Issue - meetings

Asset Review

Meeting: 21/11/2023 - Executive (Item 34)

34 Asset Review pdf icon PDF 364 KB

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The Executive Member for Regeneration submitted a report for Executive’s consideration.


This report set out the details of a review of land and property assets held by the Council, with a view to generating additional income and/or disposals resulting in a pipeline of capital receipts being realised to support the financial recovery and return to financial sustainability over the period of the Medium-Term Financial Plan.


An asset review had been undertaken to identify land and property owned by the Council that could be utilised differently (including disposal) to assist in supporting the Council’s financial recovery and to achieve financial sustainability.


Disposal of capital assets generated capital receipts that could be used to support the Council’s financial position in serval ways including to fund investment in projects that will either deliver ongoing revenue savings or deliver transformation in public service delivery through cost and/or demand reduction in accordance with Government regulations governing the Flexible Use of Capital Receipts.


The Council held significant amounts of land and buildings on its balance sheet which presented opportunity for review and optimisation to support the Council’s delivery of services in the future.


A review had been undertaken for all land and property assets, and recommendations made as to the future strategy for each. These recommendations were summarised in the report and included the investment of £1.5m in existing Council buildings to accommodate additional staff and the development of a public sector hub within the Cleveland Centre


The financial impact of the proposed sales would be an estimated net capital receipt of over £33m, with a reduction in the Council’s longer-term income of £1m pa, with a one off revenue cost of £0.6m in relation to TeesAMP 1.


The Ward Member for Hemlington stated the Viewley Centre was included on the list of Assets that could be disposed of. As the site held value for the local community, the Member raised several queries. They asked if assurance could be provided that there was no intention to close the Viewley Hill Shopping Centre, but that if it was to be sold it would be as a going concern as a shopping centre with leases protected. They also queried if the Viewley Centre would be considered at the end of the three-year period for disposals rather than in the near future and sought confirmation that the Viewley centre had no interested parties to buy it. The Member also asked, were the Viewley Centre were to be earmarked for disposal, that a report be brought to Executive for agreement before that happened.  


The Executive Member for Regeneration stated that any intentions to dispose of assets, including the Viewley Centre, would follow proper processes and that consultation would be carried out with interested parties including Ward Members.


ORDERED the Executive


a)    Close and sell Middlesbrough House, relocating staff to Fountain Court and other Council buildings;

b)    Invest £1.5m from the Council’s Capital Programme in expanding the capacity of Fountain Court and other Council buildings;

c)    Relocate the Live Well Centre  ...  view the full minutes text for item 34