Issue - meetings

This report seeks an Executive decision to select a preferred bidder for the disposal of the former Elderly Persons Home at Oliver House and the garage site to the rear.

Resolved:  That the Executive agree to:

(i)           Approve McCarthy and Stone as the preferred bidder for the purchase of Oliver House and the adjoining garages.

(ii)          To retain Churchill Retirement and Trinity Services as reserve bidders who will be invited back into negotiations if an acceptable deal cannot be secured with McCarthy and Stone.

(iii)        To delegate to the Director of Customer and Business Support in consultation with the Executive Leader the agreement of the final sale value and terms.

(iv)        Note that the bid received from Yorspace achieved the highest score on community value, and instruct Officers to work with the group to identify future opportunities.

Reason:      (i)     To achieve the overall best consideration scheme on the Oliver House site and deliver a capital receipt to the General Fund and the Housing Revenue Account.

(ii)      To retain commercial tension within the negotiations and ensure that the final deal represents best consideration for the Council.

(iii)     To ensure the Council achieves the most advantageous deal.

(iv)    In order to provide Yorspace with assistance for any future projects.

Consideration was given to a report which asked the Executive to select a preferred bidder for the disposal of the former Elderly Persons Home at Oliver House which included the garage site at the rear.

It was noted that strong interest had been shown in the site with 24 bids ranging from £3.325m to £750k being received. An evaluation of bids had been undertaken on the basis of capital value 60%, community value 20% and deliverability 20% with the analysis and summary reported at Annexes 2 and 3.

The lowest bid had been from Yorspace Ltd and had the support of the Bishophill Community however it was noted that to sell on the basis of community value and high level projections would be highly challengeable.

Officers confirmed that the land was held with 70% in the General Fund (GF) and 30% in the Housing Revenue Account with that held in the GF earmarked for homes for the elderly.

Whilst Members expressed their support for the work of Yorspace they highlighted the financial considerations that had to be taken into account. Following further discussion it was

Resolved:  That the Executive agree to:

(i)           Approve McCarthy and Stone as the preferred bidder for the purchase of Oliver House and the adjoining garages.

(ii)          To retain Churchill Retirement and Trinity Services as reserve bidders who will be invited back into negotiations if an acceptable deal cannot be secured with McCarthy and Stone.

(iii)        To delegate to the Director of Customer and Business Support in consultation with the Executive Leader the agreement of the final sale value and terms. ^1.

(iv)        Note that the bid received from Yorspace achieved the highest score on community value, and instruct Officers to work with the group to identify future opportunities. ^2.

Reason:      (i)     To achieve the overall best consideration scheme on the Oliver House site and deliver a capital receipt to the General Fund and the Housing Revenue Account.

(ii)      To retain commercial tension within the negotiations and ensure that the final deal represents best consideration for the Council.

(iii)     To ensure the Council achieves the most advantageous deal.

(iv)    In order to provide Yorspace with assistance for any future projects.