To approve a detailed smallholdings disposal programme.

The cabinet member contracts and assets introduced the report. He pointed out that cabinet had previously approved the policy of disposing of the smallholdings estate and the appointment of Fisher German as the professional agent for the council. The recommendations put to the meeting reflect the advice from the agents with regard to the disposal process.

The head of corporate asset management stated that the report set out the work that had been undertaken to date and that it was clear and transparent.

A group leader asked if sufficient time had been allowed for the process and if the council would achieve the return that had previously been anticipated.

The head of corporate asset management stated that significant advice had been taken regarding the process and that he believed there was sufficient time. The process aimed to deliver value for the council as well as giving existing tenants the opportunity to buy land. The Adamson Trust helps people in agriculture looking to find another home. Officers had met with the trust some 2 or 3 months previously and any tenants with concerns were advised to contact the trust for advice.

A scrutiny chair asked how the receipts would be used. He suggested that the funds should be used to invest in the county.

The leader responded that the capital receipts would be used in the best interest of the public good at the time they were available.

The cabinet member contracts and assets stated that he felt the receipts should be used to reboot the economy of the county and focus on regeneration.

A group leader asked why this method of disposal was preferred and whether tenants had been consulted on the recommendations that had been put forward.

The cabinet member infrastructure stated that the agent had made the recommendations based on what the council wanted to achieve. The council wanted to look after existing tenants as far as possible and it was felt that this was the best method for them. It was recognised that tenants would need professional help to make the most of the opportunities the disposal offered and a fund had been made available to support tenants in getting that help. When the tender process was completed the transfers would be completed very quickly.

The leader stated that tenants had been told that the fund was available and that there would be continued consultation.

A group leader commented that land prices had dropped over the previous 12 months and were continuing to fall. He asked if this had been taken into account and asked if it was the right time to sell.

The head of corporate asset management stated that professional advice had been taken from the agent who was very familiar with the market. He noted that there were a number of objectives set by cabinet in relation to the disposal and that it was not purely about achieving the highest possible value.

A group leader queried the proposed overage clause as no clawback was recommended by the agent’s report. She also asked if there was a minimum price under which the council would not sell.

The head of corporate asset management responded that advice would continue to be taken from the agent depending on the situation.

A group leader asked if the agent had been made aware of the policies in the core strategy with regard to land adjacent to settlement boundaries.

The head of corporate asset management stated that the agent had been made aware of the core strategy and where relevant opportunities existed the agent had been asked to take pre-application advice.

The leader stated that with regard to the overage clause this would be applied on a case by case basis.

The cabinet member economy and corporate services asked if any view had been taken on the impact of the fall in value of sterling on the expected return.

The head of corporate asset management stated that it was too early to judge the impact but that officers would continue to seek appropriate advice.

Resolved:

That:

(a)          the disposals programme as set out in appendix 1 be approved and specifically:

1)    the smallholdings estate be offered to the market by way of informal tender;

2)    marketing of the portfolio commences in spring 2017;

3)    the smallholdings estate be offered for sale as a whole, as sub estates and as individual farms;

4)    smaller parcels of land or groups of buildings should be divided as sub-lots where premium prices are achievable to increase total sale receipts;

5)    an overage clause be applied to all sales in relation to permitted development rights and otherwise on a case by case basis as indicated by development potential;

6)    all farm business tenancies with a termination date in advance of 30 September 2017 be extended to that date; with the exception of a dairy tenancy which will be extended to 1 December 2017;

7)    the contract for the legal services required to support the sales preparation and sales execution be awarded to Lodders LLP; at an target cost of no greater than £50K;

8)    authority be given to the director for economy communities and corporate to take all operational decisions necessary to implement the above recommendations and, following consultation with the relevant cabinet member and section 151 officer, to conclude sales.