Issue - meetings

(Any questions in relation to the exempt version of this report and the exempt appendicies must be asked in private session, following Executive resolution to exclude the press and public)

Report of Corporate Director ofResources

Purpose of Report

Bodicote House site has been marketed for sale, to facilitate the Council moving to new offices. The report seeks delegated authority and approval to enter into negotiations to agree the Heads of Terms.

Recommendations

The meeting is recommended:

1.1         To delegate authority to the Corporate Director of Resources in consultation with the Portfolio Holder for Property and the S151 Officer, to enter into negotiations to agree the Heads of Terms with Company C.

Resolved

(1)          That authority be delegated to the Corporate Director of Resources in consultation with the Portfolio Holder for Property and the S151 Officer, to enter into negotiations to agree the Heads of Terms with Company C.

The press and public having been readmitted to the meeting and the recommendations proposed and seconded, the Chairman moved to the vote. 

Resolved

(1)          That authority be delegated to the Corporate Director of Resources in consultation with the Portfolio Holder for Property and the S151 Officer, to enter into negotiations to agree the Heads of Terms with Company C.

Reasons

The bid from Company C (the preferred bidder) offers the best value, meets the Councils affordable housing policy, offers the likelihood of achieving the highest density of units and obtaining planning permission for the redevelopment indicated in the bid.

Alternative options

Option 1: Do Nothing

·         The property continues to be a significant cost to the Council.

·         There is substantial excess space which is not well utilised and difficult to sublet.

·         Surplus to requirement space will continue to need to be maintained for the duration of any occupation.

·         Significant capital costs are required to maintain the building.

This option is therefore not considered a viable alternative.

Option 2:  - Sale by Auction.

·         This site is not considered appropriate for sale by Auction. Our retained agents have advised that a more favourable outcome would be obtained in the open market.

This option is therefore not considered a viable alternative.

Option 3: Sale and leaseback

·         The Council could potentially stay as a tenant of the new purchaser whilst arrangements to move are finalised.

·         It is considered that developers would not want the complication of having a sitting tenant, regardless of the income whilst working up their scheme.

·         This type of sale could potentially rule out interested parties.

·         Best Value considerations could be compromised and have an adverse effect on bids.

·         This option would significantly increase the Council’s outgoings for:

• Rent
• Rent for space not fully utilised.
• Costs of upkeep and long-term maintenance

This option is therefore not considered a viable alternative.