Issue - meetings

The Assistant Director of Regeneration & Asset Management and Head of Asset and Property Management to present a report which sets out options for the future disposal of the property at 29 Castlegate.

Resolved:   That the Executive agrees:

(i)      The disposal of the freehold of 29 Castlegate to York Conservation Trust for £431,250;

(ii)      To delegate to the Director of Economy and Place, in consultation with the Executive Member for Finance and Performance, to agree the final terms of sale that provide adequate safeguards/controls to the Council to protect the property from future commercial sale.

Reason:      To obtain a substantial capital receipt and also considerable social value in enabling disabled access to and the development of an improved leisure and historic attraction in conjunction with the adjoining Fairfax House.

Members considered a report which set out options for the future disposal of the property at 29 Castlegate.

Officers confirmed that there was no ongoing Council need for the Castlegate property, following the relocation of the Connexions youth service to Sycamore House. They also reported on an approach from the York Conservation Trust (YCT) to purchase the freehold of the property for a sum 25% lower than the independent valuation figure, which would enable the Trust to extend and improve Fairfax House, to provide benefits to both the public and the economy.

Officers updated on the financial implications in the report, in particular, reporting that confirmation had been received that the sale of the property would no longer require notification of approval by the EU Commission. In answer to questions raised Officers also updated on the delays in the reconfiguration of Sycamore House for use by the youth service.

Following further discussion Member considered the following options:

1. Sell the property to the York Conservation Trust  for £431,250 on the terms as set out in the report

2. Refuse the sale to York Conservation Trust at the discounted figure and sell on the open market once CYC had moved out

Members suggested the insertion of a clause in the sale contract to protect the future interests of the Council should the proposed Fairfax House scheme not go ahead and the property is subsequently sold.

Resolved:   That the Executive agrees:

(i)      The disposal of the freehold of 29 Castlegate to York Conservation Trust for £431,250;

(ii)      To delegate to the Director of Economy and Place, in consultation with the Executive Member for Finance and Performance, to agree the final terms of sale that provide adequate safeguards/controls to the Council to protect the councils interests in the eventuality of the Fairfax House scheme not going ahead and the property is subsequently sold^1.

Reason:      To obtain a substantial capital receipt and also considerable social value in enabling disabled access to and the development of an improved leisure and historic attraction in conjunction with the adjoining Fairfax House.