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CX 08 94 Mgt & Restructuring Issues

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CX 08 94 Mgt & Restructuring Issues CX/08/94 Farms Estate Committee 6 November 2008 COUNTY FARMS ESTATE MANAGEMENT & RESTRUCTURING ISSUES Joint Report of the Chief Executive and the Director of Finance, IT & Trading Please note that the following recommendations are subject to consideration and determination by the Committee before taking effect. Recommendations: 1. That the Committee approves the recommendations set out in the opening paragraphs of Section 1 to 7 of this report. 1.0 East Week Farm 2, South Tawton 1.1 It is recommended, given the three expressions of interest and the County Council's commitment to the principles of organic farming, that: (i) subject to terms being agreed the 51.42 acres of land or thereabouts at East Week 2, South Tawton be re-let on a five year Farm Business Tenancy under the Agricultural Tenancies Act 1995 for a term commencing 25 March 2010 and terminating 25 March 2015 (ii) the three tenants at East Week be invited to tender in competition with each other for the tenancy (iii) the successful tenant be obliged to maintain the organic status of the holding throughout the entire lease term provided it remains economically viable to do so. The tenant may apply at any time to the landlord to release the user condition with the landlord's consent not to be unreasonably withheld. 1.2 The parish of South Tawton currently comprises of the following three holdings: • East Week Farm 1 – 20.92 hectares (51.70 acres) • East Week Farm 2 – 23.24 hectares (57.42 acres) • Lower East Week Farm – 25.47 hectares (60.93 acres) 1.3 The Approved Estate Plan proposes that East Week Farm 1 be retained as a progression farm with the farmhouse and buildings of East Week Farm 2 being sold, together with the farmhouse, buildings and 10 acres of Lower East Week, leaving 104.26 acres of land to amalgamate with East Week 1. In addition, it is proposed that 52 acres or thereabouts is migrated from Slade Farm, North Tawton to create a total enlarged holding of 218 acres or thereabouts. There is also the option available to the Authority to consider a whole parish in/out disposal/acquisition. 1.4 Members may recall considering Report CX/06/73 at the Farms Estate Committee Meeting of 24 July 2006 where it was resolved under Minute Ref. FE/48(f) that: 'following the surrender of the house, buildings and some land at East Week Farm 2, South Tawton: (i) the semi-detached house of East Week 2, part OS5100, OS5600 & part OS5100 be declared permanently surplus to the operational requirements of the County Farms Estate and sold on the open market with Vacant Possession. (ii) the barn and OS4800 be declared permanently surplus to the operational requirements of the Estate and sold on the open market with Vacant Possession and the development potential of the barn to be investigated and if possible planning consent secured prior to marketing. (iii) OS5292 to be declared permanently surplus to the operational requirements of the County Farms Estate and sold on the open market with Vacant Possession, and with the development potential of the barns in OS5292 being investigated and if possible planning consent secured before marketing. 1.5 Members may also recall approving at the Committee Meeting of 21 November 2006 under Minute Ref: FE/65(c): 'the restructuring of land holdings at East Week Farms 1 & 2, South Tawton to enhance the pending sale of East Week Farmhouse 2 and preserve the latent development potential of the East Week 1 Farmhouse and traditional buildings' . The details of this resolution are contained in the Chairman's letter of 25 October 2006. 1.6 East Week Farmhouse 2 and the adjoining land have subsequently been sold on the open market and the development potential of the East Week 2 Barns is currently being pursued. 1.7 Members will recall that the tenant of East Week Farm 2 only surrendered from his Agricultural Tenancies Act 1995 Farm Business Tenancy the farmhouse and buildings. He has retained occupation of the 51.42 acres or thereabouts of land. The Farm Business Tenancy is due to expire by the effluxion of time at 25 March 2010. 1.8 However, the current tenant of East Week Farm 2 land has expressed an interest in being granted a further Farm Business Tenancy of it beyond 25 March 2010. It is important to note that he converted the land to organic status and that it remains very much integral to his overall farm enterprise. The land affords him a greater economy of scale necessary to maintain a commercially viable organic enterprise. 1.9 It should perhaps also be noted that when East Week 2 was let to the current tenant, it was conditional on the tenant establishing an organic farming scheme contract and maintaining it as far as reasonably possible throughout the duration of the term. Neither tenant of East Week 1 or Lower East Week Farms farm organically. 1.10 That said, both tenants of the adjoining East Week 1 and Lower East Week Farms have also expressed an interest in having this land amalgamated to their holdings to enable their farm businesses to expand. Members may also recall a recent resolution to grant an existing tenant an extended term subject to the following qualification: 'The tenant maintaining the organic status of the holding throughout the entire lease term provided it remains economically viable to do so. The tenant may apply at any time to the landlord to release the user condition with the landlord's consent not to be unreasonably withheld'. 1.11 Accordingly, therefore, given the three expressions of interest and the County Council's commitment to the principles of organic farming, it is recommended that: (i) subject to terms being agreed the 51.42 acres of land or thereabouts at East Week 2, South Tawton be re-let on a five year Farm Business Tenancy under the Agricultural Tenancies Act 1995 for a term commencing 25 March 2010 and terminating 25 March 2015 (ii) the three tenants at East Week be invited to tender in competition with each other for the tenancy (iii) the successful tenant being obliged to maintain the organic status of the holding throughout the entire lease term provided it remains economically viable to do so. The tenant may apply at any time to the landlord to release the user condition with the landlord's consent not to be unreasonably withheld. 2.0 Part Fairfield Farm, Denbury 2.1 It is recommended that, subject to the tenant's surrender of part Fairfield Farm, officers should discuss in principle and subject to contract terms and conditions for a fixed term licence/lease to the Denbury & Torbryan Allotment Association. 2.2 Officers have been approached by the Denbury & Torbryan Allotments Association (DATAA) to discuss in principle whether or not the County Farms Estate would enter into an agreement with them to provide allotments and community orchards. 2.3 The level of interest from the general public in taking allotments has, it would appear, increased exponentially. In anticipation of such a request being made to the County Council, officers sought legal opinion on the Authority's potential duty under the 1908 Smallholdings & Allotments Act. The legal advice confirmed that although certain Councils have a duty to provide allotments where sufficient demands exist, this duty does not extend to the County Council. That said, Section 15 of the Allotments Act 1922 gives County Councils the power (but not a duty) to 'let land acquired or appropriated by the Council for smallholdings for cultivation as an allotment, or to a Local Authority or Association, being an Association to which land may be let by a Council under the Smallholdings & Allotments Acts 1908-1919, for the purpose of being sub-let for such use'. 2.4 The Estate does already let two sets of allotments through the County Farms Estate. The first being the allotments at Bere Ferrers let to the Parish Council and the second, the allotments at Whitsun Farm, Tamerton Foliat let to individual licensees. 2.5 The current tenant of Fairfield Farm has indicated that he would be willing to surrender from his lease some land identified as potentially suitable by the DATAA. 2.6 Income potential to the County Council from letting this land for allotment purposes as opposed to agricultural is possibly greater, although initially, management costs may, conversely, be disproportionately higher. 2.7 It is therefore recommended that, subject to the tenant's surrender of part Fairfield Farm, officers should discuss in principle and subject to contract terms and conditions for a fixed term licence/lease to the Denbury & Torbryan Allotment Association. 3.0 Land at Rock Gardens, Monkerton, Pinhoe, Exeter 3.1 It is recommended that this land be declared permanently surplus to the operational requirements of the Estate and sold to Exeter College at market value, subject to terms being agreed. 3.2 Monkerton Farm currently extends to 15.87 hectares (39.1 acres) or thereabouts of accommodation land situated on the outskirts of Exeter. Although it ceased to be an independent, equipped farm several years ago, after the farmhouse and buildings were sold off, the land has been retained in view of its development potential. The land is currently let under short term arrangements, pending such times as all or part of it becomes prime for development. 3.3 In 2002, the Exeter Schools Reorganisation PFI required 10.34 hectares (25.55 acres) or thereabouts of land comprising fields 7254, 8957, 0062 & part 0051 as a site for a new secondary school.
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