Issue - meetings

Vacant and Surplus Property Update (scrutiny)

Meeting: 11/06/2019 - Place Scrutiny Committee (Item 7)

7 Vacant and Surplus Property Update report pdf icon PDF 223 KB

Report by the Chief Operating Officer.

Minutes:

7.1       The Acquisition and Disposals Manager introduced report. ESCC has a relatively low number of surplus and vacant property assets in comparison with other local authorities who own more property. Some of the surplus properties are former school sites which have additional constraints such as the requirement to get Secretary of State approval prior to disposal or redevelopment. The diagram at the bottom of page 20 gives an overview of the processes ESCC goes through when a property becomes surplus. The options appraisal process involves a substantial number of activities, with each property asset requiring a different set of activities depending on the nature of the property or site.

 

7.2       The work undertaken on vacant and surplus property is informed by the Council’s Property Asset Disposal and Investment Strategy, and the requirement to achieve best value for the Council.  The outcomes from the appraisal process range from a straight forward disposal or sale of a surplus property asset, through to the development of an asset for sale or retention for revenue generation purposes. Assets may also be retained for strategic purposes. Each surplus asset will require different activities which will take varying lengths of time to complete.

 

7.3       The Committee discussed the report and raised the following points.

 

7.4       The Committee expressed concern about delay between declaring a property asset surplus or a property becoming vacant, and the development or disposal of the asset. The Committee highlighted the additional building security and maintenance costs that are incurred in such cases, and the likelihood of severe damage through arson and vandalism (e.g. the recent fires at Pinehill and Mount Denys in Hastings). The Committee asked if there is a target or standard timeframe for disposal, as five years in this example would appear to be unacceptable due to the additional costs and the visible sign of neglect which impacts on the local community.

 

7.5       The Acquisition and Disposals Manager responded that there is no standard or normal disposal timeframe as it will depend on the level of risk (planning risk, site risk, title, market etc.) attached to each asset. The more problematic sites noted are subject to a number of hurdles that  frustrate a speedy disposal that secures best value, often influenced by such matters as the planning process or obtaining Secretary of State Approvals where required. It is understood that five years is not acceptable, but in the case of the Helensdown Campus there have been challenges as the Council still has an operational building on this site. Although it may appear that there has been little progress in this example, there have been active discussions with the Adult Social Care department to explore the development of this site.

 

7.6       The Chief Operating Officer outlined that there is a balance between holding a property asset vacant to allow for discussions and options to be explored, and getting the best value from that asset. Officers also recognise the impact on the local community that empty buildings can have.

 

7.7       The  ...  view the full minutes text for item 7


Meeting: 11/06/2019 - Place Scrutiny Committee (Item 9)

Vacant and Surplus Property Update - Additional Information (exempt)

Report by the Chief Operating Officer.

Additional documents:

Minutes:

9.1       The Chief Operating Officer introduced report and outlined that the detailed additional information contained in this report is exempt for reasons of commercial confidentiality. The priorities contained in the Property Asset Disposal and Investment Strategy are to develop and dispose of assets to maximise the value to the Council, or yield a revenue return where this is possible. The Strategy does not currently prioritise investment in commercial property.

 

9.2       The Acquisition and Disposals Manager outlined the activities that have been undertaken for a number of the property assets and gave explanations where there have been delays in the development or disposal of a particular property or site.

 

9.3       The Committee had a general discussion concerning the role of various property vehicles, such as separate property companies, that some local authorities have established. It also discussed the possibility of using other approaches to develop property assets, such as Clear and Sustainable Futures, that could help to reduce costs and develop other opportunities.

 

9.4       The Committee also discussed the maintenance arrangements for public libraries. It was clarified that ESCC does own the Eastbourne Library building where there was a recent roof leak. The Chief Operating Officer will let the Committee know what caused the problem at Eastbourne Library. Condition surveys of library buildings are undertaken every three to four years. These are used to develop planned maintenance programmes for libraries, which are funded by a specific provision within the Council’s capital programme. The Council does prioritise the maintenance of libraries which are maintained to higher standards as they are high profile public buildings. Reactive maintenance work is also carried out throughout the year where the need arises.

 

9.5       The Committee RESOLVED to note the additional information contained in the report.