Purpose

This report will be about the
disposal of Addington Court Golf Club. Delegated authority decision
is required from the Corporate Director of Resources and s151
Officer to agree the terms and final price for the disposal
included within Tranche 1 of the Assets Disposal
Plan.   
 
 

Content

For the reasons set out in the
report the Corporate Director of Resources and Section 151 Officer
AGREED:
 
To approve the disposal of the
999 year long leasehold interest in the Property to the party named
and for the consideration stated in the confidential Part B
report.
 

Reasons for the decision

The disposal of the Property
supports the requirements of the Ministry of Housing and
Communities and Local Government (MHCLG) through the reduction in
capital borrowing and annual revenue costs and the requirements as
set out in the Improvement and Assurance Panel’s Exit
Strategy. Further commercial reasons for the disposals are included
in the Part B report. The recommended offer for acceptance
represents best consideration. The cost of holding and running
assets is second only to staffing costs and therefore it is
important to ensure that they are used in the most cost-effective
manner. A business case/feasibility assessment for the disposal is
included within the confidential Part B report.

Alternative options considered

No disposal of the Property
– the business case for disposal is set out in the Part B
report. As set out above, the overall aim of the approved Corporate
Asset Management Plan and the Annual Asset Disposals Plan is to
reduce costs of retained corporate assets used for the delivery of
services and to maximise revenue generation. This disposal is
required to meet those aims and enable the Council to achieve the
required asset disposals to help support the financial requirements
in line with the MTFS.
 
No disposal of the Property at
this time – the Council’s current financial pressures
and need to deliver savings means that not selling the Property at
this time would impact on the opportunity to reduce its debt
balance. Reducing the Council’s debt balance is a requirement
from the MHCLG and the government appointed Improvement and
Assurance Panel as part of the ongoing discussion on options for
securing ongoing financial sustainability for the
Council.
 
For the Addington Court Golf
Club, the asset could be retained as it is revenue producing.
However, the financial benefit of a disposal at the red book
valuation is significantly better than retaining the current income
stream. Disposal is therefore the recommended option.