Meeting documents

1.1 This report sets out initial recommendations, based on the deliberations of the Council's Property Board at its meeting in July 2007, in response to the Quirk Review of community management and ownership of public assets

3 FINANCIAL IMPLICATIONS

4 COMMUNITY STRATEGY OUTCOMES

Improving the public realm should be one of the outcomes for a successful 93Quirk94 scheme.

Improving customer satisfaction. This would be a fundamental objective in any 93Quirk94 scheme.

7.1 The Chief Executive of Lewisham Borough Council, Barry Quirk, presented a report in May of this year entitled Making Assets Work. The report's main conclusions were:-

Transfer of community assets to other bodies has the potential to realise significant social and community benefits, both in levering in additional funding and involving local communities. This is particularly true of assets which have been underutilised and/or received little investment from Councils in the past.

The benefits of community ownership of assets can outweigh any risks involved

Any such risks must and can be minimised and managed, in particular by drawing on the experience of others

7.2 At its meeting on 31st July 2007, the Property Board considered a report from the Chief Property Officer, focusing in particular on the potential implications for the Council's Community Estate Portfolio. The current approach adopted by the Council is to set a market rate for the property with the relevant Council service supporting meeting that rental by means of grant aid, rather than rents being set at a concessionary level. However, this established policy does not extend to disposals (freehold or long leasehold) on terms which might involve a reduction in any capital sum or market rent as envisaged by the Quirk Review.

7.3 The opportunity has therefore been taken both to update the Council's Property Policy to clarify the position with regard to concessionary rents and to identify a set of initial principles for any potential transfer of community assets, which reflect similar principles. The key initial conclusion is that any proposal involving asset transfer would need to be considered on a case by case basis through a robust Business Case process which would take into account a range of factors (set out in Section 10 of the report to the Property Board) as well as any additional sources of funding, including external funding streams. A Community Assets Fund, which is designed to facilitate the transfer of assets from local organisations to "third sector" organisations (chiefly, voluntary, community and social enterprise organisations), is currently being managed by the big Lottery Fund.

7.4 To ensure fairness, consistency and accountability across the Council and the area as whole, it is not currently envisaged that transfer of property interests would take place at less that market value. It remains axiomatic that, in all situations, there must be consistency with the Council's plans for the individual properties, area and community outcomes. However, the opportunity remains for Council services to provide revenue or capital amounts, including potential external funding, to set against this market value, subject to securing the best outcomes. As envisaged by the Quirk Review, this policy would apply to long leases as well as to transfer of freehold.

7.5 However, it is clear that policy towards community asset transfer needs to form part of a strategic approach to local authority and other public sector assets, and linking the use of these assets to community outcomes. It is therefore proposed that further work take place within the Council, with partners and with the Voluntary and Community sector to further develop our approach and, if possible, put in place a shared vision. It is envisaged that this would include an assessment of the community and other benefits which might arise from asset transfer within our local area, including attracting external funding, meeting local needs better and building stronger communities by engaging communities in local facilities. The review would also continue to be driven by the key principle identified by the Property Board of transparency of funding. It would also enable lessons to be drawn from some of the areas which have begun to put in place specific proposals based on the Quirk review.

8.1 The report author and Lead Cabinet member have fully reviewed the risk assessment related to the issue and recommendations, in compliance with the Council's decision making risk management guidance.

9.1 The proposal set out in this report is to suggest a case-by-case approach within the current framework, but to propose a fuller consideration of the issues as part of a wider review of community assets and outcomes, within the context of local priorities.

10.1 None

11.1 Cabinet members; Other B&NES Services; Section 151 Finance Officer; Chief Executive; Monitoring Officer and Group Manager- Partnership Delivery

12.1 Property.

13.1 The Council's Monitoring Officer (Council Solicitor) and Section 151 Officer (Strategic Director - Support Services) have had the opportunity to input to this report and have cleared it for publication.