Development Agreement

1
Academy Development Agreement
Transfer to New Buildings
Academy Open
Open (in existing buildings) 3 yrs max
Open in new buildings
00
Transfer of Assets
Development Agreement
Design and Build Contract Award
Practical Completion
Completion Date
Construction
Defects Liability Period 12 months min
Short Term Lease (between LA Academy Trust) If
the Academy needs to take up occupation prior to
exchange of the Development Agreement, it will do
so pursuant to a Short Term lease. The Short
Term lease contains a break clause which provides
that it will immediately determine on exchange of
the Development Agreement, whereupon the
Academys continuing occupation will be under
the occupational licence in the Agreement. The
Short Term lease is to be developed by LA and
agreed with the Academy Trust. It is likely to
be based on an LA template.
Occupational Licence (between LA Academy
Trust) The Development Agreement provides for
the Local Authority to enter in turn into the DB
Contract relating to the design, construction and
commissioning of Academy facilities. The
Development Agreement also provides a
non-exclusive Occupational Licence by the
Authority to the Academy prior to the grant of
the long lease. The purpose of the Licence is to
permit the Academy in certain circumstances to
occupy the building (whether existing or new
build) prior to the grant of the long lease,
during either the development works and/or upon
Practical Completion and into the Defects
Liability Period. The Occupational Licence is
contained in the Development Agreement and is a
standard form document. Authorities are strongly
discouraged from seeking to negotiate amendments
with the Academy Company which could impact upon
the VAT treatment of the arrangements provided
for in this Agreement.
Long Term Lease (between LA Academy Trust) A
125 yr Long lease is granted by the Authority to
the Academy Trust on the Completion Date at the
end of the Defects Liability Period. The DB
Contract is also novated to the Academy Trust at
a date immediately following completion of the
Defects Liability Period