Decision details
Establishing an Investment Budget for a Strategic Commercial Property Acquisition
Decision Maker: Executive
Decision status: Decision Made
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
An opportunity has arisen for the council to acquire the freehold
interest in a portfolio of properties in the city centre that
represent a good commercial opportunity and a way for the council
to generate significant additional income to contribute to the
increased budget income target set for the council’s
commercial portfolio.
The report will seek to establish a commercial investment budget to
enable the council to make the acquisition. This budget will need
to be agreed by Full Council. The property is on the market now and
will be marketed over the summer. In order for the council to make
a competitive bid for this property, this item has been added to
the Forward Plan as an urgent item to enable the recommendation to
be considered at Full Council in July. If the report does not go to
July Executive, then the next Full Council is in October which will
be too late and the council will have missed the commercial
opportunity.
Purpose of report: To set out the business case for a strategic
investment in commercial property in York City Centre in order to
secure increased income from the council’s commercial
portfolio and to meet budget targets.
Members will be asked to recommend to Full Council the
establishment of a capital budget to fund the acquisition of
freehold interest in some city centre property assets.
Decision:
Resolved: That the
Executive:
i.
Recommends to full Council:-
the establishment of a capital budget of £15m, to be financed
initially from borrowing, to fund the acquisition of freehold
interest in a portfolio of city centre commercial property
assets.
to agree that any future capital receipts not currently assumed in
the Capital strategy, be allocated to fund the purchase, thereby
reducing in time the associated borrowing related to the
investment. This will be updated in capital monitor reports in the
future.
ii. Agrees to bring back to Executive a due diligence report prior to completion of the acquisition.
Reason: To ensure the ongoing economic vibrancy of the city centre and increase the income from the council’s commercial property portfolio in order to achieve budget targets.
Report author: Tracey Carter
Publication date: 14/07/2017
Date of decision: 13/07/2017
Decided at meeting: 13/07/2017 - Executive
Effective from: 18/07/2017
Accompanying Documents:
- Strategic Acquisition PDF 379 KB
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