Agenda item

Exempt Report No: CAB/FH/18/019*

Portfolio Holders: James Waters and

Sara Mildmay-White (West Suffolk Lead for Housing)

Lead Officer: Ian Gallin

*The exempt report is available on the West Suffolk Intranet with restricted viewing access only. Paper copies will be available at the meeting.

RESOLVED:

That:

The decision is contained in the exempt version of this Decisions Notice.

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

(Exempt Report No: CAB/FH/18/019) (Special Urgency Notice published 9 March 2018)

Councillor James Waters, Chairman/Leader of the Council, presented this report which sought endorsement of the use of the Chief Executive’s urgency powers to purchase a property in Newmarket at auction.

An opportunity had arisen for the Council to purchase the freehold of 113 High Street and 3 The Avenue in Newmarket, which was due to be auctioned on 14 March 2018.  If purchased, this was considered to offer an opportunity for the Council to increase the number of temporary accommodation units available as well as providing a rental income to the Council. It also supported the West Suffolk Strategic Framework 2018-2020 and the Overarching West Suffolk Growth Investment Strategy in that it was considered to provide much needed housing, future revenue and capital income as well as supporting business with retail accommodation.

The Chairman, and Councillor Sara Mildmay-White, West Suffolk’s Portfolio Lead for Housing drew relevant issues to the attention of Cabinet, including placing emphasis on the potential benefits of investing in this property.

Questions were asked regarding the suitability of the property as temporary accommodation and those expected to occupy the premises. Members felt reassured however, that two floors of the property had been licensed as a House of Multiple Occupation and therefore already met a number of public safety standards.

The ground floor of the property comprised two separate retail units which were currently leased and occupied. This led to a discussion on rental agreements presently in place and income currently achieved by the occupiers of the retail units, and the potential income from a Registered Provider that would manage the accommodation units.  These details were summarised in the report.

Councillors Simon Cole and Ruth Bowman, Chairman and Vice-Chairman of the Overview and Scrutiny Committee were invited to speak and they both demonstrated their support for the proposal.

Having sought clarification on further matters such as the structural soundness of the property and the due diligence measures that would be undertaken by officers, the Cabinet unanimously supported the proposal and as recommended, endorsed the use of the Chief Executive’s urgency powers to authorise a bid of up to a maximum of £810,000 for the purchase, plus fees, thus allowing a maximum budget of £850,000.

It was proposed, seconded and with the vote being unanimous, it was

RESOLVED:

That:-

(1)     The intention for the Chief Executive to use his powers of urgency to negotiate at auction, the purchase of the identified property  at 113 High Street/3 The Avenue, Newmarket, be endorsed;

(2)     It be noted that having obtained this endorsement, the Chief Executive will authorise a budget up to a maximum of£850,000 , to be made available to facilitate the purchase, including fees and Stamp Duty Land Tax, to be funded from the Investing in the 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 aresult of Recommendation 2.