Agenda Item No CLS52/13 Council Executive 2 July 2013

Crown Inn, Blencow Reporting Officer: Director of Corporate and Legal Services Responsible Portfolio: Resources 1 Purpose of Report 1.1 To consider the nomination to list this Public House as an Asset of Community Value under the Localism Act 2011. 2 Recommendation:

That the application for the Corwn Inn at Blencow to be listed as an Asset of Community Value under the Localism Act 2011 be accepted and approved if Members are satisfied that the statutory criteria are met and subject to the consideration of any observations and representations from the owner.

3 Report Details 3.1 An application has been received from a new community group, „Blencow Matters‟ whose Constitution was adopted on 5 June 2013 and is referred to below as „the Association‟. 3.2 The application on the Community Right to Bid Nomination form describes the land nominated simply as the Crown Inn, Blencow, Penrith, CA11 ODG. But in section 4 of the form, three parcels of land are described, and shown on an accompanying plan edged in red. They comprise: a) The site fronting the Village Road bordered by the cottage to the north east and Maple Cottage to the west; and b) Additional linear garden are to the rear bordering fields; and c) Parking area and forecourt on the opposite site of Village Road. In addition the applicant specifies: “All the demise identified in PFK sale particulars”. It is not clear why he uses the word „demise‟, which in legal terms technically refers to a lease. 3.3 The owner of the property to be listed is Mrs Susan Carroll, who is said to be „on the electoral roll‟, although the property is currently vacant. 3.4 Attached to the application form are several other documents:  A print out of the Association‟s website, claiming over £75,000 has been pledged towards the funds required to achieve the Association‟s objects

1  A list of more than 21 (in fact 41) local voters supporting the bid, who have signed to confirm they are registered on the Electoral Roll and members of the Association and support the application. 3.5 A copy of the application and supporting papers appears in Appendix 1 to this Report. On close examination, members will note the objects of the Association are given as: a) to preserve and protect the assets of the community; and in particular b) acquire and run the Crown Inn, Blencow as a viable community business. No evidence has been presented confirming the funds available to the Association, nor any business plan to ensure the viability of any future community business at the Crown. In fairness, the Association has only been formed very recently, and may not have had time to prepare a business plan. 3.6 Members will see in Section 3 of the Nomination Form the supporting information, which states:  The Crown Inn has been licensed premises since 1746  As a hostelry it has been the centre of and focus for community activities for decades  Previous Licensees have provided mobile bar facilities at the Village Hall and annual village functions have been held at the Pub  The Crown Inn is the last remaining licensed facility in the Blencow/Laithes community. 3.7 In support of this information the Association has lodged four letters, copies of which appear in Appendix 1. They come from the Fawcett family of Little Blencow Farm, Mr Pearson of Manor Farm, and Mr Smith. There is also one from Mr Brookes who has prepared and signed the application. 3.8 Members will undoubtedly form their own views about the strength of the evidence before them. Some writers make comparisons with events at the Village Hall, which is described as „no substitute‟. Several say the Pub is „sorely missed‟, especially by those running B&B camping and caravanning. 3.9 Only the letter from Mr Brookes mentions anything - apart from a convivial atmosphere and good food and drink – when he refers to „quiz nights, playing pool and attending village functions‟. Mr Pearson does say it is a „venue for public gatherings and family celebrations‟. There is no mention of anything catering for different sections of the community, such as children or senior citizens or those with disabilities or who may be housebound. However, it does seem to be recognised as a hub of community activity over many decades. 3.10 Under the Localism Act 2011 the Council has a duty to maintain a list of land in its area which is listed as being of community value, and a list of unsuccessful nominations of such land. At Appendix 2 members will find a summary of the statutory provisions setting out the procedure and criteria for nomination and listing. 3.11 Nomination of an asset can be made by a number of bodies, including an unincorporated body comprising at least 21 people, but the body must not be

2 able to distribute any surplus funds it has amongst its members. If the Council finds the land to be of community value, it must be listed. 3.12 The Constitution submitted appears to meet the criteria prescribed, and members are referred to section V towards the end which makes it clear that on dissolution any surplus funds must be distributed to other charitable institutions having similar objects. Section I also makes it clear that members of the Executive of the Association must not have any interest in property it may acquire. 3.13 The Constitution has been signed by 14 people, and section W states they are to be treated as the Executive Committee until the first Annual Meeting to take place in April 2014 (see section Q). However, 41 signatories (some of whom are also amongst the 14) have signed to say: they are members of the Association, and registered electors, as well as supporting the bid. This means the nominating body appears to meet the criteria required in the Regulations made under the Localism Act 2011 (particularly Regulation 5 (1) (c) ).

3.14 The owner of the land nominated has been advised by letter that this matter will be considered today. In addition the Council is required to notify the local Parish Council of the application (under Regulation 9), and has done so. A copy of their responses will placed before members at the meeting, if they are not already appended to this Report. 3.15 Members are required to consider whether this land is „of community value‟, which is defined in the Act as set out in paragraph 2.21 of the Report at Appendix B. Briefly the land must, in the Council‟s opinion, „further the social well-being, or social interests of the local community‟ now, and „it must be realistic to think‟ that such a use „can continue‟ in the future. 3.16 Members may consider that the evidence of „community value‟ - is rather limited, and there is little detail on how the asset will be able to serve the whole community in the immediate future, nor any financial planning showing the economic viability of the Pub in the future. Other Background on the Property 3.17 The Council is also the local planning authority for the purposes of the Town and Country Planning Act 1990. By an application dated 18th May 2012 (reference 12/0443) the Owner applied for planning permission to change the use from that of public house to a dwelling. 3.18 The Council has resolved to grant planning permission for such a change on condition that a satisfactory Unilateral Planning Obligation is submitted to secure the provision of Affordable Housing prior to the occupation of the dwelling. The provision is to be by way of payment of a Commuted Sum calculated in accordance with the Council‟s Housing Supplementary Planning Document adopted in November 2010, which will be 3% of the market value of the building once the conversion is complete. 3.19 The Owner has submitted a UPO so that Permission for the change from Public House to residential dwelling is likely to be issued in the near future. A copy of the Report to Planning Committee on 14 March 2013 is attached as Appendix 3, and a verbal update on whether permission has been issued

3 can be provided at the meeting. The Pub has recently been for sale on the open market through PF and K without success. Risks to the Council 3.20 The legislation provides an appeals mechanism for owners whose land is listed. They may ask within 8 weeks of receiving written notice of the decision for the Council to review it. The property remains listed whilst this procedure is completed. Such a review would have to be conducted by someone who did not take part in the original decision which Members are now to make. The owner would then have a right of appeal to the First Tier Tribunal against the Council‟s decision if still dissatisfied. 3.21 However, there is no separate provision for disappointed applicants or nominating groups, who may of course seek permission for a judicial review by the High Court of the Council‟s decision on any of the usual grounds, such as illegality, irrationality or procedural impropriety. 3.21 To obtain a judicial review of the Council‟s decision would require certain preliminary criteria to be satisfied, such as the applicant having the appropriate standing, and applying within the time limits. In the event of any such challenge, considerable financial costs could be incurred in defending the claim, although most of them could be reclaimed if the Council was successful and had not acted improperly, illegally or unreasonably. 3.22 The Council has to act transparently, and with due regard to its various statutory duties and the interests of the population it serves, and must give a fair hearing to the parties concerned, which in this case will include taking into account representations made by the Association and the Owner of the land, and the Parish Council. 3.23 There are Human Rights implications to the Report including the rights of a landowner to enjoy their property, under Article 1 Protocol 1 of the Human Rights Act 1998. Secondly, in making a decision and providing a fair hearing to both parties, Article 6 is engaged. 3.24 The Council is required by law to determine the application within 8 weeks of its receipt on 7th June. 3.25 There is another issue that members will want to bear in mind, and that is that once listed, a property acquires protection, because an interim moratorium comes into force, which prevents the sale of the property, initially for a six week period. Once the Owner indicates intention to sell, then a full moratorium period of 6 months comes into play, and the Council must notify the parties of the relevant date. Any community group, such as the Association, which is interested in bidding to purchase the property, will be informed, and thus get time to raise the funds. No disposal can be made during the six months except as permitted, which can include a disposal to the community group if they have managed to raise the funds. 3.26 The Regulations specifically provide that a private owner whose sale is delayed - because of listing - has a right to compensation, regardless of whether the sale is eventually made to the community group or another buyer. Such a claim should be made within 13 weeks from the end of the moratorium period. Loss and expenses incurred would have to be proved by the claimant.

4 3.27 Listing any asset as one of „community value‟ may therefore expose the Council to financial claims and losses. However, this has been recognised as a „new burden‟ in the DCLG Advice Notes and Policy Statement, which indicate that Councils will be expected to bear up to a total of £20,000 in any one financial year. That sum will be made up of all such claims received, and once the threshold is reached, the Council can apply to DCLG for financial support to indemnify it against further outgoings or losses arising from this new scheme. Conclusion 3.28 Members may consider the evidence provided in the application merits listing the Crown Inn as an asset of community value. The application has no technical defect, and obviously has the support of a large number of local residents. 3.29 The premises currently are vacant. The current permitted use is as a public house although an application for a change of use is underway. 3.30 The Council may consider that it is unrealistic to think that the Crown Inn can continue to „further the social well-being, or social interests of the local community‟ in the future prospects because of the doubtful financial position. Whether community support will turn into the much needed financial support cannot be decided yet. Consideration may need to be given to the owner‟s intentions and a judgement needs to be made as to whether it is realistic that the use which will further social wellbeing or social interests will continue. Realism may include the ability of the community group to raise funds and the likely attitude of the owner to the continuation of the use. 3.31 Members should approach this matter with an open mind, and not pre-judge the likely future for the prospects of the Association in achieving its objects. It is for members to determine based on the evidence before them and all relevant factors. 3.32 The application does appear to meet the statutory criteria for listing. If the application is refused the grounds of that refusal must be stated.

4 Policy Framework 4.1 The Council has four corporate priorities which are: Affordable Housing Quality Environment Economic Vitality Quality Council 5 Implications 5.1 Legal 5.1.1 The legal implications have been explained in the Report above. 5.2 Financial 5.2.1 Any decision to reduce or increase resources must be made within the context of the Council‟s stated priorities as set out in its refreshed corporate plan.

5 The impact on the Council‟s resources has been explained above in terms of potential liability for compensation up to a ceiling of £20,000 plus legal costs, depending on whether the decision is challenged further. There should be no impact on corporate priorities, such as changes in direct costs/income or redirection of existing resources such as staff. 5.3 Equality and Diversity 5.3.1 The Council has to have regard to the elimination of unlawful discrimination and harassment and the promotion of equality under the Equality Act 2010 and related statutes. 5.3.2 The report refers to the issues of equality in terms of the need for an asset listed as being of „community value‟ to serve all the diverse sectors of the community, including children, senior citizens and those with any type of disability. It is noted that the asset nominated here is also situated in a rural location. 5.4 Environmental 5.4.1 The Council has to have due regard to conserving bio-diversity under the Natural Environment and Rural Communities Act 2006. 5.4.2 There are no known bio-diversity issues. The sustainability of the asset as one of community value will depend on both practical as well as financial support to ensure its long term future. 5.4.3 The Council recognises that promoting a cohesive and sustainable community is particularly challenging and all the more important in rural locations such as here. 5.5 Crime and Disorder 5.5.1 Under the Crime and Disorder Act 1998 the Council has to have regard to the need to reduce crime and disorder in exercising any of its functions. If the asset is listed it may continue to provide a community focus that helps to prevent petty events of crime and disorder. 5.6 Children 5.6.1 Under the Children Act 2004 the Council has to have regard to the need to safeguard and promote the welfare of children in the exercise of any of its functions. The lack of provision for children within the current plans presented to the Committee has been noted above. 5.6.2 The Council would seek to encourage the Association to make positive plans to cater for all categories of their local residents as suggested above. 5.7 Risk Management 5.7.1 The application should be considered with regard to the statutory criteria and a decision made on the merits. There is a prospect that a claim for compensation may be made against the Council if it can be justified and the circumstances meet the requirements. 6 Reasons for decision/recommendation 6.1 To carry out the Council‟s statutory duty as the determining authority in accordance with the provisions of the Localism Act 2011.

6 6.2 To carry out the Council‟s duty in conserving the environment and protecting the well being of the community of all ages. 6.3 To encourage the Association to make provision for the well being of all sectors of their local community. P G Foote Director of Corporate and Legal Services

Governance Checks: Checked by or on behalf of the Chief Finance Officer  Checked by or on behalf of the Monitoring Officer 

Background Papers: as attached Contact Officer: Clorinda Goodman Telephone Number: 01768 212279

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Eden District Council

Assets of Community Value

A Summary of the Statutory Provisions Procedure to Nominate Land

1. Introduction 1.1 Under the Localism Act, the Council has to maintain a list of land in its area that is of community value. The obligation arises under Section 87 of the Localism Act. It is for the Council to decide the form and content of its list of assets of community value, subject to whatever regulations the Secretary of State may make. 2. Land of Community Value 2.1 A building or other land in the Council’s area is land of community value if in the authority’s opinion: a) an actual or current use of the building or other land furthers the social wellbeing or social interests of the local community; and b) it is realistic to think that there can continue to be non-ancillary use of the building or other land which will further (whether or not in the same way) the social wellbeing or social interests of the local community. 3. The Procedure for including Land in a List 3.1 Land in the Council’s area which is of community value may be included in the list only: a) in response to a community nomination; or b) were permitted by regulations made by the Secretary of State. 3.2 A community nomination means one which nominates the land in the area for inclusion in the list of assets and is made by a Parish Council or by a person that is a voluntary or community body with a local connection. 3.3 Regulations may enable a nomination to be made by someone in circumstances other than where it is a community nomination. 3.4 Upon the community nomination being made it must be considered. The Council must accept the nomination if the land is in the Council’s area and of community value. If the Council is required to accept the nomination, the authority must cause the land to be included in the list of assets. If the nomination is unsuccessful the Council must give to the person who made the nomination the authority’s written reasons for its decision that the land could be included in the list. 4. Notice of Inclusion 4.1 The Council must give a written notice of the inclusion or removal of land in its list of assets of community value to: APPENDIX 2

a) the owner of the land; b) the occupier of the land if he is not the owner; c) if the land was included in the list in response to a community nomination, the person who made the nomination; and d) any person who is so specified in the regulations. 4.2 If appropriate where it is not reasonably practicable to give a notice, the Council may instead take reasonable alternative steps to bring the notice to the person’s attention. 5. Review of a Decision 5.1 The owner of the land included within the authority’s list of assets of community value may ask the authority to review the decision. The Council must notify the person concerned of the decision and the reasons for the decision on any review. The Council may remove the land and if it does so, must give notice to the body which made any community nomination. 6. List of Unsuccessful Community Nominations 6.1 The Council must maintain a list of land in its area that has been nominated by unsuccessful community nominations. This list is to be known as the list of land nominated by unsuccessful community nominations. 7. Publication 7.1 The Council must publish its list of assets of community value and the list of any land nominated by unsuccessful community nominations. The list must be available for inspection. The Council must provide a free copy of its list of assets to any person who asks for it. 8. Moratorium 8.1 The person who is the owner of land which is included within the authority’s list of assets of community value must not enter into a relevant disposal of the land unless certain conditions are met. The conditions are: a) The particular person has notified the Council in writing of that person’s wish to enter into relevant disposal of the land; b) Either the interim moratorium period has ended without the Council having received from any Community Interest Group a written request for the Group to be treated as a potential bidder for the land or the full moratorium period has ended; or c) That the protected period has not ended. 8.2 There are exclusions from the moratorium where a disposal is by way of gift or in relation to a disposal by will or intestacy, amongst others. 8.3 The full moratorium period means six months beginning with the date upon which the Council receives notification under Condition 8.1 a. 8.4 The interim moratorium period means six weeks beginning with the date upon which the Council receives notification under Condition 8.1 a. APPENDIX 2

8.5 The protected period means the period of eighteen months beginning with the date upon which the Council receives notification in relation to the disposal under Condition 8.1 a. 8.6 The meaning of the term “relevant disposal” is defined in the Act: Section 96 and includes the disposal of the freehold estate or the grant of a qualifying leasehold estate. The effect of the moratorium is that the community has to make an initial expression of interest in six months and the owner cannot sell to anyone else for six months if it does. 8.7 The effect of listing is to prevent a sale until there has been an adequate period to submit a bid should the owner wish to sell. 8.8 The Council’s list of assets must reveal that the notice has been received and indicate the date upon which the notice was received and the moratorium periods which are applicable. 8.9 If the Council receives from a Community Interest Group a written request to be treated as a potential bidder, the Council must pass that notification onto the owner or inform the owner of the details of the request. This obligation arises if the notice is received before the end of the interim moratorium period. 8.10 The Localism Act enables the Secretary of State to make regulations providing for the payment of compensation. 9. Local Land Charge 9.1 If land is included within the list of assets of community value, it should be included in the local land charges register. The Secretary of State may make regulations providing for enforcement and do anything to give advice and assistance in relation to land of community value. The Council has a duty to co-operate with other local authorities if different parts of any land are in different local authority areas. The District Council is the appropriate local authority for the purposes of the application of these provisions. A Parish Council is not a local authority for this purpose. A County Council is only a local authority for this purpose where there is no District Council in the area concerned. 10. The Regulations 10.1 The Secretary of State has made the Assets of Community Value () Regulations 2012. The Regulations came into force on 21 September 2012, the day after they were made. The Regulations identify land which is not of community value. The following are not land which is of community value and therefore may not be listed:  A residence together with any land connected with that residence, however, land which is a residence falls within the exclusion may be listed if the residences of a building that is partly used as a residence and but for that residential use of the building the land would be eligible for listing.  Land on which a site license is required under the Caravan Sites & Control of Development Act cannot be listed. APPENDIX 2

 Operational land as defined in Section 263 of the Town & Country Planning Act 1990 cannot be listed. Operational land is that which belongs to a statutory undertaker. 10.2 The Regulations define what is meant by “a local connection”. The activities that the body concerned must be wholly or partly connected with the Council’s area and there may be a requirement for it to have at least twenty-one local members if it is a Neighbourhood Forum. A voluntary or community body means:  a Neighbourhood Forum  Parish Council  a non incorporated body with at least twenty-one individuals who are members and which does not distribute any surplus to its members  a charity  a company limited by guarantee which does not distribute any surplus to its members  an industrial and providence society which similarly does not distribute any surplus; and  a community interest company. 11. Content of a Community Nomination 11.1 A community nomination must include:  A description of the nominated land including its proposed boundaries;  A statement of all the information which the nominator has with regard to the current occupants and the owner;  The nominator’s reasons for thinking that the Council should conclude the land is of community value and the evidence that the nominator is able to make the community nomination. 11.2 The Council has a period of eight weeks to respond to the nomination. The Council must notify a Parish Council, the owner of the land and any occupant that a nomination is under consideration. 12. Compensation 12.1 An owner is entitled to compensation from the Council of such amount as the Council may determine in the following circumstances: 12.2 That the person making the claim has at the time when the person was the owner of the land the land was listed incurred loss or expense in relation to the land which would be likely not to have been incurred if the land had not been listed. 12.3 The regulations identify that a claim arising from any period of delay in entering into a binding agreement to sell the land which is wholly caused by the prohibition upon the disposal and a claim for reasonable legal expenses incurred in any successful appeal against the Council’s decision are claims which may be made. APPENDIX 2

12.4 A claim for compensation must be made in writing to the Council and before the end of the period of thirteen weeks after the loss or expense was incurred. The claim must state the amount of compensation which is being sought and be supported by evidence. The Council must give the claimant written reasons for its decision in relation to any request for compensation. 12.5 The regulations identify that a body which has its accounts audited under Section 2 of the Audit Commission Act 1998, a department or body to which Section 6 of the National Audit Act 1983 applies and a body which has its resources examinable under Section 7 of the 1983 Act may not claim compensation. 12.6 A person who makes a claim for compensation may ask the Council to review its decisions in relation to compensation, a written for a decision must be given. An appeal may be made to a first tier tribunal against any decision of the Council on any review. 12.7 The Council must notify the owners and mortgagees of any listed land as soon as practicable after the land is entered on the register. 12.8 The regulations set out a procedure for a listing and a compensation review and identified relevant disposals to which the Act does not apply. There are fifteen such examples.

APPENDIX 3

Item No 5

Eden District Council

Planning Committee 14 March 2013

Planning Application No: 12/0443

Change of use from public house to dwelling at The Crown Inn, Blencow for Mrs S Carroll

Head of Planning Services

Site Plan:

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1 Purpose of Report

1.1 This application is before Members as the Officer recommendation is contrary to the view of the Parish Council.

2 Recommendation: It is recommended that delegated powers be granted to the Head of Planning Services to grant planning permission subject to a Unilateral Planning Obligation being entered into to the absolute satisfaction of the Director of Corporate and Legal Services and the Head of Planning Services requiring a 3% commuted sum payment and subject to the following conditions: 1. The development permitted shall be begun before the expiration of three years from the date of this permission. 2. The development hereby granted shall be carried out strictly in accordance with the details and plans hereby approved (drawing no‟s Site Location Plan, Site Block Plan, TCI 02 received 18 May 2012) and shall not be varied other than by prior agreement in writing by the Local Planning Authority. 3. Notwithstanding the provisions of the Town and Country Planning (General Permitted Development) Order 1995 (or any subsequent equivalent legislation) no development falling within Schedule 2, Part 1, Classes E and F and Schedule 2, Part 2, Class A of the said Order shall be carried out within the area marked „Existing public house car park‟ on the submitted „Site Block Plan‟ without the prior written permission of the Local Planning Authority. Reasons 1. In order to comply with the provisions of the Town and Country Planning Act 1990. 2. To ensure a satisfactory development and to avoid any ambiguity as to what constitutes the permission. 3. To prevent the overdevelopment of the site and to protect the visual amenity of the locality.

3 Report Details 3.1 Proposed Development: 3.1.1 The application seeks full planning permission for the change of use of the property to an open market dwelling. The proposal involves minimal alterations to the internal layout of the property to create a 4/5 bedroom property with a large open plan kitchen/dining/living room on the ground floor. No alterations are proposed to the property. There is a small rear garden associated with the property and a car parking area on the other side of the highway to the building. 3.2 Description of the Site and the Surroundings: 3.2.1 The Crown Inn is situated in Blencow, approximately 4 miles to the north west of Penrith. The public house is centrally located within the village and is a traditional two storey property with a roughcast render finish and a slate roof.

2 APPENDIX 3 3.3 Relevant Planning History: 3.3.1 No relevant planning history.

3.4 Method of Publicity and Summary of Representations: 3.4.1 The application was advertised by way of site notice posted and immediate neighbour letters sent. Twelve letters/emails of objection have been received which can be summarised as:

 The public house has always been and will continue to be a vital social hub for this village community.  Our pub has always been a thriving business and could be again.  Retention of The Crown meets the needs of the community and visitors by maintaining a healthy and varied choice for the consumer and ensures a place fir informal social meeting, eating and drinking.  This public house has been in the village for many years and was supported by the local community until recently. Many activities used to take place; darts team, senior citizens dinners, carol singing, parties etc.  This pub in the past has been run as a very successful business with many users from the village and surrounding area, including those staying at local bed and breakfasts and caravan sites and those doing the coast to coast cycle route.  The pub may have been on the market for over a year but at an unrealistically high price compared to other public houses that have sold in the area.  I believe that if it had been priced at a more realistic level, potential new owners could have been sought.  The next nearest pub is 2.5km away, there are no footpaths and no street lighting therefore a car is essential as there are no public transport options.  The change in use from a public house would contravene the Council‟s own stated policies on retention of vital community amenities.  As a residential property it is totally unsuitable, being on a busy, fast blind bend, with the front door and windows barely a foot away from the curb. 3.5 Parish Response: 3.5.1 Greystoke Parish Council wishes to object to this application on the following grounds:

1. The change of use would remove an essential social and community asset of the village.

2. The inn is well used by tourists and is therefore of importance to the area which relies on tourism for its economy.

3. Greystoke Parish is a key service centre and the existence of community hubs is of economic value to the area.

3 APPENDIX 3 3.6 Consultation Responses: 3.6.1 Highway Authority - There are no highways/traffic implications arising from this proposal.

3.6.2 United Utilities - No objection. 3.7 Main Planning Issues Raised: 3.7.1 Loss of a community facility.

3.7.2 Viability of providing affordable housing on site. 3.8 Planning Assessment: 3.8.1 Policy CS22 of the Council‟s Core Strategy deals with the protection of village services and facilities. It states that in considering proposals that could result in the loss of a community service or facility the Council will have regard to 1) the established use of the premises and its existing and potential contribution to the social amenity of the local population and 2) the future economic viability of the use, including, in appropriate cases, financial information and the results of any efforts to market the premises, for a minimum of 12 months at a realistic price.

3.8.2 The Crown Inn has been on the market for a considerable length of time in an attempt to sell it. The property was originally marketed by PF&K as a going concern in May 2009 offering the freehold, business fixtures and fittings for sale at a price of £425,000. The property was then withdrawn from the market after 4 months with no viewings having taken place or offers received. The property was then offered for sale nationally under the commercial agency of Colliers. Again, no offers were received. The property was reinstructed to market the property some two years later in September 2011 at a reduced asking price of £375,000. This was then reduced three months later in January 2012 to £325,000. A couple of viewings were undertaken by the agents but no offers received. In August 2012 the property ceased trading as a public house. In November 2012 the asking price was reduced to £275,000 to account for the now ceased trading status of the property.

3.8.3 The Council has had an independent valuation undertaken on the property by Walton Goodland. This concluded that “we are of the opinion that the property has been marketed as a going concern at an appropriate level (£325,000) for the period January 2012 until the end of August 2012 (when the business ceased trading) only. The price should have been dropped thereafter from September 2012 onwards…to £250,000 - £275,000. The vendor then dropped the price to £2750,000 in November 2012 but has still received no interest in the property. Fundamentally there is no demand for the property in its existing use. We do not believe that any additional marketing period or reduced marketing price will succeed in changing this. We are satisfied that since January 2012 the vendor and its agent have done everything possible to achieve a sale of the property and business as a going concern and that it has been offered at a fair price on this basis but without success.” Given the results of the independent valuation undertaken on behalf of the Council it is considered that the property has been marketed at a realistic price for a minimum of 12 months, as per the requirements of Policy CS22.

4 APPENDIX 3 3.8.4 Policy CS9 relates to housing on rural exception sites. Blencow is not allocated as a local service centre within the Core Strategy; therefore any housing within the settlement should be small scale and provide 100% affordable housing to meet an identified local housing need. The applicant‟s agent has submitted assessments to assess the viability of the change of use of the property to a number of potential alternative uses including holiday cottages, affordable dwellings and an open market dwelling. The conclusion of the assessments undertaken is that “the procurement of one market dwelling or two market dwellings is not in itself financially viable with losses to the applicant against the present value of the building as a public house; however, representing the most financially viable option going forward”. The Councils Affordable Housing Officer, having considered the proposal, has requested that a local occupancy condition be attached to any grant of permission. It is not however considered that there is any policies within the Core Strategy to support the imposition of a local occupancy condition. The applicant has agreed to submit a Unilateral Planning Obligation agreeing to pay a 3% contribution on the final market value of the property towards affordable housing within the District. Given that the property has been marketed at a realistic price for at least 12 months and that the applicant has shown that it is not viable for an element of affordable housing to be provided, it considered that the change of use to an open market dwelling is acceptable in this case.

3.8.5 Despite objections being raised by local residents about the loss of a community facility, it is not considered that a need continues to exist for a public house in Blencow. Financial information submitted on behalf of the applicant shows that the public house has ceased to be an economically viable business. Attempts to sell it at a price which realistically reflect its use as a public house have been unsuccessful and the property ceased trading as a public house in August 2012. It is Officers understanding that since this date the property has also been vacant. A valuation of the property undertaken on behalf of the Council verified that the property has been marketed at a realistic price for a minimum of 12 months, as per the requirements of Policy CS22. Viability assessments which have been submitted to show that the use of the property as an open market dwelling is not a financially viable option to the applicant who will make losses against the present value of the property as a public house but is the most financially viable option available. It is therefore considered that the change of use of the property to an open market dwelling is acceptable and will see the re-use of a currently vacant property within Blencow.

4 Policy Framework 4.1 The Council has four corporate priorities which are: Housing Quality Environment Economic Vitality Quality Council

4.2 This report meets the Housing, quality Environment and Economic Vitality corporate priorities. 4.3 This report addresses the strategic action in the Corporate Plan.

4.4 This report helps to meet the adopted Planning Policies of the Council.

5 APPENDIX 3 4.5 Relevant Local Plan Policies: 4.5.1 Core Strategy DPD Policy:

CS1: Sustainable Development Principles CS2: Locational Strategy CS3: Rural Settlements and the Rural Areas CS6: Developer Contributions CS7: Principles for Housing CS9: Housing on Rural Exception Sites CS10: Affordable Housing CS22: Protection of Village Services and Facilities

4.5.2 Housing SPD

5. Implications 5.1 Legal 5.1.1 There are none arising directly from this report. 5.2 Financial 5.2.1 Any decision to reduce or increase resources must be made within the context of the Council‟s stated priorities as set out in its refreshed corporate plan.

5.2.2 There are no proposals in this report that would reduce or increase resources. 5.3 Equality and Diversity 5.3.1 There are none arising directly from this report.

5.3.2 The Council has to have regard to the elimination of unlawful discrimination and harassment and the promotion of equality under the Equality Act 2010 and related statutes. 5.4 Environmental 5.4.1 There are none arising directly from this report.

5.4.2 The Council has to have due regard to conserving bio-diversity under the Natural Environment and Rural Communities Act 2006. 5.5 Crime and Disorder 5.5.1 There are none arising directly from this report.

5.5.2 Under the Crime and Disorder Act 1998 the Council has to have regard to the need to reduce crime and disorder in exercising any of its functions. 5.6 Children 5.6.1 There are none arising directly from this report.

6 APPENDIX 3 5.6.2 Under the Children Act 2004 the Council has to have regard to the need to safeguard and promote the welfare of children in the exercise of any of its functions. 5.7 Risk Management 5.7.1 There are none arising directly from this report.

6. Reasons for Decision/Recommendation

6.1 Despite objections being raised by local residents about the loss of a community facility, it is not considered that a need continues to exist for such a facility in Blencow. Financial information submitted on behalf of the applicant shows that the public house has ceased to be an economically viable business. Attempts to sell it at a price which realistically reflect its use as a public house have been unsuccessful. A valuation of the property undertaken on behalf of the Council verified that the property has been marketed at a realistic price for a minimum of 12 months, as per the requirements of Policy CS22. Viability assessments which have been submitted to show that the use of the property as an open market dwelling is not a financially viable option to the applicant who will make losses against the present value of the property as a public house but is the most financially viable option available. It is therefore considered that the change of use of the property to an open market dwelling is acceptable.

Gwyn Clark Head of Planning Services

Governance Checks: Checked by or on behalf of the Monitoring Officer  Background Papers: Contact Officer: Aimee Richardson Telephone Number: 01768 212486

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