Decision - Disposal of Assets

Disposal of Assets

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

The Council owns assets including land and buildings, investment assets, operational properties, those held for sale or under construction, intangible assets, infrastructure, plant and machinery, heritage and community assets. These assets are located both inside and outside of Torbay. The estate is well let and returns to the Council a substantial annual income achieving a high occupancy rate. However, some assets have been identified as surplus to the Council’s operational requirements and which can be disposed of.

Asset disposals need to achieve the highest possible receipt in line with the Council’s asset management policy. With net receipts, after the cost of any sales, committed to delivery of the capital programme schemes across Torbay.

The benefits of the proposal are initially financial. There would be a capital receipt obtained that, net of the disposal costs, will contribute to delivery of the Council’s capital programme and support the objectives of the Community and Corporate Plan.

Decision:

1) That the Director of Pride in Place be requested to instruct preparation of an outline planning permission for the surplus toilet blocks at Preston North and Corbyn Head and disposal of these assets with outline planning consent via auction; and be given delegated authority, in consultation with the Director of Finance and the Cabinet Member for Place Services and Economic Growth, for ensuring that the assets are disposed of in line with the objectives set out in the submitted report.

2) That the Director of Pride in Place be requested to instruct the disposal of the Old Toll House in Torquay and be given delegated authority, in consultation with the Director of Finance and the Cabinet Member for Place Services and Economic Growth, for ensuring that the asset is disposed of in line with the objectives set out in the submitted report.

3) That the Director of Pride in Place be requested to instruct a strategic review of the Council’s estate to identify other assets which could be disposed of to support the delivery of the Council’s objectives.

Reasons for the decision:

The Council owns assets including land and buildings, investment assets, operational properties, those held for sale or under construction, intangible assets, infrastructure, plant and machinery, heritage and community assets. Whilst the estate was well let and returned to the Council a substantial annual income, also achieving a high occupancy rate, the assets were subject to periodic review to ensure that the Council’s assets supported the Council’s objectives as best as they can.

Alternative options considered:

The following alternative options were considered discounted:

· Do nothing – the Council would continue to manage the assets being recommended for disposal. Costs would be incurred in the management of these assets including costs relating to staff, repair and maintenance. The potential for a capital receipt will be missed and this option would not support delivery of the Council’s capital programme and wider objectives.

· Dispose of the toilet assets without an outline planning consent – it was expected that this would result in a lower receipt than was optimal as potential buyers would not have confidence that a development would be possible on the site. Whilst this would be a faster route to disposal, the expectation was that there would be a lower receipt and for that reason this option was not recommended.

Implementation:

This decision will come into force and may be implemented on 24 July 2023 unless the call-in procedure is triggered (as set out in the Standing Orders in relation to Overview and Scrutiny).

Information:

The Council’s capital programme was under acute pressure following the turbulent period experienced in the local, national and international economies. One consequence of this turbulence was increased costs being experienced across all sectors with the Capital Programme requiring additional funding to be able to deliver the projects and outcomes that the Council had committed to.

The Council’s Asset Management Strategy also requires that its assets needed to support an identified end use and purpose, and where they were not or where the cost and performance of the asset suggests, that there may be opportunities for disposal. The principles of this process were set out in the Council’s Asset Management Policy and include a commitment to rationalise the asset base reviewing non-operational and surplus assets to identify opportunities to create revenue income or a capital receipt to stimulate development and growth.

As such, the disposal of sites at Preston North, Corbyn Head and the Old Toll House will assist the Council to achieve capital receipts and cost savings in line with the Council’s Capital Programme and Asset Management Strategy.

At the meeting Councillor Chris Lewis proposed and Councillor Bye seconded a motion that was agreed unanimously by the Cabinet, as set out above.

Interests and Nature of Interests Declared:

None.

Publication date: 14/07/2023

Date of decision: 11/07/2023

Effective from: 22/07/2023

This decision has been called in by:

Councillor Swithin Long who writes There are some remaining unanswered questions regarding the item on ‘Disposal of Assets’ following the Cabinet meeting on the 11th July. The questions, which we would like to be discussed at Call-In are: 1) What is the rationale for disposing of the assets when there are potential end users for the schemes which could see them regenerated and deliver an income to the Council? 2) When were the potential end users of the sites informed that the sites were going to be sold? 3) For the Corbin Head site, what parameters are being placed on the scale of any development to protect this much loved green space? 4) Are the legal issues that were preventing redevelopment of the Old Toll House still present, and might the present a barrier to a disposal? 5) Are there guarantees that a disposal will lead to timely regeneration projects being started – or could developers simply sit on these assets? "
Councillor Mike Fox who writes There are some remaining unanswered questions regarding the item on ‘Disposal of Assets’ following the Cabinet meeting on the 11th July. The questions, which we would like to be discussed at Call-In are: 1) What is the rationale for disposing of the assets when there are potential end users for the schemes which could see them regenerated and deliver an income to the Council? 2) When were the potential end users of the sites informed that the sites were going to be sold? 3) For the Corbin Head site, what parameters are being placed on the scale of any development to protect this much loved green space? 4) Are the legal issues that were preventing redevelopment of the Old Toll House still present, and might the present a barrier to a disposal? 5) Are there guarantees that a disposal will lead to timely regeneration projects being started – or could developers simply sit on these assets?"
Councillor Christine Carter who writes There are some remaining unanswered questions regarding the item on ‘Disposal of Assets’ following the Cabinet meeting on the 11th July. The questions, which we would like to be discussed at Call-In are: 1) What is the rationale for disposing of the assets when there are potential end users for the schemes which could see them regenerated and deliver an income to the Council? 2) When were the potential end users of the sites informed that the sites were going to be sold? 3) For the Corbin Head site, what parameters are being placed on the scale of any development to protect this much loved green space? 4) Are the legal issues that were preventing redevelopment of the Old Toll House still present, and might the present a barrier to a disposal? 5) Are there guarantees that a disposal will lead to timely regeneration projects being started – or could developers simply sit on these assets?"
Councillor Darren Cowell who writes There are some remaining unanswered questions regarding the item on ‘Disposal of Assets’ following the Cabinet meeting on the 11th July. The questions, which we would like to be discussed at Call-In are: 1) What is the rationale for disposing of the assets when there are potential end users for the schemes which could see them regenerated and deliver an income to the Council? 2) When were the potential end users of the sites informed that the sites were going to be sold? 3) For the Corbin Head site, what parameters are being placed on the scale of any development to protect this much loved green space? 4) Are the legal issues that were preventing redevelopment of the Old Toll House still present, and might the present a barrier to a disposal? 5) Are there guarantees that a disposal will lead to timely regeneration projects being started – or could developers simply sit on these assets?"
Councillor Nicole Amil who writes There are some remaining unanswered questions regarding the item on ‘Disposal of Assets’ following the Cabinet meeting on the 11th July. The questions, which we would like to be discussed at Call-In are: 1) What is the rationale for disposing of the assets when there are potential end users for the schemes which could see them regenerated and deliver an income to the Council? 2) When were the potential end users of the sites informed that the sites were going to be sold? 3) For the Corbin Head site, what parameters are being placed on the scale of any development to protect this much loved green space? 4) Are the legal issues that were preventing redevelopment of the Old Toll House still present, and might the present a barrier to a disposal? 5) Are there guarantees that a disposal will lead to timely regeneration projects being started – or could developers simply sit on these assets?"