1. That the Surrender of the existing leases between the Council and Lunar in so far as they relate to Clarendon House be authorised.

2. That the Corporate Director Economic Growth, Environment and Infrastructure (EGEI) be authorised to finalise the terms for and to:

a:   grant a new 250 year headlease of Clarendon House from the Council       

      to Lunar;

b:  accept a new lease from Lunar of the ground floor retail units (not forming part of the proposed residential redevelopment) and the existing first floor library premises;

c:  grant a new lease of the ground floor retail units (not forming part of the proposed residential redevelopment) and the existing first floor library premises; and

d:   accept a new lease of the existing first floor library premises.

3. That the Director of Legal and Democratic Services be authorised to agree the Heads of Terms negotiated with Lunar to allow a share of the Capital Receipt received by Lunar to pass to the Council on disposal of the residential scheme to a developer.

4. That the Director of Legal and Democratic Services be authorised to complete all necessary legal documentation accordingly.