Agenda item

[Julia Nock, Deputy Director of Assets, to present report].

The Chair invited Julia Nock, Deputy Director of Assets, to present the report.

The Deputy Director advised the panel that the presentation will outline how the Council manages the disposal of its land and assets to a third party in accordance with the Local Government Act 1972, and particularly the requirement around achieving best value.

The Deputy Director explained that the land or asset can include freehold sale, exchange, or any grant of a lease for a term exceeding seven years as defined by S123 of the Local Government Act.

The Deputy Director outlined the Council’s land and disposal policy and explained that the Strategic Asset Plan 2018 – 2023 is the primary driver in identifying opportunities to dispose of assets which are no longer required for current or future service delivery.

The Deputy Director commented on the importance of the land and disposal policy in supporting the Council priority in the Our City: Our Plan to use land and property to transform communities and to release those assets that no longer serve the public. The Council’s Constitution ensures that land and property is managed in accordance with the regulations.

The Deputy Director outlined the process to be followed when a land or asset is considered surplus to needs.

All disposals of assets are done in conjunction with the Local Government Act, and particularly in Section 123 which states that the Council must demonstrate it has best consideration and there is a both an ethical and statutory duty to attain best value. The term ‘best value’ includes financial, economic, and social considerations.

The Deputy Director commented on the key benefits of the land and property disposal policy.

The Deputy Director reassured the panel that there is a robust consultation process internally with colleagues in other service areas of the Council to ensure that there is no other potential future use for that asset. In addition, there will also be discussions with colleagues in Wolverhampton Homes and WV Living about using the asset for future housing developments, as part of the consultation.

If there are no objections to the disposal, then a report is presented to Cabinet to consider and approve the recommendations, if they support the proposal.

The asset disposal policy links to the community asset transfer strategy.

The Deputy Director advised the panel that the Strategic Asset Plan is due to be refreshed in 2023 and that new asset mapping system will be launched on the Council website in January 2023. The system can be used to by residents and Councillors to see what assets the Council holds.

The introduction supports the aim of making the process of disposing of Council assets more accessible and transparent.

The Deputy Director reassured the panel that the service is required to produce a report annually for Council on all capital receipts that have been generated from disposals valued over £10,000. The report details how approval for disposal was obtained, the method of sale and compliance with best consideration. The report will be presented to the panel for comment.

The panel were invited to comment on the presentation.

The panel queried the policy for the disposal of freehold interests and if there is a gap in the exchange or any grant for than seven years and if there was going to be met. The Deputy Director advised the panel that if the disposal of an asset with seven years or less that it would usually be a leasehold disposal and the Council owns the freehold. The land and property disposal policy only applies to freehold properties that the Council no longer has any future ownership or management in the asset in the future.

The panel queried if there were examples where the district valuer could have been involved in a case where a different valuation had been given, but a decision was taken not to involve them.

The Deputy Director advised the panel that the Council involves the District Valuer in most disposals of land and property to provide an independent valuation. This is key to ensuring the Council gets best consideration and that the process of asset disposal is fair and transparent.

The panel queried if there had ever been any bribery attempts in respect of the disposal of Council assets. The Deputy Director advised that she was not aware of any bribery attempts in relation to asset disposals.

The panel queried the reference in the presentation that all valid objections would be considered by the service following the end of consultation about proposed disposal of assets and queried the definition of the term a ‘valid objection.’  The panel also queried if there was a scenario where an objection from a single Councillor could prevent the disposal of an asset going ahead.

The Deputy Director explained the process of considering objections and that example of a ‘valid objection, would be comments from planning or highways service suggesting the ownership should be retained to meet future service needs.

The Deputy Director commented on the process for consulting with local Councillors about the disposal of an asset and if following a meeting there were still objections then the issue would be referred to the Asset Management Board to consider the matter further. A final decision about the disposal of any asset would be for Cabinet to determine.

The Chief Operating Officer added that legally the decision about the disposal would be made by either Cabinet or the relevant Cabinet Member and there could not be a situation where their decision was fettered by a Councillor, which would be potentially unlawful. The Cabinet Member would however in this situation consider the concerns where all three local ward councillors objected to a disposal of an asset.

The panel queried situations where a previously owned Council asset is sold, but the development work is delayed sometimes for years by the new owner. The panel highlighted concerns about the risk of vandalism and anti-social behaviour on the site in such situations. The panel commented if a requirement could be added to the sale agreements that the owner will complete the development work within a specified period.

The Deputy Director commented that in most disposals cases there are restrictions in place when this involves a sale to a third party. The restrictions could for example, state that the development starts within a set number of years, or they will have to apply for planning permission. In addition, there are also restrictive covenants and restrictions which will help the service to manage the situation so that buildings do not remain empty for extended periods.

The panel asked for further details of what would be considered to a valid objection to the disposal of an asset. The Deputy Director agreed to share a list with the panel.

The panel queried the lessons learnt from the disposal of land and assets and how this learning has been used to improve the disposal policy. The Deputy Director commented that in terms of how learning from practice has been used to improve the policy and referred to changes made to encourage buyers develop buildings within a set period and the use of planning restrictions. In addition, where there is a conditional sale which is subject to planning permission this would involve the opportunity for the public to contribute as part of the consultation process.

The panel thanked the presenter for the report.

Resolved:

1.    The panel comments on the Land and Property Disposal Policy to be noted.

2.    The Deputy Director of Assets to share details of valid objections referred to in the presentation with the panel.