Delegated Powers Report No

DELEGATED POWERS REPORT NO. 1627 SUBJECT: Oakhill Park Lodge, Parkside Gardens, EN4 8JS proposed disposal Control sheet All of the following actions MUST be completed at each stage of the process and the signed and dated report MUST be passed to the Governance Service for publishing All reports 1. Governance Service receive draft report Name of GSO Andrew Charlwood Date 29.03.12 2. Governance Service cleared draft report as Name of GSO Andrew Charlwood being constitutionally appropriate Date 30.03.12 3. Finance clearance obtained (report author to Name of Fin. officer Sue Templeman complete) Date 30.03,12 4. Staff and other resources issues clearance Name of Res. officer Amin Soorma obtained (report author to complete) Date 29.03.12

5. Trade Union response received (Staffing Name of TU rep. N/A issues only) Date 6. Legal clearance obtained from (report author to Name of Legal officer Steven Strange complete) Date 30.03.12 7. Policy & Partnerships clearance obtained Name of P&P officer Andrew Nathan (report author to complete) Date 30.03.12 8. Equalities & Diversity clearance obtained Name of officer Andrew Nathan (report author to complete) Date 30.03.12 9. The above process has been checked and Name Colin Bradley verified by Director, Head of Service or Deputy Date 30.03.12 10. Signed & dated report, scanned or hard copy Name of GSO Paul Frost received by Governance Service for publishing Date 30/3/12 11. Report published by Governance Service to Name of GSO Paul Frost website Date 30/3/12 12. Head of Service informed report is published Name of GSO Paul Frost Date 30/3/12

Key decisions only: 13. Expiry of call-in period Date N/A

14. Report circulated for call-in purposes to Name of GSO N/A Business Management OSC members & Date copied to Cabinet Members & Head of Service

ACTION TAKEN BY CABINET MEMBER(S) UNDER DELEGATED POWERS (EXECUTIVE FUNCTION)

Oakhill Park Lodge, Parkside Gardens, Barnet Subject EN4 8JS- proposed disposal Cabinet Member Resources & Performance taking decision Date of decision 30 March 2012 30 March 2012

Summary A variation of the decision of the Cabinet Resources Committee to dispose of the Council’s freehold interest in the subject site for a sum in excess of £370,000.

Officer Contributors Judith Ellis, Valuation Manager – Property Services

Status (public or exempt) Public with Separate exempt enclosure

Wards affected Brunswick Park

Enclosures Plan showing the area now to be sold & the public and exempt 2009 CRC.

Reason for exemption from call- Not applicable in (if appropriate)

Contact for further information: Judith Ellis, Property Services 020 8359 7364 or by email to [email protected]

Serial No. 1627 1. RELEVANT PREVIOUS DECISIONS

Cabinet Resources Committee, 2 November 2009 (Decision item 12) – resolved that Oakhill Park lodge be declared surplus to the Council’s requirements; that the occupiers be decanted into suitable alternative accommodation; that the Council’s freehold interest in the property be offered for sale by non-binding tender on the open market; and that the sale be completed to the highest bidder, subject to the price exceeding £370,000.

2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS

2.1 In order to improve efficiency the Council continually reviews the use of council assets so as to reduce the cost of accommodation year on year and to obtain best consideration for any surplus assets to maximise funds for capital investment and/or the repayment of capital debt. This proposal does this by producing a lump sum for the Council which can be set against other priorities.

3. RISK MANAGEMENT ISSUES

3.1 As set out in the attached public and exempt reports considered by the Cabinet Resources Committee at its meeting on of 2 November 2009.

4. EQUALITIES AND DIVERSITY ISSUES

4.1 The Council is committed to improving the quality of life and wider participation for all in the economic, educational, cultural, social and community life of the Borough.

4.2 It is not considered that the variation of the Cabinet Resources Committee’s decision of 2 November 2009 gives rise to any issues under the Council’s Equalities or Diversity policies and does not compromise the Council in meeting its statutory equalities duties..

5. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for money, Staffing, IT, Property, Sustainability)

5.1 As set out in the attached public and exempt reports considered by the Cabinet Resources Committee at its meeting on of 2 November 2009.

6. LEGAL ISSUES

6.1 Local authorities are given powers under Section 123 of the Local Government Act 1972 (as amended) to dispose of land held by them in any manner they wish. The only constraint is that, except with the consent of the Secretary of State, a disposal must be for the best consideration that can reasonably be obtained.

7. CONSTITUTIONAL POWERS

7.1 Council Constitution, Part 3, Responsibility for Functions – Section 3 – Executive Functions - paragraph 3.2 sets out the functions allocated to individual Cabinet Members and provides that “The Leader may discharge any function of the Executive”.

7.2 Constitution, Part 4, Council Procedure Rules, Management of Real Estate, Property and Land, paragraph 19 – All recommendations for approval of the sale price and other terms of disposal must contain a statement from the Chief Valuer or, if appointed, from suitably qualified external agents that the Council will obtain the best price which can reasonably be obtained or that there is approval through the General Consent or that the consent of Central Government has been obtained or will be sought to enable the disposal of the property to proceed as recommended.

8. BACKGROUND INFORMATION

8.1 As set out in the attached public and exempt reports considered by the Cabinet Resources Committee at its meeting on of 2 November 2009.

8.2 A variation of the decision of the Cabinet Resources Committee is required for the following reason:

8.2.1 The report to the Cabinet Resources Committee on 2 November 2009 concerned the full extent of the Oakhill Park Lodge property. In order to permit the refurbishment of the adjacent depot a substantial area of the gardens at the subject property were held back from the disposal and the property was offered for sale with a guide price of £330,000.

8.2.2 The resulting highest tender obtained was at £335,999. However, after a House Buyers Survey was undertaken on behalf of the highest tenderer, they reduced their offer to £310,000.

8.2.3 The second highest tender was for £331,950 but as they were parents of the highest tenderer they were in essence one and the same bidders.

8.2.4 The third highest tender was for £275,000. This tenderer increased their offer to £310,000 in February 2012, subject to the sale of their house.

8.2.5 Although there are now two tenders at the same value, the first bidder is a cash buyer who has already undertaken a survey. The second bidders’ offer is contingent on the sale of their existing house. Therefore as the first bidder is likely to complete on an earlier date, they are recommended for approval.

8.2.6 The subject sale at £310,000 complies with the s.123 duty to obtain the best price which can be obtained.

9. LIST OF BACKGROUND PAPERS

9.1 None

10. DECISION OF THE CABINET MEMBER

I/We authorise the following action:

10.1 In variation of the decision of the Cabinet Resources Committee at its meeting on 2 November 2009, to proceed with the sale of the Council’s freehold interest in Oakhill Park Lodge, as shown edged red on drawing no.2416/2 to Mrs Maria Bortield for a consideration of £310,000.00

Signed

Cabinet Member for Resources & Performance

Date 30 March 2012

AGENDA ITEM: Page nos.

Meeting Cabinet Resources Committee Date 2 November 2009 Subject Sale of former park lodge(s) at (1) Victoria Park, Finchley and (2) Oakhill Park, Barnet Report of Deputy Leader of the Council and Cabinet Member for Resources Summary To approve the decanting and disposal of (1) Victoria Park lodge and (2) Oakhill Park lodge, which have been used for temporary accommodation and as a result of the hostel review are now considered surplus to the council’s requirements

Officer Contributors Judith Ellis, Valuation Manager - Property Services Status (public or exempt) Public (with a separate exempt report) Wards affected Brunswick Park and West Finchley Enclosures Location plans attached For decision by Cabinet Resources Committee Function of Executive Reason for urgency / Not applicable exemption from call-in (if appropriate)

Contact for further information: Judith Ellis, Valuation Manager. [email protected], 020 8359 7364. 1. RECOMMENDATIONS 1.1 That Victoria Park lodge and Oakhill Park lodge are declared surplus to the Council’s requirements. 1.2 That the occupiers are decanted into suitable alternative accommodation and the Council’s freehold interest in the properties offered for sale by non binding tender on the open market, with the sales being completed to the highest bidders, subject to the price exceeding that detailed in the exempt report.

2. RELEVANT PREVIOUS DECISIONS 2.1 None.

3. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 3.1 The Corporate Plan commits the Council to a priority of “More Choice, Better Value” by delivering value for money across Council services through better use of resources including assets, staff and technology. This proposal meets this priority by achieving a capital receipt for a currently unused and surplus asset.

4 RISK MANAGEMENT ISSUES 4.1 Both properties require significant expenditure to bring them up to Health and Safety standards and decent homes standard. Retention of the properties may require a notice to quit to be served to obtain possession to enable the works to be carried out. 4.2 The decline in the property market could result in the property not achieving its maximum potential value. However recent marketing of similar individual type properties have indicated that there is still a buoyant market for such properties. Should an acceptable value not be achieved consideration would have to be given to re-using the properties until market conditions recover. 4.3 The properties are vulnerable to squatting and effective security management will be required after decanting with marketing commencing immediately to ensure this risk is minimised.

5. EQUALITIES AND DIVERSITY ISSUES 5.1 The Council is committed to improving the quality of life and wider participation for all in the economic, educational, cultural, social and community life of the Borough. 5.2 The proposals have been considered and will not give rise to any issues under the Council’s Equalities Policy and do not compromise the Council in meeting its statutory equalities duties.

6. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) 6.1 There are no procurement, performance and value for money, staffing, IT or sustainability implications. The financial and property implications are set out in section 9 below and in the exempt report.

7. LEGAL ISSUES 7.1 Initial title searches have been carried out and do not indicate any restrictions likely to prevent a disposal. More detailed legal investigations will need to be undertaken. 7.2 Following this, the Head of Legal will need to advise upon terms for the disposal(s) and the legal mechanics of processing these transactions, including legal documentation.

8. CONSTITUTIONAL POWERS 8.1 The Council’s constitution in Part 3, ‘Responsibility for Functions’, Section 3.6 delegates to the Cabinet Resources Committee all matters relating to land and buildings owned, rented or proposed to be acquired or disposed of by the Council.

9. BACKGROUND INFORMATION 9.1 The Lodge, Long Lane (Victoria Park Lodge) and Park Lodge, Parkside Gardens, (Oakhill Park Lodge ) are former park keepers houses held within the General Fund, that have been used as hostel accommodation for some years, each property being able to accommodate one family. The current occupiers of Oakhill Lodge, (3 adults and 3 children), have been in occupation for 2 years 5 months and Victoria Lodge, (2 adults and 2 children), for 5 years 9 months both under unsecure tenancies. 9.2 A review of all the Council’s hostel accommodation has recently been undertaken. The review has reconsidered the provision of hostel accommodation in the Borough and as a result has commenced a significant programme of improvement to the hostels retained. This will achieve more appropriate and better quality accommodation for this vulnerable group. Similar properties to the lodges are available through the Private Sector Leasing scheme which provides a more economic solution of short term accommodation for individual families. 9.3 In addition, the report found that Victoria Park Lodge and Oakhill Park Lodge were unsuitable for hostel accommodation and that significant expenditure in the region of £148,000 was required to carry out necessary improvements to bring them up to minimum standards. These funds were considered better spent on the other hostels within the Council’s ownership, which provide accommodation for significantly more people. 9.5 As a result the properties were considered surplus to requirements and available for disposal. The properties are held within the General Fund and any capital receipt(s) will be received into this account. 9.6 The properties are currently occupied by two families who will need decanting prior to disposal. In view of the individual nature of these properties, every effort will be made to find suitable alternative accommodation for the occupiers. 9.7 Victoria Park Lodge is a two bedroom detached house on the periphery of the park. The property is located on the Long Lane boundary of Victoria Park N3, to the north east of the junction of Long Lane and Park View Road and lies approximately three quarters of a mile from Finchley Central underground station and it’s surrounding shops. The property comprises a two storey brick-built house under a pitched concrete tile roof. Set into the roof are two dormer windows serving the bedrooms. The windows of the property are timber casements. The property has no vehicular access from Long Lane, although with a cross over licence this would be achieved. There is a side garden on the south-eastern side of the property with an entrance path from the public highway. On the north- western side of the property there is a hard surfaced courtyard. It is anticipated that a capital receipt as detailed in the exempt report should be achieved. 9.8 Oakhill Park Lodge is a 3 bedroom bungalow on the periphery of Oakhill Park. The property is located on the north east side of Parkside Gardens, immediately off the public access road to the main car park of Oak Hill Park. Oakleigh Park main line railway station lies approximately one mile to the north west of the property. The nearest shopping area is East Barnet village which lies approximately 1.25 miles to the north. The property comprises a brick-built bungalow under a pitched roof, covered with concrete interlocking tiles. Bedrooms are contained within the roof pitch with a window in each gable end. The property has steel windows, and there is a single brick-built garage attached to the house. At the rear of the property there is a good sized garden and it is anticipated that a capital receipt as detailed in the exempt report should be achieved. 9.9 In view of the location adjoining the parks a site survey will need to be undertaken to establish an appropriate boundary for disposal. 9.10 It is considered appropriate to market the properties by open tender and conclude sale(s) to the highest bidders subject to the bids exceeding the sum(s) detailed in the exempt report.

10. LIST OF BACKGROUND PAPERS 10.1 None.

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