Report to: Lead Member for Resources and Climate Change
Date of Meeting: 21 October 2025
By: Chief Operating Officer
Title: Decision regarding the grant of a 99 year substation lease at Former Newhaven Household Waste Site, Lewes Road, Newhaven
Purpose: To agree to grant a 99 year lease for a substation. This is required to facilitate the charging of Lewes District Council’s waste vehicles, in connection with the adjacent waste collection facility.
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RECOMMENDATIONS:
The Lead Member for Resources and Climate Change is recommended to:
1) Approve the granting of a 99 year substation lease to Last Mile Electricity Limited; and
2) Delegate authority to the Chief Operating Officer to; determine the detailed terms of the lease, approve the final lease negotiations and the signing of the lease and any related documentation by East Sussex County Council; and, take any other actions considered appropriate to give effect to the recommendations in this report.
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1
Background
1.1 East Sussex County Council owns the freehold of the site known as the Former Household Waste Site, Newhaven (“the Site”). The land is identified by a red line in Appendix 1.
1.2
Lewes
District Council (“LDC”) currently occupy most of the
Site, on the basis of a 20-year lease dated from 14 May 2025. The
lease permits a use in connection with LDC’s waste collection
functions including storage of equipment and parking of vehicles.
The waste vehicles are electric and charging points therefore need
to be installed on site. A substation is therefore required, which
is to be installed and maintained by Last Mile Electricity Limited.
A lease of 99 years is required to record and regulate the basis of
occupation. It is typical for substation leases to be granted for
nil or minimal rent, perhaps expressed as a ‘peppercorn
rent’. The lease will be granted on a small section of the
Site, outlined in blue in Appendix 1.
1.3 When granting a lease, a local authority must comply with the duty to secure the best consideration reasonably obtainable imposed by s123 Local Government Act 1972 unless consent of the Secretary of State is obtained. The terms of the lease are considered to be the best consideration that can be reasonably obtained and are comparable to other substation leases. The granting of the lease will also facilitate the use of the remainder of the Site.
2
Supporting information
2.1 The use of electric vehicles is part of LDC’s plan to become net zero by 2030 as outlined in their Climate and Nature Strategy 2024.
2.2
If
granted, the substation lease will enable the electrical supply to
the Site to be upgraded, which will improve the Site.
2.3
The
3 options explored are set out below:
1 Refuse to grant a lease to Last Mile Electricity Limited (“the operator”).
2 Agree to grant a substation lease, but for a term shorter than 99 years.
3 Agree to grant a lease to Last Mile Electricity Limited for 99 years.
2.4 Option 1 (Refuse to grant a substation lease for 99 Years to Last Mile Electricity Limited): The refusal to grant a lease will prevent LDC from being able to upgrade the electricity supply to the remainder of the site. The fleet used for the waste processing operations is electric and will need to be charged. The intention is to charge the vehicles when parked at the Site.
2.5 Option 2 (Agree to grant a substation lease, but for a term shorter than 99 years): A 99 year term is considered to be standard. The operator has confirmed that they will not take a lease for less than 99 years as they are to install and maintain the substation.
2.6 Option 3 (Agree to grant a substation lease for a term of 99 years). This will facilitate the requirements of both Last Mile Electricity Limited and LDC, as a public sector partner.
2.7 Option 3, granting a substation lease for a term of 99 years is considered to be the most appropriate option, for the reasons stated in the above paragraphs.
3
Conclusion
and reasons for recommendations
3.1
By
entering into the substation lease, East Sussex County Council
(ESCC) can help to support a public sector partner in the provision
of waste collection services in the local area, and the charging of
the associated green fleet. The proposed terms are considered to
reflect the best consideration for the Site in accordance with
s.123 of the Local Government Act 1972. The Lead Member for
Resources and Climate Change is therefore recommended to approve
the granting of the 99 year substation lease to Last Mile
Electricity Limited.
3.2 To facilitate the timely completion of the lease documentation, the Lead Member is also recommended to delegate authority to the Chief Operating Officer to; determine the detailed terms of the lease, approve the final lease negotiations and the signing of the lease and any related documentation by ESCC ; and, take any other actions considered appropriate to give effect to the recommendations in this report.
ROS PARKER
Chief Operating Officer
Contact Officer:
Rebecca Lewis, Head of Estate Management and Disposal
Tel: 07955 312 371
Email: rebecca.lewis@eastsussex.gov.uk
LOCAL MEMBER
Councillor James MacCleary – Newhaven and Bishopstone
BACKGROUND DOCUMENTS
None