Appendix C

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Appendix C

  1. 1. ASSET MANAGEMENT PLAN & CAPITAL STRATEGY 2005/06 – 2007/08 APPENDIX C LIVERPOOL CITY COUNCIL CORPORATE PROPERTY POLICY & GUIDANCE MANUAL
  2. 2. Corporate Property Policy and Guidance Manual CONTENTS Foreword – Chief Executive & Corporate Property Officer – to be completed 1. Purpose and Corporate Context 2. Executive Summary – to be developed 3. Objectives of the Strategy 4. General Policy – to be confirmed 4.1 General 4.2 Council Standing Orders (Relating to Property) 4.3 Scheme of Delegation (Relating to Property) 5. Disposal of Land & Property 5.1 Arrangements to Declare Land & Property Surplus 5.2 Authority to Dispose of Land & Property 5.3 Disposal of Land for Less Than Best Consideration 5.4 Disposals to Charitable, Voluntary and Non- Profit Organisations 5.5 Method of Disposal 5.6 Tenure to be Offered 5.7 Management of Surplus Property and Land 5.8 Miscellaneous Disposal Matters 6. Management of the Non-Operational Estate – to be developed 7. Acquisitions – to be developed 8. Management of Service & Elapsed Service Tenancies – to be developed 9. Management of Heritage Assets – to be developed 10. Management of the Operational Estate – to be developed 11. Capital Prioritisation & Option Appraisal – to be developed 12. Procurement – to be developed 13. Repair & Maintenance Strategy – to be developed 14. Procedural Arrangements – to be developed 2 05/05/10
  3. 3. Corporate Property Policy and Guidance Manual 15. Area Based Initiatives 16. Strategies & Plan – to be developed 17. Consultation Arrangements and Useful Contacts – to be developed 18. Legislative Framework – to be developed as the document evolves 19. Glossary Appendices – to be developed as the document evolves Appendix A: Disposal Appraisal Template Appendix B: Summary: General Consent - Section 25 Local Government Act 1998 Appendix C: RICS Appraisal and Valuation Standards Guidance Note 5 – Local Authority Disposal for Less Than Best Consideration Appendix D: Tenure to be offered – Relevant Criteria Appendix E: Decommissioning Guidance & Checklist Appendix F: Area Based Initiatives Appendix G: The Protection of School Playing Fields and Land for Academies - Summary Supporting Documentation – to be developed 3 05/05/10
  4. 4. Corporate Property Policy and Guidance Manual 1. Purpose & Corporate Context Liverpool City Council is the largest landowner in the city retaining a significant and diverse property holding comprising over 35,000 separate individual property assets, including approx. 18,000 Council houses, 15,000 investment properties, 119 LEA schools and 200+ miscellaneous operational premises. This asset base has a capital value of £1,110m1 and generates an income of £xm for the Council. Conversely the cost of managing these assets are in the region of £xm, whilst it has been estimated that in the region of £202m of investment is required to make the portfolio fit for purpose. It is therefore critical that the Council has robust processes and procedures in place governing the management, use and deployment of this resource to ensure value for money is obtained and the property matches the requirements of the Council. This document seeks to provide for the very first time a council-wide policy framework governing the use and management of Council land and property. It will provide a clear strategic approach to property issues such as disposals, management of operational and non-operational accommodation, space utilisation etc to inform and influence the strategic direction of the Council’s property portfolio. In developing this document existing governance arrangements concerning property, statutory legislation, consents and circulars governing the use of local authority property, as well disparate property’s strategies of the Council have been consolidated, reviewed and where appropriate, amended and/or streamlined to clarify and strengthen existing arrangements. Strategic guidance has also been developed for other key property matters where it was felt there has been a lack of clear policy. The document is intended to ensure a consistent approach is adopted and roles and responsibilities of officers, members and other stakeholders engaged in property matters are clearly identified to avoid any confusion and overlap of duties. To this end process maps have been included setting out the procedural arrangements and respect roles of responsibility concerning key property matters. The document has been developed to act as a guide to assist officers, elected members and other stakeholders when considering and making decisions involving property. 1 Corporate Performance Plan 2005/06 – Section 5 4 05/05/10
  5. 5. Corporate Property Policy and Guidance Manual Unless stated otherwise this document excludes arrangements governing the management and use of Council housing. Where the text is highlighted in red italics these are suggested amendments to the Constitution and/or or other Council policy documents and reports. Text highlighted in blue relates to existing specific schemes of delegation which are not included in the current Constitution. Any changes to the Constitution, as proposed in this document, will be reported to Elected Members as part of the Council’s annual review of its Constitution. 5 05/05/10
  6. 6. Corporate Property Policy and Guidance Manual 2. Executive Summary – to be developed as the document evolves List key policy statements governing the use and management of property. 6 05/05/10
  7. 7. Corporate Property Policy and Guidance Manual 3. Objectives of Corporate Property Strategy To: ν provide an efficient and adaptable stock of land and buildings fit for their purpose; ν optimise property usage and reduce operational costs; ν establish and co-ordinate the future property requirements of the Council in the short, medium and long term, to meet the needs of its Customers in terms of future service delivery; ν ensure that investment in land and buildings maximises value for money; ν ensure an explicit, co-ordinated approach to asset management across the Authority; ν identify uneconomic, unsuitable and surplus properties and thereby free up capital assets for recycling and leverage; ν utilise the Council’s assets to support and deliver economic development; ν ensure that decisions relating to the rationalisation, acquisition or investment in property have regard to operational objectives, the Council’s six aims and the objectives of ‘Liverpool First’; ν identify and focus upon opportunities for engaging in regeneration and neighbourhood renewal through the imaginative and innovative use of property; ν explore and exploit opportunities for shared use with the Council’s partners; ν maximise the return from investment property; ν accurately identify and record details of the Council’s property holdings through the establishment of a corporate property database; ν ensure that there is explicit processes and procedures governing the use, management and deployment of land and property which are to be fully adopted by officers, elected members and other stakeholders; ν reduce the level of required maintenance 7 05/05/10
  8. 8. Corporate Property Policy and Guidance Manual GENERAL PROPERTY POLICY – TO BE FINALISED 8 05/05/10
  9. 9. Corporate Property Policy and Guidance Manual 4.1 General Policy Statements – to be developed and expand as the overall document evolves 4.1.1 All property and land to be treated as a corporate resource 4.1.2 All property and land held and/or occupied by the Council should support either directly or indirectly the Council’s corporate objectives. 4.1.3 Where assets are identified which do not support the Council’s corporate objectives the capital resource tied up in those assets to be released and deployed for alternative uses. 4.1.4 The Council will wherever possible occupy property of which it is the owner of the freehold. 4.1.5 All Council accommodation which is subject to a lease or licence to a third party who are not providing a direct service on behalf of the City Council is to be classified as non-operational and as such to form part of the Corporate and Investment estate. 4.1.6 Responsibility for the overall strategic direction of the Council’s land and property to be overseen by the Council’s Corporate Property Officer (CPO). The nominated CPO is the Executive Director, Regeneration. 4.1.7 The Executive Director, Central Services to be responsible for the management and use of the Council’s operational accommodation, including the cessation of use. 4.1.8 Services continue to support the Asset Management Group. The Group to be responsible for the co-ordination and management of the Council’s assets and where appropriate to advise and make recommendations to EMT and elected members on the use of the Council’s property and land. 4.1.9 The Council continue to produce and maintain an Asset Management Plan (AMP) and Capital Strategy (CS). The AMP & CS to be updated annually. 4.1.10 Member responsibility for the asset management planning agenda to continue to rest with the Executive Member, Resources. 4.1.11 The Council will maintain an accurate and comprehensive database of its land holding. As far as practically possible property data should be held within a single data system. 9 05/05/10
  10. 10. Corporate Property Policy and Guidance Manual 4.2 Council Contract Standing Orders 4.2.1 All disposals, purchases and lettings of land and property are to be in accordance with the Council’s Contract Standing Orders (CSO) – details of the property related CSOs are, for easy of reference, set out below. Officers should however have regard to full set of the CSOs when considering property matters. The Council’s CSOs can be accessed at http://ldl960:8070/Published/StdDataDocs/6/5/6/4/SD00004656/$4CONTR ACT.doc.pdf (CSO 11.1) Subject to CSO 11.2 and CSO 11.3 below, all disposals of land and/or property (whether by lease, licence, or sale of freehold) shall be by way of public auction or public tender or quotation at the discretion of the Assistant Executive Director (Performance & Business Management). (CSO 11.2) Disposals (whether by lease, licence or sale of freeholds) of the type of land, to the persons, or in the circumstances set out below shall be by way of negotiation by private treaty unless the Assistant Executive Director (Performance & Business Management) recommends disposal by way of public auction or public tender or quotation: (1) Existing lessees purchasing the freehold or re-negotiating or extending the terms of an existing lease. (2) Industrial estate leases where supply exceeds demand (3) Shop leases on Council-owned residential estates and District Shopping Centres where the supply exceeds demand. (4) Disposal of property in Housing Action Areas (delete Housing Action Areas and replace with neighbourhood and private sector renewal areas), the Canning Street Action Area of either the freehold or a term of 125 years to either a Housing Association or Housing Co-Operative. (5) Disposals of property under the Right to Buy Legislation. (6) Disposals of property under the provisions of the Leasehold Reform Act 1967 and subsequent legislation (7) Disposals of garden land to adjoining or adjacent owners (8) Disposals of property to a developer of adjoining land who has an approved scheme (ie outline or full planning permission for the scheme has been obtained by the developer) or a developer who has wider property interests in an approved scheme and requires such property to complete the scheme. 10 05/05/10
  11. 11. Corporate Property Policy and Guidance Manual (9) Disposals of property to developers who are proposing schemes which will have a regenerating effect on the City and investment which in the view of the Executive Member for Resources (in discussion with the Executive Member for Regeneration) could be prejudiced by inviting tenders. (CSO 11.3) No part of the Council's property shall be sold, leased or let to, (except in the case of the granting of secure tenancies by the Assistant Executive Director (Housing and Neighbourhood Services) nor shall any property be purchased from any officer or any Council Member other than a trustee without any beneficial interest therein except at an auction or as a result of competitive tender or quotation, unless particulars of such transaction including, in the case of an officer, his/her name, Service and the post held by him/her and, in the case of a Council Member, his/her name are set out in the Minutes. Provided that, for the purposes of this Standing Order, the interest of the spouse of an officer or member shall be deemed to be the interest of that officer or member. (CSO 11.4) Every purchase or sale of property requiring the confirmation of the Council shall be notified to the Council in the Minutes of the appropriate Committee submitted to the Council. (CSO 11.5) All tenders and quotations shall be invited in accordance with CSO 8.1 – 8.8 and CSO 9.1 – 9.10 and for the purposes of CSO 8.1(1) and CSO 9.1 each invitation shall specify the property and the legal interest to be disposed of. (CSO 11.6) Tenders and quotations shall be opened in accordance with CSO 8.4 – 8.6 and CSO 9.3 – 9.6. (CSO 11.7) The Assistant Executive Director (Performance & Business Management) shall report the results of each tendering or quotation exercise, where the value is greater than £5,000 (replace £5,000 with £10,000 in line with the de- minimus threshold for a sum not treated as capital – LA(CF&A) Regs 2003) with an appropriate recommendation to the Executive Member for Resources as soon as practical after tenders have been opened. (CSO 11.8) The Assistant Executive Director (Performance & Business Management) shall have the power, subject to compliance with CSO 11.1 - 11.6, to dispose of land and/or property where the income receivable is less than £5,000. (CSO 11.9) Subject to no tender or quotation having been accepted, where tenders or quotations are retained unopened under CSO 8.6 or CSO 9.6 the circumstances relating to such tenders shall be reported by the Assistant Executive Director (Performance & Business Management) to the Executive Member for Resources who may at his/her discretion authorise the opening. 11 05/05/10
  12. 12. Corporate Property Policy and Guidance Manual 4.3 Scheme of Delegation – Property Matters 4.3.1 Without prejudice the following powers in relation to property matters are specifically delegated to the following officers. Details of overall scheme of delegation and general procedures which must be followed can be accessed at http://ldl960:8070/Published/StdDataDocs/6/5/6/4/SD00004656/$SCHEM EOFDELEGATIONTOOFFICERS.doc.pdf . Executive Director, Education, Library and Sports Services • To take all appropriate steps to achieve effective use of operational education land and buildings. Where this involves some form of property transaction professional property and legal advice to be obtained. Assistant Executive Director, Performance & Business Management (nb not Regeneration Services as state in the current Constitution) • To complete (replace “complete” with ”negotiate”) the disposal by sale lease or license of surplus land and property and to incur any necessary expenditure for that purpose. The decision to dispose (replace “dispose” with “declare land and property surplus”) and ratify terms would be taken by elected members. • To complete (replace “complete” with “negotiate”) the acquisition by compulsory purchase order, purchase or exchange any land or property. The decision to acquire and ratify terms would be taken by elected members, unless the purchase is at auction for which separate delegation exists • To vary terms and issue consents for sale, lease or license of land or property and to take any necessary steps to protect the Council’s interest in its property. • To agree and negotiate with the valuation officer, rating assessments and appeals in relation to land and property. • To pursue and settle claims associated with land and property as agreed by elected members. • To complete the disposal by sale lease or licence of properties under the Right to Buy and Leasehold Reform legislation 2 2 Report EDR/189/03 – Procedures for the Disposal of Property 12 05/05/10
  13. 13. Corporate Property Policy and Guidance Manual • To complete the disposal by sale lease or licence of land to adjoining or adjacent owners for the purpose of a garden extension where the size of the land to be disposed to an individual purchaser does not generally exceed 250 sq m and the use is restricted to garden land. • To complete the disposal by sale lease or licence of any land or property where the financial consideration does not exceed the figure set under the Local Authority (Capital Finance and Accounting) (England) Regulations 20033 in any one given financial year. This is currently set at £10,000 (ten thousand pounds). • To complete the sale of surplus land and property by auction and to incur any necessary expenditure for that purpose4. Assistant Executive Director, Housing and Neighbourhoods (nb not ED, Supported Living and Community Safety as stated in the Constitution) • To approve the acquisition, purchase and disposal (delete reference to “acquisition”) of land and property within the approved Housing programmes. The decision to approve the respective programmes to be taken by elected members. • To place an Order with 2o2o Liverpool to attend auctions as agent for the Council and bid for a particular lot or property up to an agreed valuation when authorised so to do in consultation with the Regeneration Finance Manager5: a). open an LCC Client bank account to be operated by 2o2o Liverpool for the sole purpose of acquiring properties to be identified by the Divisional Manager HMRI (or in his absence the Executive Director Regeneration or AED for Housing and Neighbourhoods) b). deposit monies into the account from time to time from the HMRI Theme 1 – Clearance/acquisitions to meet expenditure incurred at auction estimated to be circa £30,000 per month and, c). complete accounting and record keeping arrangements and procedures on a monthly basis to ensure proper financial management in accordance with LCC financial control requirements and the 2o2o contract. 3 Section 10 4 Report L&DS/629/00 – Sales of Land & property by Auction 5 Report EDR/342/04 – Proposals to Acquire HMRI Property at Auction 13 05/05/10
  14. 14. Corporate Property Policy and Guidance Manual • Replace above delegation with the following to facilitate acquisition at auction of required properties within the approved Housing programmes – “To attend auctions or instruct 2020 Liverpool, as agent for the Council, to attend and bid for a particular lot or property identified by the Divisional Manager, HMRI, within the approved Housing programme up to an agreed valuation providing that the necessary funds are available, as confirmed by the Head of Finance (Regeneration).” • To approve requests by Residents Association to use vacant properties for community purposes subject to the following circumstances6: a). the accommodation is low demand and not required for housing purposes; b). the proposed use does not duplicate existing provision in the area; c). the tenancy is subject to planning permission and other terms and conditions as determined by the Operational Manager of Land and Development Services, d). the term is for less than seven years and e). Associations are charged 10% of the actual rent NB this contradicts 5.3.5 – for consistency it is proposed that delegation for this should be removed and executive board approval obtained • To allow contractors to use a vacant property as a site office subject to the following conditions7 a).requests form part of pre-contract negotiations and form part of the final contract document b.) the divisional manager has authority to decide whether or not offers can be restricted to hard to let accommodation c). the contractor is charged the factor rent or economic rent whichever is the higher • Replace above delegation with “To allow contractors to use vacant property as a site office for the duration of either whole or part of the contract subject to terms and conditions as determined by the Head of Property and Asset Management Services. 4.3.2 In taking any decision, the officer concerned must be satisfied that the following issues have been properly considered and completed where 6 Office Accommodation Provision for Tenants Groups – Report 19/2/97 7 14 05/05/10
  15. 15. Corporate Property Policy and Guidance Manual appropriate. All of these issues should be considered at the earliest possible stage. (a) a key decision should be taken in accordance with the relevant requirements; (b) the views of the relevant Executive Members(s) following the application of the consultation criteria set out in paragraph (c). (c) the implication of any Council policy, initiative, strategy or procedure. Officers need to be aware of any potential impact of a delegated decision in other areas. In such cases, consultation with officers and relevant Executive Members(s) from any affected portfolio should take place. (d) the extent of prior consultation and the views/opinions emanating from that process, including Select Committees and Area Committees. (e) the range of available options (f) the staffing, financial and legal implications. (g) the involvement of appropriate statutory officers and/or other Assistant Executive Directors as appropriate. (h) the views of Ward Councillors where the issue relates to a specific ward(s). (i) the relevance of any regional or national guidance from other bodies. (j) the Council’s Standing Orders, Financial Regulations and all relevant guidance, legislation and Codes of Practice. (k) the need to secure Best Value. 4.3.3 In order to assist with the above, arrangements should be made by each Executive Member and Executive Director to deal with times of absence e.g. holidays. This could, for example, be through a named alternative. 4.3.4 Each officer exercising delegated powers shall be responsible for recording decisions taken and the method for reporting those decisions to the appropriate Select Committee will be determined by the Select Committee and the Overview and Scrutiny Select Committee. In addition, a formal report detailing the decisions taken will be submitted to the appropriate Select Committee. The format of the report and the frequency of submission to the Select Committee will be agreed by the Chair, Executive Member and Executive Director. 15 05/05/10
  16. 16. Corporate Property Policy and Guidance Manual DISPOSAL OF LAND & PROPERTY 16 05/05/10
  17. 17. Corporate Property Policy and Guidance Manual 5.1 Arrangements to Declare Land and Property Surplus 5.1.1 All operational property and land, including schools must be formally declared surplus to Council requirements by the Executive Board before it can be offered for disposal8. Exempt from the above arrangements are disposals: • under the Leasehold Reform Act, • under the Right to Buy legislation; • of garden land (not exceeding 250 sq m) to an adjacent or adjoining owner; or • where the receipt from the property is expected not to exceed the figure set under the Local Authority (Capital Finance & Accounting) (England) Regulations 2003 (which is currently set at £10,000) in any given financial year for which delegated authority has been granted to the Assistant Executive Director, Performance & Business Management. 5.1.2 All assets which are subsequently declared surplus to be vested in the Corporate and Investment estate. 5.1.3 All property and land currently held within the Council’s Corporate and Investment Estate are by definition surplus to the Council’s operational requirements and consequently may be offered for disposal. Unless delegated authority is available terms for the disposal of C&I property must be reported to the Executive Board for ratification. 5.1.4 All reports seeking authority to declare an asset surplus to operational requirements under 5.1.1 above are to include an appraisal of the disposal options to ensure that there is a clear exit strategy identified – the appraisal to be commissioned by the occupying service and undertaken by the Head of Property and Asset Management Services. The occupying service to advise of any previous interest shown in the premises by third parties and also consult with ward councillor for their views. The appraisal to be completed within two months from the date of commission to avoid delaying the process to declare the property surplus. For illustrative purposes a copy of a completed disposal appraisal report is set out in appendix A. 8 Report EDR/189/03 – Procedures for the Disposal of Property 17 05/05/10
  18. 18. Corporate Property Policy and Guidance Manual 5.2 Authority to Dispose of Land & Property 5.2.1 Terms for the disposal of all surplus property and land are to be reported to the Executive Board for ratification with the exception of the following categories of disposals for which delegated authority exists and separate arrangements apply – see previous section 4.3 • Right to Buy sales • Leasehold Reform Act sales • Garden land generally not exceeding 250 sq m where the use is restricted to garden use • Where the receipt generated from the disposal of the asset does not exceed in any one given financial year £10,000 • Disposals by way of auction 5.2.2 Written evidence of the authorising authority to dispose to be provided in all instances to the City Solicitor to execute the transaction. 5.2.3 Negotiations with prospective purchasers should take place, if practicable, at the Council’s / Partner’s office or the purchaser’s office within core office hours. If practicable two officers should be present. Confirmation of the negotiations will be made in writing and sent to the purchaser for agreement. Reporting will take place once agreement has been reached. 5.2.4 Offer and terms of sale - these should be certified by the Council’s appointed partner and/or agent as representing the best reasonably obtainable in the circumstances, and where appropriate should be accompanied by a valuation report in accordance with the RICS Red Book - Appraisal and Valuation Standards (5th Edition). The report should clearly state how long the valuation and other terms of the sale should be regarded as being valid taking account of the prevailing market conditions at the time. 5.2.5 Where best consideration cannot be certified this should be clearly stated and the arrangements under sections 5.3 are to be followed. 5.2.6 Where terms are being reported to the Executive Board the report to clearly state (i) the date of the valuation and (ii) the length of time the valuation is valid for. The purchaser to be made aware of the period the valuation is valid and the consequences of having to review and if 18 05/05/10
  19. 19. Corporate Property Policy and Guidance Manual appropriate re-value the property should legal completion not occur before the expiry of the valuation period. 5.2.7 If the transaction cannot be completed within the stated time period the valuation is valid for then the property is to be re-valued. If there has been no increase in value the Head of Property and Asset Management Services to certify that best consideration is still being achieved. Where there has been an increase in value and terms are subsequently successfully re-negotiated the Head of Property and Asset Management Services to certify that best consideration is being achieved. 5.2.8 The value of the property should be monitored throughout the negotiation period. Valuations should be valid for a fixed period (ideally between three and six months) and reviewed as appropriate having regard to the market conditions and other material circumstances. 5.2.9 An indicative end date to finalise heads of terms should be agreed with the purchaser at the outset of negotiations and finalised once Executive Board has been obtained to the disposal, including arrangements for the payment of abortive costs (if appropriate). If terms cannot be agreed by the specified date the offer to sell to be withdrawn. 5.2.10 Where a Service Area retains an active involvement in a disposal due to the nature of the proposal or organisation involved that (i) a lead officer from the service area is identified and (ii) progress regarding the sale is effectively and regularly communicated to the lead officer and where appropriate elected members. 19 05/05/10
  20. 20. Corporate Property Policy and Guidance Manual 5.3 Disposal of Land for Less than Best Consideration 5.3.1 Presupposition that subject to 5.3.2 and 5.3.3 all disposals (including lettings) to be at open market value to ensure the best consideration is achieved and the Council’s fiduciary duties are fulfilled. 5.3.2 As permitted under the Local Government Act 1972: General Disposal Consent 2003 consideration may be given at the discretion of the Executive Board to a disposal at less than best consideration, including a short tenancy9 where it can be clearly demonstrated and evidenced that the disposal is likely to contribute to the achievement of any one or more of the following objectives: o The promotion or improvement of economic well-being of the area; o The promotion or improvement of the social-well being of the area; o The promotion or improvement of the environmental well-being of the area. 5.3.3 General consent under section 25 of the Local Government Act 1988 is also available to local authorities to provide registered social landlords with financial assistance or any gratuitous benefit in relation to the disposal of land and dwelling-houses held under part II of the Housing Act 1985 to a registered social landlord. The consent is subject to the various conditions as set out in appendix B. Again requests to provide financial assistance or other gratuitous benefits to a registered social landlord are to be at the discretion of the Executive Board. 5.3.4 Any request to dispose at less than best consideration must be accompanied by a technical valuation report, to be in accordance with the prescribed format as contained in the RICS Red Book (UK Guidance Note 5 – Local Authority disposal of land for less than best consideration) - see appendix C. 5.3.5 The Scheme of Delegation for qualifying disposals (see section 4.3) shall not apply and all proposed disposals at less than best consideration are to be considered by the Executive Board. 5.3.6 Where the disposal cannot be justified on the grounds described above and/or the undervalue of the Council’s interest being disposed exceeds £2,000,000 (two million pounds) then specific consent from the Secretary of State will be required. Applications should be made to the Director of Planning at Government Office North West and the following information to be provided: 9 A short tenancy is a tenancy granted for seven years or less. Under s.123 of Local Government Act 1972 and subsequent legislation Ministerial consent is not needed 20 05/05/10
  21. 21. Corporate Property Policy and Guidance Manual i a written description of the site and buildings, its physical characteristics, location and surroundings together with a plan which should be accurate enough to allow it to be used to identify the land in the Secretary of State's decision in cases where consent is given; ii a written description of the authority's tenure and a summary of the details of any leases, encumbrances, such as easements etc. to which it is subject. Details should be given of the purpose(s) for which the authority holds the land. Normally land is held for the purposes of the power under which it was acquired, or taken on lease, unless it has since been formally appropriated to another purpose; iii a written description of the existing use(s), current planning consents and alternative planning uses(s) that are likely to be permitted; iv a summary of the proposed transaction, noting the reasons for disposing at an undervalue, the key terms and any restrictions to be imposed by the authority; and v a detailed Valuation Report covering the matters listed in the Technical Appendix, and signed by a qualified valuer (a member of the RICS). The Department would normally expect the valuation to have been undertaken no earlier than six months before the submission. 5.3.7 Similarly specific Ministerial consent is required for the disposal of land held for planning purposes under section 233 of the Town and Country Planning Act 1990. 5.3.8 Ministerial consent is also required for the disposal of land and property held under Part II of the Housing Act 1985 which are not covered by the general consent available under section 25 Local Government Act 1988 - see 5.3.3 5.3.9 For the avoidance of doubt if the Council imposes restrictions or voluntary conditions as part of the disposal which reduces the financial consideration of the Council’s interest the sale is to be treated as a disposal at less than best price. The monetary value of those conditions to be set out in the accompanying valuation report. 5.3.10 In order to protect the Council’s financial interest where an asset is sold for less than best consideration the sale should be by way of a lease (see section 5.6) and subject to a clawback provision (to enable the Council to receive a share of the proceeds of sale if the asset is subsequently sold), unless there are exceptional circumstances as approved by the Executive Board. 5.3.11 Where such a sale is to a Registered Social Landlord the disposal to also consider the option for the Council to have nominations rights – the percentage and length of time the covenant to apply to be negotiated. 21 05/05/10
  22. 22. Corporate Property Policy and Guidance Manual 5.3.12 A financial record is to be maintained for all approved disposals at less than best consideration and an annual review undertaken. Every time authority is sought to dispose of an asset for less than best consideration the accumulative undervalue of previously approved transactions during the given financial year is also to be reported. 5.3.13 Where authority is being sought to dispose of an asset at less than best consideration this should be clearly stated in the recommendation and the financial implications section of the report to clearly set out the financial lost to the Council – in accordance with the RICS Red Book (UK Guidance Note 5 – Local Authority disposal of land for less than best consideration). 5.3.14 For the avoidance of doubt whilst a disposal may represent “Best Value” due to the wider social, economic or regeneration benefits this is not the same as best consideration and should not be reported as such. For clarity this should be made explicit in this section of the report. 22 05/05/10
  23. 23. Corporate Property Policy and Guidance Manual 5.4 Disposals/Lettings to Charitable, Voluntary or Non-Profit Organisations and Residents Associations 5.4.1 To ensure transparency in all property transactions as a matter of general principle, disposals or lettings to charitable, voluntary or non-profit organisations and residents associations should take place on the basis of market value, with any financial assistance or other gratuitous benefit to be provided by way of a grant rather than reduction in the disposal terms. 5.4.2 Prior to any agreements being entered into with such organisations to occupy Council land or property the Council shall satisfy itself that the organisation has robust and sustainable business plan and have sufficient finances to occupy the property without recourse to any further financial assistance from the Council. 5.4.3 A general exception to the above being in relation to the following categories of properties10 a) One off temporary lettings; • To be by way of fixed term licence for a period of no longer than six months. Vacant possession to be secured upon the end of the licence period; • There is no right to renewal of the licence; • All costs in association with the property are to be the responsibility of the occupier (or Service supporting the organisation): • The Council reserves the right to terminate the agreement subject to four weeks notice in the event that a commercial letting can/has been secured. The Council to use its reasonable endeavours to secure alternative accommodation for the organisation. • Otherwise terms and conditions as agreed by the Head of Property and Asset Management Services. b) The temporary letting of ‘hard to let’ premises • This is a property that has been vacant for a period in excess of 12 months and despite being marketed is in the view of the Operational Manager, Land & Development Services is unlikely to be let in the foreseeable future; 10 Policy Guidance in Respect of Requests for the Use of Land and Buildings from Charitable Organisations – Report HEST/130/97 (City Council 20/08/97 23 05/05/10
  24. 24. Corporate Property Policy and Guidance Manual • The agreement will be for a minimum period of six months but no longer than seven years; • The agreement will be contracted out of the Landlord and Tenant Act 1954. • The occupying organisation (or Service supporting the organisation) to pay for all costs of occupancy including initial legal and surveyors fees; • Where the agreement is subject to a rent review the rent to be reviewed to a minimum of 50% of full market value at the time of the review; • The organisation must vacate after a maximum term of seven years. • Consideration may be given to granting a new lease upon the expiry of the original lease to the organisation on the full understanding that it will be on the basis of open market value. • Otherwise terms and conditions as agreed by the Head of Property and Asset Management Services. c) Use of vacant housing accommodation by Residents Association11 • The accommodation is in low demand and not required for housing and/or regeneration purposes. • The intended use does not duplicate existing provision in the area. • Resident associations are charged 10% of the open market rent. • The term is for a term no greater than seven years and contracted out of the Landlord and Tenant Act • The cost of occupying the accommodation is met in full by the residents association. 5.4.4 Where an approach is received to dispose to a Charitable, Voluntary on Non-Profit Organisation the organisation be referred to the Community Resources Section to consider whether financial assistance could possibly be made available to the group. The Head of Property and Asset Management Services to liaise with the Community Resources Section to ensure that the open market rental value of the premises, together with 11 Office Accommodation Provision for Tenants Groups – Report 19/2/97 24 05/05/10
  25. 25. Corporate Property Policy and Guidance Manual any service charge provision, is accurately reflected in the level of any financial assistance provided by the Council. 5.4.5 All existing lettings to organisations falling within the above category which were let prior to 1 April 2005 to be reviewed and a re-assessment undertaken of open market value of the accommodation occupied by the organisation to establish the level of undervalue and any other costs which the Council pay on behalf of the organisation. The review to be undertaken by the Head of Property and Asset Management Services. The outcome of the review to be referred to the Executive Board for consideration whether to re-negotiated individual arrangements. 5.4.6 Such lettings to be reviewed every three years to monitor the level of financial assistance being provided to the organisations. The review to be undertaken by the Head of Property and Asset Management Services 5.4.7 All occupation to be formally regularised if there is no formal legal agreement currently in place. The occupying organisation (or service supporting the organisation) to pay for the Council’s surveying and legal costs. 25 05/05/10
  26. 26. Corporate Property Policy and Guidance Manual 5.5 Method of Disposal 5.5.1 Professional property advice should be obtained on the appropriate sale methods having regard to the particular transaction, nature of property and market conditions. This should form part of the authorising report to declare an asset surplus, together with the reason for such a recommendation. Where appropriate outline heads of terms should be included, particularly where the intention is to be dispose at auction. 5.5.2 If the property advice considers that the proposed disposal is not in the best interests of the council having regard to the state of the market, the conditions of the property and its future potential, the effects of the disposal on the council’s retained property or wider regeneration initiatives, or for any other reason this should be made explicit in the report giving reasons in full12. Sale by Private Treaty Sale by private treaty (ie between two parties without competitive bidding) is governed by the Council’s Contract Standing Orders - see section 4.2 setting out the qualifying disposals. Negotiations should be on a “subject to contract” basis to allow either party to withdraw. Where a sale is proposed to a selected developer this must be fully justified in writing and professional property advice must be obtained. Where such a disposal is unlikely to result in best price being realised this should be clearly stated. Alternative options to secure best price should be provided together with the expected values likely to be achieved. Sale By Auction Delegated authority is available to the Head of Property and Asset Management Services to offer for sale by way of auction any surplus land or property13. This includes:  Instructing local or regional auctioneers as appropriate  Incurring auctioneers expenses for auctioning the land/properties and commission on achieving a sale 12 Disposal of Land – Guidance on Good Practice (The Commission for Local Administration in England 13 Report L&DS/629/00 – Sales of Land & Property by Auction 26 05/05/10
  27. 27. Corporate Property Policy and Guidance Manual  Accepting the auctioneer’s opinion of the best price reasonably obtainable and the appropriate auction reserve price. The reserve price to be set at close as possible to the auction and no earlier than 7 days before.  In the event of the reserve not being met, allowing the auctioneer to negotiate with interested parties immediately following the auction and agree a sale, provided that the price can be certified by officers as the best price which can reasonably be achieved.  Accepting a bid prior to auction, on the recommendation of the auctioneer, where the price offered is unlikely to be achieved at auction due to the special circumstances of the bidder, and where the bidder is prepared to exchange contracts in reasonable time  In the event of a sale not proceeding, authority to negotiate with other interested parties (where appropriate) or to re-offer the land/property at auction.  Notifying Ward Councillors in advance when it is proposed to include land/ properties in their area in an auction, including proposed heads of terms In addition, the Head of Property and Asset Management Services will report to members detailing the land/properties sold. Sale By Tender • The tender documentation should clearly state whether (i) the tender is binding (ie where the acceptance of an offer by the Council creates a contract) or (ii) non-binding where the final terms will be settled after the offer has been accepted. It should also be made clear that the highest bid will not necessarily be accepted. • A fixed date and time must be set for receipt of tenders with no revision to tenders. In accordance with Contract Standing orders CSO 8.5 and CSO 8.6 any late bids shall be retained unopened until the successful tenderer has been notified. Tenderers will subsequently be advised that their tender was not acceptable. • An initial reserve price should be set before marketing with a final reserve set as near as possible to the tender deadline and not more than seven days in advance. • Property should usually be sold for the highest bid which at least equals any reserved price. Underbidders are not to be invited to improve their bids. 27 05/05/10
  28. 28. Corporate Property Policy and Guidance Manual • If none of the bids equal or exceed the reserve price all the tenderers may be advised of this and be given an opportunity to revise their offers by a specified date as an alternative to a re-advertisement of the sale. • Alternatively, if the reserve price is not reached and the highest bid is only marginally lower than the reserve and can be certified by officers as the best price which can reasonably be achieved then consideration may be given to recommending the bid for acceptance. Disposal of Surplus Residential Property to Occupying Tenants As a general matter of principle where the Council is seeking to dispose of surplus occupied residential property in the first instance the Council’s freehold interest should be offered to the occupying tenant. Where an occupied residential property has redevelopment potential (whether in isolation or as part of a wider regeneration scheme) it is not deemed to be surplus. Dealing with Late Bids Late bids shall be dealt with in accordance with Contract Standing Orders CSO 8.5 and 8.6 as detailed below: CSO 8.5 Tender envelopes which indicate the tenderer's identity or which have been received after the closing time but which are available for opening at the appointed time may be opened at the discretion of the Chief Officer, in consultation with the City Solicitor. CSO 8.6 Tenders received after the opening time and those unopened as determined in CSO 8.5 shall be retained unopened by the City Solicitor until the successful tenderer has been notified. Tenderers will subsequently be advised that their tender was not acceptable. 28 05/05/10
  29. 29. Corporate Property Policy and Guidance Manual 5.6 Tenure to be Offered 5.6.1 Professional property and legal advice should be obtained on the tenure to be offered having regard to the agreed framework below. This should form part of the authorising report in declaring the asset surplus, together with the reason for the recommendation. Any subsequent variations to the originally proposal must also be fully justified. 5.6.2 In determining the tenure to be offered each disposal is to be considered on the individual merits and characteristics of the case. Consideration will be given to the sale of freeholds subject to relevant criteria (see appendix D) being satisfied that it is in the Council’s interest. 5.6.3 Exempt from these arrangements are Right to Buy and Leasehold Reform Act applications. 5.6.4 Where the interest to be offered is leasehold as a general principle the term should be for a term between 99 and 125-years. Consideration will be given to granting a longer lease term however this would need to be fully justified in any authorising report. 5.6.5 Depending on the nature of the development and works required consideration should be given to such transaction being by way of a development agreement. 29 05/05/10
  30. 30. Corporate Property Policy and Guidance Manual 5.7 Management of Surplus Property and Land 5.7.1 Where authority is being sought to declare operational property (including schools) and land surplus to requirement there must be an agreed strategy to decommission the asset. The strategy to be in accordance with the agreed decommissioning guidelines – see appendix E. 5.7.2 Where possible the date to vacate surplus property and land should be co- terminus with the disposal of the asset to avoid the need of formally decommissioning the asset. To facilitate this a minimum of six months notice must be given by the occupying service to the Head of Property & Asset Management Services that the service intend to vacate or cease to use the asset. Depending on the type of asset to be disposed and the complexity of the disposal an appraisal of the disposal options to be undertaken to ensure that there is a clear exit strategy identified – see section 5.1.4. 5.7.3 Excluded from these arrangements are vacant Council Housing which will continue to be the responsibility of the AED, Housing and Neighbourhoods. Where vacant Council Housing is due to be demolished and the resultant site declared surplus the arrangements as set out in 5.7.4 below concerning surplus operational land are to apply. 5.7.4 In the event that the sale cannot be contemporaneous with the vacation of the asset the following arrangements are to apply. Also ref. to process map showing proposed arrangements – to be developed. Category of Asset Responsibility to Cost to Responsibility Cost Interim Decommission Decommission Interim Management Management Surplus Operational PMU PMU PMU PMU Accommodation Surplus Schools Education Education PAMS PAMS Surplus Operational Land Occupying Service Occupying Service PAMS LADS (subject to (capable of disposal) (OS) budget virement from OS) Surplus Operational Land Occupying Service Occupying Service Highways & Highways & (to be mothballed) Environment Environment (subject to budget virement from OS) Vacant Non-Operational PAMS PAMS PAMS PAMS Accommodation 5.7.5 To ensure a neutral financial situation is maintained where the management and maintenance responsibility is to transfer from one Service area to another budgetary provision must be made by the transferring Service to cover any ongoing management and maintenance costs and residual expenditure. These costs are to be identified as part of the decommissioning arrangements for the asset and are to be reported to 30 05/05/10
  31. 31. Corporate Property Policy and Guidance Manual members as part of the authorising report seeking to declare the building surplus. 5.7.6 Exempt from these arrangements are the transfer of schools and associated land and/or playing fields with the school where the budget to cover on-going management and maintenance costs have already been devolved to PAMS. The actual cost of decommissioning to continue to be met by Education. 5.7.7 If any part or all of the accommodation is occupied by a third party the occupying service is to ensure that vacant possession of the accommodation is secured when the Council vacates the premises. 5.7.8 If this cannot be achieved or the decision is to allow the third party to continue in occupation these arrangements must be regularised, if not already in place. Where the instruction is to dispose of the building with vacant possession any agreement with a third party must provide for the Council to secure vacant possession. 5.7.9 Decommissioning arrangements to also identify whether partial or full demolition of any buildings may be required to mitigate future management and maintenance expenditure or enhance land values. To ensure funding is in place the cost of any demolition must be identified in the preceding financial year it is required to ensure that it is reflected in bidding process for capital funding. The programme to include a small contingency fund to cover the cost of any unforeseen demolition as a result of the building being damaged following approval to declared it surplus – unless the cost can be reclaimed through the Council’s insurance policy. . 31 05/05/10
  32. 32. Corporate Property Policy and Guidance Manual 5.8 Miscellaneous Disposal Matters For certain disposals specific consents are required before the land can be offered for sale. This section sets out the arrangements which authorities are required to follow. 5.8.1 Loss of Open Space14 For all disposals which involve the proposed sale of open space: (i) Executive Board approval to be obtained to advertise the loss of open space; and (ii) the City Solicitor to advertise the Council’s intentions in a local newspaper for two consecutive weeks and if any objections are received these are to be reported to the Executive Board for consideration. This procedure should be undertaken before making any final decision regarding the disposal, such as consideration of the terms of sale, as the public response may have a material bearing on the decision. It should be noted that open space notices are required to be served irrespective whether the prospective purchaser intends to continue to make available the use of the land as open space (eg the transfer of open space as part of a stock transfer whether the new landlord maybe covenanted to retain and continue to maintain the land as public open space). 5.8.2 Sale of Allotments15 Any proposed sale or change of use of statutory allotments (ie land which a local authority has purchased or appropriated for use as allotments) will require Ministerial consent. Applications are assessed by Government Office and in deciding whether to grant consent must consider whether: (i) the allotment is either not necessary and is surplus to requirements; (ii) the Council will give displaced plot holders adequate alternative sites, unless this is not necessary or is not practicable; (iii) the Council has taken the number of people on the waiting list into account; and 14 Section 127(3) Local Government Act 1972 and section 233(4) Town & Country Planning Act 1990 15 Section 8 Allotments act 1925 32 05/05/10
  33. 33. Corporate Property Policy and Guidance Manual (iv) the Council has actively promoted and publicised the availability of allotment sites and has consulted the National Society of Allotment and Leisure Gardeners. Government guidance also requires allotment authorities to consult with plot holders before they apply for disposal. If the application is successful, and allotment holders are displaced, the allotment authority is expected to provide one or more suitable alternative sites which should not normally be more than three-quarters of a mile from the centre of demand. They must be suitable for spade cultivation. If an allotment authority ends a tenancy, the plot holder is entitled to compensation for: • crops growing on the land in the ordinary course of cultivation; • manure applied to the land; and • up to one year's rent. The Secretary of State's consent is not required for the disposal of non-statutory allotment sites, but the allotment authority will usually be required to give plot holders 12 months notice to quit before the land can be used for any other purpose. 5.8.3 Sale of School Playing Fields and Other Playing Fields Ministerial consent is required to dispose or change the use of land used by schools. Full guidance covering the legal framework regulating the disposal, or change of use of school playing fields – “The Protection of School Playing Fields and Land for Academies” – can be accessed via the following web link: http://publications.teachernet.gov.uk/default.aspx? PageFunction=productdetails&PageMode=spectrum&ProductId=DfE-1017-2004& A synopsis of the guidance is set out in appendix F. In addition PPG 17: Planning for Open Space, Sport and Recreation sets out the national planning guidance which will need to be taken into account when considering applications involving the development of playing fields, including other agencies and organisation which have to be consulted eg Sports England. These additional requirements to be reflected in the timetable where the Council is seeking to dispose of playing fields. 5.8.4 Sale of Surplus Schools – to be confirmed 33 05/05/10
  34. 34. Corporate Property Policy and Guidance Manual The decision to close a school can be made by the local authority or governing body of the school depending of the category of school. Closure can only occur if statutory proposals are published and approved. A synopsis of the proposal process can be found set out in appendix . Full details can be access via the following hyperlink. 5.8.6 Mobile Telephone Masts16 Radio masts for mobile phone companies should not be sited on land owned by the City Council and land will not be offered for sale or lease for this purpose. 5.8.7 Crichel Down Rules17 Where the Council is intending to dispose of land which was previously acquired by the Council by or under threat of compulsion consideration is to be given whether the Crichel Down rules apply. If the Rules apply the former owner, their successor or sitting tenant (where appropriate) are to be given the opportunity to repurchase the land providing that the character of land has not materially changed. Full details of the Rules and governing arrangements can be accessed via the following link (to be inserted). A process map setting out whether the rules apply to be included as part of the appendices. 5.8.9 Early Occupation As a general matter of principle early occupation by a purchaser in advance of legal completion will not be permitted. Where a prospective purchaser is already in possession of the accommodation but there is no agreement in place covering their occupation a short term letting (no greater than 12 months) to be granted, with the prospective purchaser to pay all costs in connection with their occupation. If terms for the disposal have not been agreed by the expiry date of the short term letting then vacant possession to be secured. 16 17 NB these arrangement are not mandatory for local authorities however the ODPM Circular 06/2004 Compulsory Purchase and Crichel Down Rules recommend that they follow the Rules 34 05/05/10
  35. 35. Corporate Property Policy and Guidance Manual Disposal Processes & Procedures – Process Maps Decommissioning of Surplus Operational Premises OS/PMU Decision to vacate /close accommodation. PMU to check no other operational requirements for PAMS Appraise disposal options and advise proposed course of action OS/PMU Prepare report seeking authority to declare surplus including disposal appraisal report if Executive Board Declare building surplus Decision to sell Decision to demolish OS OS/PMU Vacate Accommodation Vacate & Decommission BS Tam Leader PMU 2020 Decommission & Manage Arrange for demolition 2020 Dispose cleared site Retain site in interim Secure Disposal 2020 Pks/Gdns Partner Key OS – Occupying Secure disposal Services Transfer responsibility with PMU – Premises sufficient budget Management Unit (from OS) to cover low key 2020 – LCC Property maintenance of site Partner 35 05/05/10
  36. 36. Corporate Property Policy and Guidance Manual Area Based Initiatives The Council has access to a diverse range of funding opportunities, some of which are targeted thematically and others on an area basis. At present there are around 55 Area Based Initiatives levering in around £300 million of external grant funding. When making decisions around the use or redeployment of Council assets as part of this process regard should be made whether the proposals compliment the wider aims of the initiatives and the potential impact the ABI could have on the property (ie potential opportunities to procure external funding to enable investment in Council accommodation or whether a proposed sale would prejudice wider regenerative proposals for the area). A list of the current ABI in existence in the city is provided in appendix G. Against each ABI there is a named lead Council officer who should be contacted to discuss any proposed changes to the Council’s property holding in the area. The list will be regularly reviewed and updated versions can be accessed via weblink. In addition work is on-going to geo-code the Council’ property holdings to identify the extent of the Council’s assets within individual ABIs. 36 05/05/10
  37. 37. Corporate Property Policy and Guidance Manual Supporting Strategies & Plans – to be developed Consultation Arrangements & Useful Contacts – to be developed 37 05/05/10
  38. 38. Corporate Property Policy and Guidance Manual Glossary – to be expanded as the document is developed Disposal The transfer of land by sale, assignment, grant of lease or licence, gift or exchange where the income received (either capital or revenue) exceeds in any one given financial year £10,000 (ten thousand pounds). Commercial & Investment Estate Council owned land and property which is subject to a lease, tenancy or licence or which has been declared surplus to City Council requirements and is awaiting disposal or redevelopment. Excluded from this are Council housing tenancies and school PFI s. Land Includes buildings and other structures, land covered by water, and any estate, interest, easement, servitude or right in or over land (Section 1 – Interpretation Act 1978) Open Market Value The estimated amount for which a property should exchange on the date of valuation between a willing buyer and willing seller in an arm’s-length transaction after a proper marketing period wherein the parties have each acted knowledgeably, prudently and without compulsion Open Space Any land laid out as a public garden, or used for the purpose of public recreation, or land which is a disused burial ground (s. 336(1) – Town and Country Planning Act 1990). Operational Portfolio Land and buildings used to support the direct provision of Council services to its customers eg administrative accommodation, schools, libraries, sports centres etc. Undervalue The difference between the unrestricted value of the interest to be 38 05/05/10
  39. 39. Corporate Property Policy and Guidance Manual disposed of and the consideration accepted. The best price reasonably obtainable Unrestricted value for the property and should be expressed in capital terms. It is the open market value of the land as currently defined by the RICS Red Book (Practice Statement 3.2. When assessing unrestricted value, the valuer must ignore the reduction in value caused by any voluntary condition imposed by the authority. In other words, unrestricted value is the amount that would be paid for the property if the voluntary condition were not imposed (or it is the value of the property subject to a lease without the restriction) 39 05/05/10
  40. 40. Corporate Property Policy and Guidance Manual APPENDIX D TENURE TO BE OFFERED - RELEVANT CRITERIA It is proposed that the following criteria being adopted to consider, inter alia, the ability of the purchaser to successfully complete the scheme, the Council’s own priorities (in particular the need and ability to have greater control over elements of the scheme) and the individual needs and circumstances of the purchaser. This list is intended to be used as a guide to assist officers in determining the type of tenure to be offered by the Council. It is not exhaustive and it may be applicable to adopt/consider other criteria depending on the individual circumstances of the case. The criteria to be reviewed, initially, after the first 12 months and thereafter every three years. 1. Reason for Disposal (i) Why is CC selling the asset (ii) What is the CC seeking to achieve from the sale (iii) What are the benefits/implications for the CC in disposing of either a freehold or leasehold interest. 2. Covenant of Purchaser (i) Status of purchaser (ii) Financial standing (iii) Bank and other references (iv) Previous track-record and experience:  Locally (in particular involving CC sites/buildings)  Nation-wide 3. Funding Arrangements (i) Funding details including:  Level of investment by purchaser  Public/private sector investment funding ratio  Purchase price/development cost ratio (ii) Is it high risk investment on account of its:  Locality  Property type  Funding requirements  Age and condition  CC scheme requirements (iii) Can CC realise (in the future) greater receipt if use varied? 40 05/05/10
  41. 41. Corporate Property Policy and Guidance Manual 4. Ownership Issues (i) Extent of CC ownership/interest in surrounding area* (ii) Extent of purchaser’s land ownership in the surround area* (iii) Is purchaser intending to sub-divide the site/building – implications of creating sub-lease if site sold on leasehold basis by CC (iv) Proximity to any area based initiative(s) and potential impact on any wider regenerative proposals for the area. (* both current and proposed ie will the Council’s interest change due to the implementation of a wider initiative such as Stock Transfer in the foreseeable future) 5. Scheme Requirements (i) Refurbishment/redevelopment requirements (ii) Does CC need to retain control over and above its statutory and regulatory powers in relation to:  Scheme design  Use (again both current and proposed)  Delivery timetable  Listed status of building (if applicable)  Quality/character of surrounding area  Long term sustainability  LCC grant approved/aided schemes  Clawback arrangements Disposal Mechanism (for freehold sale) Mechanism will depend on the individual circumstances of the property/site being sold. Options available include:  Straightforward conveyance of freehold interest (subject to the use being restricted within the conveyed title)  Granting of building agreement (or agreement to Lease) followed by freehold interest upon successful completion of the scheme  Granting of leasehold interest followed by conveyance of freehold upon successful completion of the scheme. 41 05/05/10

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