Agenda item

The Portfolio Holder for Corporate Finances and Resources to submit a report seeking approval for the revised Corporate Property and Assets Disposal Policy.

Cabinet

(1)  APPROVED the Corporate Property Disposal Policy;

(2)  NOTED that the properties detailed at paragraph 5.5 of the report would be marketed through an informal negotiated tender process

(3)  DELEGATED authority to the Director for Growth and Regeneration, in consultation with relevant Portfolio Holders to make minor amendments in relation to the discussion at this meeting

Pranali Parikh, Director for Growth and Regeneration introduced the report, the purpose of which was to seek approval for the revised Corporate Property and Assets Disposal Policy.

Mrs. Parikh highlighted the Corporate Property and Assets Disposal Policy, as detailed at Appendix 1 of the report, commenting that the Policy provided technical guidance for officers to follow when disposing of Council assets (including types of disposals and a process chart).

Councillor Ronnie de Burle, Portfolio Holder for Corporate Finance and Resources highlighted that dealing with this issue well was one of the main aspirations of the Council’s Corporate Priorities.  Last year a new Corporate Property and Assets team had been created to bring focus to achieving the aspirations of the Council.  The Policy was necessary to allow focus on the proper management of commercial assets (office buildings, car parks community centres  and allotments).  It provided technical guidance for officers to follow and would enable the Council to move forward with confidence. 

Councillor de Burle commented that the unused assets (closed public toilets), referred to at paragraph 9 of the report had considerable commercial value and represented a negative ongoing draw on the Council’s finances due to maintenance and the burden of rates.

During discussion, the following points were noted:

·         The Policy was a welcomed and much needed improvement on the previous Policy.

·         It was noted that all assets considered for disposal would be subject to Royal Chartered Institute of Surveyors (RICS) certified valuations and that best value consideration was an overarching principle in the disposal of assets.  This included social, regeneration and community benefits, as well as capital and revenue.

·         Members were concerned that the guidance within the Policy was too liberal for officers in relation to consideration of income and yield and that it assumed that they had a certain level of Royal Institute of Chartered Surveyors knowledge when this may not be the case.

·         Members highlighted that income and yield of assets should always be assessed when considering disposal and this should be clearly referenced for officers within the Policy and within the diagram at Appendix D of the Policy.

·         The community was passionate about Council assets, considering them as part of Melton’s history and they reiterated the importance of considering all relevant information before disposal.

·         The Government’s intended introduction of 100% business rate relief on public toilets in 2018 had been delayed, meaning that the Council was liable for the associated costs.  However, Members queried whether these assets fell below the liability threshold and the Director for Corporate Services confirmed that she would look into this and would update Members outside the meeting.

Cabinet

(1)  APPROVED the Corporate Property Disposal Policy;

(2)  NOTED that the properties detailed at paragraph 5.5 of the report would be marketed through an informal negotiated tender process;

(3)  DELEGATED authority to the Director for Growth and Regeneration, in consultation with relevant Portfolio Holders to make minor amendments in relation to the discussion at this meeting

Reasons for the decision

To ensure a consistent approach in dealing with disposals of Council property.

To receive capital receipts for Council priorities and achieve savings by reducing costs and liabilities for these assets.