Issue - meetings

To review the decision of the Director of Development taken on 9 February 2023 as a result of the matter having been called-in.

Details of the decision taken on 17 February 2023 and listed on the Publication of Decision List Number 42/22-23 published on 9 February 2023. The report also set out the officer responses to the reasons for call-in.

The decision had been called-in for review by seven members of the Council: Councillors Lee Chamberlain (Lead), Adrian Grumi, Hannah Dyson, Reece Fox, Emma Supple, Chris Dey and Elisa Morreale.

The reasons for the call-in were presented by Councillor Lee Chamberlain as the Lead Member.

RESPONS TO REASONS FOR CALL-IN - KD 3432 - Disposal of Surplus or Under Performing Assets - 1 Grovelands Cottage, 273 The Ridgeway and 31 Cecil Road

The Director of Development explained that the properties had either been declared surplus to operational requirements by former occupying service departments, are otherwise not considered “fit for purpose” by other service departments requiring accommodation or otherwise underperforming when judged against the principles set out in the core principles of the Council’s Strategic Management Plan.

In response to questions from Members, the Head of Regeneration and Growth confirmed that the properties would not be suitable under the Housing Revenue Account, for social housing. Following financial assessment, the rental income the properties would generate in the long term were not sustainable. The capital receipts from the disposal of these properties were not ring fenced to the provision of social housing but would be added to the General Fund.

The Head of Development, Strategic Property clarified the reasons why the properties would be sold under auction rather than a private treaty. The former gave the Council far more flexibility with regard to negotiations and price. Considerable research had gone into the best options available to the Council to realise the best price for these properties. Due to their previous use the cost of modernising the any or all of the properties were prohibitive, and the Council would not obtain a return on its investment.

In response to the Chair’s comment that insufficient information had been provided, Officers undertook to supply details of the occupancy and use of the properties prior to the decision being made to dispose of them, together with the costings of refurbishment. In future, to enable the Committee to obtain a better understanding of the matter called-in, that as much detail as possible be provided in the original report and response to the Call-In.

ACTION: Executive Director Place/Head of Development, Strategic Property

Following a suggestion from a Member of the Committee, regarding the potential to use other such properties in conjunction with the construction skills academy in the future for learning practical skills and the aims of the Council to be carbon neutral, Officers undertook to discuss the possibilities with the relevant stakeholders. 

ACTION: Head of Construction, Maintenance and Facilities Management

The Call-In Lead, Councillor Lee Chamberlain summarised the points made during the discussion.

The Overview and Scrutiny Committee considered the reasons provided for the call-in and responses set out in the Officer’s report. Having considered the verbal responses and  ...  view the full minutes text for item 6