Issue - meetings

A report from the Director of Finance, Resources and Customer Services is attached. This proposes to sell part of the freehold sale of Holly Hill Farm as detailed in the report. (Key decision – reference number 4447)

(Report No.176)

(8.35 – 8.40 pm)

Councillor Dino Lemonides (Cabinet Member for Finance and Efficiency) introduced the report of the Executive Director of Finance, Resources and Customer Services (No.176) seeking approval to sell part of the freehold of Holly Hill Farm.

NOTED

1.               The proposal to sell part of the freehold of Holly Hill Farm for the reasons and on the terms of sale as set out in the report.

2.               That the agreed sale price was £750,000 and there was an overage provision agreed of 50% of the market value of any additional residential planning being granted. Following discussion at the meeting, it was requested that the word “residential” be deleted from the final terms of sale and apply to any additional planning being granted in the future.

3.               That the Council’s specialist rural consultant Knight Frank, had recommended the proposed terms and had confirmed that these represented best value as set out in section 123 of the Local Government Act 1972. In response to questions raised by Members, clarification was provided on the valuation processes which had been followed and the restrictions that applied. The proposed terms were in accordance with legal requirements and were deemed to represent best value to the Council. Members further noted the restrictions that would be applied to the terms of the sale.

4.               The sale would ensure that this local business, Halo Dogs, would remain in the Borough and so provide an opportunity for the local business to plan and build for the future. Councillor Sitkin noted that this allow existing jobs to be retained and would create further job opportunities.

Alternative Options Considered: Do nothing – this option was not recommended as the Council would forgo a capital receipt of £750,000.

DECISION: The Cabinet agreed

1.               To approve the proposed terms of the part sale of cottage; building and land at Holly Hill Farm, 303 The Ridgeway, Enfield, EN2 8AN as detailed in the report.

2.               To delegate authority to the Executive Director of Finance, Resources and Customer Services and the Assistant Director of Property Services, to agree final terms and enter into appropriate legal agreement for the freehold sale and subsequent amendments to the farm business tenancy agreement as detailed in the report.

3.               To note that the annual rental income, which the Council received from this farm asset would reduce from £31k to £18k as a result of the proposed part sale.

Reason: It would generate a capital receipt for the Council which could be allocated to help fund spending priorities. It would ensure that this local business would remain in the borough. It would provide an opportunity for the local business to plan and build for the future.

(Key decision – reference number 4447)