Decision details

Reason for the Decision

Under competitive tension, as part of an auction sale, the property sold for a figure exceeding the £1m threshold and so now requires a key decision.

Due to the timescales involved an urgent decision from the Cabinet Member is required to confirm the appropriate approvals for the completion of this disposal.

Background

The Constitution’s Property Management Protocol provides delegated authority to the Director of Infrastructure to agree freehold disposals up to a value of £1m, with disposals more than this figure to be determined as a key decision by the Cabinet Member. In this case a valuation was obtained along with advice from the auctioneer and local agents which indicated that the expected sale price was likely to be well under the £1m threshold.

The property was entered into the 1 May 2024 auction, with a reserve agreed by the Director of Infrastructure under delegated powers set out in the Property Management Protocol.

The final bid achieved was above expectations, exceeding the £1m limit of officer delegations.

Options Considered 

Obtain an urgent decision – This will ensure compliance with KCC’s governance processes.

Follow the normal route for a decision – The property was sold at auction and therefore a decision is required by 31^st May. This would not be achieved. REJECTED

Do not obtain a decision from the Cabinet Member – The Governance process for authority would not be compliant. REJECTED

As Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services, I agree to:

1.        Approve the sale of the property for £1.274m under the auction terms and conditions;

2.        Confirm the Director of Infrastructure’s decision under delegated authority to dispose of the property known as Rosemary Centre PRU, 189 High Road, Wilmington DA2 7DP, noting that the property’s performance at auction exceeded the expectations underpinning the original disposal plan; and

3.        Delegate authority to the Director of Infrastructure, in consultation with the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services to finalise the sale and take other actions including but not limited to, entering into relevant contracts or other legal agreements, as necessary to implement this decision.