Issue - meetings

Report of the Executive Director of Corporate Resources and Customer Services

Further to Minute No. 158 of the meeting of the Cabinet of 4 April 2024, the Council considered the report of the Executive Director of Corporate Resources and Customer Services on the principal terms and conditions agreed for the acquisition of the freehold interest in Magdalen House, Bootle.

The following exempt appendix was attached to the report:

·       Appendix 1 – Financial Details

It was moved by Councillor Atkinson, seconded by Councillor Fairclough:

That:

Acquisition of Magdalen House, 30 Trinity Road, Bootle

(1)      the acquisition of the freehold interest in Magdalen House, on the basis of the price detailed within Appendix 1 of the report, be approved;

(2)      the Chief Legal and Democratic Officer be authorised to complete the necessary legal documentation;

(3)      approval be granted to seek Public Works Loan Board (PWLB) funding to meet the capital costs required; and

(4)      a supplementary capital estimate, as detailed within Appendix 1 of the report, be approved for inclusion within the Capital Programme, to be funded by borrowing, repayments to be met from the annual rental saving.

Following a debate on the Motion the Chief Legal and Democratic Officer officiated a vote and the Mayor declared that the Motion was carried by 40 votes to none with 11 abstentions and it was:

RESOLVED:         That

(1)      the acquisition of the freehold interest in Magdalen House, on the basis of the price detailed within Appendix 1 of the report, be approved;

(2)      the Chief Legal and Democratic Officer be authorised to complete the necessary legal documentation;

(3)      approval be granted to seek Public Works Loan Board (PWLB) funding to meet the capital costs required; and

(4)      a supplementary capital estimate, as detailed within Appendix 1 of the report, be approved for inclusion within the Capital Programme, to be funded by borrowing, repayments to be met from the annual rental saving.

Report of the Executive Director of Corporate Resources and Customer Services

The Cabinet considered the report of the Executive Director of Corporate Resources and Customer Services on the principal terms and conditions agreed for the acquisition of the freehold interest in Magdalen House, Bootle.

The following exempt appendix was attached to the report:

·       Appendix 1 – Financial Details

Decisions Made:

That the Council be recommended to:

(1)           approve the acquisition of the freehold interest in Magdalen House on the basis of the price detailed within Appendix 1 of the report;

(2)           authorise the Chief Legal and Democratic Officer to complete the necessary legal documentation;

(3)           approve the seeking of Public Works Loan Board (PWLB) funding to meet the capital costs required; and

(4)           approve a supplementary capital estimate, as detailed within Appendix 1 of the report, for inclusion within the Capital Programme to be funded by borrowing, repayments to be met from the annual rental saving.

Reasons for the Decisions:

1.             An acquisition would allow the Council to occupy the Property rent free for the Useful Economic Life (UEL) of the Property and remove the requirement to pay dilapidations (based upon continued office uses).

2.             The Council would gain control and flexibility to react to its changing occupational needs and requirements, and with regards to the future of Bootle town centre (and beyond) – this included future opportunities around decanting into Bootle Town Hall, as associated capital costs to accommodate would no longer be required.

3.             The capital expenditure in acquiring the property was less than the remaining rental and anticipated dilapidation liabilities.

4.             The capital costs for acquisition would be sourced from PWLB.

Alternative Options Considered and Rejected:

Do nothing and remain as tenant.

The risks: The ‘do nothing’ approach was considered to be financially disadvantageous and also limited the Council in being able to affect change to meet its future occupational needs.