Meeting documents

1 THE ISSUE

2.2 Officers are authorised to take forward the preferred option.

3.1 Demolition of Victoria Hall would not realise best consideration for this asset.

3.2 The sale of Victoria Hall for redevelopment could provide a capital sum to the Council. Following the agreed principles for disposals in pursuance of the Quirk Review, if a disposal to the Town Council was considered, receipts should be used to provide a further improved community provision in other areas of the Council.

3.3 If a lease at a yearly rent is considered this would have to be at full market value unless a Council Service or the Council corporately agreed to subsidise the rent by way of a Service Level Agreement.

3.4 The Council does not provide subsidised accommodation to other town or Parish Councils within the authority, nor to the Mayor and Aldermen of Bath for their accommodation at the Guildhall.

3.5 There is no funding set aside by the Council to bring forward proposals that require revenue or capital funding in respect of this building.

3.6 A summary of the estimated financial implications of each option is set out below.

4.1 Promoting a 'sense of place' so people identify with and take pride in our communities. The Quirk Review encourages Councils to give greater community management of public assets. This property would reasonably fall under the assets which could be considered for greater local management.

4.2 Sharing resources, working together, and finding new ways of doing things. Options explored within the report could lead to a different model of service delivery in the Radstock area.

6 CPA KEY LINES OF ENQUIRY

7.3 Victoria Hall transferred to Bath and North East Somerset under the provisions of local government reorganisation in 1996 and was subject to a lease to Norton Radstock Town Council granted by the former Wansdyke Council for a period of 25 years from 1st April 1983, at a peppercorn rent. The lease was essentially a full repairing lease but a grant was paid to the Town Council under the terms of the lease to assist with its upkeep. Prior to the termination of the lease this was paid from the Education budget.

7.4 The lease required the building to be used for the provision of facilities for clubs and other non profit making community organisations, a reading room and caretaker accommodation. At some time, unknown, the Town Council moved its offices there. In practice the Victoria Hall is used as offices, reading room, snooker hall, with hall and ancillary accommodation above. The caretaker's cottage is no longer used for that purpose.

7.7 To allow the Town Council to continue to occupy the property whilst they and the Council considered its future, the Town Council was granted a Tenancy at Will at a peppercorn rent and full repairing liabilities. Under the relevant legislation responsibility for most of the DDA works continues fall to the Town Council.

7.8 There has been discussion around community facilities and facilities for delivery of services in the town. This has included potential options for a new building linked to Victoria Hall but a viable proposal has not emerged.

7.9 Planning

7.10 There is no current planning permission for the building, although a certificate of established use for community purposes would be the obvious route. The building although not listed lies in the Conservation Area. Listed Buildings status has now been applied for by, it is understood, local Councillors.

7.11 Options

7.12 This report will consider a number of options:

A. Demolition

B. Sale for alternative use.

C. Occupation by Bath and N. E. Somerset Council

D. Lease to the Town Council for community purposes at a rent or a premium

E. Wider-Scale Community Use

7.13 Demolition

This is not considered practical or desirable. The building lies in the Conservation Area. It is highly unlikely that planning permission would be granted. There are current discussions regarding the listing of this property and if accepted this further reduces any likelihood of this option being a real possibility.

If, however, the premises were demolished the land could then be disposed of for alternative purposes. Costs will be involved in the demolition estimated at £ 45,000. The value of the land for this purpose will depend on what planning use is available but is estimated at £175,000.

7.14 Sale for alternative use.

The Local Plan policies would permit a change of use if alternative community facilities are provided elsewhere, or it can be proved that they are no longer required. Continued community use is examined below.

The most valuable alternative use is likely to be residential; the property having the potential to convert to six 2 bedroom flats and the existing 3 bedroom cottage of the caretaker.

The building may also be suitable for conversion to office or A3 use but this is considered to be of lower value. The likely Value for disposal on this basis is of the order of £450,000

7.15 Use by Bath & North East Somerset

a) Sole Usage: There does not appear to be a Council use that could be accommodated in the building without substantial investment to bring it up to modern models of service provision and / or offer any improvement on the existing provision in the Town.

b) Shared usage with the Town Council: Similarly any use of this building on a shared basis with the Town Council would require substantial capital input to make this a suitable model for provision. Whilst there may be scope, under this option, to share some of this cost with the Town Council the overall costs to the Council are likely to be high and do not appear to offer any improvement on the existing provision in the Town.

No financial provision has been made for adaptation or occupation on either sole or shared occupation of the property

7.16 Lease to the Town Council

The Town Council set up a working party to examine the potential for expanded community use of these premises. This working group has indicated that a fuller use of the property could be made if the property were brought up to comply with modern standards. The Council could decide to make the property available to the Town Council to take forward these proposals either on the basis of a lease with an annual rental or a single up-front premium and peppercorn rental.

The recently published Quirk Review of Community Management and Ownership of Public Assets encourages Councils to gain a wider public involvement in buildings such as this one. It is not prescriptive in its suggestions for enabling such public involvement, however. It is clear from the first round of Government funding pursuant to this agenda, being managed by the Big Lottery Fund, that leases of in excess of twenty years are seen as one model of facilitating the involvement. There is no requirement on the Council to release Victoria Hall at less than market value.

The Council could offer a new lease of the premises to the Town Council for community purposes for up to 25 years and subject to 5 yearly rent reviews - the tenant to be responsible for all repairs and for bringing the property up to current access requirements. On this basis a yearly rent of is estimated at £17,500 based on community use.

Either the Town Council would be require to pay full market rent, or a sponsoring service could enter into a Service Level Agreement under which the rent is abated; partly or in full. This would comply with the Council's adopted policy for Concessionary Lettings. No service sponsor has, as yet, been identified.

Leasehold disposal on the basis of a premium.

The Town Council may wish to take a longer lease of say 99 years to enable them to seek loan funding for the adaptations. The limitation of the building for community purposes both in planning terms and in a lease may deter some commercial lenders but the Town Council should have good covenant strength. Based on an annual rent of £17,500 the premises could be sold either on a lease with single premium for 99 years for an estimated £260,000 TBC or held on a 99 year lease paying a rack rent subject to review every 5 years. The proceeds of a disposal on this basis could then be used to fund other Community Projects which have / seek Council support.

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 RATIONALE

9.1 The Quirk Report provides a new basis for the consideration of community management of public assets. The Council's approach to Quirk is based on a presumption of gaining a benefit either in terms of adding to the provision of services within the authority, in which case a supporting Service will back the bid of an organisation for support OR on obtaining best consideration for the property for re-investment in provision of community services generally. The Council's approach to this property may be seen as setting precedent.

10 OTHER OPTIONS CONSIDERED

10.1 All options are considered within the body of the report.

11 CONSULTATION

11.1 A draft of this report has been provided to the Section 151 Officer, Finance Officer, Chief Executive and Monitoring Officer and their comments, where given, have been incorporated in to the report.

11.2 A draft of the report was provided to Radstock Town Council and Ward Councillors. It is understood that Norton Radstock Town Council will be making representations on the report at the Cabinet meeting.

12 ISSUES TO CONSIDER IN REACHING THE DECISION

12.1 Property

12.2 Safer & Stronger Communities

13 ADVICE SOUGHT

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.