Decision details
The Millyard Centre, Harper Square, Oak Street, Shaw (L01623)
Decision Maker: Deputy Chief Executive -
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Purpose:
The purpose of this report is to confirm that
the subject property is surplus to the Council’s operational
requirements and Officers are authorised to dispose of the property
via private treaty at the earliest opportunity.
Decision:
RESOLVED - That:
The preferred option / recommendation is to approve OPTION 1.
As part of the terms of sale, it is proposed that the Council seeks
to recover its professional fees from the purchaser of £750
including disbursements. In parallel, a restriction on residential
development for 10 years will be included on the title.
Reasons for the decision:
Option 1 - sell the Council’s freehold
and long leasehold interests to RGL for £122,000. Subject to
a restriction on Residential development.
The Council does not own any adjoining land which would benefit
from the imposition of a restrictive covenant in the sale contract
and consequently it may be difficult to enforce.
Advantages:
•The Council achieves a £122,000 capital sum and a
‘clean break’ without need to manage the asset going
forward
•The building is refurbished, well used and will continue to
provide a worthwhile service to Shaw residents.
•On-going maintenance and asset management liabilities are
stopped.
Disadvantages:
•The Council as former owner, will be unable to control future
use of the asset.
Option 2 -
Sell a long leasehold interest (ie 250 year lease) to RGL for a
premium of £122,000.
Subject to a restriction on Residential development.
Advantages:
•The Council receives a capital receipt of
£122,000.
•The building is refurbished, well used and will continue to
provide a worthwhile service to Shaw and Oldham residents.
•The Council maintains some control over the site in the
longer term.
Disadvantages:
•On-going estate management costs for the Council.
•The continuing requirement for regular asset valuations of
the site.
Option 3 - Retain the building and seek to formalise the lease with
RGL.
It is envisaged the Council would need to spend at least £80
- £120k on refurbishment as indicated by a RGL condition
survey.
Advantages:
•Ensures the Council receives a market rent for the
asset.
•A higher rent may be achieved, but this is considered
unlikely.
Disadvantages:
•The building may remain empty for some time exposing the
Council to holding costs
•A valuable service could be lost within Shaw.
•The Council would need to spend significant time and resource
preparing the site for to let in the open market, which is unlikely
to be cost effective.
Alternative options considered:
Option 2 -
Sell a long leasehold interest (ie 250 year lease) to RGL for a
premium of £122,000.
Subject to a restriction on Residential development.
Advantages:
•The Council receives a capital receipt of
£122,000.
•The building is refurbished, well used and will continue to
provide a worthwhile service to Shaw and Oldham residents.
•The Council maintains some control over the site in the
longer term.
Disadvantages:
•On-going estate management costs for the Council.
•The continuing requirement for regular asset valuations of
the site.
Option 3 - Retain the building and seek to formalise the lease with
RGL.
It is envisaged the Council would need to spend at least £80
- £120k on refurbishment as indicated by a RGL condition
survey.
Advantages:
•Ensures the Council receives a market rent for the
asset.
•A higher rent may be achieved, but this is considered
unlikely.
Disadvantages:
•The building may remain empty for some time exposing the
Council to holding costs
•A valuable service could be lost within Shaw.
•The Council would need to spend significant time and resource
preparing the site for to let in the open market, which is unlikely
to be cost effective.
Other reasons / organisations consulted
Consultation has been undertaken with the
following: Legal, Finance, Ward Councillors and Property.
Contact: Nikolaj Dockree, Senior Consultant Estates Surveyor 0161 770 1555 Email: nikolaj.dockree@unitypartnership.com.
Publication date: 23/10/2019
Date of decision: 11/09/2019
Accompanying Documents:
- Restricted enclosure View reasons restricted
- Restricted enclosure View reasons restricted