Proposed decision
TheDeputy Leader and Cabinet Member for Finance, Corporate and Traded Services to agree to:
1. the disposal of the property at the Long Field, Quaker Lane, Cranbrook, Kent; and
2. 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 terms of the disposal and execution of all necessary or desirable documentation required to implement the above.
Reason for the decision
The property is surplus to the Council’s operational requirements and due to its projected value, a key decision will be required as per Kent County Council’s constitution.
Background
The property extends to approximately 2 hectares, mainly comprising of grassland and was last used as a highways depot; the site has been declared surplus as it is no longer required for operational purposes.
In 2018 the site was marketed for disposal and on 29 January 2019 Kent County Council (KCC) entered into a promotion and option to purchase agreement expiring 29 January 2025 with Heyworth Properties Limited.
A planning application (reference 23/03246) was submitted for a scheme comprising 34 residential units with a determination anticipated in quarter 4 (Q4) of 2024. Following the grant of a satisfactory planning permission, Heyworth Properties Limited would either purchase the property for development or it will market and sell to a third party, paying a proportion of net sale receipts to KCC in accordance with the terms of the agreement. It is expected that the level of net sales receipts to KCC will be over the £1m delegated threshold and will therefore require a Key Decision.
Options (other options considered but discarded)
Whilst under contract, a decision not to perform under its terms would be possible, however this would have legal and cost implications. The recommendation therefore will be to perform under the contractual agreement for the sale of the property unless it expires in the meantime.
How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026
This decision supports Framing Kent’s Future as the disposal will, along with other assets within its disposal programme, contribute to the Council’s aim to become carbon neutral. It will also release brownfield redevelopment opportunities, helping towards the County’s housing targets.
How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy
This decision supports Securing Kent’s Future 2022-2026 by securing a capital receipt to invest in KCC’s priority projects and programmes whilst also streamlining KCC’s property portfolio, achieving financial and efficiency benefits.
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 09/10/2024
Anticipated restriction: Part exempt - View reasons
Decision due: Not before 7th Nov 2024 by Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
Reason: To allow 28 day notice period required under Executive Decision regulations
Lead member: Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services
Lead director: Rebecca Spore
Department: Strategic & Corporate Services
Contact: Mark Cheverton, Property Strategy and Policy Manager Email: Mark.Cheverton@kent.gov.uk or 03000 415 940 Email: mark.cheverton@kent.gov.uk.
Consultees
This decision will be considered at the Policy and Resources Cabinet Committee on 27th November 2024.
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 holding costs associated with the property easing pressure on revenue budgets
Legal implications: The 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. It also has a fiduciary duty to the residents of Kent. KCC is under contract to sell the site to a promoter subject to the contract expiration date. External legal advisors will be appointed in consultation with General Counsel.
Equalities implications: Equalities implications: An Equalities Impact Assessment (EqIA) has been undertaken and identified no direct equalities implications arising from the disposal of the site. Data Protection implications: As part of this approval process and in the handling of marketing/conveyancing of the site Data Protection regulations will be observed. The property is empty, and no data or records are stored on site. A Data Protection Implication Assessment (DPIA) screener has confirmed that there are no DPIA implications and that a further DPIA assessment is not required in respect of this decision.