34
The Head of Commercial Services submitted a report a copy of which had been circulated to each Member.
Fiona Duhamel, Economic Growth Manager, presented the report to the Committee. This was an opportunity for a strategic land purchase, with the potential in the long term to provide income or a capital receipt. The site constituted 33 acres of grazing land, together with a house and some outbuildings, which in a poor condition. There was sufficient funding for the purchase. The Council have no short term plans to change the use of the site for disposal.
Councillor Smith, Leader of the Council and Portfolio Holder for Strategy, stressed the importance of maintaining the Council’s strategic land bank, which would provide opportunities for future generations.
RESOLVED that the contents of the report be noted and the formal decisions be taken following consideration of the report in Part B of the agenda.
REASONS
The RIF was established to recycle capital receipts into projects that could deliver against a number of Council objectives. The RIF can be used to support wider economic growth targets and deliver infrastructure supporting regeneration but its principle function is to recycle capital funds from the sale of assets for investment into income producing opportunities which can in turn support provision of frontline Council services. This proposal is a strategic land purchase which has the potential in the longer term to provide income and/or capital receipts.
Where the Council wishes to secure high levels of future income there is a need to carry out investment decisions in a more commercially focused way based on a clear business case. The business case is included in Part B of the agenda.
ALTERNATIVE OPTIONS
The only alternative option at this stage is not to progress with the acquisition. The business case in Part B of the agenda discusses the various options for the site once acquired, but these would be the subject of separate business cases in due course.