Issue - meetings

Councillor I.T.E. Harvey

To consider the acquisition of a site and make a recommendation to Council.

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 in order to  enable regeneration in the Borough.

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.