Agenda item

RESOLVED:

1.1.         To note the progress made on tranche 1 disposals.

1.2.         To approve tranche 2 of sites for disposals as set out in Appendix 1 of this report together with indicative values in Appendix 1 (exempt appendix) of the Part B report.

1.3.         To delegate authority to the Corporate Director of Resources and s151 Officer to agree, in consultation with the Executive Mayor and Cabinet Member for Finance, the terms and final price for each disposal included within tranche 2.

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

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

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.

1.5.         To note that the target value for disposals for tranche 2 is £24.8m and that disposals of tranche 2 assets will commence immediately alongside tranche 1 disposals.

1.6.         To seek approval to commence consultation with the Voluntary Community and Faith Sector (VCFS) on the proposed amendments to the Community Asset Transfer (CAT) Policy set out in paragraphs 4.15 to 4.21 and to delegate authority to the Corporate Director of Resources and S151 Officer, in consultation with the Executive Mayor and Cabinet Member for Communities and Culture, to approve a final amended CAT Policy (Draft in Part A Appendix 3) having considered the feedback provided through the consultation with VCFS organisations.

The Executive Mayor introduced the Progress update on tranche 1 asset disposals, seeking approval for tranche 2 of asset for disposal and approval of the update of the Community Asset Transfer Policy - Part A report, which provided an update on the sale of the tranche 1 assets and sought to seek approval for the tranche 2 asset disposals. The report also sought to update and consult on the Community Asset Transfer Policy.

The Cabinet Member for Finance, Councillor Jason Cummings, shared with Cabinet that the report was the second of the three tranche assets, which formed a key part of managing the council’s debt levels and associated costs. He further noted that an asset listed on the disposable programme could have a variety of actual impacts ranging from pre-negotiating of existing lease arrangements to the possibility of also outright sale; this did not automatically follow the occupants of individual assets where they would be required to leave the building of it being sold. Similarly, any existing leases with the council would be considered of tenants of other buildings. Further, each asset was individual and to be handled accordingly. Councillor Jason Cummings was pleased with the progress made thus far and noted that the council needed to continue to with the work to ensure that the forward capital receipt targets were met.   

The Leader of the Opposition, Councillor Stuart King, had asked a few questions, firstly, enquiring on the time frame of tranche 3 that was indicated to commence within twelve months, and asked for a steer on when the tranche would be published and begin; secondly, in relation to tranche 2 and the four properties to be sold, whether the four properties had been recently made vacant or were considered long term vacancies; and lastly, in relation to the Community Asset Transfer (CATs) Policy, was the intention for the publication (of the scheduling of properties that may be eligible for CATS) to occur during as part of the consultation or to follow after the conclusion of the consultation.

The Cabinet Member for Finance, Councillor Jason Cummings, responded that with regards to the timescales for tranche 3, the intention was to complete them as quickly as possible due to the impact of reducing external affairs and borrowing and costs that were associated. Though the council had capacity to undertake this work. There was no set time for tranche 3 to be published, but it would be at its reasonable and earliest opportunity. Further, there would be more information with regards to properties that may be more suitable for CAT transfer rather than vacant properties that were present and disposed primarily for capital receipt. The Executive Mayor added that the Community Asset Transfer paper would go out to consultation following oversight at the Scrutiny and Overview Committee (in Part B) before Christmas, with the policy to go to consultation to be approved before the sites would be published in the public domain.

The Executive Mayor in Cabinet RESOLVED to:

1.1.         To note the progress made on tranche 1 disposals.

1.2.         To approve tranche 2 of sites for disposals as set out in Appendix 1 of this report together with indicative values in Appendix 1 (exempt appendix) of the Part B report.

1.3.         To delegate authority to the Corporate Director of Resources and s151 Officer to agree, in consultation with the Executive Mayor and Cabinet Member for Finance, the terms and final price for each disposal included within tranche 2.

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

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

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.

1.5.         To note that the target value for disposals for tranche 2 is £24.8m and that disposals of tranche 2 assets will commence immediately alongside tranche 1 disposals.

1.6.         To seek approval to commence consultation with the Voluntary Community and Faith Sector (VCFS) on the proposed amendments to the Community Asset Transfer (CAT) Policy set out in paragraphs 4.15 to 4.21 and to delegate authority to the Corporate Director of Resources and S151 Officer, in consultation with the Executive Mayor and Cabinet Member for Communities and Culture, to approve a final amended CAT Policy (Draft in Part A Appendix 3) having considered the feedback provided through the consultation with VCFS organisations.