Agenda item

The Executive Member for Environment and Finance & Governance and the Director of Finance submitted a report for the Executive’s consideration. The purpose of the report was to present the proposal to transfer the Council’s freehold interest of the International Centre to a community organisation.

 

In 2020, the Council had granted a license for a community interest company, The Other Perspective, to take occupation in the International Centre. Its location was central to assisting the organisation to serve the local community. The community interest company had also previously requested consideration for a community asset transfer of the building.

 

The International Centre itself was in a very poor state of repair. Currently, the community interest company could only occupy a small number of rooms due to the poor condition within the centre. The rooms in occupation were primarily the main downstairs hall and a small number of offices on the ground floor. The remaining majority of the property had significant issues with water ingress, damp, lack or reliable heating, broken windows, roof leaks, plaster damage amongst other concerns.

 

A business plan had been submitted by The Other Perspective outlining the initiatives to be delivered from the International Centre, those were supported by the Council and planned to strengthen the community development offer within the town. The initiatives included local participation, and incorporated a series of projects through social enterprise to support the development of employment opportunities, training and enterprise. In order to successfully deliver the vision, the International Centre was integral. It was therefore proposed that, rather than simply regenerate, the Council transfer its freehold interest to allow the community interest company to bid for funding to both regenerate and redevelop the asset to meet the needs of the proposals put forward.

 

An Asset Disposal Business Case, confirming the status of the subject property as surplus to operational Council requirements, was attached as Appendix B.

 

OPTIONS

 

Re-use for operational purposes

 

No Council operational service requirement had been identified. The Council would have required the asset for polling station purposes, however, it had been agreed that fell within the remit of community benefit and the building would be made available to the Council for that purpose.

 

Community Asset Transfer on 25 year lease

 

That remained a viable option, but not the desirable one. The Community Asset transfer on a long-term lease would not have offered the same attraction to external funders as the transfer of the freehold interest. Upon transfer of the freehold interest the Council would place a covenant on the property which would require that the asset may only be used for community use, which would prevent any further re-sale or redevelopment for profit. In addition, there would be a requirement that if funds were not secured within a three year period for the regeneration of the asset the organisation would be required to transfer it back to the Council.

 

Council Complete Repairs and look to offer Commercial let or sale

 

The Council would have needed to invest significant resources to bring the property to a lettable standard. The cost schedule for the required repairs was a minimum of £200k, which far exceeded the valuation of the asset. The Council could have marketed the property for sale, however, it was within a prominent part of town which offered significant value to the diverse local community. The Council was committed to locality and place based working, and offering the property on the open market in its current condition would not have fulfilled that commitment to the local communities or make best use of the asset.

  

Do nothing

 

The property would have remained in its present state, and would have continued to deteriorate. The Other Perspective could not have continued to occupy under licence in the building due to its deteriorating condition.

 

ORDERED

 

That the proposal to transfer the Council’s freehold interest to a community group - The Other Perspective, who were currently occupying under license, be approved.

 

REASON

 

The Centre’s size and facilities plus location provided an excellent opportunity for a range of cultural and community activities for a diverse range of stakeholders to improve health, wellbeing, learning and education.

 

Community organisations could bid for external funds for asset regeneration to support community activities, those had a higher rate of success if the organisation had the freehold interest in the property. The Council and MVDA planned to support the community organisation to bid for funding to regenerate the asset within a prominent part of the town to deliver against its business plan.

 

The proposal planned to ensure a community asset, which was currently underused, was brought back into use to support the local community. That would support key objectives of external grant funding:

 

·        to save underused community assets;

·        assist in developing community organisations and community businesses;

·        empower local communities; and

·        strengthen links at place based level - supporting locality working objectives.