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Agenda item
Land and Property Disposal Programme
Decision:
1. Add Land at rear of 419 to 447 Bexhill Road, Mayfield E, 12/13 York Buildings and land at Upper Wilting Farm, to the Council’s Land and Property Disposal Programme.
2. Approve the disposal of the sites in accordance with section 123 of the Local Government Act 1972 Local Government Act 1972 (legislation.gov.uk).
3. Delegate authority to the Property & Commercial Assets Manager in consultation with the Leader of the Council and Finance Portfolio Holder to take all actions to dispose of the sites and agree the terms of the sales.Minutes:
In a change to the published agenda, this item was called second by the Leader of the Council.
The Chief Executive presented a report to seek approval of the sale of four council owned sites to generate capital receipts estimated at more than £3 million. This would help to reduce capital borrowing requirements and potential interest costs.
The sites listed for disposal have been considered by officers for some time and there has now been an opportunity to review the sites. The council no longer has capacity to develop its own housing, and this can be delivered quicker by others. Therefore, it is proposed that these disposals are brought forward. In relation to York Buildings officers have concluded the property is no longer suitable for delivery as social housing.
The Leader of the Council invited questions from other councillors present.Councillor Beaney asked if there would be any implications for the brownfield land release funding received for Bexhill Road South, and what guarantee there is that any of the sites will be developed for social housing? The Chief Executive replied that the council would not advertise publicly the expected asking price for each asset as this will undermine the ability to get the best price. The brownfield land release fund will need to be refunded. It is an aspiration that these sites will be sold to social housing providers, but this cannot be guaranteed.
Councillor Hilton commented that part of the council’s projected £1 million savings are based on the council building houses on some of these sites. The Chief Executive and Chief Finance Officer confirmed that projected savings will be adjusted accordingly.
Councillor Carr asked why there were no business cases for any of the proposals and if the Cabinet will commit to an urgent review into the York Buildings project? The Chief Executive replied that the council needed to make swift decisions to address the current housing crisis. The council has been working with partners to try to bring York Buildings forward but regrettably this has not been possible. Lessons are being learned and these will be applied to future projects.
Councillor Patmore noted that without an asset management plan it is not clear how the decision to dispose of these assets has been arrived at. The Chief Executive replied that the council employs a number of chartered surveyors who liaise with colleagues within the sector. Senior leadership are content to take their advice that these sites are appropriate for sale at this time.
Councillor Collins asked if there was scope for using other local authorities to deliver housing when Hastings Borough Council has the land, but not the capacity to develop it? The Chief Finance Officer replied that the capacity of officers is not the only consideration. Developing the sites would mean the council borrowing money and accepting increased risk. It is unlikely any other authority would develop these sites on behalf of the council.
The meeting adjourned at 7.42pm and resumed at 7.46pm due to a technical issue with the live stream.
Councillor Barnett proposed approval of the recommendations, seconded by Councillor Evans.
RESOLVED (unanimously):
1. Add Land at rear of 419 to 447 Bexhill Road, Mayfield E, 12/13 York Buildings and land at Upper Wilting Farm, to the Council’s Land and Property Disposal Programme.
2. Approve the disposal of the sites in accordance with section 123 of the Local Government Act 1972 Local Government Act 1972 (legislation.gov.uk).
3. Delegate authority to the Property & Commercial Assets Manager in consultation with the Leader of the Council and Finance Portfolio Holder to take all actions to dispose of the sites and agree the terms of the sales.Reasons:
1. Ahead of the wider Council strategic asset review we have conducted an initial review of the Council’s assets and identified these sites can be brought forward for immediate sale for the reasons outlined in the report.
2. The sales will generate capital receipts currently estimated to be worth in the region of £3m. These capital receipts would then be reinvested into funding the capital programme and reduce external borrowing. This would therefore reduce our borrowing costs such as MRP (Minimum revenue Provision) as well as costly interest charges which are continuing to rise with interest rates.
3. This would have a beneficial impact on our revenue position and take some of the pressure off the Council services and general reserve balance which is continuing to be used to fund the revenue budgets for areas such as Homelessness.
Supporting documents:
- land disposal programme - cabinet 07.08.23, item 21. PDF 128 KB
- 12-13 york buildings 1578, item 21. PDF 416 KB
- Mayfield E 1453, item 21. PDF 312 KB
- Car Park and Land Bexhill Road 1676, item 21. PDF 336 KB
- Upper Wilting Farm 1790, item 21. PDF 3 MB
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