Issue - meetings

Recommended: That Council create a capital budget of £1.145m to secure these new assets and for this to be funded from the capital receipts from Stonebow House and Redeness Street (£1.006m) with the remaining £138,500 being funded from borrowing, with the associated interest and repayment of the debt being met from the additional revenue income generated by the new acquisitions.

Reason:     To reinvest capital from the commercial portfolio in order to increase the revenue income from that portfolio, and to unlock the development potential of the sites in the future.

[See also Part A minutes]

Members considered a report which set out proposals to dispose of the Council’s freehold interest in two low income generating assets at Stonebow House and 10/11 Redeness Street. The report also considered whether to use the capital receipts from the disposals to reinvest in the purchase of the head leasehold interests in two industrial sites at Hospital Fields Road in order to increase revenue income.

Officers highlighted the financial implications of the options of disposing of the properties and reinvesting the sale receipts or disposing of the properties and repaying the debt from the receipts, as set out at paragraph 24 of the report. Members noted the implications and risk of each and expressed their support for the proposals.

Recommended: That Council create a capital budget of £1.145m to secure these new assets and for this to be funded from the capital receipts from Stonebow House and Redeness Street (£1.006m) with the remaining £138,500 being funded from borrowing, with the associated interest and repayment of the debt being met from the additional revenue income generated by the new acquisitions. ^1.

Reason:     To reinvest capital from the commercial portfolio in order to increase the revenue income from that portfolio, and to unlock the development potential of the sites in the future.