Leicester Square and Chiltern Street car parks

In the financial year 2008/09, Westminster City Council Finance department reported the net income from the car parks as follows:

The car parks have been let on leases for a maximum term of 5 years at annual rents as follows:

The leases are fully repairing and insuring leases passing on the responsibility for all costs associated with the operation and repair of the car park including business rates to the tenant.

As a result the additional annual net income receivable by Westminster City Council is as follows:

These calculations are based on 2008/09 cost and income figures being the last full year available. Since the introduction of the congestion charge, demand for parking in central London locations has fallen translating into lower net income from the two subject car parks. In terms of costs, the introduction of the 2010 Rating List is likely to lead to a further increase in business rates from 1^st April 2010 further increasing costs over the above levels, reducing the net income further.

In summary, the letting of the two car parks has generated an extra net income to Westminster City Council in excess of £800,000 per annum equating to over £4 million over a 5 year period. The letting has also reduced the Council's exposure to the risk of falling car parking revenues and increased business rates.

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