Proposed Decision:
That the Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services:
1. Approve the sale of the propertyknown as Land at the Intersection of the M20/ M25 under the terms and conditions of an Option Agreement dated 11 June 2020;
2. Confirm the Director of Infrastructure’s decision under delegated authority to dispose of the property known as Land at Intersection of M20/M25, Swanley, Kent, noting that the property’s performance in terms of consideration payable exceeded the expectations underpinning the original disposal governance 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.
Reason for the Decision
Under commercial negotiations with significant market improvements in the industrial land sector since the pandemic, the property option was sold exceeding the £1m decision threshold, and therefore an urgent key decision is needed to enable the transaction to complete on the 27 August 2024.
Due to the timescales involved under current contractual arrangements the council are committed to, an urgent decision from the Cabinet Member is required to confirm the appropriate approvals for the completion of this disposal by Tuesday 27 August 2024.
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.
The purchaser, Broomhill Developments (South) Limited served its Notice to ‘exercise’ its Option on 5 May 2024. Following complex negotiations, due diligence and s.123 compliance checks (including legal assurance), the anticipated consideration payable exceeds the Key Decision threshold and an urgent key decision is required to enable the transaction to complete on the 27 August 2024.
Options Considered
· Obtain an urgent decision – This will ensure compliance with KCC’s governance processes.
· Follow the normal route for a decision – The property is subject to an Option Agreement which has been triggered and the Council must complete by the 27 August 2024, therefore this option has been REJECTED.
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 27/08/2024
This decision will be taken under urgency procedures.
Reason for urgency:
Due to the timescales involved under current contractual arrangements the council are committed to, an urgent decision from the Cabinet Member is required to confirm the appropriate approvals for the completion of this disposal by Tuesday 27 August 2024.
Anticipated restriction: Part exempt - View reasons
Decision due: 27 Aug 2024 by Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
Reason: This decision was taken under urgency procedure
Lead member: Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
Lead director: Rebecca Spore
Department: Strategic & Corporate Services
Contact: Simon Dodd, Investment and Development Consultant Email: s.dodd@kent.gov.uk Email: simon.dodd@kent.gov.uk.
Consultees
Public consultation undertaken or is any planned:
No public consultation undertaken nor planned.
Views sought from local Members:
The Local Member was consulted as part of the initial disposal plan and Officer level decision process, as per the Council’s constitutional requirements. No comments were made in respect of the proposal to dispose of the site. The Chair and Members of the Scrutiny Committee have been consulted and the Chairman of the Policy and Resources Committee
Cabinet Committee Consultation:
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. There are no known holding cost implications.
Legal implications: External solicitors supported by Kings Counsel 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 at least 2017. As such, the disposal of this vacant thin strip of land 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.