|
From the MEDWAY COUNCIL CABINET, 22 FEBRUARY 2005.
THE WOODSMAN PUBLIC HOUSE, CHATHAM.
Portfolio holder: Councillor Alan Jarrett, Finance.
Report from: Neil Davies, Director of Finance and Corporate Services
Author: David Howe, Senior Valuation Surveyor – Valuation and
Asset Management
1. Summary
1.1 To seek Cabinet authority to declare surplus to requirements the
freehold site of the Woodsman Public House, Yarrow Road, Chatham.
2. Decision Issues
2.1 As the value of the consideration for the transaction will be over
£50,000 this matter exceeds the Director of Finance and Corporate
Services’ delegated powers. As the consideration is below £1,000,000,
it is a matter for Cabinet.
3. Background
3.1 From October 1960, the former Borough of Chatham granted a 99 year
lease of 0.344 acres of land to Truman Hanbury Buxton and Company
Limited to construct the Woodsman Public House. The lease was
granted at a fixed rent of £450 per annum and restricted to use as a
public house. The lease was assigned to Admiral Taverns (Relax) Ltd
the current tenant, in September 2004 as part of a chain of public
houses. The site is shown outlined black on the attached plan.
3.2 The property has traded reasonably successfully over the years.
However, in more recent times there have been a number of problems that culminated in its closure last year; since then it has remained
shut.
The property has been subject to vandalism, fly tipping and anti social
behaviour, and although the public house remains secure the site is
vulnerable.
3.3 Discussions have taken place with the tenant recently regarding the
future of the property. The tenant advises they no longer consider the
property to be viable as a public house and have marketed their
interest through an agent for alternative uses on the site.
3.4 The value of both the tenant’s and the Council’s present interests
are
relatively low. This is because the Council has a low fixed income for
the remainder of the term and the lease restricts the use to a public
house. The value in the property will be maximised by merging the two
interests to realise the freehold potential in the site.
4. Options
4.1 Options for the future of the freehold site of the Woodsman Public
House, including details of the ongoing negotiations and advice from
officers are detailed in the exempt appendix.
5. Financial and legal implications
5.1 These are set out in the report. Any capital receipt that results
will
contribute to the Council’s challenging capital receipt target of
£4,000,000 per annum.
5.2 Given the valuation advice set out in the exempt appendix the
disposal
would be at the best consideration reasonably obtainable.
6. Recommendation
6.1 The Cabinet is recommended to:
6.1.1 Declare the Council’s freehold interest in the property surplus to
requirements.
6.1.2 Request the Director of Finance and Corporate Services, in
consultation with the Finance Portfolio Holder, to proceed with its
disposal in accordance with option 4 as set out in the exempt appendix.
6.1.3 Delegate authority to the Director of Finance and Corporate
Services,
in consultation with the Finance Portfolio Holder, to dispose of the
property for the best consideration reasonably obtainable.
7. Suggested reasons for decision
7.1 If the Council does not proceed with a disposal the property is
likely to
remain closed as a public house and the site will continue to be the
subject of anti social behaviour. The Council owns no other land in the
area and this is an opportunity for the Council to receive a capital
receipt.
Lead officer contact
David Howe, Senior Valuation Surveyor – Valuation and Asset Management.
E-mail: david.howe@medway.gov.uk Telephone Number: (01634) 332494
Background papers
File held in Asset and Property Management reference HW/10.
|
