PAPER B2

                                                                                                                                                                                                        

                                                                                                              Purpose : For Decision

                        REPORT TO THE CABINET

 

Date :              30 AUGUST 2005

 

Title :               USE OF RESOURCES CAPITAL PROGRAMME 2005 TO 2006 PROPERTY DISPOSAL PROGRAMME

                       

REPORT BY CABINET MEMBER FOR RESOURCES AUDIT, AN EFFICIENT COUNCIL AND CUSTOMER CHAMPION

 

IMPLEMENTATION DATE : 12 September 2005

 

SUMMARY/PURPOSE

 

1.                  To agree the list of properties that may be disposed of in return for capital receipts and/or to achieve other benefits during the current financial year.

 

BACKGROUND

 

2.                  The new Constitution provides for a report to come forward indicating the list of properties to be sold during the current financial year together with the reasons for the sale, how the property will be sold and who will make the decision.

 

3.                  The attached schedule sets out the list of properties concerned and this is to go on the Forward Plan.

 

4.                  In each case a further report has yet to come forward setting out detailed proposals for each transaction.

 

5.                  In respect of properties shown as a special purchaser transaction such cases will proceed in two stages with the first part setting out the reasons for the special purchaser arrangements.

 

6.                  During the period other property may be identified as surplus to Council requirements and through consultation with the Cabinet Member these will be added to the Forward Plan list and in each case the Chairman of Scrutiny and Overview Committee will be informed.

 

STRATEGIC CONTEXT

 

7.                  A key element to the Council’s Comprehensive Performance Assessment is to ensure the best use of resources.  This includes the rationalisation of the Council’s property portfolio whilst addressing the backlog of repairs and supporting regeneration and other Council objectives where possible.

 

CONSULTATION

 

8.                  Individual case reports will be shared widely with Heads of Service Local Members and Parish Councils as well as other stakeholders.

 

FINANCIAL/BUDGET IMPLICATIONS

 

9.                  The capital receipt proceeds from the sale of capital assets may be used to finance new capital expenditure or to repay existing loan debt.  Receipts available to finance capital expenditure in future years are held in a usable capital receipts reserve.

 

LEGAL IMPLICATIONS

 

10.             The Council has the power to dispose of its property for best consideration under Section 123 of the Local Government Act 1972.  Sale of land at less than best consideration is not proposed in relation to any of the surplus assets in question.

 

OPTIONS

 

11.             The Council adopt this report as the way forward for capital disposals of land all based on best consideration being received including securing strategic objectives of the Council’s corporate plan.

 

12.             The Council could decide to do nothing.

 

EVALUATION/RISK MANAGEMENT

 

13.             The Council does have a substantial property portfolio more than required for its core business and should aim to reduce land holdings incrementally to make the best use of resources.

 

14.             The redeployment of capital resources from wasting assets that have significant backlog of repairs or are surplus to the Council is well acknowledged as a way forward to meeting local objectives that improve services to the community.

 

15.             Whilst the Council could choose to develop an investment portfolio of non-operational assets such a retention would require significant investment and the retention of such assets would put the Council at risk.

 

RECOMMENDATIONS

 

16.             That the programme of disposals set out in Appendix 1 be pursued.

 


BACKGROUND PAPERS

 

17.             Constitution Forward Plan Property Transactions appended.

 

 

Contact Point :     Tony Flower, Head of Property Services ' 3263 email [email protected]

 

MR TONY FLOWER

Head of Property Services

CLLR JILLY WOOD

Cabinet Member for Resources, Audit, An Efficient Council and Customer Champion

 

 

 

APPENDIX 1

Forward Plan Property Transactions          Year 2005 to 2006

Description of Property

Reason for Sale

Ward

Value

Proposed Decision Maker

Proposed Method of Sale

Chale – Land off Military Road

Maximise capital receipt and release surplus asset

Chale Niton and Whitwell

Low

Cabinet Member

Special Purchaser

Cowes – Land adjacent Parklands (building plot)

Maximise capital receipt and release surplus asset

Cowes Castle West

Medium

Cabinet Member

Open Market

East Cowes – Land access Kingston Development

Request by developer and maximise capital receipt

Osborne

High

Cabinet

Special Purchaser

Freshwater – Relocation of amenity refuse site from Afton to Norton

Request by developer and maximise capital receipt

Freshwater Afton and Freshwater Norton

Medium

Cabinet

Special Purchaser

Newport Carpenters Quay (part of Newport Harbour Sales)

Maximise capital receipt regeneration harbour by selling surplus asset

Parkhurst

High

Cabinet Member

Open Market

Newport Vectis Building (part of Newport Harbour Sales)

Maximise capital receipt regeneration harbour by selling surplus asset

Fairlee

Medium

Cabinet Member

Open Market

Newport Black House Quay

Maximise capital receipt regeneration harbour by selling surplus asset

Parkhurst

Very High

 

 

Newport St Johns Road (housing)

Special needs housing and capital receipt

Mountjoy

Low

Cabinet Member

Open Market

Newport St Nicholas House (accommodation review dev site)

Rationalise Accommodation Maximise capital by selling surplus asset

Mountjoy

High

Cabinet Member

Open Market

Newport – Former Library Headquarters (dev site accom review)

Rationalise Accommodation Maximise capital by selling surplus asset

Parkhurst

Very High

Cabinet Member

Open Market

Newport St Georges School (development Access)

Maximise capital receipt and enable housing development

Mountjoy

Medium

Cabinet

Special Purchaser

Newport South Street Car Park

Maximise capital receipt and enable retail development

Newport South

High

Cabinet

Open Market

Newport land at Pan (urban extension)

Release surplus land for housing development and employment promotion and maximising capital receipt

Pan

Very High

Cabinet

Open Market

Ryde Esplanade (Hotel site)

Maximise capital receipt and release land for development

Ryde North East

Medium

Cabinet

Special Purchaser

Ryde Jellicoe House and Wrafton House and Cowes Moira House

Maximise capital receipt, release surplus asset and support temporary housing

Ryde South East

and Cowes Castle

High

Cabinet

Special Purchaser

Ryde Mayfield School (Drainage regeneration)

Maximise capital receipt and enable housing development

Ryde South West

Low

Cabinet

Special Purchaser

Ryde Business Park off Nicholson Road (land possible extension Business Park)

Maximise capital receipt and support regeneration of employment opportunities

Ryde St John’s East

High

Cabinet Member

Open Market

Shanklin Hope Road Promontory (regeneration)

Maximise capital receipt and support regeneration

Shanklin Central

Medium

Cabinet Member

Open Market

Ventnor Garden Estate (regeneration)

 

Ventnor West

Medium

Cabinet

Open Market

Ventnor Signal House (Surplus House)

 

Ventnor West

Medium

Cabinet Member

Open Market