Issue - meetings

Report of the Cabinet Member Finance

RESOLVED THAT

1.    the disposal (on the basis of a long lease with the option to purchase the freehold) of the land adjoining the Churchdown Community Association building as delineated on the plan in Appendix 2 be agreed for the sum of £740,000 (which will be shared equally by the 3 parties i.e. £246,666 each)  for the purpose of building a new doctors’ surgery 

2.    the disposal at £640,000 ( £213,333 each ) be agreed if the developer subsequently discovers that the land is contaminated.

3.    the Head of Property in consultation with the  Borough Solicitor and the Acting Head of Asset Management for Gloucester City Council be authorised to conclude the necessary negotiations and terms and enter into documents as are appropriate to complete the disposal.

The Cabinet Member introduced the report and explained that Cheltenham Borough Council and Gloucester City Council jointly owned the land in question which was currently let on a lease to the Churchdown Community Association who owned the adjoining site. She informed that the lease to the Community Association was granted on 1 June 1985 for 60 years leaving an unexpired term of 29 years remaining. The Community Association had previously been using the council land as an overspill car park which they now no longer needed. The Cabinet Member explained that the NHS had been considering a number of sites in the area for a new doctor’s surgery and had previously identified the area as a potential site. An application was made by local residents to have the land registered as a village green which would have prohibited any form of development but following an Inquiry was refused.

Due to the specialist nature of the disposal for a doctor’s surgery the councils had appointed GVA to negotiate with the NHS and District valuer. The Cabinet Member reported that agreement had now been reached at £740 000 which represented best consideration. The Community Association were willing to surrender their lease to facilitate the disposal but due to the remaining length of their lease, the proceeds would be split equally so that each party received £246 666. In addition the Community Association would be granted a lease for 125 years.

The Cabinet Member explained that it had also been agreed that should the site be found to be contaminated the disposal price may be reduced by up to £100 000. Information suggested that the land had been used predominantly as open space/agriculture, so in the unlikely event that the disposal price was reduced then the total sum would reduce to £640 000 (£213,333 each).

She informed Members that Gloucester City had already approved the sale through their Cabinet.

Members welcomed the proposal which represented a good use of land and a capital receipt which could be used to finance future capital schemes.

RESOLVED THAT

1.    the disposal (on the basis of a long lease with the option to purchase the freehold) of the land adjoining the Churchdown Community Association building as delineated on the plan in Appendix 2 be agreed for the sum of £740,000 (which will be shared equally by the 3 parties i.e. £246,666 each)  for the purpose of building a new doctors’ surgery 

2.    the disposal at £640,000 ( £213,333 each ) be agreed if the developer subsequently discovers that the land is contaminated.

3.    the Head of Property in consultation with the  Borough Solicitor and the Acting Head of Asset Management for Gloucester City Council be authorised to conclude the necessary negotiations and terms and enter into documents as are appropriate to complete the disposal.