Allerdale Borough Council

Addendum to Delegated Decision dated 19 January 2015 – 13th October 2015

19 Clay Flatts Industrial Estates, Workington

The Reason for the Decision / The Corporate Director is asked to approve a variation to the original decision to dispose by way of a long lease of 19 Clay Flatts Industrial Estate, Workington for £165,000 following the withdrawal of the original party.
Summary of options considered / 1.  Agree to dispose of the property by way of a long lease to a new party, on the same terms as the original sale.
Recommendations / The Corporate Director is asked to approve the disposal by way of a long lease of 19 Clay Flatts Industrial Estate, Workington to a new party on the same terms previously negotiated, a sale price of £165,000
Financial / Resource Implications / The Council will receive a capital receipt by way of a premium of £165,000.
The Council will make revenue savings of approximately £12,500 per year.
Legal Implications / Section 123 of the Local Government Act 1972 provides that a local authority may dispose of land on such terms and conditions as it thinks fit and that in so doing it shall secure the best consideration reasonably obtainable.
The Estate Manager confirms that a value of £165,000 is best consideration for the site.
Community Safety Implications / N/A
Health and Safety and Risk Management Implications / Disposing of this area of land will pass any health and safety and risk management implications to the purchaser.
Equality Duty considered / Impact Assessment completed / N/A
Wards Affected / St Michael’s Ward
The contribution this decision would make to the Council’s priorities / Economic Development – Development of sites to meet current and future business needs.
Is this a Key Decision / Yes
Portfolio Holder / Councillor Barbara Cannon
Lead Officer / Stephen Holland, Estate Manager, 01900 702762

Report Implications

Community Safety / N / Employment (external to the Council) / Y
Financial / Y / Employment (internal) / N
Legal / Y / Partnership / Y
Social Inclusion / N / Asset Management / Y
Equality Duty / N / Health and Safety / Y

1.0  Introduction

1.1  The Council owns Clay Flatts Industrial Estate in Workington. Unit 19 was returned to the Council in August 2012 following the vacation of the former tenant. The property is shown edged red on the attached plan.

1.2  The building is a detached unit containing a mixture of industrial and office accommodation extending to 11,030 sq. ft.

1.3  Since the property was handed back to the Council, it has been marketed by agents, Carigiet Cowen. Initially it was marketed to lease on a 10 to 30 year agreement. There has been very little interest in the property since it went back on the market due to the layout and dated condition of the accommodation, so Carigiet Cowen were instructed to market the property for sale on a long lease, to improve interest in the unit.

2.0  Content (to include alternative options considered)

2.1 Agree to dispose of the property by way of a long lease to a new party on the same terms as the original disposal decision in January 2015. The lease will be for a term of 99 years, with a premium payable of £165,000 and a subsequent rental of a peppercorn each year.

2.1.1 The proposed purchaser is DS Properties Ltd, They are a Manchester based property company who propose to refurbish Unit 19 Clay Flatts and see a trade counter style occupier for the unit. This venture is typical of their operation and a market known to them. It is envisaged the units will create 5-10 new jobs.

2.1.2 The Council’s Economic Growth and Investment Plan identifies this location as having has Strategic connectivity with the M6 corridor and thus employment on this site as a key target. The letting of this unit will lead to the creation of 5/10 jobs once refurbished, and thus helps to achieve this objective.

2.1.3 No other options have been considered in light of the previous poor demand for a letting of the units and introduction of this new purchaser at the same terms.

3.0 Finance/Resource Implications

3.1 The capital value of the building has depreciated over the time that it has been vacant. Any occupier will need to spend money on making it suitable for their proposed use.

3.2 The Council will receive a capital receipt by way of a premium of £165,000.

3.3 The Council will making revenue savings of approximately £12,500 per year.

4.0 Legal Implications and Risks

4.1 Section 123 of the Local Government Act 1972 provides that a local authority may dispose of land on such terms and conditions as it thinks fit and that in so doing it shall secure the best consideration reasonably obtainable.

4.2 The Estate Manager confirms that a value of £165,000 is best consideration for the site.

5.0 Recommendations

5.1 The Corporate Director is asked to approve the disposal by way of a long lease of 19 Clay Flatts Industrial Estate, Workington to this replacement purchaser for £165,000.


6.0 Conclusion

6.1 The Corporate Director is asked to approve the disposal by way of a long lease of 19 Clay Flatts Industrial Estate, Workington for the reasons explained above.

Stephen Holland, Estate Manager

Approved by Corporate Director (Delegated Decision) following consultation with Executive

Signed: ………………………………………… Date: ………………………………………