To consider the options in respect of the redundant Council Office site at Weeley in terms of the Council’s current priorities.

RESOLVED that Cabinet –

(a)   after assessing the various options set against the current associated on-going costs and in the context of obtaining the best consideration reasonably possible, determines that the vacant Weeley Office site is no longer required for planning purposes to deliver Council Housing and approves its freehold disposal;

(b)     subject to resolution (a) such disposal to take a phased approach as set out:

(i)    sell the site via auction with a reserve price reflecting current market conditions;

(ii)   If during the period the property is being advertised for auction, an offer is received which meets the Council’s requirements as set within resolution (c) below, the Leader of the Council and the Portfolio Holder for Assets and Community Safety can determine whether or not to proceed with the auction;

(iii)  subject to (i) above, in the event that the reserve price is not met and/or best consideration cannot be reasonably demonstrated, agrees to market the site via an open market tender; and

(iv)  subject to (i), (ii) and (iii) above, if best consideration obtainable cannot be reasonably be demonstrated via the above two options, then a further report be presented to Cabinet that explores / revisits potential alternative options.

(c)  subject to (a) agrees that the necessary decisions required through the phased approach be taken by the Leader of the Council and Portfolio Holder for Assets and Community Safety, following receipt of professional valuation advice, and in consultation with the Section 151 Officer and the Monitoring Officer.

(d)   delegates authority to the Portfolio Holder for Assets and Community Safety, in consultation with the Leader of the Council, the Section 151 Officer and the Monitoring Officer to withdraw the property from auction and agree an alternative disposal and enable necessary consents to be obtained and legal agreements completed in the circumstances that an alternative proposal is received the meets the following criteria:

(i)    The financial benefit to the Council is more than could be reasonably anticipated at auction;

(ii)   The financial benefit to the Council demonstrates best value for the site; and

(iii)  The proposer agrees and signs a legally binding agreement prior to the date of the auction.

Cabinet considered a report of the Assets and Community Portfolio Holder (A.4) which detailed the options in respect of the redundant Weeley Council Office site in terms of the Council’s current priorities.

Cabinet recalled that it had agreed transformation proposals on the 16 December 2016 which had included disposing of a number of Council facilities, the former Offices at Weeley being one of them.  On the 17 December 2021 following an invitation of bids from two special purchasers, Cabinet had agreed to appropriate the land at the site for planning purposes, to facilitate the carrying out of housing development, to enter into an option agreement with the successful bidder, and delegating authority to agree Heads of Terms on the principles set out in the report.  Heads of Terms had been agreed on 25 April 2023. 

In appropriating the land for planning purposes to facilitate the carrying out of housing development, Cabinet had considered in December 2021, that the carrying out of development was likely to contribute to the economic, social or environmental well-being of the area, or which was required in the interests of the proper planning of the area in which the land was situated. 

Cabinet had further agreed on 11 April 2025, due to the time taken and remaining uncertainty as to the finalisation of the transaction, to cease negotiations with the previously successful bidder based on the existing Heads of Terms and to subsequently consider alternative options for the disposal of the site.

It was reported that, as part of its earlier decision in December 2021, the previous Cabinet had placed an emphasis on the opportunity to obtain additional Council houses as a way of achieving the best consideration possible for the site when it had agreed its associated preferred option. As set out in earlier reports, a number of important actions and initiatives had taken place in the interim period relating to the delivery of that recommendation that would have had a reasonable influence and learning opportunity when now considering alternative options. It was therefore reasonable to argue that to deliver the previous Cabinet’s recommendation, such negotiations were complex and challenging to conclude and would likely be encountered again if the Council continued to pursue the same option, albeit via alternative arrangements / bidders. Through experience to date, pursuing that option had become increasingly difficult to support from a wider and overall value for money perspective as highlighted within the options appraisal set out later within this Portfolio Holder report.

Taking the above into account and after considering the positives and negatives of the various options set out within the Portfolio Holder’s report (A.4), along with the ongoing costs for the site of approximately £65,000.00p/a, it was recommended that a pragmatic and phased approach was now taken to dispose of the site, set against the underlying requirement for the Council to reasonable demonstrate the achievement of the best consideration possible.

As set out within the Portfolio Holder’s recommendations, the preferred option was to dispose of the  ...  view the full minutes text for item 42