PAPER B

Committee:     RESOURCES SELECT COMMITTEE

Date:               22 MARCH 2002

Title:               INVER HOUSE, BEMBRIDGE

                       REPORT OF THE HEAD OF SELECT COMMITTEE SUPPORT

SUMMARY/PURPOSE

This Report provides the Select Committee with an opportunity to scrutinise Council proposals concerning Inver House, Bembridge and make recommendations to the Executive.

BACKGROUND

1.        At the last meeting of the Social Services Housing and Benefits Select Committee, Members received a presentation from Mr. Andrew Larpent, on behalf of Islecare 97 Ltd. Mr. Larpent referred to negotiations between the Council and the company concerning Inver House at Bembridge in his presentation. Members may also be aware that there have been references in the Council’s Forward Plan to Inver House.

2.A draft report providing information about Inver House proposals has been prepared by the Property Services Manager on behalf of the Portfolio Holder for Resources ultimately for the Executive to consider. A copy of that report is appended. The report incorporates a recommendation that the Council grants a 125 year lease to Isle Care 97 Ltd. The terms and conditions of the proposed lease are explained in a separate confidential report also appended.

3.The Executive has agreed to defer consideration of this item to provide an opportunity for the Select Committee to make appropriate recommendations.

OPTIONS

1.To note this report and take no action.

2.To review and scrutinise Inver House proposals and make appropriate recommendations to the Executive.

BACKGROUND PAPERS

Minutes of the Social Services, Housing and Benefits Select Committee 16 January 2002.

Contact Point: Rob Owen, ☎ 01983 823801

Contact Point: Tony Flower, ☎ 01983 823263

ROB OWEN

Select Committee Support

APPENDIX

DRAFT - ITEM                                                                                                                           

Committee :    EXECUTIVE

Date :              2002

Title :              INVER HOUSE, BEMBRIDGE

REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

SUMMARY/PURPOSE

The Executive has authorised officers to enter into negotiations with Islecare 97 Limited to discuss suitable terms for the sale of this property. The plan is for the purchaser to enlarge the property to meet new care standard requirements. The terms for this disposal are set out in the confidential appendix to this paper and are being recommended to the Council.

BACKGROUND

On 30 October 2001 the Executive resolved that the Council enter into negotiations with Islecare 97 Limited for the grant of 125 year lease or freehold sale of Inver House, Bembridge, subject to conditions protecting the long term use of the property as a care facility with details being brought back to the Executive for consideration.

Members are reminded that Inver House, Bembridge is a 32 bedroom elderly persons home owned by the Council and currently leased to Islecare 97 Limited, subject to a review of rent in December this year; the lease is for 30 years from 1 January 1996. The company has drawn up plans to extend this home by building over the existing ground floor link; the planning application for this extension is being processed for a new building area to provide five en-suite rooms plus ground floor improvements to the dining room. The estimated investment in the property by the tenant is put at some £250,000. The Board of the Somerset Care Group which includes Islecare 97 Limited is happy to progress this investment subject to the grant of a long lease of the building to the company and planning permission being granted. In progressing this disposal, the company will need to raise funds and this will impact on the 19% shareholding in Islecare 97 held by the Council and this is dealt with in a separate paper. The other matter affecting this property is that the water supply to the property is damaged and only able to provide a low pressure supply which is inappropriate for the ongoing and future use of this building as a care facility. This problem has existed for many years and is part of the structural responsibilities resting with the Council under the terms of the current lease. The plan is to have the two existing mains services consolidated into one new main supply next financial year and funded by the Council as landlord at a cost of some £12,000 and the company has asked that this work should still proceed.

The terms negotiated for the disposal of Inver House are set out in the confidential paper appended.

FINANCIAL IMPLICATIONS

A potential capital receipt in lieu of future income.

LEGAL IMPLICATIONS

The title of this property is freehold subject to a number of stipulations and regulations known to the purchaser.

EVALUATION

The Council’s Property Services Manager is satisfied that the terms set out in the attached confidential paper represent best consideration for the sale of this property to the tenant.

BACKGROUND PAPERS

Executive report dated 30 October 2001.

Contact Point : A J Flower, Property Services Manager, ☎ 823263