Decision details

To authorise the Chief Executive, in consultation with the Solicitor to the Council, Corporate Director Resources, the Corporate Property Officer and the Cabinet Member Resources, to negotiate and conclude the sale.

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.

Option 1 - Do nothing. 

The Council has determined this is not an investment asset it chooses to retain and commit future revenue and capital spend on, as would be the case on assets it chooses to hold as investment assets. The asset is not identified as one required to support future growth or where the Council will have a future operational need. On expiry of the existing lease in 2021 there is no guarantee too that the Council will be able to re-let. 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 continue to generate an income after the current lease expires. Presently the buildings are let on a full repairing and insuring basis which means the tenant is responsible for all maintenance and repair. However, on lease expiry there is no guarantee that a new tenant would take on this liability, in fact it is unlikely they would. Due to the age of the building and it being a conversion from residential to office to create a modern office environment would require investment which the Council has made no allowance for. Given it meets none of the 3 criteria of required for operational need, growth or investment income purposes to hold and invest is considered not a viable option.

Option 3 - Re-use or redevelop the property for Council use.

No alternative operational requirements have been identified for the property or site. 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 this had it been suitable for Council staff and there was a demand this would not align with the Council’s agreed programme of relocating most staff to Fletton Quays in a modern purpose built building, consequently this 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.

None.

A conveyance plan is attached showing the asset coloured red.