39 Nunthorpe Grange Farmhouse, Yard & Barns - Proposed Freehold Disposal PDF 907 KB
Minutes:
The Executive Member for Environment and
Finance & Governance, the Executive Member for Regeneration, the Director
of Finance and the Director of Regeneration and Culture submitted a report for
the Executive’s consideration. The
purpose of the report was to consider the proposal to dispose of the Council’s
freehold interest in Nunthorpe Grange Farmhouse, Yard
& Barns.
Shown edged on the plan attached at Appendix A
of the submitted report, the subject property was situated on Church Lane and
occupied a rectangular shaped site measuring @ 2.37 Acres [0.959 Ha].
The property comprised a relatively modern farmhouse,
yard and barns that formed part of a much larger, now defunct, agricultural
holding that had sat vacant since being surrendered by the Council’s former
farm tenant in 2018.
The Council proposed to market the property in
local, national and digital media prior to offering it for open market sale at
an auction event during the current financial year 2021/2022.
From a valuation perspective, the property was
listed on the Council’s asset register at a value of £460,000. That value was
predicated on the imposition of a restrictive covenant that would limit use of
the property to a single residential dwelling only. Future use of the barns for
commercial, recreation or leisure purposes would not be restricted, with the
Council being able to control any proposals to do so via the statutory planning
process.
The Council’s nominated auctioneer had valued
the property at a figure of £470,000 and advised that it should be presented
for sale at the subject auction event with a guide price of £415,000 and a
reserve price of £460,000 plus fees.
An Asset Disposal Business Case confirming the
status of the subject property as surplus to operational Council requirements
was attached at Appendix B of the submitted report.
OPTIONS
Option 1:
Re-use for operational purposes - No Council operational service requirement
had been identified.
Option 2:
Other uses - Although the property was capable of being used for other
purposes, future use of the property as a single residential dwelling only was
preferred.
Option 3:
Do nothing - The property would have remained in its present state. Whilst the
subject property would have been retained for potential Council use in the
future, the liability and responsibility for maintaining and holding the
property would have remained with the Council in the interim.
ORDERED
That the
proposal to dispose of the property via auction, if the price exceeded the
reserve sum of £460,000 plus fees, be approved.
REASON
In order to
meet the Council’s requirements to generate capital receipts, increase annually
recurring revenue streams and to bring the subject property into a far more
beneficial use in the future.
The
disposal of the subject parcel of land as proposed supported delivery of the
Council’s Medium Term Financial Plan.