Issue - meetings

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.