Agenda item - Disposal of 43 Belmont Street and adjacent land - Disposal Update

Report of the Executive Director Economy, Environment & Culture (copy attached)

RESOLVED: That the Committee –

(i)            Authorised the freehold disposal of Belmont Street Annexe and 26 and 27 St Peter’s Street to the adjacent owner and the surrender of rights to use the adjacent garage, and that delegated powers be given to the Executive Director of Economy, Environment and Culture and Executive Lead Strategy, Governance and Law to agree terms and take any necessary steps to facilitate

this recommendation;

(ii)          Authorised the retention of the net capital receipt to be used with capital receipts from previous disposals approved by Policy, Resources & Growth Committee, to add to the “investment capital pot” that is accumulating to

acquire commercial investment property or properties, in support of the asset investment rebalancing strategy in accordance with the council’s Asset Management Plan and budget strategy.

62.1    The Committee considered the report of the Executive Director of Economy, Environment & Culture, which provided further information on the disposal of 43 Belmont Street and adjacent land to provide a capital receipt for reinvestment in the Council’s urban investment portfolio.

62.2    Councillor Sykes referred to the social impact of the two bidders, and said that the social interaction of Bidder B was phenomenal and was concerned that that could be lost.  The Executive Director of Economy, Environment & Culture said the report set out the provision for relocating the existing tenants, and therefore the provision would not be lost but would continue to be delivered from a different location. Councillor Sykes said that there was a difference in the financial bids, but by not going with Bidder B there was a danger of losing people who worked with disabled children etc, and said that if that interaction was lost there would be a cost to the city.  He said that he would therefore be putting forward an amendment to the recommendations. The Chair said that he would continue with questions on the report and take the amendment after that.

62.3    Councillor Mac Cafferty said that at the last Committee meeting it was agreed to delay making a decision to allow a review of the social impact of the two bidders. This report set out the social interaction, and he believed that the possibility of losing people from Bidder B would impact on everyone in the city.

62.4    Councillor Hamilton said he would be agreeing with the officer recommendations, but if he felt that it would be the end of Samesky etc he would think differently. He said that if Bidder A were successful the current tenants would still have protected occupation for a minimum of two years, and alternative accommodation had been offered at New England House. He said going with Bidder A would allow 31 new flats to be built, 12 of which would be affordable housing together with a S106 agreement.

62.5    Councillor Peltzer Dunn requested that the Committee move to Part Two. The Committee agreed and moved to Part Two.

62.6    The Committee returned to Part One.

62.7    Councillor Sykes asked if he could propose a late amendment to the recommendations. The Chair agreed, and asked Councillor Sykes to propose the amendment.

62.8    Councillor Sykes proposed the following amendment:

            To amend paragraph 2.1 and add an additional recommendation at 2.3, with changes in italics -

2.1       That the committee authorises the freehold disposal of Belmont Street Annexe and 26 and 27 St Peter’s Street to the adjacent owner Bidder B and the surrender of rights to use the adjacent garage, and that delegated powers be given to the Executive Director of Economy, Environment and Culture and Executive Lead Strategy, Governance and Law to agree terms and take any necessary steps to facilitate this recommendation.

2.2       That the committee authorises the retention of the net capital receipt to be used with capital receipts from previous disposals approved by Policy, Resources & Growth committee, to add to the “investment capital pot” that is accumulating to acquire commercial investment property or properties, in support of the asset investment rebalancing strategy in accordance with the council’s Asset Management Plan and budget strategy.

2.3       That the Committee considers option B delivers a better environmental and social wellbeing benefit for the area.

Councillor Sykes appreciated the generous offer from Bidder A for the current tenants to remain in the property, but was concerned that the current social interaction would be diminished or lost after a period of time.

62.9                Councillor Mac Cafferty seconded the amendment.

62.10              The Committee voted on the amendment, and it was not agreed.

62.11              RESOLVED: That the Committee –

(i)            Authorised the freehold disposal of Belmont Street Annexe and 26 and 27 St Peter’s Street to the adjacent owner and the surrender of rights to use the adjacent garage, and that delegated powers be given to the Executive Director of Economy, Environment and Culture and Executive Lead Strategy, Governance and Law to agree terms and take any necessary steps to facilitate

this recommendation;

(ii)          Authorised the retention of the net capital receipt to be used with capital receipts from previous disposals approved by Policy, Resources & Growth Committee, to add to the “investment capital pot” that is accumulating to

acquire commercial investment property or properties, in support of the asset investment rebalancing strategy in accordance with the council’s Asset Management Plan and budget strategy.