Issue - meetings

B (Copy herewith)

Cabinet agreed:

2.1       That the community centre shops shown on Annex 1 to this report are progressed for sale.

2.2       That the process for the sale is as follows:-

2.2.1   That each one has a restrictive covenant placed on the title to remain as commercial use on the ground floor within use Class A1, changes within this use class are regulated by Planning Policy.

2.2.2   That the shops will be sold at market value (to comply with the Councils obligation to obtain best consideration), determined by an independent RICS registered valuer taking into account the restrictive covenant and the costs of sale.

2.2.3   That the tenants are given the opportunity to purchase the shops at the market value as determined by the Council’s market valuation.

2.2.4   To allow the tenants a period of six months from the date of the valuation to confirm their offer to purchase the shops and provide evidence of financial ability to complete in a timely manner.

2.2.5   That those shops which are not under offer after six months will be progressed for sale on the open market.

2.3       That authority be delegated to the Economic Growth and Regeneration Manager, in consultation with the Borough Secretary, Chief Finance Officer and Cabinet Member for Regeneration and Enterprise to progress this sale on the terms listed in points 2.2.1 – 2.2.5.

Councillor Hadland as the relevant Cabinet Member outlined the report seeking approval for disposal of 15 shops by way of a freehold sale.  He pointed out that these properties did not sit well with the Council’s overall portfolio.  Repair costs were increasing and rental values reducing.  Occupying tenants would be offered first refusal at the market value, with a restrictive covenant to ensure continuation of retail use.  If unsold after six months the shops would be offered for sale on the open market.

RESOLVED:

2.1       That the community centre shops shown on Annex 1 to this report are progressed for sale.

2.2       That the process for the sale is as follows:-

2.2.1   That each one has a restrictive covenant placed on the title to remain as commercial use on the ground floor within use Class A1, changes within this use class are regulated by Planning Policy.

2.2.2   That the shops will be sold at market value (to comply with the Councils obligation to obtain best consideration), determined by an independent RICS registered valuer taking into account the restrictive covenant and the costs of sale.

2.2.3   That the tenants are given the opportunity to purchase the shops at the market value as determined by the Council’s market valuation.

2.2.4   To allow the tenants a period of six months from the date of the valuation to confirm their offer to purchase the shops and provide evidence of financial ability to complete in a timely manner.

2.2.5   That those shops which are not under offer after six months will be progressed for sale on the open market.

2.3       That authority be delegated to the Economic Growth and Regeneration Manager, in consultation with the Borough Secretary, Chief Finance Officer and Cabinet Member for Regeneration and Enterprise to progress this sale on the terms listed in points 2.2.1 – 2.2.5