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  • Issue
  • Issue details

    21/00084 - Disposal of land at Bensted House, Kiln Court, Osbourne Court & Former SEC, Faversham ME13 7NY.

    Decision –toagree to the disposal of the sites and delegate authority to:

     

    1.    The Director of Infrastructure in consultation with the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services, to finalise the contractual terms of the disposal. 

     

    2.    The Director of Infrastructure to authorise the execution of necessary contractual and land agreements required to implement the above.

     

    Reason for the decision

    Proposed property disposal in line with the Council’s s.123 best consideration obligations and over £1million which requires a key decision.

     

    Background

    KCC is to dispose of the combined sites at Bensted House, Kiln Court, Osbourne Court and Former Social Enterprise Centre, Lower Road, Faversham, ME13 7NY (approximately 7 acres, split in half by Lower Road).  Facilities operating from the site closed in 2016/17, and the sites were subsequently declared surplus to operational requirements and suitable for disposal.

     

    Comprehensive marketing has been undertaken following which bids have been received, and a preferred bidder is recommended to take forward the development.

     

    The Kiln Court site was registered as an Asset of Community Value under the Localism Act 2011. All necessary notices have been served to the relevant authority relating to Kent County Council’s intention to dispose of the site, all relevant moratorium periods have elapsed.

     

    A decision is now sought to finalise the terms of the disposal and authorise disposal of the site.

     

    Options

    The sites have been declared surplus by Kent County Council as such there are no operational requirements for them.

     

    Kent County Council has an overarching duty under Section 123 of the Local Government Act 1972 to secure not less than best consideration in respect of property disposals.

     

    KCC appointed planning consultants to design a residential development in compliance with the local authority’s current planning and affordable housing requirements to inform prospective bids.

     

    The sites have been openly marketed by a Kent based agent who advertised nationally in Estates Gazette. Conditional bids have been received.

     

    How does the proposed decision meets the objectives of ‘Increasing Opportunities, Improving Outcomes: Kent County Council’s Strategic Statement (2015-2020)’

    Securing a capital receipt to fund the capital programme and to streamline the Council’s property portfolio to achieve financial and efficiency benefits in line with appropriate policy.

    Decision type: Key

    Reason Key: Expenditure or savings of more than £1m;

    Decision status: Recommendations Approved

    Division affected: Faversham;

    Notice of proposed decision first published: 16/09/2021

    Anticipated restriction: Part exempt  - View reasons

    Explanation of anticipated restriction:
    Reports may contain commercially sensitive information, which will be contained in a separate report or exempt appendix, exempt from publication under paragraph 3 of Schedule 12a of the Local Government Act 1972.

    Decision due: Not before 15th Oct 2021 by Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
    Reason: in order that the proposed decision can be published for a minimum of 28 days, in accordance with statutory requirements

    Lead member: Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services

    Lead director: Rebecca Spore

    Department: Strategic & Corporate Services

    Contact: Alister Fawley, Principal Investment and Disposals 07703 289 855 / 07824 504426 Email: alister.fawley@kent.gov.uk, Simon Hocken, Property Disposals Consultant Email: simon.hocken@kent.gov.uk.

    Consultees

    The issue was discussed by the Policy and Resources Cabinet Committee on 22nd September 2021 and the proposed decision, with the addition of wording ‘to seek the most advantageous terms to the County Council which it is able to secure’, was endorsed.

     

    Financial implications: The sale of the property will result in a capital receipt for KCC which will be used to support the Council’s Capital Programme. Development costs are minimised due to the structuring of a conditional contract with further consultant fees being initially borne by the developer. The holding costs associated with the properties will cease once the property transaction has completed.

    Legal implications: The conditional contract will be legally binding and will commit KCC to the eventual sale of the land subject to the granting of a qualifying planning consent within the terms of the contract.

    Equalities implications: N/A

    Decisions