Issue - meetings

Councillor Harvey

To consider the acquisition of the development and investment asset identified in the report.

Reason for exemption

This report contains exempt information within the meaning of paragraph 3 of Schedule 12A of 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): 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.

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.

Resolved to:

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.