Purpose

The Executive Member for Regeneration submitted a report for Executive consideration.

The report sought Executive approval to dispose of the Council’s freehold interest in TeesAMP 1 & 2 in accordance with the Council’s Asset Disposal Process.

The Medium-Term Financial Plan (MTFP) Refresh 2024/25 to 2026/27 report agreed by Executive on 23rd August 2023, regarding the Council’s overall financial position, set out the challenges faced in setting a balanced budget for 2024/25 and beyond.

The Review of Capital Receipts Strategy 2023/24 report, agreed by Executive on 21st November 2023, regarding the Flexible Use of Capital Receipts, set out the importance of securing capital receipts from asset sales. These could be used to support the Council’s financial position in one of three ways:

a)    to fund investment in projects that would either deliver ongoing revenue savings or deliver transformation in public service delivery through cost and/or demand reduction in accordance with Government regulations governing the Flexible Use of Capital Receipts;

b)    to repay the Council’s debt and reduce the annual costs of repaying principal and/or interest on such debt; and,

c)    to invest in infrastructure through the capital programme.

The 2024/25 budget and MTFP, Council Tax Setting and Treasury Management report approved by Council on 8 March included a plan to achieve capital receipts totalling £19.7m in 2024/25 rising to £44.7m by 2026/27 in order to finance the capital programme (£18m), transformation programme and redundancies (£26.7m).

The Asset Review report agreed by Executive on 21st November 2023 recommended a significant programme of asset sales be brought forward, in addition to the existing pipeline of land and properties being brought forward for disposal. The key asset listed for sale within the report was TeesAMP.

The Asset Disposal Business Case was included as Appendix 2 of the report.

Members discussed that while TeesAMP was an excellent initiative a change in its focus was required and that the sale would be a significant contributor to the transformation agenda. The Mayor thanked all involved in the report’s creation.

Decision

ORDERED That Executive:

1. 1.    Approves the sale of TeesAMP (1 & 2) to the buyer detailed in the exempt Appendix (1) of the report for the sum detailed in the exempt Appendix (1) of the report.
2. 2.    Delegates the agreement of any final revisions to the price to the Director of Finance.