the retail estate to identify and assist tenants, where possible at an early stage, that are experiencing problems concerning rental arrears, loss of trade or racial problems.


5. DO WE WANT ANY MORE TAKE-AWAYS OR NON RETAIL USES?

There has always been a ready market for take-aways and restaurants (A3 Use Classes Order) or office style shops (A2 Use Classes Order) such as financial advisers, estate agents and accountants. It has been the practice since the mid 1980's to resist the change of use from a normal shop premises to either of these forms of business. This practice evolved due to the risk that basic businesses such as butchers, grocers etc were selling their shops at a high premiums to A3 users resulting in too many food outlets in relation to other trades. This practice in recent years has extended to A2 users. It is felt by Officers that there should not be more than 20% of any parade to be non A1(retail shop) user.

Policy: That no more that 20% of shops in a Council owned parade should be an A2 or A3 user.


6. TENANTS QUESTIONNAIRE

To establish the views of the shop tenants a questionnaire was sent recently inviting comments on repairs, rental levels, Council response times and user clauses. Unfortunately the response from shop users was poor with only 13 responding from the 85 shop tenants. It is intended therefore to visit each premises to interview the tenants separately. Early results, however, indicate that 100% of those that responded want user clauses enforced and 12 out of the 13 wanted no more non-retail outlets.

Policy: To carry out a tenant questionnaire every two years to establish the views of shop tenants.


7. SMART TARGETS

To ensure Council owned shops are fully let and to encourage prosperous neighbourhood retail centres.

  • A minimum of 95% of Council owned shops to be let at all times
  • All void shops to be re-let within 3 months
  • Total enforcement of current user clauses in shop leases.
  • No more than 20% of shops in any parade should be non retail user.
  • A shop tenant questionnaire to be carried out every two years to ensure the Council are aware of its tenants' needs and aspirations.


8. INCOME

To ensure that the commercial retail estate rents are in line with similar shopping parades in the area, and that rent reviews, lease renewals and assignments are expedited in an efficient and professional manner.

Policy: To maintain systems to ensure rent reviews and lease renewals are carried out within statutory time limits and that rents agreed are to market rental levels.

21 October 2004.