Issue - meetings

Councillor Vic Pritchard, as lead call-in Councillor, addressed the Panel.  He explained his view that there was no justification for this property to be sold at half a million pounds below the market value and it was irresponsible to do so.  His objection could be summarised in 3 areas;

·  The Council is only a temporary custodian of this public money and this asset belongs to the people so better value should be sought;

·  This was setting a dangerous precedent to forego the financial benefit now for the uncertainty of a gamble on future income;

·  Administrative mismanagement of the Council’s property company to justify this decision.

Councillor Pritchard concluded by asking the Panel to take this opportunity to reconsider this decision before it is too late.

Councillor Richard Samuel then addressed the Panel as decision maker and Cabinet Member for Resources.  He explained the recent history of this property and the decisions made by the previous Administration of the Council leading to their decision for its disposal to ADL at reduced value and creating a dividend.  On becoming involved as Cabinet Member, he sought a business case and the required independent valuation as the Council was seeking to impose voluntary conditions.  As Cabinet Member, Councillor Samuel explained that he could not ignore the independent professional advice received.  He added that this valuation process was as set out in the procedures established by the previous Administration.  Councillor Samuel concluded by rejecting the basis of the call-in and supported this decision which generated a dividend, rather than it being lost to the private sector.

Councillor Shaun Hughes made reference to the voluntary conditions and restrictive covenants and asked how watertight they were, with regard to future landlords and their ability to change them.  Councillor Samuel replied that they will be completely watertight, as they will be built into the covenants of sale.  He added, with regard to comments about the valuation, that he was not an expert and so must rely on qualified advice from experienced professionals, endorsed by statutory officers of the Council.  We should not be selective about only taking on board parts of advice that we like and ignore those parts we do not.

Councillor Winston Duguid made reference to the actual return to the Council being more than just the sale and asked Councillor Samuel to comment on that.  Councillor Samuel agreed that the figures in the round needed to be looked at including Council tax receipts over the next 20 years.  He explained there was also provision that ADL can retain an element of the profit so it can function as a company with working capital.  The total gains are in excess of the open market value of simple disposal as it is recycling funds into the Council’s finances to benefit residents.

Councillor Paul Myers asked if Councillor Samuel considered he had a right to question a valuation.  Councillor Samuel responded that he did query the figures on 2 occasions and, as a result of that query, more  ...  view the full minutes text for item 69