Decision details

The Cabinet Member has agreed to:

1. Authorise the Corporate Director – Growth and Regeneration, to negotiate and conclude terms for the sale of this surplus Farms Estate asset in order to support the Council’s Medium Term Financial Plan (MTFP). The proposal is that the asset is sold by private treaty and terms have been agreed with a Purchaser. The sale of surplus farm assets is included in the Council’s approved MTFP for sale during Financial Year 2016/17; and
2. In the event that the current proposed sale does not go ahead to authorise the Corporate Director – Growth and Regeneration to determine whether the asset is to be sold by private treaty or public auction and authority to negotiate and conclude terms as appropriate to complete the disposal of this Council owned asset.

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 Council’s 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. The asset is currently unlet and there is no guarantee 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. Due to the age of the building it 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.

As a consequence of the 3 options above being discounted, Council Officers have recommended and this has already been approved by Full Council that surplus Farms Estate assets are made available for sale.

None.

A conveyance plan is attached showing the asset coloured red.

Surplus farm assets are referred to in the Council’s approved Farms Strategy 2016.