Issue - meetings

This report explains the process which has been followed concerning the disposal of the former children’s home at 51 Bismarck Street and recommends the sale of the property.

RESOLVED:             That Option B be accepted, unless officers can negotiate an acceptable solution with the prospective purchaser under Option A, including overage and guaranteed completion of sale arrangements, within the next two weeks.

Members received a report which explained the process which had been followed concerning the disposal of the former children’s home at 51 Bismarck Street and recommended the sale of the property.

The report presented three options for consideration:

·  Option A – To sell the property to the prospective purchaser, as detailed in confidential Annex B of the report, which would involve a sale at less than best consideration;

·  Option B – To sell the property at market value to the highest bidder;

·  Option C – To withdraw the property from the market, to allow more time for Housing and Social Services to consider projects for the property.

Officers confirmed that the prospective purchaser under Option A was willing to link their purchase price to the sale price of their existing property so that any benefit from a higher than expected sale price could be transferred to the Council through the purchase price for 51 Bismarck Street (overage payment).  They also reported, with regards to Option B, that a further offer had been received since the publication of the report, which was £10k higher than the previous one.

Members expressed some concern about the potential time delay that may occur if they approved Option A, in terms of its impact on the capital programme and the property at Bismarck Street standing empty.

RESOLVED:             That delegated authority be given to the Corporate Landlord to accept the Option B offer, unless a satisfactory offer can be agreed with the prospective purchaser under Option A within the next 2 weeks, that includes an overage payment and completion of the sale within a reasonable period.

REASON:                  To ensure that the matter is resolved speedily and that the capital receipt is maximised, if the problems associated with Option A cannot be satisfactorily resolved.