Content

Decision
 
RESOLVED that
Cabinet:
 

1.    
Approved the
unconditional sale of the property identified in Appendix A on the
terms outlined in Part 2 of this report later on the
agenda.

2.    
Authorised the
Head of Asset Management & Engineering Services and Chief
Finance Officer in consultation with the Portfolio Holder for Asset
Management and the Portfolio Holder for Finance & Budget to
agree detailed sale terms.

3.    
Authorised the
Council’s Legal Services to prepare and complete all
necessary documentation to give effect to the sale including
settling the detailed terms of the overage agreement and associated
legal documents.
 
Reasons for
decision
 
The proposal from the purchaser represented the
best overall outcome, balancing financial receipt with considerable
additional community and social value.
The proposed sale secured:

•        
Best Consideration: The capital
receipt was consistent with independent valuation advice and
represented best consideration reasonably obtainable under the
Local Government Act 1972.

•        
Financial Prudence: Disposal
through open market sale avoided the financial risk of Council-led
development, securing a guaranteed return without exposure to build
cost inflation, planning risk or sales risk.

•        
Corporate Objectives: The
transaction supported the Council’s Corporate Plan by making
effective use of assets, generating capital receipts to support the
capital programme, and contributing towards meeting local housing
needs.

•        
The purchaser had aligned
themselves with a proven developer with experience of delivering
similar schemes locally, giving confidence in scheme
delivery.

•        
A permanent home for a local
charity offered significant community and social value as well as
delivering additional new homes.
 
Alternative Options
Considered
 
Do nothing - The Council could have decided not
to proceed with any disposal at this stage. This was not
recommended as it would have forgone a significant capital receipt
and delayed both the delivery of new housing and the enhanced
community benefits associated with the recommended
proposal.
Retain the site for Council-led development:
This option would have required the Council to assume all
development risk, including securing planning, funding and
delivering the scheme. Independent advice had indicated that this
would expose the Council to significant financial and market
risks.