Minutes:
The Interim Assistant Director Property
introduced the report and stated that it was being presented to
Committee ahead of Cabinet submission later in the month. He
explained that the report followed a Cabinet decision from July
2021, which had declared some assets as surplus and had generated
£9.3 million in capital receipts, as well as rationalising
the Council's property portfolio. He commented that the report was
split into four sections: pieces of land the council held which
were considered to have no beneficial use; operational assets such
as children’s centres; scout huts which were leased to the
Scout Association; and village halls. The Interim Assistant
Director Property explained that the scout huts and village halls
would be given to the relevant committees and trustees for a
peppercorn, which would ensure that they could access grants and
funding not currently available to them.
The Interim Assistant Director Property highlighted land in
Purfleet colloquially known as VOSA on Tank Hill Road, which could
be suitable land for housing and could be looked at by Thurrock
Regeneration Limited (TRL) or the housing regeneration team. He
explained that if the site was not suitable for housing the team
would look to dispose for capital receipts. The Interim Assistant
Director Property moved on and outlined the former landfill site at
Buckingham Hill which surrounded the civic amenity site. He stated
that the site was 52 acres and was currently fallow and could be
suitable for leasehold development. He moved on and described the
former depot site at Curzon Drive which had had buildings
demolished three years ago and was currently sat unused. He
explained that the site was relatively valuable and could generate
approximately £170,000 in terms of leasehold rental income,
and therefore would need a Cabinet decision for disposal. He stated
that the report also contained several public houses, some of which
were assets of community value or had long leases left, which meant
that the council would struggle to develop these in a profitable
way. He added that a number of leaseholders had enquired about
purchasing the sites as this would make it easier for the owners to
develop the sites. He explained that there was one site within the
Purfleet regeneration area that had been identified for short term
lease, which would not impact upon the development of the Purfleet
area, but required delegation due to the amount of revenue that
could be created.
The Interim Assistant Director Property moved on and explained that
there were also two care home sites, operated by Runwood Homes,
which the Council were conflicted on as the Council were the main
client and also freeholder, which could make the finances difficult
to manage. He added that the sites were currently under rented by
approximately £100-125,000, but the Council could dispose of
the sites to earn capital receipts whilst also remaining the main
client. He stated that the land adjacent to Essex Arena was
currently lying fallow, but also required a Cabinet decision due to
delegations, and could be used for a future residential scheme. The
Interim Assistant Director Property added that the strip of land
between Tank Hill Road, as well as the former Whiteacres site on
Daiglen Drive, outlined in the report could also be used for future
residential development through the Council ‘s HRA or
TRL.
The Interim Assistant Director Property moved on and outlined
appendix two of the report. He explained that the appendix
highlighted a number of children's centres, for example Aveley and
Stanford-Le-Hope, which were former Victorian school buildings and
therefore had high rates of capital expenditure. He stated that due
to the age of the buildings and their current use as a nursery, the
team felt the council were not the best landlord, and these sites
could generate capital revenue without affecting their ongoing use.
He added that Purfleet children’s centre was also in the
report as the team had received expressions of interest for the
freehold. He moved onto appendix 3 and listed scout huts in the
borough, most of which had been developed with community funding
and were on land leased to the Scout Association by the council. He
explained that most of those leases were now approaching
termination date and due to new legislation regarding EPC's, the
council were not able to grant new leases, unless the condition of
the current buildings were substantially improved or replaced,
which the council did not have the funds to undertake. He added
that the Scout Association were able to take over the freehold
regardless of the EPC, which would enable them to access additional
funding and grants not currently open to them due to the
Council’s freehold position. The Interim Assistant Director
Property summarised and highlighted Appendix 4 of the report, which
outlined the village halls. He stated that the village halls were
expensive for the Council to run, and the village hall committees
could not access community funding as the village hall was not at
risk of loss. He added that the village hall leases were also quite
restrictive in terms of sub-letting and uses, so disposal of these
properties would mean that village halls could have more control
over the site and could run them as they see fit, whilst being
protected as a community asset.
Councillor Kent queried the recommendations and asked what the
purpose of the report was. The Interim Assistant Director Property
responded that as the report was being submitted to Cabinet for
approval, the report required pre-scrutiny by the Committee to
ensure the assets listed were suitable to be declared as surplus.
Councillor Kent highlighted recommendation 1.2 and asked what the
revenue savings were for 2021/22 from rationalisations. The Interim
Assistant Director Property stated that revenue savings had been
made through the disposal of sites such as Richmond Road, the
former Meals on Wheels site, and the Thameside Theatre, and would
provide the exact figures after the meeting. Councillor Kent asked
when a full report on the Thameside Theatre would be presented to
the Committee as the original date was July. The Assistant Director
of Economic Growth and Partnerships explained that the team had
been in a process, working with a Community Interest Company as
they developed their business case for the Thameside Complex. He
commented that as part of that process the team were required to
advertise that an asset for community transfer was available, and a
second expression of interest had been received. He explained that
the second expression of interest should have the same opportunity
to develop a detailed proposal or business plan, and therefore a
report would be brought to Committee later in the year once these
business plans had been received, reviewed and the process had
concluded. Councillor Kent highlighted the Buckingham Hill site and
felt concerned that the landfill site, which was currently in use,
would be declared surplus. He also felt concerned regarding the
proposal to dispose of land in Purfleet given the Council’s
regeneration scheme. Councillor Kent added that some village hall
committees would not be able to manage the maintenance and village
hall buildings, and sought reassurance that the village hall
committees would be offered support and to ensure they could manage
running their village halls. The Interim Assistant Director
Property stated that the former landfill extended to 52 acres
compared to the current civic amenity site which was only two acres
in size. He stated the proposal in the report only considered the
former landfill site, but could have an impact on the current
landfill site and conversations with the environment team would be
ongoing. He added that the current site could be moved or improved
to ensure an effective and efficient site and increased revenue. He
commented that the Corys Wharf site in Purfleet would only be a
short-term lease to ensure that PTRL could continue their
regeneration proposals in Purfleet. The Interim Assistant Director
Property stated that the Vosa Site in Purfleet was out of the PTRL
area, although remained important to Purfleet regeneration and both
teams could work together to develop. He stated the assets and
communities’ teams would undertake lots of work with village
hall committees to ensure they were run successfully, and the asset
transfer was a benefit to village halls. He explained that not
every village hall committee would have the ability or experience
to run their village hall, but the team would work with successful
committees to share knowledge and best practice with those less
able.
Councillor Arnold questioned what would happen if the leaseholder
chose not to take up the freehold, and how the team would move
forward if this happened. The Interim Assistant Director Property
stated that the team would explore the reasons why they would not
take up the freehold, but there had been a number of expressions of
interest in some of the proposed sites and community asset transfer
requests for village halls. He added that if some village halls did
not want to take up the freehold, then the Council would grant a
100 or 125 lease to the village hall before seeking to dispose on
the open market. He added that covenants would also be added to the
freehold to ensure the site remained for community use. Councillor
Carter highlighted appendix 4 and asked if village halls generated
income. The Interim Assistant Director Property explained that some
were let for a peppercorn, and some generated an income of
approximately £250 per annum for the leases. He stated that
Thurrock Council still had to manage the leases, which could take a
lot of officer’s time.
Councillor Holloway felt that was their great value in supporting
communities through village hall buildings. She questioned if the
leaseholders of the sites had been involved in their proposed
disposal, and how many had shown interest in taking over the
freehold. She also queried what information would be provided to
the leaseholders and when they would receive these packs. The
Interim Assistant Director Property replied that many village halls
and scout huts were already aware of the liabilities and
responsibilities that came with the freehold, but the team would
help these sites understand their commitments and work with the
communities’ team to ensure that village halls could be run
successfully and could access community funds, such as CEDF. He
added that sites would need to prepare a business case to ensure
they understood the financial aspects of the asset transfer and
their obligations. He understood that some education for village
hall committees would need to occur and stated that the team would
be able to help assist with this. He summarised and explained that
if Cabinet declared the sites as surplus, the team would be
contacting the sites and would follow the asset transfer policy to
ensure they all understood the process and a collaborative approach
would be undertaken. Councillor Holloway asked if an update report
could be presented to the Committee later in the year.
The Chair asked if the Scout Association Representative would like
to speak. The Scout Association Representative stated that
generally the Scouts across the borough were in favour of the asset
disposal. He explained that as the Scouts were only leaseholders,
they had to spend time and effort renewing leases and agreeing
rents with the Council, and the Scouts maintained their own
buildings whilst not owning the land. He stated that the Scouts
maintained the buildings to a high standard, which were often used
for other community projects, such as full-time nurseries and the
Girl Guides. He stated that the asset disposal would open
opportunities for the Scouts to access other grants and community
funds, and could help village halls to set up committee and trustee
boards.
The Chair agreed that an update report to the Committee would be
presented to the Committee later in the year.
RESOLVED: That the Committee:
1. Noted the success of the 3Rs programme in generating capital
receipts totalling £9.3m in the financial year 2021/22;
2. Noted the success of the previous review of operational
properties in delivering revenue savings and identifying potential
sites currently being developed by TRL and HRA;
3. Passed the report to Cabinet for the following decisions:
“Declare the operational properties in section 6.2 of the
report surplus to requirements and receive a report back, where
applicable, on the future of the sites and any alternative delivery
consideration;
Declare surplus the properties as shown in Appendix 1, 2, 3 and 4;
approve the release or re-use of the properties as outlined;
and
Subject to the agreement to release the
assets in Appendix 1, 2, 3 and 4; delegated authority of the
disposal to the Corporate Director of Resources and Place Delivery,
in consultation with the Leader and the completion of a delegated
authority decision report.”
Supporting documents: