A new lease for warehouse units used to store NHS equipment is set to be signed, with rent rising by more than £38,000.
Glasgow City Council is looking for a new facility for its EquipU store, but officers have reported the options are “limited and more expensive” due to the Covid-19 pandemic.
Instead, councillors will be asked to agree to renewing the lease of units at the Baillieston Distribution Centre, where the equipment, returned to the city’s health and social care partnership, is currently held.
The five-year extension would see the annual rent increase from £100,383 per year to £138,780.
Council officers have said the demand for warehouse space is “currently at a high” due to the Covid-19 pandemic, which means there are fewer alternative venues.
Currently, the council, on behalf of the city’s health and social care partnership, rents units 17-20 and 21-22 at the Baillieston centre from the landlord, Rockspring UK Value 2 Caisson Ltd.
The EquipU service is responsible for providing, delivering and installing a range of disability equipment, supplied by health and social work services to disabled people living at home, and the units are used to store returned equipment.
Both leases expire on January 22 and, although the future of the store is under review, council officers have recommended extending for five more years.
A council report stated: “The future of the EquipU store is currently being considered as part of the depot review and it is anticipated that it will eventually be accommodated elsewhere, possibly in a new build council facility.
“While the depot review is ongoing and until such times as the outcome of that review is implemented there is a continuing need for a facility for the EquipU store.
“Discussions have taken place with the landlord with regards to the potential renewal of the leases and terms provisionally agreed.
“The terms of the proposed lease renewals would allow for the development of a new depot to be completed in the interim should that be the outcome of the depot review.”
The report added officers searched for “suitable alternative facilities however as a result of the supply chain issues experienced by many companies due to the Covid-19 pandemic the demand for warehouse accommodation is currently at a high”.
Councillors will be asked to approve extending the lease when they meet on Thursday.
Under the new lease, the council will be allowed to install electric vehicle charging points within the yard, subject to agreement with the landlord on location.
By Drew Sandelands, Local Democracy Reporter