Docstoc

LCC CORPORATE PROPERTY STRATEGY

Document Sample
LCC CORPORATE PROPERTY STRATEGY Powered By Docstoc
					 ASSET MANAGEMENT PLAN & CAPITAL
     STRATEGY 2005/06 – 2007/08

           APPENDIX C




  LIVERPOOL CITY COUNCIL

CORPORATE PROPERTY POLICY
   & GUIDANCE MANUAL
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

CONTENTS


Foreword – Chief Executive & Corporate Property Officer – to be completed

   1.      Purpose and Corporate Context

   2.      Executive Summary – to be developed

   3.      Objectives of the Strategy

   4.      General Policy – to be confirmed

   4.1     General
   4.2     Council Standing Orders (Relating to Property)
   4.3     Scheme of Delegation (Relating to Property)

   5.      Disposal of Land & Property

   5.1     Arrangements to Declare Land & Property Surplus
   5.2     Authority to Dispose of Land & Property
   5.3     Disposal of Land for Less Than Best Consideration
   5.4     Disposals to Charitable, Voluntary and Non- Profit Organisations
   5.5     Method of Disposal
   5.6     Tenure to be Offered
   5.7     Management of Surplus Property and Land
   5.8     Miscellaneous Disposal Matters

   6.      Management of the Non-Operational Estate – to be developed

   7.      Acquisitions – to be developed

   8.      Management of Service & Elapsed Service Tenancies – to be
           developed

   9.      Management of Heritage Assets – to be developed

   10.     Management of the Operational Estate – to be developed

   11.     Capital Prioritisation & Option Appraisal – to be developed

   12.     Procurement – to be developed

   13.     Repair & Maintenance Strategy – to be developed

   14.     Procedural Arrangements – to be developed



                     2                                    25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

   15.     Area Based Initiatives

   16.     Strategies & Plan – to be developed

   17.     Consultation Arrangements and Useful Contacts – to be
           developed

   18.     Legislative Framework – to be developed as the document
           evolves

   19.     Glossary

   Appendices – to be developed as the document evolves

   Appendix A:           Disposal Appraisal Template

   Appendix B:           Summary: General Consent - Section 25 Local
                         Government Act 1998

   Appendix C:           RICS Appraisal and Valuation Standards Guidance Note
                         5 – Local Authority Disposal for Less Than Best
                         Consideration

   Appendix D:           Tenure to be offered – Relevant Criteria

   Appendix E:           Decommissioning Guidance & Checklist

   Appendix F:           Area Based Initiatives

   Appendix G:           The Protection of School Playing Fields and Land for
                         Academies - Summary

   Supporting Documentation – to be developed




                     3                                    25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


1.         Purpose & Corporate Context

Liverpool City Council is the largest landowner in the city retaining a significant
and diverse property holding comprising over 35,000 separate individual property
assets, including approx. 18,000 Council houses, 15,000 investment properties,
119 LEA schools and 200+ miscellaneous operational premises. This asset base
has a capital value of £1,110m1 and generates an income of £xm for the Council.
Conversely the cost of managing these assets are in the region of £xm, whilst it
has been estimated that in the region of £202m of investment is required to make
the portfolio fit for purpose.

It is therefore critical that the Council has robust processes and procedures in
place governing the management, use and deployment of this resource to ensure
value for money is obtained and the property matches the requirements of the
Council.

This document seeks to provide for the very first time a council-wide policy
framework governing the use and management of Council land and property. It
will provide a clear strategic approach to property issues such as disposals,
management of operational and non-operational accommodation, space
utilisation etc to inform and influence the strategic direction of the Council‟s
property portfolio.

In developing this document existing governance arrangements concerning
property, statutory legislation, consents and circulars governing the use of local
authority property, as well disparate property‟s strategies of the Council have
been consolidated, reviewed and where appropriate, amended and/or
streamlined to clarify and strengthen existing arrangements. Strategic guidance
has also been developed for other key property matters where it was felt there
has been a lack of clear policy.

The document is intended to ensure a consistent approach is adopted and roles
and responsibilities of officers, members and other stakeholders engaged in
property matters are clearly identified to avoid any confusion and overlap of
duties. To this end process maps have been included setting out the procedural
arrangements and respect roles of responsibility concerning key property
matters.

The document has been developed to act as a guide to assist officers, elected
members and other stakeholders when considering and making decisions
involving property.




1
    Corporate Performance Plan 2005/06 – Section 5



                             4                            25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


Unless stated otherwise this document excludes arrangements governing the
management and use of Council housing.

Where the text is highlighted in red italics these are suggested amendments to
the Constitution and/or or other Council policy documents and reports. Text
highlighted in blue relates to existing specific schemes of delegation which are
not included in the current Constitution. Any changes to the Constitution, as
proposed in this document, will be reported to Elected Members as part of the
Council‟s annual review of its Constitution.




                     5                                    25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


2.     Executive Summary – to be developed as the document evolves

List key policy statements governing the use and management of property.




                     6                                    25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


3.       Objectives of Corporate Property Strategy

To:

     provide an efficient and adaptable stock of land and buildings fit for their
      purpose;
     optimise property usage and reduce operational costs;
     establish and co-ordinate the future property requirements of the Council in
      the short, medium and long term, to meet the needs of its Customers in terms
      of future service delivery;
     ensure that investment in land and buildings maximises value for money;
     ensure an explicit, co-ordinated approach to asset management across the
      Authority;
     identify uneconomic, unsuitable and surplus properties and thereby free up
      capital assets for recycling and leverage;
     utilise the Council‟s assets to support and deliver economic development;
     ensure that decisions relating to the rationalisation, acquisition or investment
      in property have regard to operational objectives, the Council‟s six aims and
      the objectives of „Liverpool First‟;
     identify and focus upon opportunities for engaging in regeneration and
      neighbourhood renewal through the imaginative and innovative use of
      property;
     explore and exploit opportunities for shared use with the Council‟s partners;
     maximise the return from investment property;
     accurately identify and record details of the Council‟s property holdings
      through the establishment of a corporate property database;
     ensure that there is explicit processes and procedures governing the use,
      management and deployment of land and property which are to be fully
      adopted by officers, elected members and other stakeholders;
     reduce the level of required maintenance




                      7                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua




     GENERAL PROPERTY
       POLICY – TO BE
         FINALISED




                     8                                    25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


4.1   General Policy Statements – to be developed and expand as the
overall document evolves

4.1.1 All property and land to be treated as a corporate resource

4.1.2 All property and land held and/or occupied by the Council should support
      either directly or indirectly the Council‟s corporate objectives.

4.1.3 Where assets are identified which do not support the Council‟s corporate
      objectives the capital resource tied up in those assets to be released and
      deployed for alternative uses.

4.1.4 The Council will wherever possible occupy property of which it is the
      owner of the freehold.

4.1.5 All Council accommodation which is subject to a lease or licence to a third
      party who are not providing a direct service on behalf of the City Council is
      to be classified as non-operational and as such to form part of the
      Corporate and Investment estate.

4.1.6 Responsibility for the overall strategic direction of the Council‟s land and
      property to be overseen by the Council‟s Corporate Property Officer
      (CPO). The nominated CPO is the Executive Director, Regeneration.

4.1.7 The Executive Director, Central Services to be responsible for the
      management and use of the Council‟s operational accommodation,
      including the cessation of use.

4.1.8 Services continue to support the Asset Management Group. The Group to
      be responsible for the co-ordination and management of the Council‟s
      assets and where appropriate to advise and make recommendations to
      EMT and elected members on the use of the Council‟s property and land.

4.1.9 The Council continue to produce and maintain an Asset Management Plan
      (AMP) and Capital Strategy (CS). The AMP & CS to be updated annually.

4.1.10 Member responsibility for the asset management planning agenda to
       continue to rest with the Executive Member, Resources.

4.1.11 The Council will maintain an accurate and comprehensive database of its
       land holding. As far as practically possible property data should be held
       within a single data system.




                     9                                    25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


4.2    Council Contract Standing Orders

4.2.1 All disposals, purchases and lettings of land and property are to be in
      accordance with the Council‟s Contract Standing Orders (CSO) – details
      of the property related CSOs are, for easy of reference, set out below.
      Officers should however have regard to full set of the CSOs when
      considering property matters. The Council‟s CSOs can be accessed at
      http://ldl960:8070/Published/StdDataDocs/6/5/6/4/SD00004656/$4CONTR
      ACT.doc.pdf

 (CSO 11.1) Subject to CSO 11.2 and CSO 11.3 below, all disposals of land
and/or property (whether by lease, licence, or sale of freehold) shall be by way of
public auction or public tender or quotation at the discretion of the Assistant
Executive Director (Performance & Business Management).

(CSO 11.2) Disposals (whether by lease, licence or sale of freeholds) of the type of
land, to the persons, or in the circumstances set out below shall be by way of
negotiation by private treaty unless the Assistant Executive Director (Performance &
Business Management) recommends disposal by way of public auction or public
tender or quotation:

(1) Existing lessees purchasing the freehold or re-negotiating or extending the
terms of an existing lease.

(2) Industrial estate leases where supply exceeds demand

(3) Shop leases on Council-owned residential estates and District Shopping
Centres where the supply exceeds demand.

(4) Disposal of property in Housing Action Areas (delete Housing Action Areas
and replace with neighbourhood and private sector renewal areas), the Canning
Street Action Area of either the freehold or a term of 125 years to either a Housing
Association or Housing Co-Operative.

(5) Disposals of property under the Right to Buy Legislation.

(6) Disposals of property under the provisions of the Leasehold Reform Act
1967 and subsequent legislation

(7) Disposals of garden land to adjoining or adjacent owners

(8) Disposals of property to a developer of adjoining land who has an
approved scheme (ie outline or full planning permission for the scheme has
been obtained by the developer) or a developer who has wider property
interests in an approved scheme and requires such property to complete the
scheme.




                     10                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua



(9) Disposals of property to developers who are proposing schemes which will
have a regenerating effect on the City and investment which in the view of
the Executive Member for Resources (in discussion with the Executive Member
for Regeneration) could be prejudiced by inviting tenders.

(CSO 11.3) No part of the Council's property shall be sold, leased or let to, (except in
the case of the granting of secure tenancies by the Assistant Executive Director
(Housing and Neighbourhood Services) nor shall any property be purchased from
any officer or any Council Member other than a trustee without any beneficial interest
therein except at an auction or as a result of competitive tender or quotation, unless
particulars of such transaction including, in the case of an officer, his/her name,
Service and the post held by him/her and, in the case of a Council Member,
his/her name are set out in the Minutes. Provided that, for the purposes of this
Standing Order, the interest of the spouse of an officer or member shall be
deemed to be the interest of that officer or member.

(CSO 11.4) Every purchase or sale of property requiring the confirmation of the
Council shall be notified to the Council in the Minutes of the appropriate Committee
submitted to the Council.

(CSO 11.5) All tenders and quotations shall be invited in accordance with CSO 8.1 –
8.8 and CSO 9.1 – 9.10 and for the purposes of CSO 8.1(1) and CSO 9.1 each
invitation shall specify the property and the legal interest to be disposed of.

(CSO 11.6) Tenders and quotations shall be opened in accordance with CSO 8.4 –
8.6 and CSO 9.3 – 9.6.

(CSO 11.7) The Assistant Executive Director (Performance & Business
Management) shall report the results of each tendering or quotation exercise, where
the value is greater than £5,000 (replace £5,000 with £10,000 in line with the de-
minimus threshold for a sum not treated as capital – LA(CF&A) Regs 2003) with
an appropriate recommendation to the Executive Member for Resources as soon as
practical after tenders have been opened.

(CSO 11.8) The Assistant Executive Director (Performance & Business
Management) shall have the power, subject to compliance with CSO 11.1 - 11.6, to
dispose of land and/or property where the income receivable is less than £5,000.

(CSO 11.9) Subject to no tender or quotation having been accepted, where tenders
or quotations are retained unopened under CSO 8.6 or CSO 9.6 the
circumstances relating to such tenders shall be reported by the Assistant
Executive Director (Performance & Business Management) to the Executive
Member for Resources who may at his/her discretion authorise the opening.




                     11                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


4.3       Scheme of Delegation – Property Matters

4.3.1 Without prejudice the following powers in relation to property matters are
      specifically delegated to the following officers. Details of overall scheme of
      delegation and general procedures which must be followed can be
      accessed at
      http://ldl960:8070/Published/StdDataDocs/6/5/6/4/SD00004656/$SCHEM
      EOFDELEGATIONTOOFFICERS.doc.pdf .

Executive Director, Education, Library and Sports Services

         To take all appropriate steps to achieve effective use of operational
          education land and buildings. Where this involves some form of
          property transaction professional property and legal advice to be
          obtained.

Assistant Executive Director, Performance & Business Management (nb not
Regeneration Services as state in the current Constitution)

         To complete (replace “complete” with ”negotiate”) the disposal by sale
          lease or license of surplus land and property and to incur any necessary
          expenditure for that purpose. The decision to dispose (replace “dispose”
          with “declare land and property surplus”) and ratify terms would be
          taken by elected members.

         To complete (replace “complete” with “negotiate”) the acquisition by
          compulsory purchase order, purchase or exchange any land or property.
          The decision to acquire and ratify terms would be taken by elected
          members, unless the purchase is at auction for which separate
          delegation exists

         To vary terms and issue consents for sale, lease or license of land or
          property and to take any necessary steps to protect the Council‟s interest
          in its property.

         To agree and negotiate with the valuation officer, rating assessments and
          appeals in relation to land and property.

         To pursue and settle claims associated with land and property as agreed
          by elected members.

         To complete the disposal by sale lease or licence of properties under
          the Right to Buy and Leasehold Reform legislation 2


2
    Report EDR/189/03 – Procedures for the Disposal of Property


                       12                                         25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

       To complete the disposal by sale lease or licence of land to adjoining
        or adjacent owners for the purpose of a garden extension where the
        size of the land to be disposed to an individual purchaser does not
        generally exceed 250 sq m and the use is restricted to garden land.

       To complete the disposal by sale lease or licence of any land or
        property where the financial consideration does not exceed the
        figure set under the Local Authority (Capital Finance and
        Accounting) (England) Regulations 20033 in any one given financial
        year. This is currently set at £10,000 (ten thousand pounds).

       To complete the sale of surplus land and property by auction and to
        incur any necessary expenditure for that purpose4.

Assistant Executive Director, Housing and Neighbourhoods (nb not ED,
Supported Living and Community Safety as stated in the Constitution)

       To approve the acquisition, purchase and disposal (delete reference to
        “acquisition”) of land and property within the approved Housing
        programmes. The decision to approve the respective programmes to
        be taken by elected members.

       To place an Order with 2o2o Liverpool to attend auctions as agent for
        the Council and bid for a particular lot or property up to an agreed
        valuation when authorised so to do in consultation with the
        Regeneration Finance Manager5:

        a).     open an LCC Client bank account to be operated by 2o2o
               Liverpool for the sole purpose of acquiring properties to be
               identified by the Divisional Manager HMRI (or in his absence
               the Executive Director Regeneration or AED for Housing and
               Neighbourhoods)

        b).    deposit monies into the account from time to time from the
               HMRI Theme 1 – Clearance/acquisitions to meet expenditure
               incurred at auction estimated to be circa £30,000 per month
               and,

        c).    complete accounting and record keeping arrangements and
               procedures on a monthly basis to ensure proper financial
               management in accordance with LCC financial control
               requirements and the 2o2o contract.


3
  Section 10
4
  Report L&DS/629/00 – Sales of Land & property by Auction
5
  Report EDR/342/04 – Proposals to Acquire HMRI Property at Auction


                     13                                      25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

           Replace above delegation with the following to facilitate acquisition
            at auction of required properties within the approved Housing
            programmes – “To attend auctions or instruct 2020 Liverpool, as
            agent for the Council, to attend and bid for a particular lot or property
            identified by the Divisional Manager, HMRI, within the approved
            Housing programme up to an agreed valuation providing that the
            necessary funds are available, as confirmed by the Head of Finance
            (Regeneration).”

           To approve requests by Residents Association to use vacant
            properties for community purposes subject to the following
            circumstances6:

            a).      the accommodation is low demand and not required for
                     housing purposes;
            b).      the proposed use does not duplicate existing provision in the
                     area;
            c).      the tenancy is subject to planning permission and other terms
                     and conditions as determined by the Operational Manager of
                     Land and Development Services,
            d).      the term is for less than seven years and
            e).      Associations are charged 10% of the actual rent

NB this contradicts 5.3.5 – for consistency it is proposed that delegation for
this should be removed and executive board approval obtained

           To allow contractors to use a vacant property as a site office subject
            to the following conditions7

            a).requests form part of pre-contract negotiations and form part of
            the final contract document

            b.) the divisional manager has authority to decide whether or not
            offers can be restricted to hard to let accommodation

            c). the contractor is charged the factor rent or economic rent
            whichever is the higher

           Replace above delegation with “To allow contractors to use vacant
            property as a site office for the duration of either whole or part of the
            contract subject to terms and conditions as determined by the Head
            of Property and Asset Management Services.

4.3.2 In taking any decision, the officer concerned must be satisfied that the
following issues have been properly considered and completed where
6
    Office Accommodation Provision for Tenants Groups – Report 19/2/97
7




                             14                                          25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

appropriate. All of these issues should be considered at the earliest possible
stage.

(a) a key decision should be taken in accordance with the relevant requirements;

(b) the views of the relevant Executive Members(s) following the application of
the consultation criteria set out in paragraph (c).

(c) the implication of any Council policy, initiative, strategy or procedure. Officers
need to be aware of any potential impact of a delegated decision in other areas.
In such cases, consultation with officers and relevant Executive Members(s) from
any affected portfolio should take place.

(d) the extent of prior consultation and the views/opinions emanating from that
process, including Select Committees and Area Committees.

(e) the range of available options

(f) the staffing, financial and legal implications.

(g) the involvement of appropriate statutory officers and/or other Assistant
Executive Directors as appropriate.

(h) the views of Ward Councillors where the issue relates to a specific ward(s).

(i) the relevance of any regional or national guidance from other bodies.

(j) the Council‟s Standing Orders, Financial Regulations and all relevant
guidance, legislation and Codes of Practice.

(k) the need to secure Best Value.

4.3.3 In order to assist with the above, arrangements should be made by each
Executive Member and Executive Director to deal with times of absence e.g.
holidays. This could, for example, be through a named alternative.

4.3.4 Each officer exercising delegated powers shall be responsible for
recording decisions taken and the method for reporting those decisions to the
appropriate Select Committee will be determined by the Select Committee and
the Overview and Scrutiny Select Committee. In addition, a formal report
detailing the decisions taken will be submitted to the appropriate Select
Committee. The format of the report and the frequency of submission to the
Select Committee will be agreed by the Chair, Executive Member and Executive
Director.




                     15                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua




    DISPOSAL OF LAND &
        PROPERTY




                     16                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


5.1      Arrangements to Declare Land and Property Surplus

5.1.1 All operational property and land, including schools must be formally
      declared surplus to Council requirements by the Executive Board before it
      can be offered for disposal8. Exempt from the above arrangements are
      disposals:

             under the Leasehold Reform Act,

             under the Right to Buy legislation;

            of garden land (not exceeding 250 sq m) to an adjacent or adjoining
             owner; or

             where the receipt from the property is expected not to exceed the
             figure set under the Local Authority (Capital Finance & Accounting)
             (England) Regulations 2003 (which is currently set at £10,000) in any
             given financial year

         for which delegated authority has been granted to the Assistant Executive
         Director, Performance & Business Management.

5.1.2 All assets which are subsequently declared surplus to be vested in the
      Corporate and Investment estate.

5.1.3 All property and land currently held within the Council‟s Corporate and
      Investment Estate are by definition surplus to the Council‟s operational
      requirements and consequently may be offered for disposal. Unless
      delegated authority is available terms for the disposal of C&I property must
      be reported to the Executive Board for ratification.

5.1.4 All reports seeking authority to declare an asset surplus to operational
      requirements under 5.1.1 above are to include an appraisal of the disposal
      options to ensure that there is a clear exit strategy identified – the
      appraisal to be commissioned by the occupying service and undertaken by
      the Head of Property and Asset Management Services. The occupying
      service to advise of any previous interest shown in the premises by third
      parties and also consult with ward councillor for their views. The appraisal
      to be completed within two months from the date of commission to avoid
      delaying the process to declare the property surplus.

         For illustrative purposes a copy of a completed disposal appraisal report is
         set out in appendix A.


8
    Report EDR/189/03 – Procedures for the Disposal of Property


                       17                                         25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua




5.2    Authority to Dispose of Land & Property

5.2.1 Terms for the disposal of all surplus property and land are to be reported
      to the Executive Board for ratification with the exception of the following
      categories of disposals for which delegated authority exists and separate
      arrangements apply – see previous section 4.3

          Right to Buy sales

          Leasehold Reform Act sales

          Garden land generally not exceeding 250 sq m where the use is
           restricted to garden use

          Where the receipt generated from the disposal of the asset does not
           exceed in any one given financial year £10,000

          Disposals by way of auction

5.2.2 Written evidence of the authorising authority to dispose to be provided in
      all instances to the City Solicitor to execute the transaction.

5.2.3 Negotiations with prospective purchasers should take place, if practicable,
      at the Council‟s / Partner‟s office or the purchaser‟s office within core office
      hours. If practicable two officers should be present. Confirmation of the
      negotiations will be made in writing and sent to the purchaser for
      agreement. Reporting will take place once agreement has been reached.

5.2.4 Offer and terms of sale - these should be certified by the Council‟s
      appointed partner and/or agent as representing the best reasonably
      obtainable in the circumstances, and where appropriate should be
      accompanied by a valuation report in accordance with the RICS Red Book
      - Appraisal and Valuation Standards (5th Edition). The report should clearly
      state how long the valuation and other terms of the sale should be
      regarded as being valid taking account of the prevailing market conditions
      at the time.

5.2.5 Where best consideration cannot be certified this should be clearly stated
      and the arrangements under sections 5.3 are to be followed.

5.2.6 Where terms are being reported to the Executive Board the report to
      clearly state (i) the date of the valuation and (ii) the length of time the
      valuation is valid for. The purchaser to be made aware of the period the
      valuation is valid and the consequences of having to review and if


                     18                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

       appropriate re-value the property should legal completion not occur before
       the expiry of the valuation period.

5.2.7 If the transaction cannot be completed within the stated time period the
      valuation is valid for then the property is to be re-valued. If there has been
      no increase in value the Head of Property and Asset Management
      Services to certify that best consideration is still being achieved. Where
      there has been an increase in value and terms are subsequently
      successfully re-negotiated the Head of Property and Asset Management
      Services to certify that best consideration is being achieved.

5.2.8 The value of the property should be monitored throughout the negotiation
      period. Valuations should be valid for a fixed period (ideally between three
      and six months) and reviewed as appropriate having regard to the market
      conditions and other material circumstances.

5.2.9 An indicative end date to finalise heads of terms should be agreed with the
      purchaser at the outset of negotiations and finalised once Executive Board
      has been obtained to the disposal, including arrangements for the
      payment of abortive costs (if appropriate). If terms cannot be agreed by
      the specified date the offer to sell to be withdrawn.

5.2.10 Where a Service Area retains an active involvement in a disposal due to
       the nature of the proposal or organisation involved that (i) a lead officer
       from the service area is identified and (ii) progress regarding the sale is
       effectively and regularly communicated to the lead officer and where
       appropriate elected members.




                     19                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


5.3      Disposal of Land for Less than Best Consideration

5.3.1 Presupposition that subject to 5.3.2 and 5.3.3 all disposals (including
      lettings) to be at open market value to ensure the best consideration is
      achieved and the Council‟s fiduciary duties are fulfilled.

5.3.2 As permitted under the Local Government Act 1972: General Disposal
      Consent 2003 consideration may be given at the discretion of the
      Executive Board to a disposal at less than best consideration, including a
      short tenancy9 where it can be clearly demonstrated and evidenced that
      the disposal is likely to contribute to the achievement of any one or more
      of the following objectives:

         o The promotion or improvement of economic well-being of the area;
         o The promotion or improvement of the social-well being of the area;
         o The promotion or improvement of the environmental well-being of the
           area.

5.3.3 General consent under section 25 of the Local Government Act 1988 is
      also available to local authorities to provide registered social landlords with
      financial assistance or any gratuitous benefit in relation to the disposal of
      land and dwelling-houses held under part II of the Housing Act 1985 to a
      registered social landlord. The consent is subject to the various conditions
      as set out in appendix B. Again requests to provide financial assistance or
      other gratuitous benefits to a registered social landlord are to be at the
      discretion of the Executive Board.

5.3.4 Any request to dispose at less than best consideration must be
      accompanied by a technical valuation report, to be in accordance with the
      prescribed format as contained in the RICS Red Book (UK Guidance Note
      5 – Local Authority disposal of land for less than best consideration) - see
      appendix C.

5.3.5 The Scheme of Delegation for qualifying disposals (see section 4.3) shall
      not apply and all proposed disposals at less than best consideration are to
      be considered by the Executive Board.

5.3.6 Where the disposal cannot be justified on the grounds described above
      and/or the undervalue of the Council‟s interest being disposed exceeds
      £2,000,000 (two million pounds) then specific consent from the Secretary
      of State will be required. Applications should be made to the Director of
      Planning at Government Office North West and the following information
      to be provided:

9
  A short tenancy is a tenancy granted for seven years or less. Under s.123 of Local Government Act 1972 and
subsequent legislation Ministerial consent is not needed




                           20                                                 25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua



       i a written description of the site and buildings, its physical characteristics, location and
       surroundings together with a plan which should be accurate enough to allow it to be used
       to identify the land in the Secretary of State's decision in cases where consent is given;

       ii a written description of the authority's tenure and a summary of the details of any
       leases, encumbrances, such as easements etc. to which it is subject. Details should be
       given of the purpose(s) for which the authority holds the land. Normally land is held for
       the purposes of the power under which it was acquired, or taken on lease, unless it has
       since been formally appropriated to another purpose;

       iii a written description of the existing use(s), current planning consents and alternative
       planning uses(s) that are likely to be permitted;

       iv a summary of the proposed transaction, noting the reasons for disposing at an
       undervalue, the key terms and any restrictions to be imposed by the authority; and

       v a detailed Valuation Report covering the matters listed in the Technical Appendix, and
       signed by a qualified valuer (a member of the RICS). The Department would normally
       expect the valuation to have been undertaken no earlier than six months before the
       submission.

5.3.7 Similarly specific Ministerial consent is required for the disposal of land
      held for planning purposes under section 233 of the Town and Country
      Planning Act 1990.

5.3.8 Ministerial consent is also required for the disposal of land and property
      held under Part II of the Housing Act 1985 which are not covered by the
      general consent available under section 25 Local Government Act 1988 -
      see 5.3.3

5.3.9 For the avoidance of doubt if the Council imposes restrictions or voluntary
      conditions as part of the disposal which reduces the financial
      consideration of the Council‟s interest the sale is to be treated as a
      disposal at less than best price. The monetary value of those conditions to
      be set out in the accompanying valuation report.

5.3.10 In order to protect the Council‟s financial interest where an asset is sold for
       less than best consideration the sale should be by way of a lease (see
       section 5.6) and subject to a clawback provision (to enable the Council to
       receive a share of the proceeds of sale if the asset is subsequently sold),
       unless there are exceptional circumstances as approved by the Executive
       Board.

5.3.11 Where such a sale is to a Registered Social Landlord the disposal to also
       consider the option for the Council to have nominations rights – the
       percentage and length of time the covenant to apply to be negotiated.




                      21                                          25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

5.3.12 A financial record is to be maintained for all approved disposals at less
       than best consideration and an annual review undertaken. Every time
       authority is sought to dispose of an asset for less than best consideration
       the accumulative undervalue of previously approved transactions during
       the given financial year is also to be reported.

5.3.13 Where authority is being sought to dispose of an asset at less than best
       consideration this should be clearly stated in the recommendation and the
       financial implications section of the report to clearly set out the financial
       lost to the Council – in accordance with the RICS Red Book (UK Guidance
       Note 5 – Local Authority disposal of land for less than best consideration).

5.3.14 For the avoidance of doubt whilst a disposal may represent “Best Value”
       due to the wider social, economic or regeneration benefits this is not the
       same as best consideration and should not be reported as such. For
       clarity this should be made explicit in this section of the report.




                     22                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


5.4         Disposals/Lettings to Charitable, Voluntary or Non-Profit
            Organisations and Residents Associations

5.4.1 To ensure transparency in all property transactions as a matter of general
      principle, disposals or lettings to charitable, voluntary or non-profit
      organisations and residents associations should take place on the basis of
      market value, with any financial assistance or other gratuitous benefit to
      be provided by way of a grant rather than reduction in the disposal terms.

5.4.2 Prior to any agreements being entered into with such organisations to
      occupy Council land or property the Council shall satisfy itself that the
      organisation has robust and sustainable business plan and have sufficient
      finances to occupy the property without recourse to any further financial
      assistance from the Council.

5.4.3 A general exception to the above being in relation to the following
      categories of properties10

            a)         One off temporary lettings;

                To be by way of fixed term licence for a period of no longer than six
                 months. Vacant possession to be secured upon the end of the licence
                 period;

                There is no right to renewal of the licence;

                All costs in association with the property are to be the responsibility of
                 the occupier (or Service supporting the organisation):

                The Council reserves the right to terminate the agreement subject to
                 four weeks notice in the event that a commercial letting can/has been
                 secured. The Council to use its reasonable endeavours to secure
                 alternative accommodation for the organisation.

                Otherwise terms and conditions as agreed by the Head of Property and
                 Asset Management Services.

            b)         The temporary letting of ‘hard to let’ premises

                 This is a property that has been vacant for a period in excess of 12
                  months and despite being marketed is in the view of the Operational
                  Manager, Land & Development Services is unlikely to be let in the
                  foreseeable future;

10
   Policy Guidance in Respect of Requests for the Use of Land and Buildings from Charitable Organisations – Report
HEST/130/97 (City Council 20/08/97



                           23                                                 25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


              The agreement will be for a minimum period of six months but no
               longer than seven years;

              The agreement will be contracted out of the Landlord and Tenant Act
               1954.

              The occupying organisation (or Service supporting the organisation) to
               pay for all costs of occupancy including initial legal and surveyors fees;

              Where the agreement is subject to a rent review the rent to be
               reviewed to a minimum of 50% of full market value at the time of the
               review;

              The organisation must vacate after a maximum term of seven years.

              Consideration may be given to granting a new lease upon the expiry of
               the original lease to the organisation on the full understanding that it
               will be on the basis of open market value.

              Otherwise terms and conditions as agreed by the Head of Property and
               Asset Management Services.

          c)         Use of vacant housing accommodation by Residents
                     Association11

              The accommodation is in low demand and not required for housing
               and/or regeneration purposes.

              The intended use does not duplicate existing provision in the area.

              Resident associations are charged 10% of the open market rent.

              The term is for a term no greater than seven years and contracted
               out of the Landlord and Tenant Act

              The cost of occupying the accommodation is met in full by the
               residents association.

5.4.4 Where an approach is received to dispose to a Charitable, Voluntary on
      Non-Profit Organisation the organisation be referred to the Community
      Resources Section to consider whether financial assistance could possibly
      be made available to the group. The Head of Property and Asset
      Management Services to liaise with the Community Resources Section to
      ensure that the open market rental value of the premises, together with
11
     Office Accommodation Provision for Tenants Groups – Report 19/2/97



                            24                                            25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

       any service charge provision, is accurately reflected in the level of any
       financial assistance provided by the Council.

5.4.5 All existing lettings to organisations falling within the above category which
      were let prior to 1 April 2005 to be reviewed and a re-assessment
      undertaken of open market value of the accommodation occupied by the
      organisation to establish the level of undervalue and any other costs which
      the Council pay on behalf of the organisation. The review to be undertaken
      by the Head of Property and Asset Management Services. The outcome of
      the review to be referred to the Executive Board for consideration whether
      to re-negotiated individual arrangements.

5.4.6 Such lettings to be reviewed every three years to monitor the level of
      financial assistance being provided to the organisations. The review to be
      undertaken by the Head of Property and Asset Management Services

5.4.7 All occupation to be formally regularised if there is no formal legal
      agreement currently in place. The occupying organisation (or service
      supporting the organisation) to pay for the Council‟s surveying and legal
      costs.




                     25                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


5.5        Method of Disposal

5.5.1 Professional property advice should be obtained on the appropriate sale
      methods having regard to the particular transaction, nature of property and
      market conditions. This should form part of the authorising report to
      declare an asset surplus, together with the reason for such a
      recommendation. Where appropriate outline heads of terms should be
      included, particularly where the intention is to be dispose at auction.

5.5.2 If the property advice considers that the proposed disposal is not in the
      best interests of the council having regard to the state of the market, the
      conditions of the property and its future potential, the effects of the
      disposal on the council‟s retained property or wider regeneration
      initiatives, or for any other reason this should be made explicit in the report
      giving reasons in full12.

Sale by Private Treaty

Sale by private treaty (ie between two parties without competitive bidding) is
governed by the Council‟s Contract Standing Orders - see section 4.2 setting out
the qualifying disposals.

Negotiations should be on a “subject to contract” basis to allow either party to
withdraw.

Where a sale is proposed to a selected developer this must be fully justified in
writing and professional property advice must be obtained. Where such a
disposal is unlikely to result in best price being realised this should be clearly
stated. Alternative options to secure best price should be provided together with
the expected values likely to be achieved.

Sale By Auction

Delegated authority is available to the Head of Property and Asset Management
Services to offer for sale by way of auction any surplus land or property13. This
includes:

          Instructing local or regional auctioneers as appropriate

          Incurring auctioneers expenses for auctioning the land/properties and
           commission on achieving a sale




12
     Disposal of Land – Guidance on Good Practice (The Commission for Local Administration in England
13
     Report L&DS/629/00 – Sales of Land & Property by Auction



                            26                                                 25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

      Accepting the auctioneer‟s opinion of the best price reasonably obtainable
       and the appropriate auction reserve price. The reserve price to be set at
       close as possible to the auction and no earlier than 7 days before.

      In the event of the reserve not being met, allowing the auctioneer to
       negotiate with interested parties immediately following the auction and
       agree a sale, provided that the price can be certified by officers as the best
       price which can reasonably be achieved.

      Accepting a bid prior to auction, on the recommendation of the auctioneer,
       where the price offered is unlikely to be achieved at auction due to the
       special circumstances of the bidder, and where the bidder is prepared to
       exchange contracts in reasonable time

      In the event of a sale not proceeding, authority to negotiate with other
       interested parties (where appropriate) or to re-offer the land/property at
       auction.

      Notifying Ward Councillors in advance when it is proposed to include
       land/properties in their area in an auction, including proposed heads of
       terms

In addition, the Head of Property and Asset Management Services will report to
members detailing the land/properties sold.

Sale By Tender

      The tender documentation should clearly state whether (i) the tender is
       binding (ie where the acceptance of an offer by the Council creates a
       contract) or (ii) non-binding where the final terms will be settled after the
       offer has been accepted. It should also be made clear that the highest bid
       will not necessarily be accepted.

      A fixed date and time must be set for receipt of tenders with no revision to
       tenders. In accordance with Contract Standing orders CSO 8.5 and CSO
       8.6 any late bids shall be retained unopened until the successful tenderer
       has been notified. Tenderers will subsequently be advised that their tender
       was not acceptable.

      An initial reserve price should be set before marketing with a final reserve
       set as near as possible to the tender deadline and not more than seven
       days in advance.

      Property should usually be sold for the highest bid which at least equals
       any reserved price. Underbidders are not to be invited to improve their
       bids.



                     27                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

      If none of the bids equal or exceed the reserve price all the tenderers may
       be advised of this and be given an opportunity to revise their offers by a
       specified date as an alternative to a re-advertisement of the sale.

      Alternatively, if the reserve price is not reached and the highest bid is only
       marginally lower than the reserve and can be certified by officers as the
       best price which can reasonably be achieved then consideration may be
       given to recommending the bid for acceptance.

Disposal of Surplus Residential Property to Occupying Tenants

As a general matter of principle where the Council is seeking to dispose of
surplus occupied residential property in the first instance the Council‟s freehold
interest should be offered to the occupying tenant. Where an occupied residential
property has redevelopment potential (whether in isolation or as part of a wider
regeneration scheme) it is not deemed to be surplus.

Dealing with Late Bids

Late bids shall be dealt with in accordance with Contract Standing Orders CSO 8.5
and 8.6 as detailed below:

CSO 8.5        Tender envelopes which indicate the tenderer's identity or which have
               been received after the closing time but which are available for
               opening at the appointed time may be opened at the discretion of the
               Chief Officer, in consultation with the City Solicitor.

CSO 8.6         Tenders received after the opening time and those unopened as
               determined in CSO 8.5 shall be retained unopened by the City
               Solicitor until the successful tenderer has been notified. Tenderers will
               subsequently be advised that their tender was not acceptable.




                     28                                    25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


5.6    Tenure to be Offered

5.6.1 Professional property and legal advice should be obtained on the tenure to
      be offered having regard to the agreed framework below. This should form
      part of the authorising report in declaring the asset surplus, together with
      the reason for the recommendation. Any subsequent variations to the
      originally proposal must also be fully justified.

5.6.2 In determining the tenure to be offered each disposal is to be considered
      on the individual merits and characteristics of the case. Consideration will
      be given to the sale of freeholds subject to relevant criteria (see appendix
      D) being satisfied that it is in the Council‟s interest.

5.6.3 Exempt from these arrangements are Right to Buy and Leasehold Reform
      Act applications.

5.6.4 Where the interest to be offered is leasehold as a general principle the
      term should be for a term between 99 and 125-years. Consideration will
      be given to granting a longer lease term however this would need to be
      fully justified in any authorising report.

5.6.5 Depending on the nature of the development and works required
      consideration should be given to such transaction being by way of a
      development agreement.




                     29                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


5.7      Management of Surplus Property and Land

5.7.1 Where authority is being sought to declare operational property (including
      schools) and land surplus to requirement there must be an agreed
      strategy to decommission the asset. The strategy to be in accordance with
      the agreed decommissioning guidelines – see appendix E.

5.7.2 Where possible the date to vacate surplus property and land should be co-
      terminus with the disposal of the asset to avoid the need of formally
      decommissioning the asset. To facilitate this a minimum of six months
      notice must be given by the occupying service to the Head of Property &
      Asset Management Services that the service intend to vacate or cease to
      use the asset. Depending on the type of asset to be disposed and the
      complexity of the disposal an appraisal of the disposal options to be
      undertaken to ensure that there is a clear exit strategy identified – see
      section 5.1.4.

5.7.3 Excluded from these arrangements are vacant Council Housing which will
      continue to be the responsibility of the AED, Housing and
      Neighbourhoods. Where vacant Council Housing is due to be demolished
      and the resultant site declared surplus the arrangements as set out in
      5.7.4 below concerning surplus operational land are to apply.

5.7.4 In the event that the sale cannot be contemporaneous with the vacation of
      the asset the following arrangements are to apply. Also ref. to process
      map showing proposed arrangements – to be developed.

Category of Asset          Responsibility to   Cost to             Responsibility       Cost Interim
                           Decommission        Decommission        Interim Management   Management
Surplus Operational        PMU                 PMU                 PMU                  PMU
Accommodation
Surplus Schools            Education           Education           PAMS                 PAMS
Surplus Operational Land   Occupying Service   Occupying Service   PAMS                 LADS (subject to
(capable of disposal)      (OS)                                                         budget virement from
                                                                                        OS)
Surplus Operational Land   Occupying Service   Occupying Service   Highways &           Highways &
(to be mothballed)                                                 Environment          Environment (subject
                                                                                        to budget virement
                                                                                        from OS)
Vacant Non-Operational     PAMS                PAMS                PAMS                 PAMS
Accommodation


5.7.5 To ensure a neutral financial situation is maintained where the
      management and maintenance responsibility is to transfer from one
      Service area to another budgetary provision must be made by the
      transferring Service to cover any ongoing management and maintenance
      costs and residual expenditure. These costs are to be identified as part of
      the decommissioning arrangements for the asset and are to be reported to



                           30                                         25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

       members as part of the authorising report seeking to declare the building
       surplus.

5.7.6 Exempt from these arrangements are the transfer of schools and
      associated land and/or playing fields with the school where the budget to
      cover on-going management and maintenance costs have already been
      devolved to PAMS. The actual cost of decommissioning to continue to be
      met by Education.

5.7.7 If any part or all of the accommodation is occupied by a third party the
      occupying service is to ensure that vacant possession of the
      accommodation is secured when the Council vacates the premises.

5.7.8 If this cannot be achieved or the decision is to allow the third party to
      continue in occupation these arrangements must be regularised, if not
      already in place. Where the instruction is to dispose of the building with
      vacant possession any agreement with a third party must provide for the
      Council to secure vacant possession.

5.7.9 Decommissioning arrangements to also identify whether partial or full
      demolition of any buildings may be required to mitigate future
      management and maintenance expenditure or enhance land values. To
      ensure funding is in place the cost of any demolition must be identified in
      the preceding financial year it is required to ensure that it is reflected in
      bidding process for capital funding. The programme to include a small
      contingency fund to cover the cost of any unforeseen demolition as a
      result of the building being damaged following approval to declared it
      surplus – unless the cost can be reclaimed through the Council‟s
      insurance policy.
.




                     31                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


5.8           Miscellaneous Disposal Matters

For certain disposals specific consents are required before the land can be
offered for sale. This section sets out the arrangements which authorities are
required to follow.

5.8.1 Loss of Open Space14

For all disposals which involve the proposed sale of open space:

       (i)      Executive Board approval to be obtained to advertise the loss of open
                space; and

       (ii)     the City Solicitor to advertise the Council‟s intentions in a local
                newspaper for two consecutive weeks and if any objections are
                received these are to be reported to the Executive Board for
                consideration.

This procedure should be undertaken before making any final decision regarding
the disposal, such as consideration of the terms of sale, as the public response
may have a material bearing on the decision.

It should be noted that open space notices are required to be served irrespective
whether the prospective purchaser intends to continue to make available the use
of the land as open space (eg the transfer of open space as part of a stock
transfer whether the new landlord maybe covenanted to retain and continue to
maintain the land as public open space).

5.8.2 Sale of Allotments15

Any proposed sale or change of use of statutory allotments (ie land which a
local authority has purchased or appropriated for use as allotments) will require
Ministerial consent. Applications are assessed by Government Office and in
deciding whether to grant consent must consider whether:

                (i)       the allotment is either not necessary and is surplus to
                          requirements;

                (ii)      the Council will give displaced plot holders adequate alternative
                          sites, unless this is not necessary or is not practicable;




14
     Section 127(3) Local Government Act 1972 and section 233(4) Town & Country Planning Act 1990
15
     Section 8 Allotments act 1925




                             32                                               25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

           (iii)   the Council has taken the number of people on the waiting list
                   into account; and

           (iv)    the Council has actively promoted and publicised the availability
                   of allotment sites and has consulted the National Society of
                   Allotment and Leisure Gardeners.

Government guidance also requires allotment authorities to consult with plot
holders before they apply for disposal.

If the application is successful, and allotment holders are displaced, the allotment
authority is expected to provide one or more suitable alternative sites which
should not normally be more than three-quarters of a mile from the centre of
demand. They must be suitable for spade cultivation.

If an allotment authority ends a tenancy, the plot holder is entitled to
compensation for:

      crops growing on the land in the ordinary course of cultivation;
      manure applied to the land; and
      up to one year's rent.

The Secretary of State's consent is not required for the disposal of non-statutory
allotment sites, but the allotment authority will usually be required to give plot
holders 12 months notice to quit before the land can be used for any other
purpose.

5.8.3 Sale of School Playing Fields and Other Playing Fields

Ministerial consent is required to dispose or change the use of land used by
schools. Full guidance covering the legal framework regulating the disposal, or
change of use of school playing fields – “The Protection of School Playing Fields
and Land for Academies” – can be accessed via the following web link:
http://publications.teachernet.gov.uk/default.aspx?PageFunction=productdetails&PageMode=spe
ctrum&ProductId=DfE-1017-2004&

A synopsis of the guidance is set out in appendix F.

In addition PPG 17: Planning for Open Space, Sport and Recreation sets out
the national planning guidance which will need to be taken into account when
considering applications involving the development of playing fields, including
other agencies and organisation which have to be consulted eg Sports England.

These additional requirements to be reflected in the timetable where the Council
is seeking to dispose of playing fields.

5.8.4 Sale of Surplus Schools – to be confirmed


                     33                                      25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


The decision to close a school can be made by the local authority or governing
body of the school depending of the category of school. Closure can only occur if
statutory proposals are published and approved. A synopsis of the proposal
process can be found set out in appendix . Full details can be access via the
following hyperlink.

5.8.6 Mobile Telephone Masts16

Radio masts for mobile phone companies should not be sited on land owned by
the City Council and land will not be offered for sale or lease for this purpose.

5.8.7 Crichel Down Rules17

Where the Council is intending to dispose of land which was previously acquired
by the Council by or under threat of compulsion consideration is to be given
whether the Crichel Down rules apply.

If the Rules apply the former owner, their successor or sitting tenant (where
appropriate) are to be given the opportunity to repurchase the land providing that
the character of land has not materially changed.

Full details of the Rules and governing arrangements can be accessed via the
following link (to be inserted). A process map setting out whether the rules apply
to be included as part of the appendices.

5.8.9 Early Occupation

As a general matter of principle early occupation by a purchaser in advance of
legal completion will not be permitted. Where a prospective purchaser is already
in possession of the accommodation but there is no agreement in place covering
their occupation a short term letting (no greater than 12 months) to be granted,
with the prospective purchaser to pay all costs in connection with their
occupation. If terms for the disposal have not been agreed by the expiry date of
the short term letting then vacant possession to be secured.




16
17
  NB these arrangement are not mandatory for local authorities however the ODPM Circular 06/2004 Compulsory
Purchase and Crichel Down Rules recommend that they follow the Rules



                          34                                                25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


Disposal Processes & Procedures – Process Maps

                                Decommissioning of Surplus
                                   Operational Premises


                                                OS/PMU

                           Decision to vacate /close accommodation. PMU
                           to check no other operational requirements for
                                            the premises
                                                  PAMS
                            Appraise disposal options and advise proposed
                                           course of action



                                                  OS/PMU

                               Prepare report seeking authority to declare
                               surplus including disposal appraisal report if
                                               appropriate

                                            Executive Board

                                          Declare building surplus



       Decision to sell                                                          Decision to demolish


                OS                                                              OS/PMU

    Vacate Accommodation                                               Vacate & Decommission

                                               BS Tam Leader
               PMU                                                               2020

    Decommission & Manage                                              Arrange for demolition


                2020
                                                      Dispose cleared site           Retain site in interim
         Secure Disposal
                                                       2020                          Pks/Gdns Partner
 Key

 OS – Occupying                                  Secure disposal                             Transfer
      Services                                                                          responsibility with
                                                                                         sufficient budget
 PMU – Premises                                                                         (from OS) to cover
       Management
       Unit                                                                                   low key
                                                                                        maintenance of site
 2020 – LCC Property
        Partner
                          35                                                 25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


Area Based Initiatives

The Council has access to a diverse range of funding opportunities, some of
which are targeted thematically and others on an area basis. At present there are
around 55 Area Based Initiatives levering in around £300 million of external grant
funding.

When making decisions around the use or redeployment of Council assets as
part of this process regard should be made whether the proposals compliment
the wider aims of the initiatives and the potential impact the ABI could have on
the property (ie potential opportunities to procure external funding to enable
investment in Council accommodation or whether a proposed sale would
prejudice wider regenerative proposals for the area).

A list of the current ABI in existence in the city is provided in appendix G. Against
each ABI there is a named lead Council officer who should be contacted to
discuss any proposed changes to the Council‟s property holding in the area.

The list will be regularly reviewed and updated versions can be accessed via
weblink. In addition work is on-going to geo-code the Council‟ property holdings
to identify the extent of the Council‟s assets within individual ABIs.




                     36                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


Supporting Strategies & Plans – to be developed

Consultation Arrangements & Useful Contacts – to be developed




                     37                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua


Glossary – to be expanded as the document is developed

Disposal                                      The transfer of land by sale,
                                              assignment, grant of lease or licence,
                                              gift or exchange where the income
                                              received (either capital or revenue)
                                              exceeds in any one given financial year
                                              £10,000 (ten thousand pounds).

Commercial & Investment Estate                Council owned land and property which
                                              is subject to a lease, tenancy or licence
                                              or which has been declared surplus to
                                              City Council requirements and is
                                              awaiting disposal or redevelopment.
                                              Excluded from this are Council housing
                                              tenancies and school PFI s.

Land                                          Includes buildings and other structures,
                                              land covered by water, and any estate,
                                              interest, easement, servitude or right in
                                              or over land (Section 1 – Interpretation
                                              Act 1978)

Open Market Value                             The estimated amount for which a
                                              property should exchange on the date
                                              of valuation between a willing buyer
                                              and willing seller in an arm‟s-length
                                              transaction after a proper marketing
                                              period wherein the parties have each
                                              acted knowledgeably, prudently and
                                              without compulsion

Open Space                                    Any land laid out as a public garden, or
                                              used for the purpose of public
                                              recreation, or land which is a disused
                                              burial ground (s. 336(1) – Town and
                                              Country Planning Act 1990).

Operational Portfolio                         Land and buildings used to support the
                                              direct provision of Council services to
                                              its customers eg administrative
                                              accommodation, schools, libraries,
                                              sports centres etc.

Undervalue                                    The difference between the
                                              unrestricted value of the interest to be


                     38                                    25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

                                              disposed of and the consideration
                                              accepted.

                                              The best price reasonably obtainable
Unrestricted value                            for the property and should be
                                              expressed in capital terms. It is the
                                              open market value of the land as
                                              currently defined by the RICS Red
                                              Book (Practice Statement 3.2. When
                                              assessing unrestricted value, the
                                              valuer must ignore the reduction in
                                              value caused by any voluntary
                                              condition imposed by the authority. In
                                              other words, unrestricted value is the
                                              amount that would be paid for the
                                              property if the voluntary condition were
                                              not imposed (or it is the value of the
                                              property subject to a lease without the
                                              restriction)




                     39                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

                                   APPENDIX D
TENURE TO BE OFFERED - RELEVANT CRITERIA

It is proposed that the following criteria being adopted to consider, inter alia, the
ability of the purchaser to successfully complete the scheme, the Council‟s own
priorities (in particular the need and ability to have greater control over elements
of the scheme) and the individual needs and circumstances of the purchaser.

This list is intended to be used as a guide to assist officers in determining the
type of tenure to be offered by the Council. It is not exhaustive and it may be
applicable to adopt/consider other criteria depending on the individual
circumstances of the case. The criteria to be reviewed, initially, after the first 12
months and thereafter every three years.

1.     Reason for Disposal

       (i)     Why is CC selling the asset
       (ii)    What is the CC seeking to achieve from the sale
       (iii)   What are the benefits/implications for the CC in disposing of either a
               freehold or leasehold interest.

2. Covenant of Purchaser

       (i)     Status of purchaser
       (ii)    Financial standing
       (iii)   Bank and other references
       (iv)    Previous track-record and experience:
                Locally (in particular involving CC sites/buildings)
                Nation-wide

3. Funding Arrangements

       (i)     Funding details including:
                Level of investment by purchaser
                Public/private sector investment funding ratio
                Purchase price/development cost ratio

       (ii)    Is it high risk investment on account of its:
                Locality
                Property type
                Funding requirements
                Age and condition
                CC scheme requirements

       (iii)   Can CC realise (in the future) greater receipt if use varied?



                      40                                   25/02/10
Corrporratte Prroperrtty Polliicy and Guiidance Manuall
Co po a e P ope y Po cy and Gu dance Manua

4.       Ownership Issues

         (i)     Extent of CC ownership/interest in surrounding area*
         (ii)    Extent of purchaser‟s land ownership in the surround area*
         (iii)   Is purchaser intending to sub-divide the site/building – implications of
                 creating sub-lease if site sold on leasehold basis by CC
         (iv)    Proximity to any area based initiative(s) and potential impact on any
                 wider regenerative proposals for the area.
                 (* both current and proposed ie will the Council‟s interest change due
                 to the implementation of a wider initiative such as Stock Transfer in
                 the foreseeable future)

5.       Scheme Requirements

         (i)      Refurbishment/redevelopment requirements
         (ii)     Does CC need to retain control over and above its statutory and
                  regulatory powers in relation to:

                     Scheme design
                     Use (again both current and proposed)
                     Delivery timetable
                     Listed status of building (if applicable)
                     Quality/character of surrounding area
                     Long term sustainability
                     LCC grant approved/aided schemes
                     Clawback arrangements

Disposal Mechanism (for freehold sale)

     Mechanism will depend on the individual circumstances of the property/site
     being sold. Options available include:

         Straightforward conveyance of freehold interest (subject to the use being
          restricted within the conveyed title)

         Granting of building agreement (or agreement to Lease) followed by
          freehold interest upon successful completion of the scheme

         Granting of leasehold interest followed by conveyance of freehold upon
          successful completion of the scheme.




                        41                                   25/02/10

				
DOCUMENT INFO