Agenda item

To consider the attached report of the Programme Director – Transformation, ICT and Information Management – regarding the proposed disposal of Corsham Mansion House and Corsham Library.

The Cabinet Member for Waste, Property, Environment and Development Control introduced the report and summarised the recommendations made. He explained that the proposal fitted within agreed principles that the Corsham campus should be funded in part through disposal of the property, among others.

 

Members’ attention was drawn to the two items of late representation made by members of the public expressing their views with regard to the proposals.

 

The Strategic Projects and Development Manager explained the content of the report, making the following key points:

 

·         Corsham Mansion House and Library are recommended for disposal by off-market sale;

·         The interested party, Hadston Ltd, are willing to offer full market value for the property;

·         Building is currently not fit for purpose, and represents a substantial liability due to its current state of repair;

·         Maintenance cost estimate, excluding fees and inflation over the next 25 years is in the region of £850,000,the majority of which would occur in the earlier rather than later years;

·         The maintenance costs could increase due to the building being Listed

·         Officers are satisfied that Hadston is the only bidder that would offer full market value for residential and/or other development purposes whilst being limited to  community uses, representing sound value for money;

·         That officers would undertake appropriate investigations into the company’s funding arrangements; and

·         That it should be noted that the proposal is for an off-market sale consistent with the agreed campus principles, and not a community asset transfer.

 

Mrs Jane Browning spoke as a member of the public, expressing her views on the proposals as follows:

 

·         That concerns are raised as to the community uses to which the building would be put, and what guarantees exist in this respect;

·         That the procurement process has not been sufficiently thorough in terms of property valuations and alternative buyers;

·         That the provenance of Hadston as a company, which formed as a subsidiary as recently as February 2011, is questionable;

·         That interest from third party organisations and prospective partners using the building has been overestimated by officers and Hadston;

·         That the full range of options available to Wiltshire Council in respect of the disposal and/or use of the building has not been fully explored;

·         That proposed measures to guarantee uses by condition are not sufficiently watertight or extensive;

·         That it should be the Council and not a company who proposes Terms and Conditions of contract, which should not include a confidentiality agreement;

·         That Corsham Town Council had envisaged the building as being put to retail and/or residential use in future; and therefore,

·         That the Committee cannot make an informed decision on the matter at this time.

 

The Strategic Projects and Development Manager addressed a number of these points, emphasising that officers were satisfied with the processes followed and that suitable guarantees would be obtained as part of any transaction. He also noted that the a joint report submitted to the 1^st February 2011 report to the Corsham Area Board by the Corsham Community Area Network & Corsham Town Council acknowledged that the Mansion House and Library buildings would be sold if the Operational Campus was to be delivered. The report also noted that some members of the community were concerned that the buildings may deteriorate rapidly during the intervening time, and that they wished to see them being used to the benefit of the local economy and community. It was therefore considered that Hadston’s proposals would meet both of these concerns.  He confirmed the Council had proposed the Terms and Conditions to Hadston, which did not include a Confidentiality Clause.

 

The Chairman raised a number of questions relating to the nature of the prospective buyer, Hadston Ltd, the valuation process and the conditions proposed as part of the sale. The Strategic Projects and Development Manager assured Members that he was satisfied with all three aspects and added that whilst seeking guarantees from the buyer, Wiltshire Council would have to make suitable guarantees as to the building’s future use (met through contract ‘overage’) to ensure that the maximum capital receipt is obtained. The Council would also seek an uplift clause, providing capital clawback in the event that the buyers were to develop all or part of the site for a more profitable use such as residential accommodation in future.

 

Mr Ian Storey spoke as a member of the public, raising the following questions:

 

·         Why had the proposal been rushed through, providing very little notice to local consultees such as the Corsham Area Board?

·         Why Hadston had made reference to extensive consultation with all stakeholders in their supporting document, when little, if any, of this had been undertaken?

 

Cllr Alan Macrae, the divisional member for Corsham Pickwick, requested permission to respond to the questions and explained that the proposal was consistent with the campus strategy agreed 18 months ago and was therefore by no means a rushed decision. He further noted that consultation had occurred between Hadston and the Vice-Chancellor and Property Manager at Bath Spa University, which would have a significant interest in using the building if the proposal were approved. The Strategic Projects and Development Manager suggested that further consultation occur if the proposal were approved and emphasised that Hadston had a unique intention to use the building for community purposes.

 

Cllr Peter Davis, the divisional member, expressed his views on the proposal as follows:

 

·         That he had been assured that the viability of the Corsham campus would not be predicated on  the disposal of this building;

·         That it was questionable whether community uses would remain valid once the campus development was completed;

·         That he had received several comments of concern from local residents, relating to:

-       Wiltshire Council contracting with Hadston Ltd

-       The track record of Hadston Ltd, a company in its infancy

-       Perceived short-termism of the Council’s approach

-       How much community benefit could be gained from the proposed uses

-       The overall viability of the proposed uses

-       That a third party had also approached the Council over the purchase of the buildings but was denied access to the properties

-       The responsibilities of the Council to conserve listed buildings, of which Corsham Mansion House is one

-       The wider impacts of a change of use on Corsham town centre

-       The lack of consultation with local stakeholders

-       The proposed means of transfer in light of the government’s localism principles

-       The lack of reference in the report to the building’s value and ongoing issues of confidentiality, and

-       The perceived insufficiency of the valuation process

·         That many local people have expressed concerns about the relocation of the library with campus development, and that this function could be retained at the property; and

·         That in light of the above, the item should be deferred for further consultation and investigation into alternative future uses of the building.

 

Cllr Alan Macrae, divisional Member for Corsham Pickwick, Chair of the Corsham Area Board and Area Board Representative on the Shadow COB, expressed his views on the proposal as follows:

 

·         Proposal represents a positive opportunity to dispose of a liability, obtain a capital receipt and retain community use for at least as long as will be required;

·         That the proposal demonstrates an acknowledgement that community functions do not necessarily have to be provided by the local authority;

·         That the interest of Bath Spa University presents a potential boost to Corsham and opportunities for commercial diversification;

·         That the campus principles, when agreed, endorsed the disposal of this property amongst others as an integral source of campus funding;

·         That the proposal has the support of the Chair of the Community Area Network, especially in terms of its potential to attract further investment;

·         That better communication with local people and Area Boards would have helped to clarify the proposals and reasons for these and address many local concerns; and would therefore,

·         Recommend that Hadston’s statement be revised to address local concerns and that Hadston send a representative to the soonest possible meeting of the Corsham Area Board to present their proposal, should the report be approved.

 

The Strategic Projects and Development Manager confirmed that a meeting with the third party had taken place but neither he nor Hadston had been allowed access but were both provided with the same information on the layout and condition of the properties. The third party was interested in the development of the property rather than retaining it for community use.

 

Cllrs Stuart Wheeler, Cabinet Member for Campus Development and Culture; Fleur de Rhe-Philipe, Cabinet Member for Economic Development and Strategic Planning; and John Noeken, Cabinet Member for Resources, all expressed their support for the proposals.

 

The Chairman requested that Hadston be required to present the scheme to the Corsham Area Board at the soonest appropriate opportunity upon purchase of the building.

 

Cllr Toby Sturgis reiterated his support for the proposals and assured Members that due diligence would continue to be exercised by offers in delivering the proposed transaction. He also noted that under the proposals, Hadston should be allowed to nominate an alternative charitable trust, to whom the building could be sold.

 

It was,

 

Resolved

 

To sell the Mansion House and Library at Pickwick Road Corsham to Hadston, or its nominated charitable trust, for community purposes at a price that reflects open market value for alternative uses, subject to officers being satisfied that the proposals are fully funded.

 

To request that Hadston present the scheme to the Corsham Area Board at the soonest opportunity upon purchase of the building.