Purpose

Proposed decision
 
KCC should seek to
divest itself of the windmills it currently owns by a method that
ensures that the windmills have a sustainable future in which they
are appropriately cared for and maintained as community assets, and
that the Heritage Conservation Strategy is updated to this
effect.
 
Reason for the decision
 
This is a proposed
change in the policy on KCC owned windmills as set out in the
adopted KCC Heritage Conservation Strategy. The decision affects
more than two electoral divisions.
 
The proposed decision
would allow alternative ownership arrangements for the eight
historic windmills which KCC owns to be explored whilst seeking to
ensure a sustainable future for the care and management of the
windmills as community assets with the aim of reducing KCC’s
long term financial obligations.
 
The county is
sensitive to the importance that communities and volunteers place
on windmills, and wish to work with those who are committed to them
to secure their future.
 
Background
 
KCC currently owns the
freehold of eight historic windmills, located in eight different
districts and boroughs across the county. The windmill properties,
all of which are designated (listed) buildings of high grade, were
acquired by KCC as ‘owner of last resort’ between the
late 1950s and the mid-1980s. Financial responsibility for the
maintenance and management of these eight windmill properties rests
solely with KCC, apart from small-scale investment by the volunteer
mill groups.
 
KCC’s approach
to the management and maintenance of the windmills is set out in
the adopted KCC Heritage Conservation Strategy.
 
A strategic review of KCC’s windmill assets
was undertaken in 2022-23 by a task and finish group comprising
officers from Infrastructure, Environment and Circular Economy and
Finance (see report for ETCC on 15 11 2023).
Five key considerations were evaluated:

A) The heritage value of the windmills,

B)  
Current arrangements for managing the
windmills,

C)  
The potential for divestment of the
windmills,

D)  
The potential for alternative uses for the
windmills,

E)  
 KCC’s current
financial situation
 
Divestment of each of
the eight sites was identified as the most financially advantageous
option for KCC.
 
Divestment of
the windmills would be
a change to the policy set out in the adopted Heritage Conservation
Strategy. As the Heritage Conservation Strategy was adopted
following a public consultation, a public consultation is required
in advance of a final decision on the change in policy. Agreement
was given at a meeting of the Environment and Transport Cabinet
Committee on 15th November 2023 that this public
consultation should go ahead.
 
The subsequent public
consultation ran for nine weeks from 28th November 2023
to 29th January 2024. On the proposal to amend the
windmill policy section of the Strategy. There were 2,330 responses
to the consultation. 11% of respondents agree in principle with
KCC’s proposal to find alternative arrangements for the
ownership and/or financial responsibility for KCC owned windmills
and 87% of respondents disagree (79% strongly disagree).
 
Options considered:

 
Option
1: Do nothing and retain ownership of the
windmills. This option does not reduce the cost to KCC of
maintaining the windmills. Option rejected.
 
Option
2: Retain the windmills but look to
reduce the financial input from KCC. No new proposals for how this
might be achieved came forward through the consultation process and
the deliverability of this is unclear. It is likely that more
options would be available to a trust or similar body than to KCC.
Option Rejected
 
Option
3: Recommended Option - KCC divests
itself of the windmills. Officers are proposing to explore the most
effective way to divest, based on the local circumstances of each
windmill, and mitigating as far as possible the concerns raised
during the consultation and the unique character of each windmill.
The consideration of divestment options would be subject to
feasibility and alignment with KCC’s objectives, KCC’s
Property Assets Disposal Policy where applicable and KCC’s
Heritage Conservation Strategy. There will be small-scale costs
associated with obtaining legal and other professional advice as
divestment options are explored.
 
How the
proposed decision supports Framing Kent's Future
 
The proposed decision
aligns with the Strategic Statement by aiming to reduce KCC’s
financial burden and at the same time meeting the commitment under
Priority 3 to consider Kent’s environment as a core asset
that is valued, strengthened, and protected.
 
How
the proposed decision supports Securing Kent’s Future 2022
-2026:
 
The proposed decision
is compliant with the Strategic Statement in that it aims to reduce
KCC’s financial expenditure whilst meeting the strategic
priority of protecting, valuing, and strengthening Kent’s
environment.
 

Financial Implications

 
The
total annual revenue budget within the service and Corporate
Landlord amounted to £236,800 in 2022/23 which was inclusive
of a £200,000 annual revenue contribution to capital outlay
(RCCO); this RCCO reduces to £150,000 in 24/25. It should be
noted that the 2022/23 revenue outturn includes £13,143 for
marketing advice, valuations and legal costs associated with this
project that do not form part of the normal running costs or
budgets of windmills.
 
Expected capital costs in the next five years for essential
safety related works at the windmills which would be funded through
the RCCO are shown below:
 

2024/25

2025/26

2026/27

2027/28

2028/29

Total

Total

£150,400

£100,000

£185,700

£100,000

£121,600

£657,700

 
In the
long term if all the windmills were divested there would be savings
to the revenue budget of between approximately £124,000 and
£220,000 per annum if the windmills which still require
urgent work were divested without the work being
undertaken.
 

Decision

As Cabinet Member for Environment, I agree to
the decision that:
 
(i)
KCC should seek to divest itself of the windmills it currently owns
by a method that ensures that the windmills have a sustainable
future in which they are appropriately cared for and maintained as
community assets, and that
 
(ii) The Heritage Conservation
Strategy is updated to this effect.