Issue - meetings

The report provides an update to the Cabinet on the outcome of the Commercial Estate review carried out by Montague Evans during the final quarter of the 2020/21 financial year and sets out the next steps in managing the Councils commercial assets.

Councillor Richard Samuel introduced the report by saying that the Council’s commercial estate was one of the jewels of the Council's assets, and in good times it would deliver around £18m of gross income to the Council.  That income would be used to support all sorts of Council services as a key part of Council’s funding.  Councillor Samuel said that the impact of COVID had hit that service badly, and for those reasons he had worked with the senior management team to propose some major change to the service.  In determining to improve the situation, the Council had decided to bring in an external advisor to examine the Council’s estate from a completely impartial perspective, and that was what the Montague Evans report did.  The report had highlighted a whole range of pointers on what could be done better. Ultimately, the Council and its residents would see the benefits with a high functioning, good returning property estate that benefits the area and its citizens.

Councillor Samuel concluded by saying that the Council was the premier landlord in most parts of the city of Bath, and if its properties were neglected or not run properly then the Council would contribute to a downturn in that area.

Councillor Richard Samuel moved the recommendations.

Councillor Manda Rigby seconded the motion by saying that she was pleased with the ongoing work in this area in order to prevent the commercial estate becoming a deteriorating asset, and avoid any financial, social, commercial and economical impact.

RESOLVED (unanimously) that the Cabinet agreed to:

1.  Note the findings and the executive summary from the Commercial Estate review.

2.  Approve the Commercial Estate review plan, workstreams and governance arrangements and delegate to the Property Review Board / S151 Officer, responsibility for implementing the governance arrangements and required restructuring, respectively.

3.  Approve the Capital budget of £2.337m for Commercial Estate Refurbishment Programme, utilising funding as described in section 5.2.

4.  Approve the creation of a capital reserve to be funded from dilapidation and insurance income relating to capital refurbishments.

5.  Approve the approach to Commercial Estate repurposing to residential accommodation using the Council’s housing company Aequus, with delegation for transfer arrangements given to the Chief Financial Officer (S151) in consultation with the Cabinet Member for Resources and Economic Development.