Decision details

Councillor Eamonn O’Brien the Leader of the Council and Cabinet Member for Finance and Growth, presented the report regarding the proposed disposal of Summerseat House, a vacant former Pupil Learning Centre located in Summerseat.

The property comprising a Grade II listed former house with associated buildings and grounds would be sold on the open market utilising the services of a property marketing agent / consultant in order to achieve best value and secure the future use of the property. The property is vacant and its condition is rapidly deteriorating due to a lack of funds for repair and maintenance plus several break-ins, thefts and acts of vandalism.

Members discussed the development of the Economic Regeneration & Capital Growth directorate, noting that ensuring we had the right people, skills and resources was the key to delivering on bigger projects, and required strategic prioritisation of sites for development and those for disposal. It was noted that the mature woodland situated at the site would be protected as this was a conservation area.

Decision:

That:

·       Summerseat House is offered for sale.

·       The Council’s Property and Asset Management section procure a property marketing agent / consultant to assist in the disposal of Summerseat House. The appointment of an agent will expose the property to a wide range of potential purchasers and the agent can provide advice and recommendations with regard to potential purchasers.

·       Delegated authority is given to the Director of Economic Regeneration and Capital Growth in consultation with the Cabinet Member for Finance and Growth to consider and accept / decline competitive bids for the property from potential purchasers and then to instruct the Council Solicitor with regard to an acceptable bid.

Reasons for the decision:

The sale of the property would:

·       Remove the risks to the Council associated with holding a vacant asset.

·       Produce a capital receipt for the Council.

·       Provide ongoing Council Tax and / or Business Rate revenue.

·       Alleviate the substantial ongoing costs of holding the property.

·       Enable the conversion/redevelopment of the property and its future use.

Other options considered and rejected:

Option 1 - Redevelopment by the Council

Options for the Council to redevelop the property as a direct development have been explored by the Council’s Growth and Development Manager, including developing a small affordable housing/apartment scheme. There are viability issues with such a scheme and it would be dependent upon significant gap funding to make it viable. On that basis and taking other factors into consideration Officers consider that a disposal is felt to be the best way forward.

Option 2 - Retain the asset in case of future Council accommodation requirement.

This option would result in significant and ongoing holding costs being incurred together with the ongoing risks associated with holding empty properties. Significant capital expenditure would also be required in the short term to address the deterioration of the buildings located on the property.