Agenda item

18.1

The Executive Director, Place submitted a report summarising public objections to the proposed sale for residential use of Cobnar Cottage which adjoins the boundary wall of Graves Park.

18.2

RESOLVED: That Cabinet acting as Charity Trustees:-

(a)

notes the objections received, but for the reasons set out in this report, delegates authority to the Director of Legal and Governance to make an application to the Charity Commission for a scheme to give the Trustee the power to dispose of the freehold interest in Cobnar Cottage and to invest the capital receipt in improving the facilities in Graves Park, rather than holding it as a permanent endowment and just applying the income to the charitable objects; and

(b)

if an appropriate scheme is made by the Charity Commission following the application, confirms its authority to proceed with the disposal in accordance with the recommendations approved following the report to Cabinet on July 17 2013.

18.3

Reasons for Decision

18.3.1

The disposal of this surplus property on the open market would convert a current liability into an asset for the benefit of the Charity and therefore park users.  It would also start a process that will lead to the cottage being restored to residential use and provide a significant investment fund for the charity to improve the park.

18.3.2

The objections raised to the disposal principally focus on the Council’s legal right to sell the cottage, but a successful application for a scheme would deal with this issue, as set out in this report. The only alternative proposal to disposal put forward is demolition and creation of memorial garden put forward by the Friends of Graves Park, but this cannot be considered to be in the best interests of the charity for the reasons outlined in this report.

18.4

Alternatives Considered and Rejected

18.4.1

The empty property is now surplus to the Council’s and Charity’s requirements and is an on-going liability to the Charity.  A significant investment of at least £100,000 would be required to bring the property back into a habitable standard. The charity has no funds for this and even if funding were made available it has no productive use for the property. It may be possible to let the property, but the rental income would not be as beneficial to charity as the capital receipt obtained by selling the property. The Friends Group proposal requires a smaller investment of £23,400, but would create an on-going maintenance liability and not generate any possibility of deriving an income. It would also preclude any capital receipt to invest in improving the park.

18.5

Any Interest Declared or Dispensation Granted

None

18.6

Reason for Exemption if Public/Press Excluded During Consideration

None

18.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

18.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing

9.1

The Executive Director, Place submitted a report summarising public objections to the proposed sale for residential use of Cobnar Cottage which adjoins the boundary wall of Graves Park.

9.2

RESOLVED: That Cabinet acting as Charity Trustees:-

(a)

notes the objections received, but for the reasons set out in this report, delegates authority to the Director of Legal and Governance to make an application to the Charity Commission for a scheme to give the Trustee the power to dispose of the freehold interest in Cobnar Cottage and to invest the capital receipt in improving the facilities in Graves Park, rather than holding it as a permanent endowment and just applying the income to the charitable objects; and

(b)

if an appropriate scheme is made by the Charity Commission following the application, confirms its authority to proceed with the disposal in accordance with the recommendations approved following the report to Cabinet on 17 July 2013.

9.3

Reasons for Decision

9.3.1

The disposal of this surplus property on the open market would convert a current liability into an asset for the benefit of the Charity and therefore, park users.  It would also start a process that will lead to the cottage being restored to residential use and provide a significant investment fund for the Charity to improve the park.

9.3.2

The objections raised to the disposal principally focus on the Council’s legal right to sell the cottage, but a successful application for a scheme would deal with this issue, as set out in this report. The only alternative proposal to disposal put forward is demolition and creation of memorial garden put forward by the Friends of Graves Park, but this cannot be considered to be in the best interests of the charity for the reasons outlined in this report.

9.4

Alternatives Considered and Rejected

9.4.1

The empty property is now surplus to the Council’s and Charity’s requirements and is an on-going liability to the Charity.  A significant investment of at least £100,000 would be required to bring the property back into a habitable standard. The Charity has no funds for this and even if funding were made available, it has no productive use for the property. It may be possible to let the property, but the rental income would not be as beneficial to the Charity as the capital receipt obtained by selling the property. The Friends Group proposal requires a smaller investment of £23,400, but would create an on-going maintenance liability and not generate any possibility of deriving an income. It would also preclude any capital receipt to invest in improving the Park.