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Conwy Council’s costly HGV depot lease to continue until 2025 review

Conwy County Council HQ

COUNCILLORS on a scrutiny committee won’t be updated on a contract costing Conwy £20,000 a month in wasted rent until May 2025 – by which time another £160,000 will have been shelled out.

The purpose-built HGV depot at Mochdre Commerce Park is costing taxpayers £240,000 a year in rent, despite the fact the structure can’t house council trucks as the floor is too weak.

The council opted to discuss the matter behind closed doors at the finance and resources overview and scrutiny committee this month after passing a resolution to evict the press and public from the Bodlondeb meeting.

But whilst the discussions remain secret, the committee resolved that councillors noted the current position and “that a further updated report be provided in May 2025” – by which time Conwy would have paid an additional £160,000 in rent.

Conwy is currently involved in a legal dispute with the landlords R.R Sea Strand Limited – although the initial lease was taken out with Conygar Investment Company PLC.

The contract for the building started in May 2016, meaning the authority has, to date, spent around £2 million – costing taxpayers around £20,000 a month.

Conwy is tied into a 35-year lease for the depot with an option of breaking the lease in 2031, meaning it will have paid around £3.6m by the time the contract ends.

The Local Democracy Reporting Service also asked Conwy if the rent had increased since 2016 and the council confirmed it was in legal discussions regarding a review of rent.

A Conwy County Council spokeswoman responded: “The provisions within the lease refers to processes in relation to reviewing rent.
“These are standard clauses within commercial leases.

“These processes are currently being discussed and are subject to negotiation between professional advisors.”

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She added: “The council cannot comment on a matter that is the subject of ongoing litigation.”

The Mochdre building was used as a make-shift storage building for pandemic-related equipment and readied as an emergency temporary morgue during the height of the COVID pandemic.

The authority raised council tax by 9.67% this year and cut front-line service budgets by 10%.

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