Purpose

The report seeks approval that land upon which the former St. John Ambulance Brigade Station is built on is leased from the Council on a 99-year lease from 29/9/1970 with 42 years left to run.

The ambulance station is vacant and surplus to St. John Ambulance’s requirements, and the charity wishes to put the property on the market for sale.

St John Ambulance suggest selling by auction through a Collaboration Agreement with costs being shared 50/50 with the Council but also with the sale proceeds being shared 50/50 with the Council.

A nominal annual ground rent receipt can be exchanged for a potential ‘windfall’ capital receipt.

Decision

(i)                That approval be granted that the Director of Legal and Democratic Services (Monitoring Officer) be authorised to enter the Council into a Collaborative Agreement with St. John Ambulance Brigade sharing costs and receipts on a 50/50 basis.

(ii)             That approval be given via the Collaborative Agreement, St. John Ambulance Brigade engage independent third party RICS Red Book valuers to carry out a S119 Charities Commission Valuation on an open book basis with the Council.

Reasons for the decision

Authority is being sought for the Council to enter into a Collaborative Sale Agreement with the St John Ambulance Brigade on a 50/50 shared cost and shared receipt basis.

Alternative options considered

(i)                  The Council could offer to buy-out the remaining 42 years on the lease.

(ii)                The Council could refuse to enter the Collaborative Agreement and continue to receive £1,050 p.a. and forgo the opportunity to share in a capital receipt.

(iii)              The Council could allow the sale of the asset, but retaining the freehold and rental receipt, but face reputational damage by not assisting a charity to receive the potential full value of their asset (a leasehold transaction attracts less receipt than a freehold transaction)