Decision details
Assets and Property Overview & Strategy Brief (2019-2023) 'Making property assets work for Brent'
Decision Maker: Resources and Public Realm Scrutiny Committee
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: No
Decisions:
At the invitation of the Chair, Councillor McLennan (Deputy Leader) introduced the report outlining the council’s property assets and focus areas for the new Property Strategy being developed for 2020. In doing so, Councillor McLennan advised that she had taken over responsibility for this portfolio area at the start of the new administration in May 2018. Councillor Butt, the previous portfolio holder was also present to address any questions as necessary, alongside Althea Loderick (Strategic Director, Resources) and Oliver Judges (Interim Director of Assets and Property). Councillor McLennan emphasised that the Strategy would address how the council’s assets would be employed to the benefit of the council through cost reduction, income generation and value generation.
In the subsequent discussion, Members welcomed the strategic approach described and sought further detail regarding the process of property valuation and frequency of review. The committee advised that transparency was needed with regard to the provision rental subsidy for council assets and the associated decision-making process and sought confirmation of how often these arrangements were reviewed. Members sought assurance that assets would not be sold off en masse and questioned how the council’s property portfolio compared with those of other authorities. It was further queried how the council’s asset management strategy aligned with the One Public Estate initiative. A member proposed that organisations in receipt of a rental subsidy be advised of the level of discount provided in their monthly bill in order to highlight the council’s contribution to social value. It was further commented that the council should promote more widely the support it continues to offer the community and voluntary sector, even during times of austerity, via the provision of rental subsidies and suggested that this contribution should be quantified.
With reference to the table of council assets previously provided to the committee at its meeting in February 2018, the committee stated that for each asset the council should detail the commercial value, strategic value, rental value, lease expiry date and other relevant information and issues that would complicate usage or disposal. The committee sought confirmation of the timescales for completing this work. Members questioned the options appraisal process for vacant or underutilised assets and queried whether councillors’ feedback would be taken into consideration within the broader assets review. The committee sought comment on the usage of space within the Civic Centre and the provision of space for start-ups and small and medium sized enterprises (SME).
In response to the queries raised, Oliver Judges advised that in line with standard practice in local authorities, Brent Council conducted a mixture of desktop valuations and externally procured valuations. Where the options of disposal or development were considered, an external valuation would always be sought to ensure the council maximised value. Councillor Butt emphasised that many of the decisions to offer properties on a subsidised rental basis had been taken a number of years ago and the assessments of social value had been undertaken on a case by case basis.
Oliver Judges advised that the council had clear priorities to meet with regard to managing its asset portfolio and confirmed that in doing so, there would be occasions where disposal was the most appropriate option, for instance it might be necessary to adjust the council’s investment portfolio to maximise return and yield. The committee heard that the council worked closely with the One Public Estate programme to identify opportunities for Brent and Carolyn Downs advised that there was good cooperation with health partners in this regard. Oliver Judges explained that it was difficult to compare Brent’s property portfolio with other local authorities but broadly Brent was doing well, though had held many of the assets for quite a long time. Oliver Judges confirmed that it would not be economical to outsource the management of a smaller investment portfolio. Althea Loderick advised that the employment model in a council was different to that of a commercial company but there were clear expectations of employees and procedures in place to address performance issues. The council was however, pursuing a company structure where it was felt to be beneficial to the council, for example with the establishment of I4B.
Oliver Judges advised that officers were currently reviewing all of the data on Brent’s property assets and identifying how better management information could be accessed to improve decision making going forward. It was intended that this review work would be completed by the end of the current year. Councillor McLennan advised that in reviewing the council’s assets, the strategic value of each property would be assessed including the social value provided by groups in receipt of a rental subsidy. The council would work to support these community groups to maximise social value and work in partnership to achieve positive outcomes. Oliver Judges confirmed that if a property were to be made vacant an options appraisal would be carried out to determine the most appropriate course of action. Possible outcomes of such an appraisal could include disposal, regeneration and alternative usage. Councillor McLennan confirmed that as lead member she would be consulted if there were to be any controversial proposals for a particular asset and, acknowledging members insight and knowledge of local issues, welcomed input from other councillors to the review of the council’s property assets.
Althea Loderick advised that space in the Brent Civic Centre was rented to a number of organisations and it was currently used to capacity. Consideration was being given to remodelling certain areas of the building to be able to make more space available. Carolyn Downs advised that a report was due to be submitted to Cabinet in the near future regarding the provision of work space across the borough for small organisations or start-up businesses.
RESOLVED:
i) That the Strategic Director Resources ensure that the following information is provided to the committee:
o an updated table of Brent’s property assets (previously submitted to the committee at its meeting in February 2018) to include: all associated property values; income generated; lease expiry dates; how each property meets Brent’s strategic objectives, including a column showing social value; and, highlighting properties to which it would be difficult to make changes to existing usage, for example due to the terms on which a lease has been granted to a tenant;
o Details of the rolling timetable for undertaking property valuations of Brent’s property assets and the methodology for calculating values of Brent’s property assets, including the circumstances in which external valuations were sought.
ii) That the Strategic Director of Resources and the Deputy Leader feedback to the committee on the viability of the suggestion that the billing for all Brent’s properties let at a discounted rate, list the commercial value as well as the discounted value to illustrate the level of support provided by the council.
iii) That the Strategic Director of Resources arrange for an article to be included in the next Brent Magazine on the council’s contribution to social value in the borough.
iv) That the Strategic Director of Resources ensure that the support offered by the council in the form of rental subsidy to the voluntary and community sector is quantified and publically promoted.
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Publication date: 17/09/2018
Date of decision: 16/07/2018
Decided at meeting: 16/07/2018 - Resources and Public Realm Scrutiny Committee
Accompanying Documents: