Decision details

The Committee considered the report on the proposed freehold disposal of approximately 11.7 acres of employment land at Earl Road, Handforth (the Site), following a marketing exercise which generated seventeen offers from fourteen bidders.

The Committee noted the detailed bid analysis undertaken by the Council’s agents, CBRE (commercial property agent), including adjustments to reflect abnormal cost deductions and Biodiversity Net Gain risks. Members further noted that Kier Property Developments Ltd had submitted the highest and most advantageous offer on all assessed bases, subject to pre?contract technical due diligence. It was reported that the site had been declared surplus to requirements, was allocated for employment uses in the Local Plan, and that disposal would secure a significant capital receipt for the Council.

The Committee raised the following points/queries:

·         It was queried why external consultants were engaged to support the disposal of commercial assets, and assurance sought that this represented good value for money and could not be undertaken in?house.  In response, it was explained that the transactions involved were highly complex, required specialist valuation and due?diligence expertise, and occurred too infrequently to justify maintaining such specialist capacity within the Council.  Using external agents ensured bids were evaluated on a comparable basis, prevented risks such as inflated offers later reduced through due diligence, and demonstrated best value under Section 123. The approach was considered best practice, and conflicts of interest sometimes required the use of additional agents beyond the Council’s retained adviser.

·         No members wished to move into Part 2.

An amendment, which was accepted as a friendly amendment, was put forward in relation to recommendation 1, as set out below.

Amendment 1 – Recommendation 1

Delegate authority to the Director of Growth and Enterprise to dispose of the Site on terms and conditions to be agreed in consultation with the Director of Law and Governance, the Executive Director of Resources (S151), and the appropriate Chair or Portfolio Holder, as appropriate.

A second amendment, which was accepted as a friendly amendment, was put forward in relation to recommendation 2, as set out below.

Amendment 2 – Recommendation 2

Delegate authority to the Director of Growth and Enterprise in consultation with the Director of Law and Governance, the Executive Director of Resources (S151) and the appropriate Chair or Portfolio Holder, as appropriate, to complete all legal documentation required to complete the disposal of the Site.

RESOLVED (Unanimously):

That the Finance Sub-Committee:

1.    Delegate authority to the Director of Growth and Enterprise to dispose of the Site on terms and conditions to be agreed in consultation with the Director of Law and Governance, the Executive Director of Resources (S151), and the appropriate Chair or Portfolio Holder, as appropriate; and

2.    Delegate authority to the Director of Growth and Enterprise in consultation with the Director of Law and Governance, the Executive Director of Resources (S151) and the appropriate Chair or Portfolio Holder, as appropriate, to complete all legal documentation required to complete the disposal of the Site.