The Council considered the report circulated with the agenda.
Mrs Keegan (Cabinet Member for Commercial Services), seconded by Mrs Taylor, moved the recommendation of the Cabinet. She explained that the Council was seeking opportunities to invest in commercial property in the district to achieve a higher return than was currently available from bank deposits or the local authority property bond. Such opportunities had proved to be scarce, but the report described an opportunity that had recently arisen. The Cabinet had authorised the purchase, subject to the Head of Commercial Services, after consultation with herself, being satisfied with the final terms of acquisition following completion of survey and other due diligence investigations, which were currently in hand. The Cabinet recommended the Council to allocate £1,010,000 from reserves for the purchase plus usual acquisition costs.
In the ensuing debate, a number of members expressed reservations about the purchase.
Mrs Keegan explained that the Council was not being asked to approve the purchase. The condition of the building, the terms and conditions of the leases, the balance of risk and return on investment, and other matters about which concern had been expressed, would all be considerations to be taken into account once the survey and due diligence investigations had been completed.
The Chief Executive suggested that the Cabinet should be asked to make the decision whether to proceed with the acquisition itself, rather than delegate it. Such decision would be subject to call-in, under the rules in the Constitution. Mr Dignum proposed an amendment to the recommendation accordingly, duly seconded, and this was carried.
RESOLVED
That £1,010,000 be allocated from reserves for this purchase, subject to the Cabinet being satisfied as to the outcome of due diligence investigations.