Agenda item

(B)    Referrals from Cabinet: 10 September 2019

1.       Exempt Report No: COU/WS/19/012

          Investing in our Commercial Asset Portfolio (para 3)

            Portfolio Holder: Cllr Susan Glossop

(Councillor Aaron Luccarini declared a pecuniary interest in this item as his wife was employed by the principal tenant that occupied the property under consideration. He moved to the public gallery and therefore did not vote on this item.)

Council considered this exempt report, the contents of which had been recommended by Cabinet for approval. Members were advised of the opportunity to acquire a commercial property investment.  It was considered that this purchase offered the opportunity to protect jobs with a major employer, provide an addition to the Council’s commercial asset portfolio to generate revenue income and provided strategic opportunities.  The overall investment would also be in line with the Council’s principles of its Investing in Growth Strategy.

Councillor Susan Glossop, Portfolio Holder for Growth, drew relevant issues to the attention of Council and duly responded to questions raised.

The majority of Members recognised the benefits of making the proposed acquisition and supported the recommendations.

On the motion of Councillor Glossop, seconded by Councillor John Burns, it was put to the vote and with the vote being 44 for the motion, four against and no abstentions, it was

RESOLVED:

That the recommendations contained in Exempt Report No: COU/WS/19/012, be approved.

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

The exemption relating to this item was removed on 11 March 2020, and therefore the following resolution is now published. This is not however, contained in the signed minutes for this meeting:

RESOLVED:

(1)     the purchase of the freehold interest of Provincial House, 30-38 High Street, Haverhill for £3,500,000 (three million and five hundred thousand pounds), excluding VAT, fees and Stamp Duty Land Tax, to be funded from the Investing in Growth fund, be approved;

(2)     a capital budget of £3,699,500 (three million, six hundred and ninety-nine thousand, five hundred pounds) be established and made available to facilitate the purchase, including fees and Stamp Duty Land Tax, to be funded from the Investing in Growth fund;

(3)    a capital budget of £145,000 be established to fund the cost of landlord works, as detailed in 5.4 of Report No: CAB/WS/19/030, funded from the lease surrender premium;

(4)     a revenue budget of £230,000 be established, for the period of 3 years, to cover the holding costs of the vacant elements of the building, as detailed in 5.9 of Report No: CAB/WS/19/030, to be funded from the lease surrender premium;

(5)     the RIBA stage one feasibility costs of £20,000 be funded, as detailed in 6.3 of Report No: CAB/WS/19/030, from the Strategic Priorities and Medium Term Financial Strategy Reserve; and

(6)     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 Recommendations (2) and (3) above.