Agenda item

To consider a joint report by the Directors of City Development and Resources & Housing which seeks to provide assurance and visibility on governance arrangements to manage, maintain and make best use of council buildings.

The scope of the report includes buildings with Listed status, but excludes council houses and schools for which there are separate governance arrangements in place.

(Report attached)

The Directors of City Development and Resources & Housing submitted a report which sought to provide assurance and visibility on governance arrangements to manage, maintain and make best use of council buildings.

The scope of the report also included buildings with Listed status, but excluded council houses and schools for which there were separate governance arrangements in place.

The Chief Officer Asset Management & Regeneration presented the report and responded to Members questions and queries.

Members questioned the length of time taken to identify shortfall of funding to deal with maintenance backlog and extent of resulting disrepair of some important assets.

Members were informed of some of the successful Community Asset transfers and further reassurance was provided around the continuing openness of the Council to Community Asset Transfer. 

Members queried the lengthy period of time for Community Asset Transfer to take place and resulting escalation of costs for groups interested in taking on the buildings concerned. The Mechanics Institute in Horsforth was provided as an example.

Reference was made to the Workflow table (Page 65 referred) which indicated that Community Asset Transfers could often take months/years to progress, in some cases assets suffering severe deterioration and the transfer being abandoned or resulting in a reduced capital receipt for the building.

The Chief Officer supported by a dedicated officer, confirmed a number of community asset transfer schemes were being progressed and groups were being supported to establish a sustainable business plan.

It was reported that the length of time to complete the transfer had a significant impact on the cost to groups for transfers.

Members accepted there was a balance to be struck between the sustainability of community use and the realisation of capital receipts to support the wider financial strategy, and requested that consideration be given, as part of the range of approaches adopted, to the provision of short term leases, with appropriate safeguards to the authority, for groups to enable occupation during the period in which the sustainable business case could be worked up with officers.

One Member asked if properties were purchased for investment purposes where there was no operational need. 

In responding the Chief Officer confirmed that properties were purchased to provide a resilient income stream in time of shortfall in resources – income of £10.4m per annum to cross fund council services. 

It was confirmed that the Scrutiny Board (Resources and Strategy) had already undertaken some scrutiny of these activities.

The Chair sought assurance as to the Council’s Investment Strategy and whether the primary focus on warehousing and office blocks was sufficiently resilient to adverse changes in the economy. Confirmation was also sought on whether there was engagement with the relevant portfolio holder on the approach adopted. 

It was the view of Members that further consideration be given to the breadth of the portfolio with potential to also include housing, such as student accommodation and other residential Housing to augment social housing. 

The Chief Officer confirmed that Leeds investment strategy remained, unlike some other local authorities within the Leeds Boundary and that residential investment, including student accommodation was an option for the authority in the future provided those opportunities link to regeneration outcomes.  It was also confirmed that the Executive Member responsible was kept updated on the Investment Strategy.

Committee asked for consideration to be given to an ‘ethical landlord strategy’ to reinforce the Council’s ethical values when letting commercial properties within the council’s portfolio.

The Chair thanked officers for their attendance and presentation.

RESOLVED –

(i)  To note the contents of the report and specifically the work that had taken place over the last nine months to review estate management, including governance

(ii)  To provide details of the average length of time for a Community Asset Transfer to be completed; with a breakdown of time from initial inquiry to occupation (including the length of time to work with groups to achieve an agreed supported business case)

(iii)  That the outcome of the Review of vacant properties on the void register be circulated to all Members of the Committee

(iv)  To provide to the Committee a list of properties that the Council owns outside of Leeds (or confirmation that there are none)

(v)  That the Chief Officer Asset Management & Regeneration be requested to engage with those Members who had highlighted specific issues in their wards.