Issue - meetings

Report of the Strategic Director of Regeneration and Environment

Cabinet Member:     Councillor Lelliott (in advisory role)

Commissioner:         Kenny

Recommendations:

1.    That the disposal of the Council’s freehold interest in the land at  Grange Park, currently leased to the Rotherham Golf Academy is approved at a sale price of £150k subject to agreeing heads of terms and conditions and obtaining Valuation Office verification as detailed within Option 3 at paragraph 4.3 below. If the necessary verification is not obtained then it is recommended that Option 4 at paragraph 4.4 below is pursued instead.

2.    That the Assistant Director of Planning, Regeneration and Transport be authorised to approve the terms and conditions of the proposed disposal.

3.    That the Assistant Director of Legal Services be authorised to negotiate and complete the necessary documentation.

Consideration was given to a report which detailed a request to purchase land from the Council at Grange Park, Kimberworth by the current tenants, Rotherham Golf Academy (RGA).

It was reported that RGA asked to purchase the site on a number of occasions between 2007 and 2015 but each of these has been refused. As a result of ongoing discussions between the Council and RGA, a sale of the freehold interest had been considered with a minimum value assessed by the Council as being £167,000. A revised counter offer was made by RGA to purchase the freehold interest for £150,000, subject to full settlement of outstanding rent and business rate arrears, and with robust claw-back provisions to protect the Council’s long term interests.

It was recommended that the Council accept RGA’s offer of £150,000 and dispose of the Council’s freehold interest, subject to robust claw-back provisions and restrictive covenants contained within the transfer. This would also be subject to obtaining the necessary verification from the Valuation Office that the private treaty transaction was reasonable, based upon the agreed heads of terms and consideration of the existing lease provisions and robust clawback provisions. This was also subject to all rent and Business Rates charges being fully up to date in advance of the Cabinet and Commissioners’ Decision Making Meeting on 10 October 2016.

Commissioner Kenny agreed:-

(1)  That the disposal of the Council’s freehold interest in the land at  Grange Park, currently leased to the Rotherham Golf Academy be approved at a sale price of £150k subject to agreeing heads of terms and conditions and obtaining Valuation Office verification.

(2)  That the Assistant Director of Planning, Regeneration and Transport be authorised to approve the terms and conditions of the proposed disposal.

(3)  That the Assistant Director of Legal Services be authorised to negotiate and complete the necessary documentation.