The report before Cabinet referred to the Council’s ownership of the Stubbers Adventure Centre. It was noted that a previous report concluded that no essential need existed for the Council to continue to own and control the property and that it should be offered for sale.

It was reported that the Council had a fiduciary duty to obtain best price when disposing of assets. The Council had been advised that the property should be openly marketed to ascertain its true value and that the existing tenant be encouraged to bid competitively in this process. The marketing had now concluded and the report made a recommendation that the property be sold to the Essex Youth Trust (who financially support the Centre and have a mutual trustee with Stubbers Adventure Centre charity) on the terms set out in the exempt part of the report before members.

It was noted that the proposed purchase would be funded and entered into by the Essex Youth Trust, who would then make suitable arrangements with the Stubbers Adventure Centre Limited to enable the existing operation as a charitable adventure centre to continue in perpetuity.

Reasons for the decision:

It had been concluded that Stubbers was not a property that the Council must continue to own and had agreed in principle to its disposal so as to permit sufficient tenure for a new owner to make the substantial investment required in the site to ensure its long term sustainability.

Other options considered:

1)      Retain the property and let the existing lease run to expiry and at that point review the rent and retain as an investment for the Council or sell to the market as an investment at that time. This would not allow an occupier to now invest in the premises as is operationally required, due to insufficient tenure.

2)      To negotiate to sell the premises only to the existing tenant. The Council was under no obligation to deal exclusively with the existing tenant.  The Council’s primary fiduciary obligation is to obtain best price for the asset. Without undertaking a marketing process it would be difficult to establish that the best price is being achieved as these types of property only occasionally come to the market and it is difficult to accurately gauge value without open marketing.

Cabinet RESOLVED:

1)         To agree the disposal of the Council’s freehold interest in the Stubbers Adventure Centre to the Essex Youth Trust on behalf of the Lessee on the terms set out in the exempt part of the report.

2)         That the Property Strategy Manger be authorised to deal with all matters arising and thereafter to complete the disposal of the site.