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Decision details
Commercial Property Purchases
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
Purpose:
To consider the potential purchase of up to three sites.
Decisions:
This item was brought to Cabinet under urgency provisions.
Peter Grace, Assistant Director, Financial Services and Revenues provided a report to consider the potential purchase of up to three sites. One is due to be auctioned on 4 December 2018.
Any comments of the Income Generation Board would be advised verbally to Cabinet after dates were advised.
The Chair decided to vote on each possible property purchase separately, as shown in the resolution below.
This recommendation was proposed by Councillor Chowney, which was seconded by Councillor Batsford.
RESOLVED that:
(6 for, to 2 against that)
1. Cabinet consider whether the Council should purchase up to three further Commercial Properties given the uncertainties around Brexit, and the extent of acquisitions to date.
This recommendation was proposed by Councillor Chowney, which was seconded by Councillor Forward.
(6 for, to 2 against) that:
2. That Delegated authority is given to the Chief Finance Officer in consultation with the leader of the Council to purchase site (i) as detailed in the part 2 report up to a sum as detailed in the report.
This recommendation was proposed by Councillor Chowney, which was seconded by Councillor Batsford
(6 for, to 2 against) that:
3. That Delegated authority is given to the Chief Finance Officer in consultation with the leader of the council for the Estates Manager to let the agent know that the council is still interested in purchasing property (ii) as detailed in the part 2 report.
This recommendation was proposed by Councillor Chowney, which was seconded by Councillor Lee.
(Unanimously) that:
4. That any progress on property (iii) as detailed in the part 2 report be halted, but if the property becomes available again, a further report be brought to Cabinet.
The reasons for these recommendations were:
The first site has the whole of the ground floor empty, and has been for a considerable time. It is considered that there will be opportunities for the Council to maximise the benefit to the community of this building by bringing it fully into use, either through direct letting or with the assistance of external grant assistance. This is an important building for the town and the Council to help secure employment opportunities and secure business rate income in the future.
The second site presents significant employment opportunities within St Leonards and likewise a significant Business Rate income. Whilst there may be opportunities to redevelop the site in future years the need to retain the site for employment space is apriority, as is the need to retain Business Rate income. Some of the building is only partially occupied giving the opportunity to relook at usage and the potential for the Council to be directly involved in driving greater economic regeneration.
The third site, for which the Council already owns the freehold, is expected to require capital investment in the near future to help ensure the continued economic vitality of this part of the town. The Council is currently able to access the funding required to do so, in order to provide shop/business units and preserve jobs and generate Business Rate income.
The Council will need to ensure business rate growth in the future – business rates replacing government grant funding. The Council would have the opportunity to have a direct involvement in the long term future of these sites to help ensure the continued economic and regeneration of the town. The acquisition would also assist the Council to further diversify its property holdings and manage the overall risk exposure within the portfolio as well as secure additional income streams either directly or through business rates retention.
Report author: Karen Williams
Publication date: 11/04/2019
Date of decision: 03/12/2018
Decided at meeting: 03/12/2018 - Cabinet
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