Agenda item

The Portfolio Holder for Property, Climate Change and Income Generation introduced the report and advised that the new policy would bring asset disposals in line with the procurement of assets.  It also included a measure that the council’s assets were making a return on the investment in the future. 

The Director for Commercial Services and Income Generation advised that following approval of the Council’s Commercial Strategy the previous year, it was realised that other policies did not align with it.  Although the policy allowed delegated authority to purchase investment assets up to £10m, it did not allow their sale.  She also noted that the Area Chairmen would be consulted during any asset disposal process.

The Commercial Property, Land and Development Manager advised that the Council’s Property Development Managers would be assessing the Council’s land assets over the next 2 years and would be recommending the disposal of small non-strategic land holdings. The policy now allowed community groups to approach SSDC to purchase a freehold as well as a leasehold of an asset and there was a business case template provided to allow them to submit a case for a community asset transfer to them from SSDC. 

During discussion, it was noted that:-

·         Any asset already identified for disposal would continue under the current policy.

·         The property team would contact the Ward Member and Area Chairman and ask for their comments on any proposed asset disposal which would be included in the report to the Disposal Assessment Group. 

·         Although a majority vote of approval was required from the Disposal Assessment Group, the Section 151 and Monitoring Officers had the power of veto.

·         The disposal of investment properties up to a value of £10m did not include any SSDC Council offices as they were classed as non-investment properties and any proposed disposal of them would require a separate report to District Executive.

·         At the current time, only the Marks and Spencer building and the Wilco building were valued as large investment properties under £10m and SSDC currently hold around 17 properties classed as investment properties.

·         A large number of the SSDC land holdings were small strips of land, small garages or houses worth less than £250,000.

·         Once the policy was approved then the Town and Parish Councils would be notified. 

·         SSDC now had 3 qualified surveyors capable of valuing land and property assets, however, if it was proposed to dispose of a large asset then independent advice would be sought to clarify market value to ensure transparency and independence in accordance with any audit or RICS requirements.

Members expressed concern at the weight given to the Area Chairman and Ward Members comments in the report to the Disposal Assessment Group and it was agreed to re-word the disposals approval process and include the Portfolio Holder for Finance and Legal Services in the consultation process.  It was noted that any disposal that fell outside of policy would be referred through the District Executive process and that the CEO in consultation with the Leader reserve the right to refer any disposal decision to the District Executive if they see fit to do so.

At the conclusion of the debate, Members were content to approve the replacement of the existing Asset Transfer Policy with the Asset Disposal and Community Asset Transfer Policy (as amended) and note the requirement to change the Financial Procedure Rules.  It was agreed the necessary changes would be presented to Full Council in May 2018.