Agenda item

Report attached.

The Cabinet considered a report of Councillor Kath Pratt, Portfolio Holder for Housing, Health and Wellbeing, seeking authority to negotiate, agree terms and dispose of a garage site at Livingstone Road, Accrington, at nil consideration, to Altham Parish Council,

Councillor Pratt outlined the background and main reasons for the proposed decision.

The Leader commented that he worked closely with the Parish Council, as that authority operated within his ward.  He noted that the adjacent allotment site had been transferred to the Parish Council a number of years ago.  Those allotments were well managed and the Parish council had a good track record of improving facilities.  Councillor Dad welcomed the proposals.  As the beneficiary of a building transfer by Lancashire County Council for a community centre many years ago, he understood the benefits if this type of transaction.  However, it was essential to protect the Council’s interests in any future capital receipt by the inclusion of an overage clause in the title transfer.

Approval of the report was not deemed a key decision.

Reasons for Decision

A request had been received from the Altham Parish Council to transfer the freehold of the garage plots at Livingston Road, as shown edged red on the plan provided as Appendix 1 of the report, to Altham Parish Council (APC) for a nil consideration.  The request represented an opportunity to transfer this asset to the Parish Council, a lower tier of local government, to facilitate the management of local assets and give local people a stake in the future of their area.

Adjoining the garage plot site were allotments which had been transferred to Altham Parish Council in 2017 at nil consideration pursuant to Section 9 of Schedule 29 Local Government Act 1972.  This legislation was specific to allotments and did not extend to the garage plots.

The site currently offered 7 garage plots that were all let and provided an income of £714 per annum.  The site did not incur any expenditure, but was not considered to be a critical operational site by the Allotments Officer, who did not object to the disposal.

The nil consideration offered by APC for the garage site was below the development market value of £28,700 and, as such, Cabinet needed to be satisfied that in the event of the disposal of the garage site to APC, this was likely to contribute to the promotion or improvement of economic, social and / or environmental well-being of the Borough or part of the Borough.

APC had provided supporting information with their offer which claimed they had built a good working relationship with the allotment holders and the Parish members over the last 2/3 years.  The work undertaken by both APC and allotment holders had improved the allotments.  APC claimed it had invested funds and reinvested the income from the allotments by way of clearing the vacant allotments, re-sizing to a more manageable size, providing new fencing and access gates, cleaning and managing the areas around the allotments and garage plots.

It was the aim of the APC to repeat the success of the allotments and work with current garage tenants to make improvements and re-invest the income derived from the garage tenancies to improve individual garage plots and enhance the local environment.  Ongoing local management of the site and areas leading to the allotments would further improve the local environment for the benefit of immediate users and visitors to the area and the Parish of Altham as a whole.

APC was also keen to attract and engage with more volunteers from the local community and other gardening groups which would go some way to help tackle issues of inactivity, poor mental health and isolation to name just a few benefits of the social interaction and outdoor activities the APC could offer to more people if this disposal was approved.

Subject to this approval, it was advised that an overage clause be included in the contract for sale.  The overage was recommended to be 100% and would enable the Council to recover from APC any increased value that might result should the community use change and subsequent benefits to the community be lost, and or if the site was sold for development.

Subject to Cabinet’s considerations, this proposal was an opportunity to transfer the property to the Parish Council, a tier of local government, enabling local management of assets.  The proposed sale at under value could achieve the requirements of the General Disposal Consent 2003 where the disposal was likely to secure or promote improvement in the economic, social or environmental well-being of the Altham Parish area as follows:

·         Economic – this was an opportunity to raise funds alongside the rents to invest in the site creating work locally, in turn sustaining the property for the long term benefit of the local community

·         Social – this was an opportunity to empower Altham Parish Council by putting the property in their direct control, giving it a greater stake in the local community.  This in turn would help bring local people together and help to put local pride into the property and promote community cohesion and build community confidence.

·         Environmental – planned investment and improvements in the property would have direct long term environmental benefit sustaining the site for the long term

Alternative Options considered and Reasons for Rejection

The site could be sold at Market Value which was £28,700, but this would not support APC in their community activities by providing them with an annual income that could be invested into the site and which it was aimed, would greatly improve the environmental amenities for users and visitors of the allotments and garages.

The site could be leased but APC had indicated that they wished to have the freehold giving them greater autonomy of the combined allotment and garage site and also to make use of the income generated by the garage rents to carry out environmental improvements to the site as a whole.

The Council could retain the site but there were currently insufficient resources to carry out any improvements which could be detrimental to the allotments where the APC had already made improvements.

Resolved                                    -    That Cabinet:

(1)   Considers the report and is satisfied that the disposal of the garage site, shown edged red on the plan at Appendix 1 to the report (“the property”), to Altham Parish Council, is likely to promote the improvement of the economic, social or environmental well-being of the Altham Parish for the reasons specified in the report; and

(2)   Subject to Paragraph (1) above, gives consent to dispose of the property at nil consideration to Altham Parish Council and delegates authority to the Head of Regeneration and Housing to finalise and agree the detailed terms for the disposal in consultation with the Executive Director (Legal and Democratic Services) and the Portfolio Holder for Housing, Health and Wellbeing.

The following item was taken next during the meeting.