The Executive Director of Economic Growth and Neighbourhood Services submitted a report on the outcome of a marketing exercise to dispose of the freehold of Southcote Library.  Confidential information relating to the proposed disposal had been considered in closed session (Minute 25 above refers).  A location plan was attached to the report at Appendix A. 

The report explained that the highest offer received was for a residential development (Bidder A) on a conditional, subject to planning, basis.  The other top offers received were also from residential developers (Bidder B & C) also both on a conditional basis subject to planning consent being granted.  There was also a bid from a Housing Association (Bidder D) for a scheme of 15 x 1 & 2 bed affordable flats on a conditional basis subject to planning consent.  The Committee was advised that Bids A, B and C should generate Community Infrastructure Levy (CIL) payments of approximately £100k, whereas Bidder D would not generate CIL payment as it would deliver an affordable housing scheme. 

The report stated that the Housing Association’s bid was the preferred offer, despite not being the highest bid.  The proposal assumed that the Housing Association would receive £785,000 of Local Authority Social Housing Grant (LASHG) to support the delivery of the development.  The properties would be 100% affordable housing, all rented, with rent levels capped at 70% of market rent and the Council would obtain 100% nomination rights for the ingoing tenants. 

Resolved –

(1)      That the Property be sold to Bidder D for a development of affordable rented properties on the terms set out in paragraph 4.3.1 of the report;

(2)      That the allocation of £785,000 Local Authority Social Housing Grant (LASHG) to support the delivery of the Housing Association’s proposed development be approved as set out in paragraph 4.3.1 of the report;

(3)      That, in the event that the offer price was subsequently reduced or the purchaser did not perform to an acceptable timescale the Executive Director of Economic Growth & Neighbourhood Services be authorised, in consultation with the Leader of the Council, the Lead Councillor for Corporate and Consumer Services and the Assistant Director for Legal and Democratic Services, to:

a) agree a revised offer price which secures best consideration;

b) re-engage with other bidders as appropriate or remarket the property for disposal at best consideration;

(4)      That, in the event that the LASHG increased above the sum of £785,000 then the Director of Economic Growth & Neighbourhood Services, in consultation with the Lead Councillor for Housing, be authorised to consider and agree any variation.