At the Asset & Enterprise Committee held on 15 July 2014 it was resolved “That conditional contracts for the sale of the property are exchanged with the highest and most compliant bidder (Bid B), with the Council then negotiating to retain 5 units for revenue purposes.”

 

 A further report was presented to the Asset & Enterprise Committee on 17

September 2014 confirming that the Council’s solicitors have been instructed

regarding the sale and negotiations have been undertaken to retain 5 units at a discount to current values.

 

A report was presented to Ordinary Council on 22 October 2014 relating

to the acquisition of the 5 units.

 

Council resolved:

 

 “1. That delegated authority be given to the Acting Chief Executive to approve and enter into conditional contract on behalf of the Council relating to the acquisition of the 5 x 2 bedroom apartment units as set out in exempt Appendix 1(Confidential) but such delegated authority shall be conditional upon best consideration relating to such acquisition and the connected disposal being reaffirmed to the satisfaction of the Section 151 Officer at the date of exchange of contracts by an independent RICS) Royal Institution of Chartered Surveyors) qualified surveyor.

 

2. Members approve a virement from the Parking and Improvement Scheme to address the reduction in the original capital receipt anticipated for this sale”.

 

Following agreement of terms and approval of the Asset & Enterprise

Committee and Ordinary Council to the proposed transactions the original

compliant bidder has sought to reduce their offer for the site. The Asset &

Enterprise Committee of the 27 March 2015 resolved to give delegated

authority to the Chief Executive to approve and enter into conditional

contracts with the party that submitted the highest compliant and

deliverable bid and to enter into an option agreement to acquire up to 5

residential apartments.

 

Heads of terms have been agreed with the party indicated in Appendix A

(Exempt). This party has undertaken discussions with the Local Planning

Authority and the provision of the small community hall (60 sq m) has met

with some resistance and developer has put forward an alternative

proposal that is a capital payment is provided in lieu of the facility,

Appendix A (Exempt) to be expended to support existing sport/ community/leisure facilities within Warley.

 

The proposal to acquire up to 5 residential apartments has been reviewed

and as it would be necessary for the Council to borrow money to fund the

proposal and therefore, increase its debt liability, it is considered that the

option arrangement should not be pursued. The capital requirement could

be better utilised to reduce the Councils debt or fund other capital

schemes to avoid the necessity to borrow.

 

A motion was MOVED by Cllr McKinlay and SECONDED by Cllr Hirst to agree the recommendations in the report.

 

An amendment to recommendation 2.2 was MOVED by Cllr Clark and SECONDED by Cllr Mynott that:-

 

“The requirement for the developer to provide a community facility of 60 sq m was omitted and that the Head of Paid Service was given delegated authority to negotiate and agree, after consultation with the Chair of the Committee, a capital sum in lieu. The sum to be set aside for community facilities within Warley”

 

Cllr Clark request a recorded vote in accordance with Part 4.1 of the Constitution, Rule 9.5, five Members requested a recorded vote be taken and Members voted as followed:

 

FOR:               Cllrs Barrett, Clark, Faragher and Mynott (4)

 

AGAINST:      Cllrs Hirst, Hossack, Mrs McKinlay, Parker and Russell (5)

 

ABSTAIN:      (0)

 

The amendment to the motion was LOST.

 

After a full discussion, an amendment to the SUBSTANTIVE MOTION was MOVED by Cllr McKinlay and SECONDED by Cllr Russell to recommendation 2.2.

 

“The requirement for the developer to provide a community facility of 60 sq m was omitted and that the Head of Paid Service was given delegated authority to negotiate and agree, after consultation with the Chair of the Committee, a capital sum in lieu. The sum to be set aside for community facilities within the Borough”.

 

Cllr Barrett suggested an amendment to this recommendation, which was agreed by the Chair.

 

The requirement for the developer to provide a community facility of 60 sq m was omitted and that the Head of Paid Service was given delegated authority to negotiate and agree, after consultation with the Chair of the Committee, a capital sum in lieu.  The sum to be set aside for community facilities within the Borough, with preference to the Warley Ward.

 

A vote was taken by a show of hands and it was RESOLVED that:

 

 

 

1.     Delegated authority be given to the Head of Paid Service to approve and enter into conditional contracts with the party that submitted the highest compliant bid as set out in Appendix A of the report (exempt appendix).

 

2.     The requirement for the developer to provide a community facility of 60 sq m was omitted and that the Head of Paid Service was given delegated authority to negotiate and agree, after consultation with the Chair of the Committee, a capital sum in lieu.  The sum to be set aside for community facilities within the Borough, with preference to the Warley Ward.

 

3.     The requirement that the Council entered into an option agreement to purchase up to 5 residential units be withdrawn. 

 

REASON FOR RECOMMENDATION

To provide the Council with a capital receipt. 

 

TERMINATION OF MEETING

During the preceding item, in accordance with Rule 28 of Part 4.1 – Council Procedure Rules, the businesses of the meeting not having concluded by two hours after its start, Members voted and agreed to continue with the meeting for a further 30 minutes.