Issue - meetings

To consider and decide on the recommendations as set out in the attached report.

RESOLVED – That the Draft Asset Management Plan 2021/22 be agreed for public consultation

REASON FOR DECISION: To commence a public consultation on how the Council manages its assets.

John Antoniades, Estates Manager introduced the report that presented the Draft Asset Management Report for 2021/22 for consideration and public consultation.

Discussion and responses to Members questions included the following:

-       The Asset Management Plan for 2021/22 provided a management strategy for the Council’s property assets.

-       It detailed the principles, procedures and mechanisms to be adopted that effectively and efficiently manage the property asset portfolio.

-       It further summarised the value and composition of the current portfolio and evaluated specific actions from the previous financial year related to the Council’s property estate and identified the main portfolio ambitions fro 2021/22.

-       The draft Plan was produced in November 2020, part way through the financial year and therefore the figures and details would change as the year progressed.

-       The portfolio was valued at £104.69m as at 31 March 2020. 

-       So far this financial year the Council had negotiated lease renewals, new lettings and rent reviews to an increased value of  approximately £46,600 annually.

-       In addition all property rentals that were subject to annual rental increases resulted in a net annual increase of £3,900.

-       Vacant space in the portfolio had been reduced by letting or licencing space to reduce occupation liabilities and achieve rental income.

-       Property and estates continued with the disposal of surplus land held by the Council.  It would continue to identify and dispose of specific sites for development of affordable housing, private residential development or for regenerative purposes.

-       The planned maintenance programme for 2020/21would have completed works to the value of £600k. 

-       Capital projects to the value of £2.35m would have been progressed or completed during 2020/21.

-       Capital receipts to the value of £3.126m were expected by the year end.

-       No property assets had been acquired during this period.

-       The draft Asset Management Plan outlined the forward projection and management strategy for the property asset portfolio for 2021/22.

-       Following the declaration of global climate and biodiversity emergencies by the Council in July 2019, the Climate Emergency Advisory Panel contracted Laser to produce a Carbon Audit and Carbon Reduction Plan.  The initial results of this work in respect of the Council’s estate were set out under Sustainability in the Cross-Cutting section of the report.

RESOLVED – That the Draft Asset Management Plan 2021/22 be agreed for public consultation

REASON FOR DECISION: To commence a public consultation on how the Council manages its assets.

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

John Antoniades, Estates Manager introduced the report that presented the Draft Asset Management Report for 2021/22 for consideration and public consultation.

Discussion and responses to Members questions included the following:

-       The Asset Management Plan for 2021/22 provided a management strategy for the Council’s property assets.

-       It provided details of the principles, procedures and mechanisms to be adopted that effectively and efficiently manage the property portfolio.

-       It further summarised the value and composition of the current portfolio and evaluated specific actions from the previous financial year related to the Council’s property estate and identified the main portfolio ambitions for 2021/22.

-       The draft Plan was produced in October 2020, part way through the financial year, so the figures and details would change as the year progressed.

-       The planned maintenance programme was subject to adjustment as capital applications progressed and as condition surveys unfolded.

-       The total planned spend was likely to be around 4.5% higher than currently shown.  Any necessary adjustments would be made prior to the report being submitted to Cabinet.

-       The portfolio was currently valued at £104.69m.

-       The Council this year had negotiated lease renewals, new lettings and rent reviews to an increased value of approximately £46,600 annually. 

-       In addition all property rentals that were subject to annual rental increases resulted in a net annual increase of £3,900.

-       Vacant space in the portfolio had been reduced by letting or licencing space to reduce occupation liabilities and achieve rental growth.

-       Property and Estates continued with the disposal of surplus land held by the Council. 

-       The planned maintenance programme for 2020/21 would have completed works to the value of £600k.  Capital Projects to the value of £2.35m and Capital Receipts to the value of £3.126m (expected by year end). 

-       No property assets had been acquired during this period. 

-       Following the declaration global climate and biodiversity emergencies by the Council in July 2019, the Climate Emergency Advisory Panel contracted Laser to produce a Carbon Audit and Carbon Reduction Plan.  The initial results of this work in respect of the Council’s estate were set out under Sustainability in the Cross-Cutting section of the report.

-       In a very difficult market the Council had nevertheless achieved the letting of 69 St John’s Road to an Estate Agent, albeit with a 12 month rent free period.  As previously mentioned the property on Monson Road (ASK Restaurant) was being actively marketed. 

-       The Council’s aim was to try and retain tenants and keep income flowing in what was a very challenging market.  However, the Council would still look for rental growth where appropriate.

-       Estates were always proactively looking for investment opportunities and  worked closely with other departments within the Council to keep a close eye on what was happening in the market.

-       When considering the disposal or development of any piece of land the net benefit would always form part of the consideration. 

-       British Land held the long leasehold for the  ...  view the full minutes text for item 19