Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
To consider the acquisition of a property.
Cabinet considered an exempt report on an opportunity to acquire a strategic asset with a steady income stream in the short term and the opportunity to generate greater income streams for the Council in the future.
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 asset.
Alternative options considered and rejected by the Cabinet:
· Not to submit a bid for the asset.
1. Approve the acquisition of the investment asset identified in this report;
2. Formally agree the offer submitted, and authorise the Chief Executive to undertake any necessary subsequent negotiations (including a further bid if required) and complete the acquisition of the asset (in consultation with the Chief Finance Officer, the Leader and the Cabinet Member for Finance);
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 advisors.
Reasons for Decision
1. It will bring in a steady income stream for the short term which will assist in the future ongoing financial stability of the Council.
2. The acquisition will provide a strategic asset for further potential housing development in the long term.
3. It will assist the council in driving regeneration of an area of the borough in the medium term and provide the opportunity for generation of greater income streams for the Council in the future.
Report author: Nick Cummings
Publication date: 12/09/2019
Date of decision: 11/09/2019
Decided at meeting: 11/09/2019 - Cabinet