Issue - meetings

That:

1.  It be authorised to accept Offer B received for the Council’s freehold interest and to proceed to completion with the transaction.

2.  It be authorised to accept Offer B with such other terms as set out in Part 2 of this report.

3.  Authority be delegated to Director of Housing, Planning and Regeneration to finalise terms of sale to proceed with the transaction and conclude the disposal.

4.  Authority be delegated to the Director of Housing, Planning and Regeneration to accept Offer C, formalise the terms and complete the transaction, should Offer B fail to complete.

5.  The legal and professional costs associated with completing the transaction be funded from the capital receipt received.

6.  It be noted that details of the commercial terms of the offer being recommended for freehold disposal are commercially sensitive and therefore included within Part 2 of this report.

Report HPR2024/033

The report sought authorisation to select a preferred purchaser of the Bromley Civic Centre site for which the Local Authority was the freeholder.  The site extended to approximately 6.47 acres (2.73 hectares) and comprised Bromley Civic Centre, which was predominantly made up of six main buildings, Bromley Palace and associated car parking.  The site excluded Bromley Palace Park which would be maintained under Council ownership.  Marketing of the freehold interest of the Bromley Civic Centre site had been authorised by the Council’s Executive at its meeting on 30 November 2022 with the outcome of the marketing exercise to be reported to the Council’s Executive once concluded.

In opening the discussion, Members raised concerns about the lack of transparency within the report, questioning why so little information had been included in Part 1 (Public). It was highlighted that previous Part 1 reports concerning property disposals had included details such as the number of bidders and risk assessments that had been undertaken.  It was also noted that no detail had been provided in the Part 1 report concerning the alternative options that had been considered for the site. Members challenged why the decision could not have waited until the Committee’s next ordinary meeting in September 2024, and were told that there were different completion dates for some of the offers and not all completions could have waited until September 2024.

A Member observed that a detailed cost/benefit analysis of some of the key options available to the Council had been omitted from the report.  Options included the proposals presented to the Committee, delaying any sale to enable market conditions to improve and refurbishing the old Civic Centre to enable it to be used for temporary accommodation.

Another Member suggested that now was not the best time to sell the site as interest rates were high and the market was suppressed. The Committee challenged whether best consideration had been received and whether it justified the rushed sale.  Members stressed the need to be certain that all potential uses for the site had been considered and all potential offers received.  A Member suggested that any decision should be delayed giving Officers time to complete a more thorough analysis.

A Member highlighted that government grants for refurbishment of buildings for the provision of temporary accommodation were available.  The Council currently had significant cost pressures in temporary accommodation and the site could be used to mitigate against these increasing pressures. The Committee requested that details of the grants investigated for the refurbishment of the Grade II listed Palace Building be provided to Members following the meeting.

The Committee discussed the issue of any business rates that would be payable on the site.  The Director of Finance advised that if Members chose to delay any sale, business rate liability on the site would be £1m per annum and these costs would need to be factored into the decision-making process. It was noted that it was a complex site, particularly in relation to the  ...  view the full minutes text for item 28