Agenda item

The Executive Member for Finance and Governance and the Director of Finance submitted a report for the Executive’s consideration. The purpose of the report was to seek approval to explore community asset transfer for four Council buildings by recommending that the Council invited expressions of interest for the four buildings, and progressed the process outlined in the community asset transfer policy.

A number of community asset transfers had already been carried out successfully offering opportunities for localised social regeneration, improved access to educational activities and growing small businesses.

Brambles Farm Community Centre, The International Centre, Langridge Initiative Centre and 22 Holylake Rd all had tenants currently occupying the buildings with non-commercial arrangements in place, however, the Council still had a financial pressure to invest in maintenance and remedial work.

There had been little interest in securing a commercial tenant for those buildings. In part that was due to the complexities of the building and in part also due to their respective locations meaning them ill-suited to attracting business investment.

Those currently occupying the buildings were also limited in seeking access to funding opportunities to enhance the buildings due to the nature of their current agreements and as a result, the buildings, though occupied, continued to deteriorate attracting anti-social behaviour and community concerns. The buildings also required increased reactive maintenance and the Council had responsibility for the rates.

All four current occupiers had now approached the Council to seek to remedy that by enquiring as to opportunities to community asset transfer the buildings.

OPTIONS

a)    Continue with current arrangements - That may have resulted in continued costs to the Council. It would also have reduced the capacity of any potential occupiers to draw down funding opportunities and inevitably lead to further structural deterioration.

b)    Demolish buildings - That would have incurred capital costs, and the buildings currently had occupation from community and voluntary sector organisations.

c)    Sell the buildings - An Asset Disposal business case may have proved challenging. The market value, given the buildings location, may have been challenging with bids coming in under their current worth. It would have also reduced the Council’s influence to determine the future direction of the building and therefore disposing of a building that could potentially have both a greater physical and social regeneration impact.

ORDERED

a)    That progression of the community asset transfer policy be approved for potential execution of community asset transfer leases for Brambles Farm Community Centre CC, Langridge Initiative Centre, The International Centre and 22 Holylake, subject to appropriate expressions of interest and submission of appropriate business cases.

b)    That a future report be presented to the Executive, outlining the outcome of the financial appraisal and recommendations for approval for each community asset transfer based on its own merits following due diligence where appropriate.

c)    That the Community Asset Transfer Policy be refreshed alongside the Community Governance Review process, currently being progressed.

REASONS

Community asset transfers presented opportunities to facilitate social regeneration as well as local community access to education, health and recreational activities across Middlesbrough.

There had been little interest in securing commercial tenants for the buildings. In part that was due to the complexities of the building and in part also due to their respective locations, meaning them ill-suited to attracting business investment.

A building left unused attracted a significant amount of criminal damage and impacted upon Council budgets due to the requirements to maintain general up keep and rates.

A community asset transfer demonstrated a key business imperative to reduce Council expenditure.

Discussions with local stakeholders, such as the local business owners and residents living in close vicinity, had shown that they want to see the buildings used more for the community.

Transfer to community interest companies and charities would allow for potential investment and physical enhancements to the building supporting the 2020-23 Strategic Plan in terms of physical regeneration in all four deprived wards in Middlesbrough.