Agenda item

(a)  Agreed the Asset Disposals Strategy set out at Appendix 1.

(b)  Approved the declaration of the assets listed in Appendix 4 as surplus and to delegate authority to the Executive Director of Housing and Property, in consultation with the appropriate lead member and the Executive Director of Finance and Commercial, to market these assets for disposal, subject to:

i. The removal of 2 Victoria Street and 34 Herschel Street from the list of assets declared surplus.

(c)  Delegate authority to the Executive Director of Housing and Property, in consultation with the Lead Member for Financial Oversight & Council Assets and the Lead Member for Housing & Planning, to determine whether 2 Victoria Street and 34 Herschel Street should be declared surplus and to commence marketing.

(d)  Approved the proposed Asset Disposals Programme budget.

The Lead Member for Financial Oversight & Council Assets introduced a report that contained the recommendations from the Cabinet Committee for Asset Disposals to approve the Asset Disposal Strategy.

The Committee had met on 13^th October to review the proposed strategy in detail.  Approving an Asset Disposal Strategy was key part of the Council’s wider financial strategy to sell assets in order to obtain capital receipts and reduce debt and borrowing costs.  The strategy aimed to make best use of Council property assets and, where identified for disposal, that best consideration was achieved.  The strategy had been developed following a detailed review of the Council’s asset register and the advisors, Avison Young, had prepared an Asset Review report that provided the underpinning data, analysis and structure of the proposed strategy.

The Lead Member explained that a phased approach would be taken, which had commenced with approval by Cabinet in September for the disposal of four out-of-borough assets, and the strategy detailed the approach that would be taken.  A clear process underpinned by proper governance and professional advice would be taken with Cabinet taking key decisions for each disposal following consideration by the Cabinet Committee for Asset Disposals.  Appendix 4 to the report was a list of the assets recommended to be declared surplus and progressed towards disposal as they were not operationally required by the Council.

The conclusions of the Cabinet Committee from its meeting on 13^th October were summarised.  Cabinet was recommended to approve the Asset Disposal Strategy and the list of proposed surplus assets at Appendix 4, with the exception of 2 Victoria Street and 34 Herschel Street.  The Committee had asked that the option of bringing these two properties back into use for temporary accommodation be explored with a delegation to declare them surplus following this exercise if appropriate.  This was agreed by Cabinet.

The Leader updated on the discussions the Committee had had regarding the Adelphi site and properties at MacKenzie Street.  It was agreed these properties could be declared surplus as the Council did not have operational requirements for them.  However, the Committee had agreed that they should not be moved forward for disposal until further consideration and discussions with bidders and partners about their potential use had taken place as they were culturally and strategically important sites linked to town centre regeneration.

Councillor Smith addressed the Cabinet and asked questions about the derelict state of the Victoria and Herschel Street properties and reasons for declaring the vacant St Martin’s Place (SMP) offices as surplus when the Council may require them operationally in the future if Observatory House was sold.  The Leader responded to the points raised and updated on the Council’s accommodation strategy.  It was stated that the Council would not return its offices to SMP therefore the asset could be declared surplus.

At the conclusion of the discussion the recommendations of the Cabinet Committee for Asset Disposals were agreed.

Resolved –

(a)  Agreed the Asset Disposals Strategy set out at Appendix 1.

(b)  Approved the declaration of the assets listed in Appendix 4 as surplus and to delegate authority to the Executive Director of Housing and Property, in consultation with the appropriate lead member and the Executive Director of Finance and Commercial, to market these assets for disposal, subject to:

i)  The removal of 2 Victoria Street and 34 Herschel Street from the list of assets declared surplus.

(c)  Delegate authority to the Executive Director of Housing and Property, in consultation with the Lead Member for Financial Oversight & Council Assets and the Lead Member for Housing & Planning, to determine whether 2 Victoria Street and 34 Herschel Street should be declared surplus and to commence marketing.

(d)  Approved the proposed Asset Disposals Programme budget.