OK, so we looked earlier at what the auditors had to say about how the concession contract was unlawfully awarded to (the now Cllr) Perks, next we move onto how it was managed with regards to rent reductions, changes to terms of agreement and other miscellaneous items.
Rent agreed in January 2007
On 8th January 2007, Cllr Graham Perks, the former concessionaire at the Winter Gardens, signed a letter accepting terms and conditions of the concessionaire agreement.
Outlined in this contract, which commenced on 1st February 2007 and ran for five years (with an option to extend for a further two years), were details of the agreed rent.
The schedule of rent payment was as follows:
- £600 per week for the first 13 weeks
- £800 per week for the next 13 weeks
- £1,000 per week thereafter
The £1,000 per week rent was to be reviewed every two years and it was stipulated that the review should NOT permit a reduction below the £1,000 per week figure.
Massive rent discounts
Within Appendix One of the report, auditors reveal that Cllr Perks only ever paid the agreed £1,000 per week figure once.
The report tells us that Cllr Perks went to the Ventnor Town Council (VTC) several times requesting rent discounts which over the period of his concession totalling approximately £35,000.
£35,000 of rent discounts in less than three years
Rent discounts given before discussed at council
The usual format for the series of requests for rent discounts was for Cllr Perks to write to Town Clerk, John Farrant, with his request. Protocol was for this request to be taken to the VTC for consideration.
However, in one instance, on the 23rd September 2008, John Farrant wrote to Cllr Perks granting another rent reduction the day before it was even considered by the Committee.
As an officer, John Farrant clearly had no authority to grant this rent discount.
Another rent reduction
Nearly ten months after signing the contract, Cllr Perks wrote to John Farrant again requesting another rent reduction. This time stating he was dissatisfied with the pre-agreed arrangements.
Paperwork on file shows Cllr Perks felt the agreed rental figure was not comparable to other pubs in Ventnor when looking at rents, location and facilities.
For those who aren’t aware, Cllr Perks has been the landlord of several pubs in town. This experience would give him a fair understanding of what was a reasonable rent for the premises would be.
VTC pay utility costs and more ….
Although Cllr Perks paid a weekly (reduced) rent to use the Winter Gardens, the Ventnor Town Council covered all of the cost of gas, electricity, water, business rates and refuse disposal, figures totalling a substantial annual cost for any business.
The report also reveals that the VTC ended up paying for repairs to a bottle cooler, glass washer and ice machine owned by Cllr Perks.
10% bar split abandoned
The contract that was signed stated that on the night of any events promoted by the VTC, Cllr Perks should pay 10% of bar takings to the VTC.
It was suggested that the contract should be changed as it was claimed that it was “too difficult to be certain how much of the bar income arose from the promotion and how much came from diners and regular customers.”
Again this was carried out, with the 10% of takings being kept by Cllr Perks..
Instead Cllr Perks simply provided a rider (drinks) for any performing artists on those nights.
Further instalments on the findings of the report to follow.
