Decision details

To consider the acquisition of a property.

Paragraph 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information)

Cabinet considered an exempt report on an opportunity to acquire a site for strategic regeneration within the Borough.

The Asset Manager gave a presentation on the proposal setting out the rationale for acquisition, the costs involved, due diligence process and the business plan for the site.

Alternative options considered and rejected by the Cabinet:

·         Not to submit a bid for the site.

Resolved to:

1.    Approve the acquisition of the site for strategic regeneration within the Borough;

2.    Agree the offer submitted for the acquisition, and authorise the Chief Executive in consultation with the Chief Finance Officer, the Leader and the Cabinet Member for Finance  to undertake any necessary subsequent negotiations (including a further bid if required) and complete the acquisition of the asset;

3.    Authorise the Chief Finance Officer to decide (i) the most financially advantageous funding arrangements for the purchase, (ii) the most tax efficient method of holding the asset, and overall to ensure the acquisition is prudentially affordable; 

4.    Authorise the Head of Corporate Governance to enter into any legal documentation necessary to acquire the asset;

5.    Agree to exempt Contract Standing Orders in respect of our Property Advisors;

6.    To delegate the selection of the external property manager, design team and the contractor for the Phase 1 enhancement works to the Group Head of Regeneration and Growth in consultation with the Portfolio Holder; and

7.    *To recommend to Council the approval of a supplementary Capital provision of £42m to provide sufficient headroom in the Capital Programme for the acquisition and for the appointment of the design team and the contractors for enhancement projects.

Reasons for Decision

This acquisition will enable the Council to directly address the longer term sustainability and regeneration of the Borough.  It is a strategic asset which has the potential to improve the environmental and economic well-being of the area.  The site is prone to be considered for numerous diversified uses all of which have the potential to help the Council achieve its strategic objectives outlined in the Corporate Plan.