The Regeneration and Economy Overview and Scrutiny Committee will receive an update report (Document “L”) on the work of the Asset Management Team – REPORT TO FOLLOW.

(Ben Middleton – 01274 439607)

Council Standing Orders – Part 3A of the Constitution: Due to the non-availability of Document “L” five clear working days before the day of the meeting, the Appropriate Officer will report the reasons for its non-availability  to the meeting.

A report was presented by the Strategic Director, Regeneration (Document “L”) which provided an update for Members in respect of the work of the Estate Management Service, further to the report considered by the Committee on 17 November 2015.

The Strategic Director, Regeneration gave the following responses to questions from Members:

·         If a property was withdrawn before a scheduled auction this would be as a result of a problem with the legal pack or that it had been identified that there was a need for the property concerned.  Properties were not sold prior to an auction by other means; the service was very conscious of the need for transparency in its work.

·         Valuation was not an exact science and a value could only be reached using the market information available at the time.  The outcome of an auction was very difficult to predict as there were a number of factors involved but it was a straightforward method of sale and it also allowed the market to determine the value of the property concerned.  Guide prices for auction did tend to be pitched low to stimulate interest but reserve limits were set (below which an item would not be sold).  If a property was sold directly, for example to a tenant, an independent valuer would always be used.

·         In respect of the Mornington Road Annexe, which was held in trust by the Council, there had been a delay in the process of disposal due to the introduction of a new decision making process and the consequent need to get independent legal advice on behalf of the Trust.  Permission would be sought for the marketing of the property and its subsequent sale and the capital receipt would be reinvested for the benefit of the Trust.  It was anticipated that the matter would go before the Council’s Regulatory and Appeals Committee shortly.

·         There had been a huge increase in the number of applications for Community Asset Transfers.  The number of instructions to Legal Services had trebled in the last twelve months.

·         At present there was no cost to the Council in terms of the proposal to provide a Public Sector Hub on the site of the Jacob’s Well building. Two companies in a joint venture partnership had a five year option agreement on the site which was subject to 50% of the new building being pre-let to public sector bodies.  In the meantime the Council bore the security and other costs associated with the vacant building.

·         £700,000 revenue p.a. had been saved by moving staff out of Jacob’s Well.

·         Improvement works had been undertaken to Jacob’s Well in 2011, at a cost of £2 million, due to the need for a complete re-wire of the building and at that stage 650 staff had worked there.  Post improvement it had accommodated 1350 people and this had facilitated the closure of 19 other properties.  This work had made financial sense at that point in time and the stated lifespan in the strategy had been 3 to 5 years. When the building had closed in excess of £2 million in maintenance was outstanding.  Materials from the building would be recycled and used elsewhere.

·         It was believed that the Government intended to introduce between 14 and 18 public sector hubs nationally.  The principal regional hub would be located in Leeds.  The Jacob’s Well site would house a smaller hub.

·         A hub could be defined as two or three Government, health or public sector agencies in  one location with shared facilities such as reception, meeting rooms or even desks.

·         The Service had to work in partnership with Legal Services.  More resources were required in light of the increase in the amount of work referred by Estate Management.

·         There had been issues with the former Keighley College site associated with the need for a future use to be established prior to demolition.  The site had been deemed appropriate for use as a public sector hub.

Members commented as follows:

·         It was considered admirable how the Service had dealt with the increase in work.

·         Whilst it had been explained that a lower guide price was used at auction to generate interest it had to be borne in mind what the public perception of this could be when higher figures had previously been in the public domain and also how it looked when items were removed from auction.

Further to questions asked by Members that concerned commercially sensitive information in respect of potential occupiers of the new hub, the Committee passed the following resolution:

That the public be excluded from the meeting during part of the discussion of the item relating to Estate Management on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if they were present exempt information within Paragraph 3 (Financial or Business Affairs) of Schedule 12A of the Local Government Act 1972 (as amended) would be disclosed and it is considered that, in all the circumstances, the public interest in allowing the public to remain is outweighed by the public interest in excluding public access to the relevant part of the proceedings for the following reason: it is in the overriding interests of proper administration that Members are made fully aware of the implications of any decision without prejudicing the position of the parties involved,

and the Strategic Director provided the relevant information.

Further to which the Committee resumed public session and it was:

Resolved –

(1)       That a further update report be submitted to the Committee in the next municipal year.

(2)       That the increasing workload of the Estate Management Team is acknowledged and the progress they are making with reduced resources welcomed.

ACTION:       Strategic Director, Regeneration