Decision details

To consider the report of the Cabinet Member for Resources in consultation with the Leader of the Council seeking approval to the disposal of Marland House subject to the Council’s continued use of the offices for an agreed period.

NOTE: Elements of this report may be considered exempt from public distribution.

(i)  to approve the disposal of the Council’s freehold at Marland House subject to a leaseback to the Council of the offices at a peppercorn rent until September 2014, and to include the simultaneous disposal of the Council’s freeholds at 5 to 13 Civic Centre Road and 36 Windsor Terrace, all to the recommended bidder on the basis set out in Bid C in Confidential Appendix 1 and to subsequently negotiate and carry out all ancillary matters to enable disposal of the site.

(ii)  that the Senior Manager for City Development, in consultation with the Head of Legal, HR and Democratic Services be authorised to enter into any legal documentation necessary in respect of the sales.

(iii)  to note that the estimated value of the capital receipt from the disposal has already been built into the funding of the capital programme.  Any receipt that differs from the estimate will need to be considered corporately as part of any future prioritisation of resources.

1.  The marketing of the building for development or refurbishment, subject to a lease back to the Council until it is ready to vacate (by September 2014) has proved successful and offers from several interested parties have been received.  The majority of the interest has been from developers interested in the refurbishment/conversion of the upper parts and retention of the ground floor as retail/restaurant units.  The detail and officer evaluation of all offers received is attached in the schedule at Confidential Appendix 1.

2.  The best scoring bid is C.  The recommended bidder intends to convert the premises to a combination of innovation/creative industry start up units (at part ground, first and second floor levels) and student accommodation (at third to eighth floor levels), retaining and enhancing the retail/restaurant units at ground floor.  This proposal has the advantage of providing an early capital receipt, with potential for an additional payment on the grant of planning consent.  It will also provide improvements to the exterior of the building and create 60 jobs.

1.  Not disposing of the property and risking the associated future revenue and capital liabilities.

2.  Recommending acceptance of a worse scoring offer which produces either a smaller capital receipt or runs a greater risk of not being delivered.