The report of the Strategic Director, Corporate Services (Document “AA”) provides the committee with an update of the functions of the Estates Management Service, following the report outlining presented to committee on 23^rd January 2018.

Recommended –

That the committee consider the report and comment as appropriate.

Ben Middleton – 01274 439607 / 07582 101816

The report of the Strategic Director, Corporate Services (Document “AA”) provided the committee with an update of the functions of the Estates Management Service, following the report presented to committee on 23^rd January 2018.

The Assistant Director, Estates & Property was present and accompanied by the Senior Estates Surveyor, Estates Manager – Acquisitions & Disposals and the Estate Manager Operational. They jointly gave a synopsis of the report by stating that following a restructure of service areas within the Regeneration Department in 2016, the Estate Management Service together with Facilities Management, the Built Environment and the Energy Centre now comprised the Estates and Property Service, which had moved under the remit of the Department of Corporate Resources.

The Estates Management service area had now arranged into three teams, these being, Property Management, Acquisitions & Disposals and Strategic Asset Management. The Estates teams provided both proactive strategic and operational asset management advice and were essential enablers offering corporate support and strategic functions across the Council. This work had split into three broad remits, Strategic Asset Management providing strategic and day to day management of the Council’s occupied operational property, Community Asset Transfers, Assets of Community Value and the Allotments service; Property Management Team providing day to day management and support in respect of the Council’s non-operational property, the investment estate, including lettings, rent reviews, lease renewals and valuations, including the Council’s annual Asset Valuations and, the Acquisitions & Disposals team who lead on acquisitions and disposals of Council property assets.

He further explained that the Council had to ensure it was maximising the efficiency and potential of all of its assets, and to provide some context, as the Council was the largest land owner in the Bradford District with holdings in excess of 4,538 hectares, representing 12.4% of the entire district. Given the current unprecedented reductions and financial pressures in public sector funding, it was now more pressing than ever to ensure an effective and holistic use of public assets.

Following presentation, a question and answer session ensued:

·         Through means of regular income, there was an anticipated loss of £500,000 this municipal year and therefore what plans did the authority have to compensate for this loss?

o   The service was challenging accounts of tenants in addition to savings being proposed to Asset Management;

·         What percentage of revenue did that Estates Management receive?

o   In the region of £150,000;

·         What was the reason behind the significant number of Community Asset Transfers?

o   This was due to a high number of empty properties that blighted areas and owners refusing to make repairs hence authority taking ownership of properties which mattered to the local community to meet the priorities and needs of the local area;

·         There was a mention of Estate Management working with the Energy Unit to minimise the impact of property onthe Council’s carbon footprint but no mention of low carbon projects?

o   The Energy unit was working jointly with the Estates and Property department in all projects such as, St George’s Hall, that had been worked on jointly and had works undertaken to include efficiency equipment in all aspects of utilising efficiently energy;

·         The inclusion of delivery of other projects by the service was also a significant positive reduction on behalf of the authority in its intentions of reducing the carbon footprint.

o   The service further extended its working arrangements in line with cycling policies;

·         How had community assets been sold?

o   The Council sold to the highest bidder;

·         Were conditions attached to land sales?

o   There were no strict conditions but developers of purchased Council lands were expected to return within a timeframe conditioned of proposals for new development;

·         The revenue sector found it difficult to gain revenue and progress but what was being done with assets that maintained a good source of income?

o   Such assets were being supported by various other services, for example Refurbishment of the former Odeon to create 4,000 capacity Venue and conference/exhibition centre to be operated by NEC, including Agreement for Lease, Lease and Loan documentation. Relocation of Oastler Market to Darley St, including acquisition of third party properties and support to design of new facility. Refurbishment of St George’s Hall. Support to redevelopment of new leisure and health facility on Squire Lane, Girlington. Transport and HS3 route for the North. Affordable Housing Programme. Supporting relocation of Coroner’s office from Magistrates Court; and,

·         At what point does the Council consider to sell properties and land?

o   To ensure that the Council’s operational estate was occupied as efficiently as possible and supported the delivery of good outcomes both now, and in the future by reduce the running costs of Council’s buildings, to work with the third and private sectors to ensure better use of assets to achieve district priorities, to promote the philosophy to work with third sector/public partners to achieve service and accommodation synergies and to support regeneration across the district, including delivery of new housing and economic growth.

The Assistant Director concluded the discussion by stating that any loss of generated income from assets would impact on Council targets. In the meantime, no building that generated a significant amount of income had been sold. The majority of asset sold had been vacant buildings and unused land.

Resolved –

(1)       That the report be welcomed and officers be thanked for their    presentation.

(2)       That a briefing note updating Members on the Estate Management       Service be circulated electronically in December 2019.

ACTION: Strategic Director, Corporate Resources