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RESOURCES SELECT COMMITTEE - 6 DECEMBER
2004 PROPERTY TRANSACTIONS REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES |
REASON FOR SELECT
COMMITTEE CONSIDERATION
1.
To implement
the amendment to the Council’s Constitution to include the Code of Practice for
members and officers dealing with property transactions.
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ACTION REQUIRED BY THE SELECT COMMITTEE 2.
To confirm
the decision maker for the proposed land transaction set out in the schedule
appended to this report. |
BACKGROUND
3.
At the meeting
held on 27 October the Council decided to include in the Constitution the
following Code of Practice:
CODE OF PRACTICE FOR MEMBERS AND OFFICERS DEALING WITH PROPERTY TRANSACTIONS
THE NEED FOR GUIDANCE
4.
The sale and
acquisition of property by the Local Authority will always have a high
profile. This is partly because the
property in question is often located in the heart of communities and is
therefore of considerable importance to those communities.
PREPATORY WORK
5.
The Head of
Property Services will produce each year a plan setting out proposed disposals
of property, freehold or on long leases, which are likely to reach completion
within the next 12 months and also an indication of planned disposals in
subsequent years.
6.
The plan of
proposed transactions will appear on the Executive Forward Plan as part of the
process of setting the capital programme and be sent to the Chairman of the
Resources Select Committee so that the Select Committee can have the
opportunity to consider the contents of the plan.
7.
The plan of proposed
transactions will show:
·
The objectives
of the transaction (eg maximising capital receipt; delivering policy objective)
·
The proposed
method of disposal (open market, restricted tender, special purchaser, etc)
·
The proposed
decision-maker (officer delegation, portfolio holder, Executive)
·
Whether or not
the disposal is of redundant property or to achieve some other identified
policy objective.
8.
The programme
of proposed disposals will be updated each year as the Select Committee
requests or as changes in the programme require.
9.
Member
decision-making should concentrate on setting the objectives, parameters and
mechanisms for proposed transactions and Members, where their involvement adds
value to the process, should be involved as early as possible.
10.
Reports to
Members will, therefore, set out:
·
The proposed
objectives (including alternative objectives) of the transaction.
·
The proposed
method of pursuing the transaction.
·
The
circumstances in which a further report to Members is necessary.
·
Proposed
consultation with local Member(s), the local community and other stakeholders
(exceptionally the report will be sufficiently late in the process to set out
the outcome of consultation already undertaken).
·
Arrangements to
secure the long term objectives of the sale.
11.
Where a
disposal also declares property redundant or is to achieve a policy objective
which is the responsibility of another Portfolio Holder then any report to
Members will be to that Portfolio Holder and the Portfolio Holder for Resources
(in the case of delegated decisions) or to the Executive, jointly in the name
of those two Portfolio Holders (in the case of decisions by the Executive).
12.
There is a
presumption that both the plan of proposed transactions and reports to Members
will be taken in public. The exception
is when, and for so long as, information contained within them would prejudice either
the Local Authority or would give an advantage to any person seeking to
enter into a contract with the Local Authority or would disclose
information about the financial or business affairs of a person other than the
Local Authority.
13.
The reasons for
confidentiality, where these exceptions apply, will be recorded on the face of
the report.
14. Sometimes property transactions are urgent. Where it is, in the opinion of the Portfolio Holder for Resources, not reasonably practicable to delay a decision until the transaction has appeared in a plan, other means of informing the Select Committee in advance of the decision wherever possible will be followed.
15.
Where it is not
possible to involve the Select Committee in advance of the transaction, then in
these circumstances a record of the decision, including the reasons for
urgency, will be provided to the Resources Select Committee as soon as
reasonably practicable. The Resources
Select Committee will, by these means, be able to hold the Portfolio Holder to
account for their judgement in relation to urgency.
16.
Some
transactions involve disposal of property rights which directly affect:
·
An existing
leaseholder and/or
·
Some other
individual with a particular interest in the property in question.
17.
When such a
transaction is proposed the bid of a special purchaser will either be above the
market value because landed interests are being merged or the Council will be
better able to pursue a particular policy objective such as economic
development. In either case a
negotiated settlement is to be pursued rather than a tender or other
competitive process.
18.
Where there is
known to be a special purchaser:
·
This will be
shown on the plan of proposed transactions as the method of disposal.
·
A report
proposing the use of the special purchaser regime will be submitted to the
Portfolio Holder for Resources and copied to the Chairman of the Resources
Select Committee.
·
The opinion of
two independent valuers will be obtained and taken into account in determining
the terms of any disposal or property to a special purchaser.
19.
Decisions in
relation to special purchaser transactions will be taken by the Executive.
20.
The regime from
the Members’ Code of Conduct in relation to declaration of interest applies to
property transactions.
21.
Members taking
decisions (or engaging in policy development or scrutiny) will wish to consider
whether the nature of the transaction, the identity of the other party to the
transaction and/or the location of the property gives rise to a personal or
prejudicial interest. Interests may arise
due to the location of the property being in the area where the elected member
resides, being in the electoral division which the member represents, or for
some other reason to do with the private or public life of the member.
22.
The Portfolio
Holder will not use delegated powers in relation to property transactions in
their own ward.
23.
The elected
member for the ward where the property is located will be informed of the
proposed transaction (except where genuine urgency prevents) firstly when the
plan of disposals is put to the Select Committee and again, prior to any public
marketing or before substantial negotiations with a special purchaser.
24.
A copy of the
annual plan of disposals will be sent to all Town and Parish Councils. The local council where a property
transaction is proposed will be informed prior to any public marketing taking
place.
ACQUISITIONS
25.
This protocol
supplements existing arrangements to plan and report proposed acquisitions
through the capital programme.
26.
Where a
property acquisition is proposed which, for any reason, has not appeared on the
capital programme, the Select Committee will be given the opportunity to
consider the proposal, or if genuine urgency prohibits this, to subsequently
consider the acquisition.
27.
The Council’s
disposal programme performance supports the Council’s capital programme. The annual target has usually varied between
£1 million and £2 million each year.
Last year the target was £2.2 million and £2.476 million was achieved
which included the disposal of certain sites that have been committed against
earlier years capital expenditure.
28.
The total
number of sites being prepared for sale in any way usually exceeds
requirements, this allows for flexibility in terms of both slippage and
timing. This year the target is £1.7
million plus a requirement of £1.3 million in respect of past years committed
expenditure. The total potential
capital receipts for 2004/05 is in the order of £3.3 million and outstanding
disposals are detailed in the schedule appended. Any over commitment on this figure or reduced level of realisable
receipts would need to be managed through a slippage in the capital programme.
CONSULTATION PROCESS
29.
This is set out
in the Code of Practice.
FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS
30.
Each of these
matters will be addressed by the specific reports that address each disposal.
31.
In order to
keep this paper in an open session for the Select Committee to debate in terms
of value I have used the following indices namely for values below £100,000 -
low, for values between £100,000 and £500,000 – medium, for values between
£500,000 and £1 million pounds – high and above £1 million – very high.
32.
Report to
Council dated 27 October 2004.
Contact Point : Tony
Flower, Head of Property Services, ' 823263
e-mail: tony.flower@iow.gov.uk.
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Forward Plan Property Transactions |
Year 2004 to 2005 |
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Address |
Reason for Sale |
Value |
Proposed
Decision Maker |
Sale Method |
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Chale
- Land off Military Road |
REQUEST |
L |
Executive |
Special Purchaser |
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Cowes
- Land adjacent Parklands (building plot) |
Surplus |
M |
Portfolio Holder |
Open Market |
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Cowes Crossfield Avenue |
REQUEST |
L |
Executive |
Special Purchaser |
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Nettlestone
(relaxation covenant) |
REQUEST |
L |
Executive |
Special Purchaser |
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Newport
Black House Quay |
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VH |
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Newport
Carpenters Quay (part of Newport Harbour Sales) |
Surplus |
VH |
Portfolio Holder |
Open Market |
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Newport
Vectis Building (part of Newport Harbour Sales) |
Surplus |
M |
Portfolio Holder |
Open Market |
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Newport
– 17 Quay Street (accommodation review) |
Surplus |
M |
Portfolio Holder |
Open Market |
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Newport
St Nicholas House (accommodation review dev site) |
Surplus |
H |
Portfolio Holder |
Open Market |
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Newport
- Former Library Headquarters (dev site accom review) |
Surplus |
M |
Portfolio Holder |
Open Market |
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Newport
St Georges School (development access) |
REQUEST |
M |
Executive |
Special Purchaser |
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Newport
South Street Car Park |
REQUEST |
H |
Executive |
Special Purchaser |
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Ryde
Harding Road (right of way) |
REQUEST |
L |
Portfolio Holder |
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Sandown
Lake Hill (GP Clinic - The Heights) |
REQUEST |
M |
Executive |
Special Purchaser |
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Ventnor
25 Albert Street (sale of house) |
Surplus |
M |
Portfolio Holder |
Open Market |
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Ventnor
Garden Estate (regeneration) |
Surplus |
M |
Executive |
Special Purchaser |
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