Purpose

That Cabinet formally declares the asset surplus to operational requirements.

Decision

RESOLVED:

1. That Cabinet formally declares the asset surplus to operational requirements.

1. That Cabinet approves the minimum reserve price as outlined in the part 2 report.

1. That Cabinet delegates authority to the Deputy Chief Executive and Executive Director of Resources (s151 Officer) in consultation with the Director of Land and Property and the Cabinet Member of Property, Waste and Infrastructure to agree any specific covenants, to finalise the transaction and enter into all associated legal agreements (including if the asset can be sold prior to auction by the auctioneers).

REASONS FOR DECISIONS:

Cabinet has previously endorsed rationalisation of the surplus estate.

·         To enable the disposal, Cabinet is asked to formally declare the asset surplus to operational requirements under the Council’s Constitution.

·         The property is located out of county, within the jurisdiction of the London Borough of Sutton, and is currently vacant therefore not income generating with holding costs being incurred. 

·         Due to its vacant condition, the property is vulnerable to unauthorised access and occupation. Previous incidents of intrusion have caused extensive internal damage to the farmhouse, requiring significant capital investment to reinstate it to a habitable standard.

·         There have been two failed tenancy negotiations seeking to secure a new Farm Business Tenancy with the condition and costs to remedy being the primary reason for not proceeding.

·         The asset has been identified for sale by auction due to issues around security and condition including Health & Safety. A sale by auction enables an early conclusion of a sale and is ideal for constrained assets.

(The decisions on this item can be called-in by the Resources and Performance Select Committee)