To approve the commission of an options appraisal (to include valuations of alternative use) to inform the future direction for the management of the Council’s Smallholdings Estate.

THAT:               

(a)       Approval be granted to commission an options appraisal / business case to inform the direction for the future management of the Smallholdings Estate; and

(b)       The Director of ECC be authorised to make suitable arrangements for the delivery of the options appraisal by 30th June 2014, the costs of which will be reimbursed from the capital receipts of the ensuing disposals.

The existing Smallholdings policy dates back to 2009.  The Council’s priorities have changed dramatically over this 5-year period.  The options appraisal is needed to inform future policy development and decision-making and to identify the true value contained within the Estate.  It will also establish whether the rate of return from holding the Estate provides value for money and whether a greater rate of return might be afforded from an alternative management regime.

Do nothing and continue with arrangements as set out in the existing policy  -

This arrangement is unsustainable in the longer term as the net rates of return from lettings constitute poor value for money and the needs for capital investment to upgrade the accommodation and built infrastructure are beyond the Council’s capital resources.

Market the entire estate for disposal  -

This is unlikely to produce the best value for money for the taxpayer and optimise the resource available to contribute to the delivery of the Council’s longer tem ambitions.