Purpose

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

 

The report sought Executive
approval to dispose of the Council’s freehold interest in the following
properties in accordance with the Council’s Asset Disposal Process:

 

a.
House of Fraser; and,

b.
Zetland Car Park.

 

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 that may be used to support the
Council’s financial position in one of three ways:

 

a.   
to fund investment in projects that will 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 Asset Review report
agreed by Executive on 21st November 2023 therefore 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.

 

Since these reports were
agreed by Executive in November there had been a significant effort to generate
market interest in the new and existing pipeline of land and properties. Some
of this interest had developed into firm offers that had been considered
agreeable within the context of the Council’s current financial position.

 

The two properties
contained within this report had both been the subject of firm, credible offers
that reflected their current valuations and were therefore brought forward for
decision in line with the agreed Asset Disposal Process.

 

As the deal was yet to be
fully concluded, and negotiations may have continued until the date of final
completion, the name of the buyer and the valuations of the respective
properties had been identified in a confidential appendix rather than in the
main body of the report. These details would be released upon formal
completion.

 

The Mayor recommended the
report be amended to include an Overage Agreement and a time scale of 2-5 years
to complete the process.

 

Decision

ORDERED that Executive approve:

 

1.   
That the proposed amendment to include an
Overage Agreement and timescale of 2-5 years for completion be accepted.

2.   
The sale of the House of Fraser Building
(37 Linthorpe Road) to (Ref A Buyer Name - Confidential Appendix I) for (Ref B
HoF Valuation - Confidential Appendix I);

3.   
The sale of Zetland Car Park to (Ref A Buyer
Name - Confidential Appendix I) for (Ref C Zetland Valuation - Confidential
Appendix I); and,

4.   
Delegates responsibility to the Director
of Finance and the Director of Regeneration for the negotiation of the final
sales value of each property.