Issue - meetings

The Chair will rule that under 100B(4)(b) of the Local Government Act 1972 this item be considered despite not being made publicly available for this Committee five clear days prior to the meeting.

 

 

Matter for Decision

 

The Chair had ruled that under 100B(4)(b) of the Local Government Act 1972 the item be considered despite not being made publicly available for this Committee five clear days prior to the meeting.   The report provided information to the disposal of HRA dwelling asset at 18a Magrath Avenue, Cambridge as a joint venture with the long leaseholder of 18b Magrath Avenue. The project to re-supply the two replacement dwellings will be presented as part of a wider future development project, with the capital receipt from this sale used as one of the funding streams for the new assets.

Decision of Executive Councillor for Housing

The Executive Councillor for Housing resolved to:

Financial recommendations

 

       i.       Approve the project in principle, with the Executive Councillor for Finance & Resources asked to ultimately approve the project to dispose of an HRA asset, subject to resources being available to fund any associated capital and revenue implications.

 

·        The total capital cost of the project is estimated to be £5,000

 

·        The capital receipt that the Council would expect to realise is in the region of £237,500, depending upon market forces at the point of sale.

·        The revenue impact of the initial disposal would be negligible, with the loss of rental income for the dwelling being offset by a reduction in management and maintenance expenditure, and the ability to earn interest on the capital receipt.

 

·        The net ongoing revenue return for this project would be

£4,300 per annum in the longer term, assuming the capital receipt was in future used to fund two replacement dwellings.

 

Procurement recommendations:

 

     ii.          Approve the carrying out and completion of the procurement of an agent to act on behalf of the Council and the owner of 18b Magrath Avenue, in agreement with said owner. The cost of this work is expected to be in the region of £7,200, so one quote will be required, with the Councils’ share of this cost to be met from the anticipated capital receipt for the sale.

 

Subject to:

 

    i.          The permission of the Section 151 Officer being sought prior to proceeding if the quotation or tender sum exceeds the estimated contract.

  ii.          The permission from the Executive Councillor being sought before proceeding if the value exceeds the estimated contract by more than 15%.

 

Reason for the Decision

As set out in the Officer’s report.

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

The Committee received a report from the Business Manager / Principal Accountant.

 

No comments were made.

 

The Committee:

 

The Executive Councillor approved the amended recommendations.  

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

 

No conflicts of interest were declared by the Executive Councillor