BEDFORD BOROUGH COUNCIL DECISION NO. 1506 RECORD OF EXECUTIVE DECISION TAKEN BY AN EXECUTIVE MEMBER This form MUST be used to record any decision taken by the Elected Mayor or an individual Executive Member (Portfolio Holder). The form must be completed and passed to the Chief Officer Legal and Democratic Services no later than NOON on the second w orking day after the day on w hich the decision is taken. No action may be taken to implement the decision(s) recorded on this form until 7 days have passed and the Chief Officer Legal and Democratic Services has confirmed the decision has not been called in. 1. Description of decision (i) Approve the freehold disposal of land at Carlton and authorise the Chief Officer for Economic Growth and Property to negotiate detailed terms for the sale of the land, with a view to maximising the net capital receipt to The Council. (ii) Authorise the Chief Officer for Economic Growth and Property to proceed with a sale to the Preferred Bidder, or to the Second Preferred Bidder (to be selected by The Chief Officer for Economic Growth and Property, in consultation with The Mayor), if the proposed sale to the Preferred Bidder does not proceed, or can only proceed at a significantly reduced figure. (iii) Authorise the Chief Officer for Economic Growth and Property to agree terms for re-marketing, in consultation with The Mayor, in the event that neither the Preferred Bidder or the Second Preferred Bidder are prepared to complete the sale on acceptable terms. 2. Date of decision 30th December 2020 3. Reasons for decision The disposal generates a significant capital receipt, and promotes self- build opportunities in Bedford Borough. The sa le will ultimately lead to an increase in the housing stock with the associated increase in Council tax revenue. The site has been allocated for residential development in the Carlton & Chellington Neighbourhood Development Plan 2018 -2035. 4. Alternatives considered and rejected The alternative is not to sell the land. That does not generate a capital receipt or the Council, or increase housing stock within an allocated area 5. How decision is to be funded The sale will result in a significant capital receipt for the Council - 1 - 6. Conflicts of interest Name of all Executive members who were Nature of interest Did Standards Committee give a Did the Chief Executive give a dispensation for that conflict consulted AND declared a conflict of dispensation for that conflict of interest? (If of interest? (If yes, give details and the date of the interest. yes, give details and date of dispensation) dispensation). The Mayor has been consulted on this decision Signed Date: 30th December 2020 Name of Decision Taker: Mayor Dave Hodgson This is a public document. A copy of it must be given to the Chief Officer Legal and Democratic Services as soon as it is completed. Date decision published: 30 December 2020 Date decision can be implemented if not called in: 12 January 2021 (Decision to be made exempt from call in: NO) - 2 - Bedford Borough Council – Report to the Mayor December 2020 Report by Chief Officer for Economic Growth and Property Subject: SALE OF LAND AT CARLTON 1. Executive Summary This report seeks the Mayor’s approval to a sale of land at Carlton, being former allotment land used recently for pony grazing. The land comprises approximately 0.33 ha (0.82 acres) and has been allocated for residential development in the Carlton and Chellington Neighbourhood Development Plan 2018 -2035. The site has been offered for sale on the open market leading to an informal bidding process. This has resulted in the selection of a preferred purchaser. A copy of the marketing brochure, including a plan of the site, is shown in Appendix A. Details of all bids are shown in confidential Appendix B. 2. Recommendations The Mayor is invited to: (i) Approve the freehold disposal of the land and authorise the Chief Officer for Economic Growth and Property to negotiate detailed terms for the sale of the land, with a view to maximising the net capital receipt to the Council. (ii) Authorise the Chief Officer for Economic Growth and Property to proceed with a sale to the Preferred Bidder, or to the Second Preferred Bidder (to be selected by The Chief Officer for Economic Growth and Property, in consultation with The Mayor), if the proposed sale to the Preferred Bidder does not proceed, or can only proceed at a significantly reduced figure. (iii) Authorise the Chief Officer for Economic Growth and Property to agree terms for re-marketing, in consultation with The Mayor, in the event that neither the Preferred Bidder or the Second Preferred Bidder are prepared to complete the sale on acceptable terms. 3. Reason for Recommendations The land is held within the Investment Portfolio of the Council, meaning that it is held primarily for income or capital maximisation. The site has been identified as a potential residential development site for up to 10 houses by The Local Parish Council. The present occupier has been informed that the Council will require vacant possession in advance of a sale, and it is believed that he has identified alternative premises. It will be a condition of the sale that the purchaser will reserve at least one plot for a ‘design and build’ residential dwelling. The method of disposal ensures the site has been fully marketed, generates a significant capital receipt, and promotes self- build opportunities in Bedford Borough. The sale will ultimately lead to an increase in the housing stock with the associated increase in Council tax revenue. 4. Key Implications 4.1 Legal Issues The Council has a statutory duty under Section 123 of the 1972 Local Government Act to obtain best consideration from property disposals. The site has therefore been offered for sale on the open market and an informal bidding process followed, to ensure best value in terms of capital receipts secured. 4.2 Policy Issues The Council’s approved Corporate Asset Plan requires that, in line with Government guidance, all assets not required to meet the Council’s service priorities or statutory needs will be disposed of for best consideration. This policy also directly assists the Council’s Capital Investment Strategy by providing capital receipts to meet direct funding needs for approved Capital investment schemes. The Corporate Asset Plan specifically requires that surplus land assets are included in a planned disposal programme to directly fund the Council’s Capital Investment programme. The Council also has an obligation under the Self-Build and Custom Housebuilding Act 2015 to promote ‘Self-Build’ opportunities within the Borough. As a result, the sale contract will require the purchaser to reserve at least one plot as a ‘self – build plot’. 4.3 Resource Implications The sale of the site will provide the predicted capital receipt as shown in confidential Appendix B. The capital sum offered is conditional on the purchaser obtaining full planning consent. The site is identified in the Capital Receipts programme as an asset for disposal. The Council engaged external land sales consultants, appointed through a tender process, to advise and to manage the marketing process. The fees and other marketing costs will be met from within the existing Revenue Budget allocated for property disposals, and are not expected to exceed £10,000 for this one sale. In-house Legal resources will be used to exchange and complete contracts. 4.4 Risk Implications • If the proposal is not approved the Council will not secure the capital receipt. • The Preferred (highest) Bidder may not complete the transaction due to failure to procure planning consents. There are however a number of other bidders who would be expected to proceed with a purchase at a reduced price. • Should planning conditions differ significantly from the scenario assumed in the conditional offer, the offer price may reduce to below the level proposed by the second or third highest best bidder. In such circumstances, negotiations will be sought with a relevant Under-Bidder. • The Preferred Bidder may withdraw or seek to re-negotiate after due diligence. Should the Preferred Bidder withdraw, or should they reduce their offer to a level deemed to be unacceptable by the Chief Officer for Economic Growth and Property, negotiations will be sought with a relevant under-bidder. 4.5 Environmental Implications The site is part of the Council’s investment estate. It is presently let out for pony grazing. It is not designated as Protected Open space, and has been identified as a potential residential development site in the relevant Parish Neighbourhood Development plan. 4.6 Equality Impact A relevance test for equality has been completed. The equality test determined that the activity has no relevance to Bedford Borough Council’s statutory equality duty to eliminate unlawful discrimination, advance equality of opportunity and foster good relations. An equality analysis is not needed. 5. Details 5.1 A Copy of the sales brochure is attached in Appendix A. The brochure describes the site, references The Neighborhood Plan Allocation, and details the tender process. 5.2 All tenders were opened on 20 November 2020. Details of all offers received are shown in Confidential Appendix B. All realistic bids are conditional on bidders obtaining detailed planning. The recommended bid is the highest offer received. 5.3 The Preferred Bidder has secured funding and will attempt to follow the proposed scheme shown in the brochure, to include 9 houses, including one plot reserved as a self-build plot. A deposit of 10% will be requested on exchange of conditional contracts. 5.4 The bid made by the second highest bidder indicated that the bidder would build 9 self-build or custom build units.