Agenda item

To consider a joint report by the Principal Property Manager and Valuation and Estates Manager (copy enclosed) which details the Council’s Asset Management and Disposal Strategy and the procedures and guidelines that are in place.

                                                                                                       12.05 p.m.

A copy of a joint report by the Principal Property Manager and the Valuation and Estates Manager, which outlined the Council’s Asset Management and Disposal Strategy and the procedures and guidelines that are in place, had been circulated with the papers for the meeting.

Councillor J. Thompson-Hill introduced the report which provided information and sought observations on the Council’s Asset Management and Disposal Strategy, and outlined the procedures and guidelines which regulate the disposal of Council assets.  Details of the initial and current focus on the programme relating to the disposal of surplus assets had been outlined in the report.

The Council’s standard asset management review process was summarised for Members, together with, details of the remit of the Asset Management Group (AMG).  An outline of the Council scheme of delegated approvals for disposals and the Statutory Compliance on Disposal of Council Land and Buildings, Section 123, Local Government Act 1972, had been included in the report.  The three main options for disposal of surplus land or buildings had been included in Appendix A to the report.

It was explained that the Council had strategies to obtain disposals from the Agricultural and Corporate Office and Miscellaneous Property portfolios, and a copy of the Agricultural Estate Service Management Plan had been attached at Appendix B. 

The Economic Development Estate had a draft strategy to deliver a managed rationalisation of assets from the property portfolio by April 2013 for discussion and approval and adoption, and part of this strategy would include recommendations for the disposal of assets.  Lifelong Learning had a policy of Modernising Education and this could deliver surplus assets in due course.  Other Services would declare assets surplus to requirements as they rationalise their respective operational portfolios. 

Member involvement in asset disposals had been outlined in the report.

The Agricultural Estates Working Group had agreed an investment and disposal strategy for the Estate which guided current work.  Member Area Groups would be receiving details of all properties in their area at meetings during the spring.  A review of the industrial and business portfolio would involve Members and individual Members would be consulted on disposals in their ward.  It was explained that the disposal of surplus assets generated capital receipts and along with the associated revenue savings would assist the delivery of Corporate Priorities which would otherwise remain unfunded.  The target of £10m in capital receipts over the period 2010-2015 had been identified as a Corporate Priority. 

The report included details of the costs and risks involved in the disposal of land and property.  Members were assured that, prior to asset disposal, consideration was always given for alternative uses, including community use, and that all disposal transactions were open, transparent and undertaken in public interest.

Officers responded to the following questions and issues raised by Members:-

-               the importance of Local Member involvement and consultation with regard to the disposal and acquisition of land and assets in their respective areas was emphasised

-   provided an update on the legal situation in respect of the former Cynwyd School.

-               regarding the possibility of Denbighshire selling land to Rhyl Town Council for the provision of a cemetery in the Rhyl area, it was explained that there was no suitable land in the area in question, this highlighted the difficulties associated with floodplains.

-               provided examples of instances where Denbighshire had acquired land or properties.  Officers explained that they worked closely with the Regeneration Team to purchase land or property which would help to enhance or regenerate an area. 

-               information relating to the work and remit of the Agricultural Estates Group and the proposal for a Commercial Industrial Estate Working Group were provided.

-               provided details of the steps taken to ensure that the Council would benefit from any future gains from land sold to a third party.  They also confirmed that when disposing of property the up lift in value would be considered prior to being placed on the market.

-               any issues relating to the Council’s Agricultural Estate would be addressed though the Agricultural Estates Group. 

It was:-

RESOLVED – subject to the above observations to receive and note the contents of the report on the Council’s Asset Management Strategy.