OFFICER DECISION RECORD
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- Marion Alexander
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1 OFFICER DECISION RECORD For staff restructures, please also complete an RA1 form to update the HR Portal. This is attached at Annex 2. Decision Ref. No: AP349 RE Box 1 DIRECTORATE: Regeneration and DATE: 11 th September 2017 Environment Contact Name: Anjum Shabir Tel. No.: (7)36634 Subject Matter: Approval for the sale of a ground lease to Whitbread. Box 2 DECISION TAKEN: To proceed with the sale of a ground lease to Whitbread Premier Inn Lakeside for the sum of 30,000. Box 3 REASON FOR THE DECISION: The subject land is a ground lease for 125 years with 116 years remaining at a rate of a peppercorn if demanded. The mechanics behind selling land on a long ground lease was to preserve the service charge element around Lakeside. We were approached by Whitbread s agents to purchase this ground lease and include the service charge element in the transfer. So effectively the Council would receive a small sum of money to make this from leasehold to freehold. The initial offer was 15,000 which was dismissed instantly and through negotiations this was increased to 20,000 at a later stage. This offer was also rejected by the Council. After speaking with local agents who deal with such like investments would likely to achieve in the region of 20,000 to 25,000 typically. Subsequently a counter offer was made to the agent of 30,000 and through more negations this was finally agreed. I have included a copy of the heads of terms for reference and to clarify the inclusion of the service charge element within the transfer.
2 Box 4 OPTIONS CONSIDERED & REASONS FOR RECOMMENDED OPTION: If other options were considered, please specify and give reasons for recommended option Option 1 To not proceed with the sale Option 2 To agree to the sale of the land at a sum of 30,000 Option Two is the preferred option as we will be receiving a sum of money for a peppercorn sum if demanded for another 116 years. Box 5 LEGAL IMPLICATIONS The proposed transaction is a sale for the freehold reversion of land already subject to a long lease Under S123 Local Government Act 1974 the Council has power to dispose of general fund land without the Secretary of State s consent for the best consideration reasonably obtained. Under the Council s Financial Procedure Rules the Council s Property Officer has authority to dispose of land at market value without Cabinet approval where the price being received is less than 1 Million. Name: Adam Bottomley Signature: By Date: 14/09/2017 Signature of Assistant Director of Legal and Democratic Services (or representative) Box 6 FINANCIAL IMPLICATIONS: This is an extension to the current ground lease held by Premier Inn at lakeside. The 30k will be additional to the current capital receipts estimated to be generated in year and will be used to fund the capital programme. The Council receives income of approximately 13k based on 20.86% of costs incurred for maintaining the car park and surrounding land and will continue to do so after the freehold is sold. Marion Berrett Date: 18 th September 2017 Signature of Assistant Director of Finance & Performance (or representative)
3 Box 7 HUMAN RESOURCE IMPLICATIONS: There are no HR implications. Name: David Knapp Signature: Date: 14/09/17 Signature of Assistant Director of Human Resources and Communications (or representative) Box 8 PROCUREMENT IMPLICATIONS: There are no direct procurement implications associated with this report Name: S Duffield Signature: Date: 14/09/17 Signature of Assistant Director of Finance & Performance (or representative) Box 9 ICT IMPLICATIONS: There are no direct ICT Implications relating to this decision but the author should ensure that relevant Council records/datasets are updated to reflect the sale, at the appropriate time. Name: Peter Ward (ICT Strategy Programme Manager) Signature: Date: 18/09/17 Signature of Assistant Director of Customers, Digital & ICT (or representative) Box 10 ASSET IMPLICATIONS: Asset implications are embodied within the main text of this report. Name: Anjum Shabir Signature: A Shabir Date: 11 th September 2017 Signature of Assistant Director of Trading Services and Assets (or representative: Interim Projects Director Asset Transformation) Box 11 RISK IMPLICATIONS:
4 To be completed by the report author By not taking this decision will leave the Council with receiving no money for 116 years. Box 12 EQUALITY IMPLICATIONS: To be completed by the report author There are no equality implications associated with this Officer Decision Record Name: Anjum Shabir Signature: A SHABIR Date: 11 th September 2017 (Report author) Box 13 CONSULTATION Officers (In addition to Finance, Legal and Human Resource implications and Procurement implications where necessary, please list below any other teams consulted on this decision, together with their comments) Members Under the Scheme of delegation, officers are responsible for day to day operational matters as well as implementing decisions that have been taken by Council, Cabinet, Committee or individual Cabinet members. Further consultation with Members is not ordinarily required. However, where an ODR relates to a matter which has significant policy, service or operational implications or is known to be politically sensitive, the officer shall first consult with the appropriate Cabinet Member before exercising the delegated powers. In appropriate cases, officers will also need to consult with the Chair of Council, Committee Chairs or the Chair of an Overview and Scrutiny Panel as required. Officers shall also ensure that local Members are kept informed of matters affecting their Wards. Please list any comments from Members below: None Box 14 INFORMATION NOT FOR PUBLICATION:
5 It is in the public s interest to be aware of this decision record under the Freedom of Information Act 2000, therefore this decision will be published in full, redacting only signatures. Signature of FOI Lead Officer for service area where ODR originates Joan L Amie 18 th September 17 Box 15 Signed: Dave Wilkinson Date: 3 October 2017 Dave Wilkinson, Assistant Director Trading Services and Assets Signed: Date: Additional Signature of Chief Financial Officer or nominated representative for Capital decisions (if required) Signed: Date: Signature of Mayor or relevant Cabinet Member consulted on the above decision (if required). This decision can be implemented immediately unless it relates to a Capital Scheme that requires the approval of Cabinet. All Cabinet decisions are subject to call in. A record of this decision should be kept by the relevant Director s PA for accountability and published on the Council s website. A copy of this decision should be sent to the originating Directorate s FOI Lead Officer to consider information not for publication prior to being published on the Council s website. A PDF copy of the signed decision record should be ed to the LA Democratic Services mailbox
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