Decision details

The Cabinet Member:

1.    Approved the disposal of The Pyramid Centre, North Bretton, Peterborough in order to support the Council’s Medium Term Financial Plan (MTFP) either by way of auction or private treaty sale. The asset is included in the Council’s approved MTFP for sale during Financial Year 2017/18 but has been brought forward for sale this financial year; and

2.    Authorised the Corporate Director – Growth and Regeneration, to determine whether the asset is  sold by private treaty or public auction and delegate to the Corporate Director – Growth and Regeneration the authority to agree the terms for sale either at auction or on private treaty terms in consultation with the Cabinet Member for Resources.

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 leases,  there is no guarantee too that the Council will be able to re-let. The centre also requires capital investment although the Council has made an allowance in its capital budgets for this.  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 maintain an income and the Council always faces the dilemma of spending money on investment assets with an inherent risk of being void and where there are competing pressures from other services on scarce funds. This dilemma places the centre at risk too of investment being utilised for other purposes notwithstanding that an allowance has been made for future years in current budgets. The centre does need expenditure and the private sector has shown on similar assets sold such as Chadburn Centre, Paston that the private sector is perhaps better placed to invest.

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

No alternative operational requirements have been identified for the property or site. The site consists of retail units and a pub let on a long term lease. The adjacent community centre is excluded from the sale. 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.