DECISION

1.    To agree that the site at 20 Alton Street E14 be declared surplus;

2.    To agree to the disposal of the site on a 99 year lease to Lansbury Estate Muslim Association at a premium of £402,250;

3.    To delegate to the Acting Corporate Director of Place in consultation with the Corporate Director Governance the authority to agree the detailed heads of terms and, thereafter, enter into the legal documentation (including, but not limited to, a development agreement, agreement for lease and lease) in order to give effect to the decision

4.    To note the Equalities Impact Assessment / specific equalities considerations as set out in Paragraph 4.1 of the report.

5.    To note the result of the further investigations requested in July leading to the decision previously being deferred as set out in paragraph 3.14 of the report.

Action by:

ACTING CORPORATE DIRECTOR, PLACE (A. SUTCLIFFE)

(Acting Divisional Director, Property and Major Programmes (R. Chilcott)

The Mayor introduced the report on the proposed disposal of the site at 20 Alton Street on a 99 year lease to Lansbury Estate Muslim Association. He explained that the report had now returned to Cabinet following review of questions raised previously.

He noted the concerns raised by Councillor Andrew Wood, Leader of the Conservative Group, in the Pre-Decision Scrutiny Questions over whether this was an appropriate use of the site and in particular whether the site should be used for housing.

The Mayor confirmed his view that provision of community facilities was important.

Asmat Hussain, Corporate Director, Governance and Monitoring Officer, advised Members that some of the legal comments which referred to the Council’s well-being powers were not required for this specific decision and could be disregarded. The exact deletions would be circulated. This change did not affect the decision to be taken.

[Clerk’s Note – the deleted text is set out below]

7.5         The Council’s procedure for disposals and lettings specifies that the procedure adopted for disposal is to be determined by the Divisional Director, Property and Major Programmes. Sale by negotiation would usually involve a “Special Purchaser”, an example of which is a sitting tenant. This is on the basis that either a negotiated procedure will generate a higher capital receipt or, as is the case here, the Council’s well-being powers justify it. The well-being power is satisfied, under the procedure, in circumstances where:

7.6         “(a) the Local Authority considers that the purpose for which the land is to be disposed is likely to contribute to the achievement of any one or more of the following objects in respect of the whole or any part of its area, or of all or any persons resident or present in its area;

i) the promotion or improvement of economic well-being;

ii) the promotion or improvement of social well-being;

iii) the promotion or improvement of environmental well-being; and

7.7         (b) the difference between the unrestricted value of the land to be disposed of and the consideration for the disposal does not exceed £2,000,000 (two million pounds)”.

7.8         It should be noted, however, that (b) is not relevant for these purposes as it does not apply to HRA land, nor is the disposal at an undervalue. The disposal by way of negotiation, on the basis of the intended use, is therefore consistent with Council policy.

The Mayor noted the above comments and agreed the recommendations as set out.

RESOLVED

1.    To agree that the site at 20 Alton Street E14 be declared surplus;

2.    To agree to the disposal of the site on a 99 year lease to Lansbury Estate Muslim Association at a premium of £402,250;

3.    To delegate to the Acting Corporate Director of Place in consultation with the Corporate Director Governance the authority to agree the detailed heads of terms and, thereafter, enter into the legal documentation (including, but not limited to, a development agreement, agreement for lease and lease) in order to give effect to  ...  view the full minutes text for item 6

The recommendations were amended and then agreed.

DECISION

1.    To defer consideration of the report to allow time to receive additional legal advice in respect of the potential options for the site.

Action by:

ACTING CORPORATE DIRECTOR, PLACE (A. SUTCLIFFE)

(Acting Divisional Director, Property and Major Programmes (R. Chilcott)

The Mayor introduced the report proposing the disposal on a long lease of the site at 20 Alton Street. He noted the Pre-Decision Scrutiny Questions and officer responses.

Councillor Peter Golds, Ward Councillor for Island Gardens Ward, addressed Cabinet stating concerns that it was not appropriate, or potentially legal, for a Council to be providing a property in this way for the use of only one part of the community.

The Mayor noted the concerns and proposed to delay consideration of the report to allow for advice on those issues.

RESOLVED

1.    To defer consideration of the report to allow time to receive additional legal advice in respect of the potential options for the site.