Agenda item

RESOLVED:

1.1.          To approve the Annual Assets Disposal Plan (AADP) for the financial year 2023/24, which includes lettings and re-lettings, as set out in Appendix 1 of this report together with indicative values in Appendix 2 (exempt appendix).

1.2.          To delegate authority to the Corporate Director of Resources and s151 Officer to agree the terms and final price for each disposal included within the AADP.

1.3.          To delegate authority to the Corporate Director of Resources and S151 Officer, in consultation with the Cabinet Member for Finance and Executive Mayor, to agree any variance to the list of proposed disposals.

1.4.          To delegate authority to the Corporate Director of Resources and s151 Officer to agree terms for all lettings, leases and rent review settlements for all Council assets.

1.5.          The delegations in this report shall only be exercised following:

i.                 sign off of a business case by the Corporate Management Team (CMT) including full financial assessment;

ii.                formal Red Book valuation, if required on a property to be sold; and

iii.              formal marketing unless there is a clear special purchaser or offer made considerably in excess of the market value.

1.6.          To note that the target value for disposals for 2023 /2024 is a minimum of £50m.

1.7.          To note that progress against the AADP and any variations, shall be reported to Cabinet annually.

1.8.          To approve a re-drafting of the Financial Regulations to reflect the proposed decision-making changes relating to Assets, set out in this report (and any clarifications thereto), to be reported to the Constitution Working Group with a view to seeking recommendations from the General Purposes Committee and/ or the Cabinet Member for Finance and the Executive Mayor in Cabinet for onward recommendations to Full Council.

The Executive Mayor considered the Annual Asset Disposal Plan 2023/24 and Lease Renewals and Rent Review Settlements for Various Commercial Properties report which sought approval to delegate the authority to approve the terms for all lettings, leases and rent review settlements to the Corporate Director Resources and S151 Officer.

The Executive Mayor took the opportunity to thank the Head of Estates, Asset Management and Facilities, Stephen Wingrave, who was retiring from his service in Asset management after thirteen years. Stephen had managed his role with expertise and professionalism and had always been willing to support Members and colleagues across the Council and would surely be missed.

The Executive Mayor reminded Cabinet of the debt the council was in which accumulated to over £1.6 billion pounds, where large amounts were unbacked by assets, and led to £161 million pounds of additional Capitalisation required from Government, who had requested for Croydon to do all they could to reduce its debt by reducing the size of the asset base.

The report had additionally set out this financial year’s proposed Annual Assets Disposal Plan, targeting income of at least £50 million pounds from asset sales.

The report further proposed streamlined governance arrangements which enabled the Council to act in a faster and more commercial manner, maximising returns and increasing pace.

Many of the assets were familiar as they had previously appeared on previous lists. Many of the proposed disposals listed in Appendix 1 were offered to market with existing leases which would protect current tenants. The council was also consulting with the NHS as the preferred partner for specific sites in Coulsdon and New Addington which would result in new health facilities for the community.

The Executive Mayor acknowledged that whilst asset disposals were often challenging, this was an important element of work to reduce the current debt and reduce the size of the council’s estate to make it more cost-efficient for taxpayers.

The Cabinet Member for Finance, Councillor Cummings reinforced that that disposal value was a minimal of £50 million pounds and it was the expectation and target to overachieve against that figure. The more the council could bring in terms of assets receipt would better the model.

The Shadow Cabinet Member for Finance, Councillor Young welcomed the asset disposal 2023/24 plan and its target set.

The Executive Mayor highlighted that balancing books and reducing the council debt was a priority and demonstrated to the Government that the council were fixing its finances.

The Executive Mayor in Cabinet RESOLVED:

1.1.         To approve the Annual Assets Disposal Plan (AADP) for the financial year 2023/24, which includes lettings and re-lettings, as set out in Appendix 1 of this report together with indicative values in Appendix 2 (exempt appendix).

1.2.         To delegate authority to the Corporate Director of Resources and s151 Officer to agree the terms and final price for each disposal included within the AADP.

1.3.         To delegate authority to the Corporate Director of Resources and S151 Officer, in consultation with the Cabinet Member for Finance and Executive Mayor, to agree any variance to the list of proposed disposals.

1.4.         To delegate authority to the Corporate Director of Resources and s151 Officer to agree terms for all lettings, leases and rent review settlements for all Council assets.

1.5.         The delegations in this report shall only be exercised following:

1. sign off of a business case by the Corporate Management Team (CMT) including full financial assessment;

2. formal Red Book valuation, if required on a property to be sold; and

3. formal marketing unless there is a clear special purchaser or offer made considerably in excess of the market value.

1.6.         To note that the target value for disposals for 2023 /2024 is a minimum of £50m.

1.7.         To note that progress against the AADP and any variations, shall be reported to Cabinet annually.

1.8.         To approve a re-drafting of the Financial Regulations to reflect the proposed decision-making changes relating to Assets, set out in this report (and any clarifications thereto), to be reported to the Constitution Working Group with a view to seeking recommendations from the General Purposes Committee and/ or the Cabinet Member for Finance and the Executive Mayor in Cabinet for onward recommendations to Full Council.