19 Clay Flatts Industrial Estate, Workington

Allerdale Borough Council

Delegated Decision – 19th January 2015

The Reason for the Decision The Corporate Director is asked to approve the disposal by way of a long lease of 19 Clay Flatts Industrial Estate, Workington to P & R Autocentres Ltd for £165,000.

Summary of options considered 1. Agree to dispose of the property by way of a long lease. 2. Dispose of the freehold of the property. 3. Continue to market the property.

Recommendations The Corporate Director is asked to approve the disposal by way of a long lease of 19 Clay Flatts Industrial Estate, Workington to P & R Autocentres Ltd for £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 Disposing of this area of land will pass any health Management Implications and safety and risk management implications to the purchaser.

Equality Duty considered / Impact N/A Assessment completed

Wards Affected St Michael’s Ward The contribution this decision would Economic Development – Development of sites to make to the Council’s priorities meet current and future business needs.

Is this a Key Decision Yes

Portfolio Holder Councillor Barbara Cannon

Lead Officer Linda Doyle, Estate Manager, 01900 702762 [email protected]

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 on the market and Carigiet Cowen started to market the property on a long lease.

2.0 Content (to include alternative options considered)

2.1 Agree to dispose of the property by way of a long lease. 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 P & R Autocentres Ltd, which trades as Hi-Q Cumbria. They propose to use Unit 19 Clay Flatts for the servicing and repair of private, commercial and agricultural vehicles and for the storage and distribution of wholesale tyres. This venture is in addition to their existing Hi-Q operation nearby and will initially generate 5 new jobs. 2.1.2 The Council’s Economic Growth and Investment Plan has Strategic connectivity with the M6 corridor - employment sites as a priority. The letting of this unit and the creation of 5 jobs, helps to achieve this objective. 2.2 Dispose of the freehold of the property. This option was discounted at the location of the property is in the middle of an estate that is owned by the Council. The majority of leases on this estate are long ground leases, where the original tenants have developed their own buildings on the site.

2.3 Continue to market the property for lease. This option is discounted as the Council has spent £12,500 over the past year. The main cost is the vacant NNDR liability. If there had not been a potential use for the building found then it had been decided that the next best option for this property would have been to demolish the building. This would have seen the value of the asset removed from the Council’s balance sheet, but it would have saved the Council the annual running costs.

2.4 The chosen option is therefore to let the property on a long lease to P & R Autocentres Ltd.

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 P & R Autocentres Ltd 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.

Linda Doyle, Estate Manager

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

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