Issue - meetings
Pavilion Buildings Southport
Meeting: 07/10/2021 - Cabinet (Item 59)
59 Pavilion Buildings Southport 
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Report of the Executive Director of Corporate Resources and Customer Services
Minutes:
Further to Minute No’s. 97 and 99 of the meeting of the Cabinet held on 9 January 2020 in relation to Asset Maximisation, the Cabinet considered the report of the Executive Director of Corporate Resources and Customer Services in relation to approval of the terms provisionally agreed to dispose of the Council’s freehold interest in Pavilion Buildings in Southport, following terms being agreed for a capital receipt as set out in the exempt Appendix to the report. The report indicated that the proposal was to convert the upper floors of the premises into a hotel above the public house currently located on the ground floor.
Decision Made: That:
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(1) |
the disposal of the freehold interest in Pavilion Buildings for the figure set out in Appendix 1, be approved. It was noted that the deal was not conditional upon planning consent and would be completed in the 2021/22 financial year. (Under the Asset Disposal Policy the capital receipt is above £500,001 which means it requires Cabinet approval);
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(2) |
the operational implications of the sale be noted. It was also noted that vacant possession would be required for the upper floors prior to completion. Property and Facilities Management were in the process of securing alternative accommodation for NSL private contract staff, which is a condition of the current contract; and
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(3) |
the Chief Legal and Democratic Officer be authorised to prepare the sale contracts and complete the necessary legal documentation to conclude the disposal. |
Reasons for the Decision:
(1) The agreed disposal price as set out in Appendix 1 meets best consideration requirements in accordance with Section 123 of the Local Government Act 1972.
(2) The capital receipt will be used to support other Growth Programme project priorities, and therefore help to meet the funding requirements of the Programme.
(3) Conversion to a hotel is in keeping with the wider Masterplan aspirations for the southern section of Lord Street, which support the active use of upper floors to support the evening economy and generate increased footfall in the town centre.
(4) Employment creation: the disposal will secure the Company’s future in Southport and the Company estimates that circa 40 additional full and part time jobs will be created.
Alternative Options Considered and Rejected:
(1) Do not proceed with sale – the Growth and Strategic Investment Programme would either need to be reduced in scale and ambition, or the timing of project delivery delayed. Alternatively, the Council would need to borrow capital funding from the Public Works Loans Board and this will increase the financial pressure on the revenue budget.
(2) Retain and refurbish the upper floors for residential use and either selling off the individual apartments on a long leasehold basis or alternatively, retaining the asset and renting out the flats to secure rental income. This option was considered and rejected as part of the asset review in 2019, since the financial return (both the receipt net of capital works costs and revenue income on the required capital investment to convert) to ... view the full minutes text for item 59