Agenda item

2, 4 and 6 Wilder Road, Ilfracombe

Report by Estates Officer (attached).

Minutes:

The Executive considered a report by the Estates Officer (circulated previously), the options and/or alternatives and other relevant facts set out in the report regarding the Council’s freehold interest in numbers 2, 4 and 6 Wilder Road, Ilfracombe.

 

The Estates Officer highlighted the following:

 

·         North Devon Council owned the freehold interest in numbers 2, 4 and 6 Wilder Road, Ilfracombe which were let on long leases to Young Devon. The two properties are used as a shared house and hostel accommodation for young people.

·         Following a flash flood last year, it was established that there were serious repairs needed to the structure and exterior of numbers 4 and 6, which were suffering significantly from rising damp. The Council faced considerable costs in carrying out repairs.

·         The lease arrangements for the three properties.  The leases restricted the user to providing accommodation for young persons.  The Council had a duty to provide accommodation for young persons.  Access to such accommodation was a valuable resource.  There was limited control from a freehold perspective.  There was a planning restriction on the property.

·         Options available to the Council as detailed in paragraphs 4.2, 4.3 and 4.4 of the report.

 

DECISIONS

 

(a)

That the Council dispose of numbers 2, 4 and 6 Wilder Road, Ilfracombe to include separate agreement with the Council for housing provision;

 

(b)

That authority be delegated to the Head of Resources to negotiate/agree a way forward with the tenants, in consultation with Portfolio Holders and Ward Member.

 

REASONS FOR DECISIONS

 

(a)

That consideration is given to whether investing in carrying out the repairs to the property is an appropriate use of funding for NDC.

 

(b)

The current costs of putting the building into repair and ongoing liabilities would be mitigated to NDC if the freehold was passed to the tenants.

 

(c)

A separate, stand alone management/operational agreement could be put in place with Young Devon, giving NDC, EH&H, more direct access to the accommodation for emergency accommodation provision. A clawback to NDC would also be incorporated.

 

(d)

Estates Officers have concerns over the future management liabilities NDC may have in continuing to hold the freehold interest in the properties. Both in terms of costs and liability for the occupants.

 

(e)

As background, these assets have been considered as viable for disposal as surplus assets since 2012. They were included on the initial disposal list in 2013, and a dialogue opened with the sitting tenants, with a view to obtaining valuation advice to agree a disposal figure. The primary reason for this being Estates concern over the occupational leases, minimum levels of return and the ongoing liabilities to NDC in terms of escalating repair costs going forward.

 

(f)

The assets were withdrawn from the surplus assets lists at EH&H request because of the nature of the accommodation they provided. However, it is our view as Estates Officers, that the lease structures do not provide any substantial security to NDC in prioritising our requirements for Temporary Accommodation needs and this could be secured more effectively by a separate standalone management or operational agreement with Young Devon.

 

(g)

Furthermore, the anticipated and unknown future repair costs to NDC arising out of the current leases, outweigh the limited benefits to NDC of getting access to the accommodation for our own clients.

 

Supporting documents: