Issue - meetings

Councillor I.T.E. Harvey

To consider the acquisition of a residential property for financial and asset investment purposes.

Reason for exemption

This report contains exempt information within the meaning of Part 1 of Schedule 12A to the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985 and by the Local Government (Access to information) (Variation) Order 2006 Paragraph 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information) and in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information because, disclosure to the public would prejudice the financial position of the authority in the bidding process for the site by allowing other bidders to know the position of the Council.  This in turn prejudices the Council by (i) distorting the bids process and (ii) prejudicing the opportunity for the Council to acquire a site through the Council for the prudent management of its financial affairs and provision of housing.

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 regarding the acquisition of property ‘P’.

Cabinet members asked to see the valuation survey for the property before completing acquisition of the asset and agreed that the Portfolio Holders for Housing and Corporate Management be included in the consultation on subsequent negotiations.

Alternative options considered and rejected

To not progress the purchase of the property.

Resolved to:

1.    approve the acquisition of the residential property ‘P’ to be held in the name of its subsidiary Knowle Green Estates Ltd.;

2.    authorise the Chief Financial Officer to make prudent borrowing arrangements for the transaction;

3.    authorise the Chief Financial officer to determine with Knowle Green Estates Ltd the most financially prudent way of financing the transaction between the Council and the Company, noting this may include a Council loan to Knowle Green Estates for the full amount of the funds at cost;

4.    formally agree the offer submitted, and authorise the Property and Development Manager to undertake any necessary subsequent negotiations (including making a further offer if required, in consultation with the Leader, Portfolio Holders for Housing and Corporate Management and the Chief Finance Officer), and complete the acquisition of the asset;

5.    authorise the Head of Corporate Governance to enter into any legal documentation necessary to acquire the asset in the name of Knowle Green Estates Ltd.; and

6.    authorise officers to pursue other opportunities to acquire properties under similar circumstances for Cabinet consideration.

Reasons for decision

Acquiring the residential property will allow the Council to make a substantial revenue budget saving, whilst providing a stable home for a local family with complex needs, as well as providing an asset for future use should the family choose to move on. The acquisition will add to the Knowle Green Estates portfolio of residential properties.