Issue - meetings

Exempt Report No: CAB/JT/19/006

Portfolio Holder: SEBC Cllr John Griffiths

Lead Officers: Julie Baird and Colin Wright

RECOMMENDED TO SEBC COUNCIL: (19 February 2019)

This exempt decision is not subject to call-in as it has been recommended to Council for a final decision.

(This decision and associated papers will be available in the public domain in due course)

The Joint Executive (Cabinet) Committee considered the above exempt report, which sought approval for a potential investment in the Council’s commercial asset portfolio.

The Council had the opportunity to purchase the freehold interest of property in Bury St Edmunds as a commercial investment. If it were to proceed, the purchase would be made from the Council’s Investing in Growth fund and would help toward achieving the aspiration of a 1% (after borrowing costs) return across the whole fund.

In the absence of SEBC’s Leader of the Council, Councillor Susan Glossop, SEBC’s Portfolio Holder for Planning and Growth, drew relevant issues to the attention of the Joint Executive (Cabinet) Committee, including providing background to the proposal; the details of the Council’s provisional offer; the financial case for making the investment; and the potential wider place-shaping and strategic value.

An addendum to the exempt report had been circulated by email to Members prior to the meeting and was also tabled. This provided the updated position since the publication of the agenda.

Having considered the proposal in detail, the Joint Executive (Cabinet) Committee considered it to be a positive and beneficial move for the Council.

RECOMMENDED TO SEBC COUNCIL: (19 February 2019)

This exempt decision is not subject to call-in as it has been recommended to Council for a final decision.

(This decision and associated papers will be available in the public domain in due course)

The following resolution has been added to these minutes following the removal of the exemption and is not included in the signed minutes:

RECOMMENDED TO SEBC COUNCIL:

(19 February 2019)

(1)     the proposal to purchase the  property at Vicon House, Western Way, Bury St Edmunds for a sum of £3,266,000 (Three Million Two Hundred and Sixty Six Thousand Pounds) excluding VAT, fees and Stamp Duty Land Tax, to be funded from the Investing in the Growth Agenda fund, be endorsed; 

(2)     a capital budget of £3,503,480 be established and made available to facilitate the purchase, including fees and Stamp Duty Land Tax, to be funded from the Investing in our Growth Agenda Fund; and 

(3)     it be noted that should the purchase be made, the Council’s Section 151 Officer will make the necessary changes to the Council’s prudential indicators as a result of Recommendation (1).