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 31st 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
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 29/05/2024
This decision will be taken under urgency procedures.
Reason for urgency:
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.
Anticipated restriction: Part exempt - View reasons
Decision due: 29 May 2024 by Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
Reason: This decision will be taken in accordance with the urgency procedure
Lead member: Deputy Cabinet Member for Finance, Corporate and Traded Services
Lead director: Rebecca Spore
Department: Strategic & Corporate Services
Contact: Hugh D'Alton, Investment and Disposal Surveyor Email: Hugh.D'Alton@kent.gov.uk or 03000 41 88 35 Email: Hugh.D'Alton@kent.gov.uk.
Consultees
No Cabinet Committee consultation possible due to urgency process. The decision will be reported to a future Policy and Resources Cabinet Committee.
Financial implications: The sale of the property will result in a capital receipt which will be reinvested back into the Council’s Capital programme. The disposal of the property will remove associated holding costs of circa £10,475 pa which will ease pressure on the revenue budget.
Legal implications: External solicitors have been appointed to handle the conveyancing process in liaison with the Council’s office of general counsel.
Equalities implications: Equalities Implications: The property is currently vacant and has been declared surplus to KCC’s operational requirements through the relevant governance processes. It has been vacant since 2019 when the PRU service relocated to a new purpose-built facility. As such the disposal of this vacant property is not considered to have any positive or negative impact on protected groups. Data Protection Implications: There are no Data Protection Implications associated with this decision