Delivery Of The Council's Capital Receipts Programme Through The Sale Of Surplus Building at 17 Fletton Avenue, Peterborough - FEB18/CMDN/98
Decision Maker: Cabinet Member for Resources
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
This report is for Councillor David Seaton to consider exercising delegated authority under paragraph 3.4.3 of Part 3 of the constitution in accordance with the terms of his portfolio at paragraph (i).
The Cabinet Member is recommended to:
· Approve the disposal of 17 Fletton Avenue, Peterborough in order to support the Council’s Medium Term Financial Plan (MTFP) either by way of public auction sale or Private Treaty. The asset is included in the Council’s approved MTFP for sale during Financial Year 2017/18.
· Authorise the Corporate Director – Growth and Regeneration to determine whether the asset is to be sold by private treaty or public auction and the authority to negotiate and conclude terms as appropriate to complete the disposal of this Council owned asset
Reasons for the decision:
The recommendation is being made to ensure that the Council meets its Capital Receipts Programme requirements and provide it with the opportunity if it so choses to utilise the receipt to support the Councils revenue spend
Alternative options considered:
Option 1 - Do nothing.
The Council has determined this is not an investment or operational asset which it chooses to retain and commit future revenue and capital spend, unlike those properties that are retained. The asset is not identified as one required to support future growth or where the Council will have a future operational need. A “do nothing” option is therefore not recommended.
Option 2 - Retain the property and generate investment income.
Future investment in the site and buildings would be required to generate an income from an alternative use. The buildings were utilised by special day care services and adapted to suit those operational requirements. Due to the age of the building and it being a conversion from residential to a day care centre, with associated offices, the costs associated to convert the property to create a modern office environment would require considerable investment for which the Council has made no allowance. This property does not meet any of the 3 criteria required for:
a) Operational need,
b) Growth or
c) Investment income purposes
The “retain and invest option” is not considered a viable option.
Option 3 - Re-use or redevelop the property for Council Use
The property has been circulated to all the departments to see if there may be any alternative operational requirements for the building. Further, the Council has undergone a substantial rationalisation programme which will lead to most Council staff being located at new offices on Fletton Quays from July 2018 onwards. Given these circumstances had the building been suitable for Council staff and there was a demand, this would not align with the Councils agreed programme of relocating most staff to Sand Martin House at Fletton Quays. As such, “reuse” is not a viable option.
As a consequence of the 3 options above being discounted, Council Officers have recommended and this has already been approved by Full Council that this asset is made available for sale.
Interests and Nature of Interests Declared:
Publication date: 15/02/2018
Date of decision: 15/02/2018