Issue - meetings

To consider the acquisition of property land in Horley.

RESOLVED that:

1.    Subject to a satisfactory due diligence report being received, the Head of Property, in consultation with the Head of Finance and Executive Members for Property and Acquisitions and Finance be authorised to: (a) acquire the freehold referred to in the report and the addendum for investment purposes; and (b) agree any variations to heads of terms to the acquisition price further to external valuation advice and due diligence investigations.

2.    The Head of Property be authorised to agree variations to the overage, subject to contract and due diligence, in consultation with the Leader of the Council, Deputy Leader of the Council, Executive Member for Finance and Executive Member for Property and Acquisitions.

Councillor Mrs N.J. Bramhall, Executive Member for Property and Acquisitions, introduced the report concerning the acquisition of land in Horley.

The Executive noted that full details of the Council’s bid, the financial implications and address of the land had been provided in the exempt Part 2 section of the agenda, including additional information published via an addendum.

The Executive Member for Property and Acquisitions highlighted that the Council’s Five Year Plan (2015-2020) identified property investment and development as one of its key objectives. As set out in the report, it was noted that this acquisition would provide the Council with a small revenue stream and would also provide greater control of a strategic land holding in Horley, which had the potential for future development.

Councillor Mrs Bramhall explained heads of terms for the purchase were in the process of being agreed and highlighted that the report recommended that a delegation be put in place to allow variations to the agreed terms. It was noted that this was to allow for any necessary changes following the usual rigorous due diligence requirements.

In response to questions, Councillor Mrs Bramhall explained that ongoing discussions, with the vendor on terms, included two payments. It was highlighted that the first payment would be made unconditionally on signing the contract. The second payment, called overage, would become payable once Outline Planning Permission was obtained. As set out in the exempt Part 2 addendum, in order to provide the Council with sufficient flexibility to continue negotiations Councillor Mrs Bramhall moved an additional recommendation to allow variations to the overage subject to contract. This was agreed and it was therefore;  

RESOLVED that:

1.    Subject to a satisfactory due diligence report being received, the Head of Property, in consultation with the Head of Finance and Executive Members for Property and Acquisitions and Finance be authorised to: (a) acquire the freehold referred to in the report and the addendum for investment purposes; and (b) agree any variations to heads of terms to the acquisition price further to external valuation advice and due diligence investigations.

2.    The Head of Property be authorised to agree variations to the overage, subject to contract and due diligence, in consultation with the Leader of the Council, Deputy Leader of the Council, Executive Member for Finance and Executive Member for Property and Acquisitions.

Reasons for decision: To acquire, subject to the usual due diligence, property land in Horley to support the Council’s 5 Year Plan objective to become financially self-sufficient.

Alternative option: Investigate alternative property acquisitions or do nothing.