Agenda item

Exempt Report No: CAB/SE/18/026

Portfolio Holder: Alaric Pugh           Lead Officer: Julie Baird

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)

(Note: This decision is not subject to call-in, as detailed in the Special Urgency Notice published on 22 March 2018)

The Cabinet considered Exempt Report No: CAB/SE/18/026, which sought endorsement of the use of the Chief Executive’s urgency powers to enable the Council to bid at auction for a commercial property which had arisen as a potential investment opportunity.

As this was a late urgent item, which was required to be considered in private session due its commercial sensitivity, with the agreement of the Chairman of the Overview and Scrutiny Committee, notice of the decision intended to be made in private session was published in a Special Urgency Notice on 22 March 2018.  As the decision was time critical, the Chairman of the Overview and Scrutiny Committee had also agreed that, if approved, it should be exempted from call-in, the reasons for which were set out in the Special Urgency Notice.

A decision was required in private session to endorse the exercising of the Chief Executive’s urgency powers for negotiating at auction, the purchase of the freehold of 20 High Street, Haverhill, which was scheduled to be auctioned on 28 March 2018 (the day after this meeting).  A successful purchase would provide the Council with a property offering both strategic and investment potential. In the short to medium term the property would provide an income from the current tenant (Iceland Foods Ltd), whilst in the longer term there would be the opportunity to help shape the High Street and improve pedestrian circulation and connectivity in the retail core.  It also supported the aspirations of the Haverhill Town Centre Masterplan and accorded with the West Suffolk Growth Investment Strategy.

Councillor Alaric Pugh, Portfolio Holder for Planning and Growth, drew relevant issues to the attention of Cabinet, including that this proposal had the endorsement of the Chairman of the Overview and Scrutiny Committee and Haverhill Ward Members.  Councillor Diane Hind, Chairman of the Overview and Scrutiny Committee, and Councillor John Burns, Ward Member for Haverhill East, were in attendance and invited to speak and they both demonstrated their support for the proposal.

Councillor Pugh added this would be an excellent testament to the Council acknowledging the value of investing in the High Street and trusting the financial stability of the existing tenants.  The realisation of a sound return on investment in the short to medium term, and the longer term benefits in the wider context of supporting the delivery of the aspirations of the Haverhill Town Centre Masterplan was similarly commended.

The Cabinet fully supported this proposal, adding their own comments regarding the benefits of the purchase, if successful.  Some clarification was sought regarding the online bidding process; however, no concerns were raised.

In order to clarify a legal matter, Councillor Pugh proposed an amendment to the first recommendation, so that it read:

(1)     subject to the inclusion of additional clarification that in the event the vendor fails to provide an indemnity to mitigate any risk presented by a pre-existing lease on the site, Option (b) of the options set out at paragraph 2.3.3 of Exempt Report No: CAB/SE/18/026 regarding the purchase of the identified property at 20 High Street, Haverhill, be agreed;

This amendment was accepted and it was subsequently:

RESOLVED:

That:

(1)     subject to the inclusion of additional clarification that in the event the vendor fails to provide an indemnity to mitigate any risk presented by a pre-existing lease on the site, Option (b) of the options set out at paragraph 2.3.3 of Exempt Report No: CAB/SE/18/026 regarding the purchase of the identified property at 20 High Street, Haverhill, be agreed;

(2)     subject to recommendation (1) above, the intention for the Chief Executive to use his powers of urgency to negotiate at auction, the purchase of the identified property at 20 High Street, Haverhill, be endorsed;

(3)     it be noted that subject to this endorsement, the Chief Executive authorises a budget up to a maximum of £2,004,000, 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

(4)     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 (3).