Agenda item

The Committee gave consideration to the report and appendices (at pages 39 - 49) as delivered and summarised by the Planning, Development and Regeneration Manager which should be read together with these minutes as a composite document.

The Leader of the Council moved the recommendations as set out at paragraph 2.1 of the report (at page 39).

Councillors Mrs L Eaton seconded the recommendations.

The Leader of the Council enquired as to: (a) whether the option price on the property in question would subsequently become the market value if the property was to be sold at auction; and (b) if any profits accrued would be the sum paid into escrow.

The Planning, Development and Regeneration Manager advised that the entirey of proceeds received at any auction for the property would be the sum paid in escrow.

Councillor Mrs S B Morris enquired as to whether there could be any criticism in respect of the Council’s handling of the Compulsory Purchase Order (CPO) process if the property in question was to either sell for a price below the valuation undertaken by the Valuation Office Agency (VOA) or another sum otherwise involving a large differential. The Member’s cited concerns as to this Council’s obligation to secure the best price for any indentified beneficiaries.

The Planning, Development and Regeneration Manager advised that the valuation provided by the VOA was not realistic to bring back the building into some future use. It was said that each option available to the Council (viz. sealed bids, sale at auction etc.) would be reviewed in terms of their respective risks if Members were minded to make a CPO on the property.

The Director of Services / Monitoring Officer advised that if any sale at auction occurred imminently after the vesting of the property to the Council, no legal implications were to arise. The price determined at auction was said to be conclusive. She assured Memebers that the Council was, and would continue, to work in close partnership with the VOA to ensure legislative and regulatory compliance. 

The Deputy Leader of the Council enquired as to whether: (a) the property’s valuation would be revisited as part of the CPO process and reviewed at any auction; (b) what the CPO costs borne to the Council were to be; and (c) if the Council’s costs could be re-claimed from the funds paid into escrow.

The Director of Services / Monitoring Officer advised that the detailed process of the valuation required further exploration. It was said that the funds paid into escrow could not be removed and, if no beneficiaries where indentified in a proceeding 12-year period, the funds could be re-allocated to the expenditure budget with interest.

UNANIMOUSLY RESOLVED THAT:

(i)        A Compulsory Purchase Order under section 17 and Part XVII of the Housing Act 1985, and the Acquisition of Land Act 1981, for the acquisition of 41-43 Canal Street, South Wigston be made;

(ii)       That the Director of Services, in conjunction with the Chair of Policy, Finance and Development Committee and the Chief Financial Officer be granted delegated authority do anything necessary to give effect to the above at (i) including, but not limited to, undertaking all procedural steps required to:

(a)       make advertise and secure confirmation and implementation of the Compulsory Purchase Order;

(b)       acquire the legal interest in the property the subject of the proposed Compulsory Purchase Order, whether by voluntary agreement or compulsorily using statutory powers set out in the preceding paragraph;

(c)       take all necessary action to deal with all matters relating to the payment of compensation and statutory interest including approval of agreement with land owners (if they come forward) setting out the terms for withdrawal of objections to the Order and where necessary and/or appropriate the instituting or defending of related proceedings; and

(d)       dispose of the property in accordance with the proposals set out in this report.