Content

Decision
 
RESOLVED that
Cabinet:
 
1.1 Approved the sale of the
land and buildings identified in Appendix A on the terms outlined
in Part 2 of this report later on the agenda.
1.2 Authorised the Head of
Asset Management & Engineering Services and Chief Finance
Officer in consultation with the Portfolio Holder for Asset
Management to agree detailed sale terms.
1.3 Authorised the
Council’s Legal Services to prepare and complete all
necessary documentation to give effect to the sale.
 
Reasons for
decision
 
Following extensive marketing of the property,
the recommended offer represents the best available in the
market.
 
The building is in poor condition and requires
complete refurbishment to bring it back into beneficial
use.
 
The Council has considered options to refurbish
the property itself but the cost of refurbishment when assessed
against the long term income potential of the site did not
represent good value for money.
 
 
Alternative Options
Considered
 
To do nothing would cause further deterioration
of the property, thus increasing the cost of putting the premises
back into beneficial use and leaving a prominent high street retail
unit vacant for a further extended period.
The option for the Council to refurbish was
considered. It was proposed to redevelop the property to create a
first floor residential unit with ground floor and basement
refurbished for retail/commercial use. The cost of this proposal
was c£850,000 verses a sale price of the residential unit of
c£375,000 and an estimated annual retail income of
c£30,000, creating an asset worth approximately
£675,000.
4.3 The Council also undertook a marketing
exercise to let the property with a long rent free period to cover
the refurbishment works. However, the rental offers received were
not providing the Council with a positive return for at least 15
years.