Decision details

PURCHASE OF SITE AT 22 MARKET PLACE

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Decision Maker: City Mayor (Individual Decision)

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To purchase 22 Market Place then enter into a new lease with the Seller for the shop on a 3-year rent free period, subject to agreement of Heads of Terms; to enable further improvement work to the public realm around the market place.

Decision:

Approve the purchase of the freehold interest of 22 Market Place for £975,000 (£800,000 for the shop premises and £175,000 for the rear car park land) plus SDLT of approximately £48,000 and legal fee of £10,000 then enter into a 3-year new lease (contracted out of Landlord & Tenant Act 1954) with the Seller for the shop only on a 3-year period at a peppercorn rent.

Approve the release of £1,033,000 from the Capital Programme policy provision for Highways, Transport and Infrastructure to fund the strategic purchase of 22 Market Place.

Please Note: This decision was Called-In under Rule 12 of Part 4D of the Council’s Constitution. The Call-In was considered by the Overview Select Committee at its meeting on 8 September 2022 where it was withdrawn by resolution of the Committee in accordance with Rule 12 (g) of Part 4D of the Council’s Constitution. The original decision taken on 19 July 2022 is, therefore, deemed to be revived in its entirety.

Reasons for the decision:

This is a special purchase under the Local Government Act 1972 to enable the improvement of the Market Place area.

Alternative options:

Not to purchase the property.

Publication date: 11/07/2022

Date of decision: 19/07/2022

Effective from: 27/07/2022

This decision has been called in by:

Councillor Patrick Kitterick who writes We the undersigned wish to call in the City Mayor's executive decision to purchase 22 Market Place. We wish to do this in order to gain further insight as to the rationale for the purchase of this property, as the potential returns on the City Council's outlay do not appear to justify the investment and the report does not explain the strategic need for its purchase from a highways and transport infrastructure perspective. Assessing the acquisition as an investment, the purchase price, further granting of a peppercorn rent and potential costs of renovating a listed building, are not justified by even the most optimistic estimate of income. These estimates have further doubt cast on them by the present vacancies in the immediate vicinity of 22 Market Place. "
Councillor Susan Waddington who writes We the undersigned wish to call in the City Mayor's executive decision to purchase 22 Market Place. We wish to do this in order to gain further insight as to the rationale for the purchase of this property, as the potential returns on the City Council's outlay do not appear to justify the investment and the report does not explain the strategic need for its purchase from a highways and transport infrastructure perspective. Assessing the acquisition as an investment, the purchase price, further granting of a peppercorn rent and potential costs of renovating a listed building, are not justified by even the most optimistic estimate of income. These estimates have further doubt cast on them by the present vacancies in the immediate vicinity of 22 Market Place."
Councillor Ross Willmott who writes We the undersigned wish to call in the City Mayor's executive decision to purchase 22 Market Place. We wish to do this in order to gain further insight as to the rationale for the purchase of this property, as the potential returns on the City Council's outlay do not appear to justify the investment and the report does not explain the strategic need for its purchase from a highways and transport infrastructure perspective. Assessing the acquisition as an investment, the purchase price, further granting of a peppercorn rent and potential costs of renovating a listed building, are not justified by even the most optimistic estimate of income. These estimates have further doubt cast on them by the present vacancies in the immediate vicinity of 22 Market Place."
Councillor Dr Deborah Sangster who writes We the undersigned wish to call in the City Mayor's executive decision to purchase 22 Market Place. We wish to do this in order to gain further insight as to the rationale for the purchase of this property, as the potential returns on the City Council's outlay do not appear to justify the investment and the report does not explain the strategic need for its purchase from a highways and transport infrastructure perspective. Assessing the acquisition as an investment, the purchase price, further granting of a peppercorn rent and potential costs of renovating a listed building, are not justified by even the most optimistic estimate of income. These estimates have further doubt cast on them by the present vacancies in the immediate vicinity of 22 Market Place."
Councillor Sharmen Rahman who writes We the undersigned wish to call in the City Mayor's executive decision to purchase 22 Market Place. We wish to do this in order to gain further insight as to the rationale for the purchase of this property, as the potential returns on the City Council's outlay do not appear to justify the investment and the report does not explain the strategic need for its purchase from a highways and transport infrastructure perspective. Assessing the acquisition as an investment, the purchase price, further granting of a peppercorn rent and potential costs of renovating a listed building, are not justified by even the most optimistic estimate of income. These estimates have further doubt cast on them by the present vacancies in the immediate vicinity of 22 Market Place."

Accompanying Documents: