Sale of Bodicote House, White Post Road, Bodicote, OX15 4AA
** Please note exempt Appendix 5 will follow **
Exempt report of Corporate Director Resources
(This reportis exemptfrom publicationby virtueof Paragraph 3 Schedule 12Aof LocalGovernment Act 1972. This report contains commercially sensitive information relating to the financial and business affairs of the Council and others.)
Additional documents:
Decision:
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 proceed with the Heads of Terms and enter into negotiations for the sale contract with Lucy Developments Ltd.
(2) That authority be delegated to the Assistant Director Law and Governance to enter into Head of Terms.
Minutes:
The Corporate Director Resources submitted an exempt report which sought delegated authority and approval to proceed with the Heads of Terms and enter negotiations for the sale contract for the Bodicote House site which had been marketed for sale, to facilitate the Council moving to new offices.
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 proceed with the Heads of Terms and enter into negotiations for the sale contract with Lucy Developments Ltd.
(2) That authority be delegated to the Assistant Director Law and Governance to enter into Head of Terms.
Reasons
The offer from Company C (Lucy Developments Ltd) as the preferred bidder is recommended because;
· They have offered the best bid for the site, upon receiving planning permission.
· The offer is considered to provide the best value, in that it meets the Councils affordable housing policy.
· The proposal is considered to provide a better likelihood to achieve the highest density of units and obtaining planning permission for the proposed redevelopment.
· They are a regional developer, with a proven track record.
· They have confirmed the purchase and development can be funded from existing resources and without the need to borrow funds.
The Council meets its obligations under S123 of the LGA 1972 to sell land at the best price reasonably obtainable in the marketplace at the time and not at an undervalue. We have been advised that a “Red Book” valuation from a RICS qualified surveyor cannot been obtained due to the variables involved. However, the property has been widely marketed with marketing appraisals including valuation advice from Knight Frank, throughout the process who have confirmed that the offer from Company C (Lucy Developments Ltd) is the best obtainable.
Alternative options
Option 1: Do Nothing
· Not granting the delegated approval for the negotiation of the sale contracts via the Heads of Terms will mean a delay in the receipt of monies and create a funding issue for the relocation.
· Continued ownership of the property will
· 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: Seek an alternative purchaser
· This will result in serious delay in the disposal and therefore the funding of the relocation
· The holding costs of the property as well as all of the points raise in Option (1) above.