HEREFORDSHIRE Council is to hand a  99 year lease on Queenswood Country Park and Bodenham Lake nature reserve to a newly formed company.

As reported by the Hereford Times, this new company is to be a legal entity established by the New Leaf co-operative and Herefordshire Nature Trust (HNT).

The iconic sites are among a host of natural assets countywide that the council can no longer afford to keep.

Councillor Harry Bramer, cabinet member for contracts and assets, sealed the  groundbreaking deal in principle this week.

But related recommendations mean HNT and New Leaf must demonstrate the capacity to cover operating costs before the transfer can go ahead on a 99 year lease.

The handover could still be subject to a call in by the council's scrutiny committee.
Objections or alternative proposals could still put a stop  to the transfer if deemed valid.

Future management of both sites is crucial to the council’s savings plans.

But the council has options to retain responsibility if the transfer cannot go ahead.
Council officers have been working with not for profit New Leaf and HNT - which manages 54 local nature reserves - over the past year to support the development of the business plan.

New Leaf's proposal does not indicate any ongoing financial contribution from the council, with the new company expected to operate entirely independently.

The transfer recommendation requires financial viability for a minimum of three months on transfer and continued financial sustainability as agreed by the council’s chief financial officer.

A financial plan provided includes projections over the first five years and cash flow projections for the first two years  of operation.

The council will set out the terms of the leasehold transfer, sub letting terms and other triggers that could see the sites returned to the council.

As part of the council’s medium term financial plan, there is an agreed savings target  of £300,000 - £150,000 in 2014/15 and £150,000 in 2015/16 - to cut the cost of countryside services to zero.

Anticipated savings as a result of the transfer recommendations will mainly come from further staff reductions (£120,000) and other cuts to operational costs of £30,000.